Tenable Holdings, Inc. (NASDAQ: TENB)

Sector: Technology Industry: Software - Infrastructure CIK: 0001660280
P/B 8.57
P/E -88.11
P/S 3.03
Market Cap 2.95 Bn
ROIC (Qtr) -0.53
Div Yield % 0.00
Rev 1y % (Qtr) 11.16
Total Debt (Qtr) 415.20 Mn
Debt/Equity (Qtr) 1.21

About

Tenable Holdings, Inc. (TENB) is a prominent player in the cybersecurity industry, specializing in exposure management solutions. The company's primary business activities revolve around providing organizations with tools to measure, compare, and reduce their cybersecurity risk. Tenable's operations span across various countries, serving a diverse range of industries including manufacturing, energy, technology, finance, healthcare, and retail. Tenable generates revenue through a variety of products and services. Its primary offerings include Tenable...

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Analysis

Pros

  • Strong operating cash flow of 264.84M provides robust 0.64x coverage of total debt 415.20M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 171.85M provide 20.64x coverage of short-term debt 8.33M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 247.55M exceeds capital expenditure of 17.29M by 14.32x, indicating strong organic growth funding capability.
  • Free cash flow of 247.55M provides exceptional 8.55x coverage of interest expense 28.95M, showing strong debt service ability.
  • Robust R&D investment of 213.45M at 0.39x of SG&A 551.11M demonstrates strong commitment to innovation and future growth.

Cons

  • Operating cash flow of 264.84M barely covers its investment activities of (184.62M), with a coverage ratio of -1.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (184.62M) provide weak support for R&D spending of 213.45M, which is -0.86x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 171.85M provide limited coverage of acquisition spending of (196.18M), which is -0.88x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 264.84M provides insufficient coverage of deferred revenue obligations of 810.50M, which is 0.33x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 264.84M shows concerning coverage of stock compensation expenses of 188.03M, with a 1.41 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 1.93 2.56
EV to Cash from Ops. 12.06 38.32
EV to Debt 7.69 -11.37
EV to EBIT 304.05 -12.79
EV to EBITDA 89.87 7.72
EV to Free Cash Flow [EV/FCF] 12.90 24.22
EV to Market Cap 1.08 0.58
EV to Revenue 3.28 -35.00
Price to Book Value [P/B] 8.57 3.74
Price to Earnings [P/E] -88.11 -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 0.36 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -63.03 -404.11
Cash and Equivalents Growth (1y) % -44.96 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 213.62 31.15
EBITDA Growth (1y) % 2,415.57 49.02
EBIT Growth (1y) % 182.85 25.85
EBT Growth (1y) % 59.14 17.82
EPS Growth (1y) % 45.10 70.69
FCF Growth (1y) % 50.71 295.45
Gross Profit Growth (1y) % 11.60 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.59 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 0.24 1.21
Current Ratio 0.94 2.57
Debt to Equity Ratio 1.21 -0.93
Interest Cover Ratio 0.36 -13.15
Times Interest Earned 0.36 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 5.20 -544.82
EBIT Margin % 1.08 -197.78
EBT Margin % -1.89 -602.74
Gross Margin % 77.90 52.06
Net Profit Margin % -3.40 -605.52