Cellebrite DI Ltd. (NASDAQ: CLBT)

Sector: Technology Industry: Software - Infrastructure CIK: 0001854587
Market Cap 3.50 Bn
P/B 7.23
P/E 44.69
P/S 7.36
ROIC (Qtr) 11.02
Div Yield % 0.00
Rev 1y % (Qtr) 18.13
Total Debt (Qtr) 22.67 Mn
Debt/Equity (Qtr) 0.05
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About

Cellebrite DI Ltd., known by its ticker symbol CLBT, is a prominent player in the digital investigative solutions industry. The company's offerings are primarily software and services-based, assisting public and private sector customers worldwide in transforming their investigative workflows and making digital evidence more accessible, actionable, and defensible. Cellebrite's business activities revolve around providing a wide range of digital investigative solutions. These solutions are used by approximately 7,000 customers globally, many of which...

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Investment thesis

Bull case

  • Strong operating cash flow of 173.54M provides robust 7.66x coverage of total debt 22.67M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 124.46M provide 31.15x coverage of short-term debt 4M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 737.82M provides 32.55x coverage of total debt 22.67M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 160.32M exceeds capital expenditure of 13.22M by 12.12x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 737.82M provides 3.58x coverage of working capital 206.19M, indicating strong operational backing.

Bear case

  • Operating cash flow of 173.54M barely covers its investment activities of (268.25M), with a coverage ratio of -0.65, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (268.25M) provide weak support for R&D spending of 113.88M, which is -2.36x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 124.46M provide limited coverage of acquisition spending of (147.46M), which is -0.84x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 173.54M provides insufficient coverage of deferred revenue obligations of 327.11M, which is 0.53x, raising concerns about future service delivery capabilities.
  • High receivables of 104.97M relative to inventory of 7.60M (13.81 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 2,948.93 Bn 24.73 9.65 57.61 Bn
2 ORCL Oracle Corp 734.55 Bn 67.24 19.76 124.39 Bn
3 PLTR Palantir Technologies Inc. 313.28 Bn 192.78 70.00 0.23 Bn
4 PANW Palo Alto Networks Inc 109.38 Bn 97.90 11.45 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 102.48 Bn -326.20 22.45 0.82 Bn
6 SNPS Synopsys Inc 69.14 Bn 51.90 9.80 14.29 Bn
7 NET Cloudflare, Inc. 66.52 Bn -645.60 33.04 3.50 Bn
8 FTNT Fortinet, Inc. 62.73 Bn 33.48 9.57 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.45 2.10
EV to Cash from Ops. EV/CFO 18.67 3.92
EV to Debt EV to Debt 142.93 -2.43
EV to EBIT EV/EBIT 48.74 11.57
EV to EBITDA EV/EBITDA 41.36 18.19
EV to Free Cash Flow [EV/FCF] EV/FCF 20.21 19.98
EV to Market Cap EV to Market Cap 0.93 1.27
EV to Revenue EV/Rev 6.81 29.29
Price to Book Value [P/B] P/B 7.23 4.97
Price to Earnings [P/E] P/E 44.69 -12.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.21
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.11
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.67
Interest Coverage Int. cover (Qtr) -2.75 -16.04
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -54.39 -403.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -35.06 223.80
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.59 585.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 16.05 5.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 16.82 27.96
EBT Growth (1y) % EBT 1y % (Qtr) 132.86 20.61
EPS Growth (1y) % EPS 1y % (Qtr) 123.70 144.77
FCF Growth (1y) % FCF 1y % (Qtr) 29.70 50.30
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.28 45.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.51 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.34 1.23
Current Ratio Curr Ratio (Qtr) 1.56 2.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.73
Interest Cover Ratio Int Coverage (Qtr) -2.75 -16.04
Times Interest Earned Times Interest Earned (Qtr) -2.75 -16.04
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 16.50 -549.97
EBIT Margin % EBIT Margin % (Qtr) 13.98 -240.33
EBT Margin % EBT Margin % (Qtr) 19.06 -608.68
Gross Margin % Gross Margin % (Qtr) 84.20 51.14
Net Profit Margin % Net Margin % (Qtr) 16.50 -611.28