Cellebrite DI Ltd. (NASDAQ: CLBT)

Sector: Technology Industry: Software - Infrastructure CIK: 0001854587
Market Cap 3.71 Bn
P/B 8.28
P/E 48.58
P/S 8.13
ROIC (Qtr) 11.34
Div Yield % 0.00
Rev 1y % (Qtr) 17.94
Total Debt (Qtr) 21.44 Mn
Debt/Equity (Qtr) 0.05

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...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 152.70M provides robust 7.12x coverage of total debt 21.44M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 281.36M provide 77.77x coverage of short-term debt 3.62M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 795.80M provides 37.12x coverage of total debt 21.44M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 138.21M exceeds capital expenditure of 14.49M by 9.54x, indicating strong organic growth funding capability.
  • Long-term investments of 69.58M provide solid 3.90x coverage of long-term debt 17.82M, indicating strategic financial planning.

Bear case

  • Operating cash flow of 152.70M barely covers its investment activities of (38.09M), with a coverage ratio of -4.01, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (38.09M) provide weak support for R&D spending of 109.61M, which is -0.35x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 152.70M provides insufficient coverage of deferred revenue obligations of 284.06M, which is 0.54x, raising concerns about future service delivery capabilities.
  • High receivables of 104.20M relative to inventory of 8.65M (12.05 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 152.70M shows concerning coverage of stock compensation expenses of 42.16M, with a 3.62 ratio indicating potential earnings 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 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.26 2.69
EV to Cash from Ops. EV/CFO 23.26 28.91
EV to Debt EV to Debt 165.65 19.83
EV to EBIT EV/EBIT 57.84 -9.95
EV to EBITDA EV/EBITDA 49.29 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 25.70 26.09
EV to Market Cap EV to Market Cap 0.96 0.36
EV to Revenue EV/Rev 7.79 -9.34
Price to Book Value [P/B] P/B 8.28 3.88
Price to Earnings [P/E] P/E 48.58 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) -2.68 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -40.20 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 106.35 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -3.75 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.08 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 9.30 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 127.35 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 124.52 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 38.63 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.68 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.89 1.22
Current Ratio Curr Ratio (Qtr) 2.11 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 -0.96
Interest Cover Ratio Int Coverage (Qtr) -2.68 -14.20
Times Interest Earned Times Interest Earned (Qtr) -2.68 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.80 -548.16
EBIT Margin % EBIT Margin % (Qtr) 13.47 -199.84
EBT Margin % EBT Margin % (Qtr) 18.49 -607.20
Gross Margin % Gross Margin % (Qtr) 84.00 51.88
Net Profit Margin % Net Margin % (Qtr) 16.70 -610.00