CrowdStrike Holdings, Inc. (NASDAQ: CRWD)

Sector: Technology Industry: Software - Infrastructure CIK: 0001535527
P/B 30.09
P/E -384.67
P/S 26.47
Market Cap 120.85 Bn
ROIC (Qtr) -12.19
Div Yield % 0.00
Rev 1y % (Qtr) 22.18
Total Debt (Qtr) 818.05 Mn
Debt/Equity (Qtr) 0.20

About

CrowdStrike Holdings, Inc. (CRWD) is a cybersecurity company that has revolutionized the way security is delivered and experienced by customers. Founded in 2011, the company operates primarily in the cybersecurity industry, providing cloud-native solutions that protect against sophisticated attacks, including malware-free and fileless attacks. CrowdStrike's main business activities are centered around its flagship product, the Falcon platform. This cloud-native platform provides endpoint detection and response, threat intelligence, and identity...

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Analysis

Pros

  • Strong operating cash flow of 1.46B provides robust 1.78x coverage of total debt 818.05M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 4.80B provide 301.41x coverage of short-term debt 15.93M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 8.47B provides 10.35x coverage of total debt 818.05M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.46B provides exceptional 53.82x coverage of interest expenses 27.13M, showing strong debt service capability.
  • Robust free cash flow of 1.10B exceeds capital expenditure of 356.05M by 3.10x, indicating strong organic growth funding capability.

Cons

  • Operating cash flow of 1.46B barely covers its investment activities of (966.52M), with a coverage ratio of -1.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (966.52M) provide weak support for R&D spending of 1.34B, which is -0.72x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 4.80B provide limited coverage of acquisition spending of (594.79M), which is -8.07x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 1.46B provides insufficient coverage of deferred revenue obligations of 4.06B, which is 0.36x, raising concerns about future service delivery capabilities.
  • Operating earnings of (202.96M) show weak coverage of depreciation charges of 278.19M, with a -0.73 ratio indicating high capital intensity and potential reinvestment needs.

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 11.71 2.56
EV to Cash from Ops. 79.91 38.32
EV to Debt 142.64 -11.37
EV to EBIT -574.91 -12.79
EV to EBITDA -1,021.89 7.72
EV to Free Cash Flow [EV/FCF] 105.68 24.22
EV to Market Cap 0.97 0.58
EV to Revenue 25.56 -35.00
Price to Book Value [P/B] 30.09 3.74
Price to Earnings [P/E] -384.67 -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 -7.48 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -30.74 -404.11
Cash and Equivalents Growth (1y) % 12.69 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % -288.89 31.15
EBITDA Growth (1y) % -154.84 49.02
EBIT Growth (1y) % -206.12 25.85
EBT Growth (1y) % -239.30 17.82
EPS Growth (1y) % -344.23 70.69
FCF Growth (1y) % -0.59 295.45
Gross Profit Growth (1y) % 20.24 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.46 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 1.33 1.21
Current Ratio 1.81 2.57
Debt to Equity Ratio 0.20 -0.93
Interest Cover Ratio -7.48 -13.15
Times Interest Earned -7.48 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 1.60 -544.82
EBIT Margin % -4.45 -197.78
EBT Margin % -5.04 -602.74
Gross Margin % 74.10 52.06
Net Profit Margin % -6.90 -605.52