Cellebrite DI Ltd. (NASDAQ: CLBT)

Sector: Technology Industry: Software - Infrastructure CIK: 0001854587
P/B 8.18
P/E 47.97
P/S 8.03
Market Cap 3.66 Bn
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...

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Analysis

Pros

  • 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.

Cons

  • 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 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 4.20 2.56
EV to Cash from Ops. 22.95 38.32
EV to Debt 163.49 -11.37
EV to EBIT 57.08 -12.79
EV to EBITDA 48.64 7.72
EV to Free Cash Flow [EV/FCF] 25.36 24.22
EV to Market Cap 0.96 0.58
EV to Revenue 7.69 -35.00
Price to Book Value [P/B] 8.18 3.74
Price to Earnings [P/E] 47.97 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage -2.68 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -40.20 -404.11
Cash and Equivalents Growth (1y) % 106.35 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % -3.75 31.15
EBITDA Growth (1y) % 8.08 49.02
EBIT Growth (1y) % 9.30 25.85
EBT Growth (1y) % 127.35 17.82
EPS Growth (1y) % 124.52 70.69
FCF Growth (1y) % 38.63 295.45
Gross Profit Growth (1y) % 17.68 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.55 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 0.89 1.21
Current Ratio 2.11 2.57
Debt to Equity Ratio 0.05 -0.93
Interest Cover Ratio -2.68 -13.15
Times Interest Earned -2.68 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 15.80 -544.82
EBIT Margin % 13.47 -197.78
EBT Margin % 18.49 -602.74
Gross Margin % 84.00 52.06
Net Profit Margin % 16.70 -605.52