CyberArk Software Ltd. (NASDAQ: CYBR)

Sector: Technology Industry: Software - Infrastructure CIK: 0001598110
Market Cap 21.64 Bn
P/B 9.27
P/E -95.35
P/S 16.61
ROIC (Qtr) -6.69
Div Yield % 0.00
Rev 1y % (Qtr) 42.79
Total Debt (Qtr) 1.22 Bn
Debt/Equity (Qtr) 0.52

About

Price action

Investment thesis

Bull case

  • Robust free cash flow of 198.28M exceeds capital expenditure of 20.39M by 9.72x, indicating strong organic growth funding capability.
  • R&D investment of 320.81M represents healthy 0.46x of deferred revenue 696.61M, indicating strong future innovation pipeline.
  • Cash position of 523.56M represents healthy 0.54x of working capital 976.28M, demonstrating strong operational liquidity.
  • Robust R&D investment of 320.81M at 0.40x of SG&A 809.28M demonstrates strong commitment to innovation and future growth.
  • Short-term investments of 944.06M provide healthy 0.97x coverage of working capital 976.28M, indicating strong liquidity.

Bear case

  • Operating cash flow of 218.67M barely covers its investment activities of (2.34B), with a coverage ratio of -0.09, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.34B) provide weak support for R&D spending of 320.81M, which is -7.29x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 218.67M provides insufficient coverage of deferred revenue obligations of 696.61M, which is 0.31x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 218.67M shows concerning coverage of stock compensation expenses of 214.35M, with a 1.02 ratio indicating potential earnings quality issues.
  • Operating earnings of (137.99M) show weak coverage of depreciation charges of 127.14M, with a -1.09 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 3,563.59 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 4.77 2.69
EV to Cash from Ops. EV/CFO 100.47 28.91
EV to Debt EV to Debt 18.00 19.83
EV to EBIT EV/EBIT -159.21 -9.95
EV to EBITDA EV/EBITDA -2,025.07 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 110.80 26.09
EV to Market Cap EV to Market Cap 1.02 0.36
EV to Revenue EV/Rev 16.86 -9.34
Price to Book Value [P/B] P/B 9.27 3.88
Price to Earnings [P/E] P/E -95.35 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) 2.81 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -161.98 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -57.73 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1,356.63 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 63.86 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) -198.98 20.13
EBT Growth (1y) % EBT 1y % (Qtr) -470.59 14.16
EPS Growth (1y) % EPS 1y % (Qtr) -1,645.16 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -3.87 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 34.94 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.28 0.67
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.61 1.22
Current Ratio Curr Ratio (Qtr) 2.14 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.52 -0.96
Interest Cover Ratio Int Coverage (Qtr) 2.81 -14.20
Times Interest Earned Times Interest Earned (Qtr) 2.81 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -0.80 -548.16
EBIT Margin % EBIT Margin % (Qtr) -10.59 -199.84
EBT Margin % EBT Margin % (Qtr) -6.82 -607.20
Gross Margin % Gross Margin % (Qtr) 76.10 51.88
Net Profit Margin % Net Margin % (Qtr) -17.40 -610.00