Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly changing and highly competitive business world, it is imperative for investors and industry observers to carefully assess companies before making investment choices. In this article, we will undertake a comprehensive industry comparison, evaluating CrowdStrike Holdings (NASDAQ:CRWD) vis-à-vis its key competitors in the Software industry. Through a detailed analysis of important financial indicators, market standing, and growth potential, our goal is to provide valuable insights and highlight company's performance in the industry.
CrowdStrike Holdings Background CrowdStrike is a cloud-based cybersecurity company specializing in next-generation security verticals such as endpoint, cloud workload, identity, and security operations. CrowdStrike's primary offering is its Falcon platform that offers a proverbial single pane of glass for an enterprise to detect and respond to security threats attacking its IT infrastructure. The Texas-based firm was founded in 2011 and went public in 2019.
| CrowdStrike Holdings Inc | 934.95 | 36.51 | 27.58 | 2.48% | $0.12 | $0.64 | 32.63% |
| Microsoft Corp | 36.41 | 12.34 | 13.26 | 8.93% | $33.55 | $43.35 | 17.03% |
| Oracle Corp | 32.59 | 60.37 | 6.62 | 50.61% | $5.3 | $9.41 | 7.11% |
| ServiceNow Inc | 81.74 | 19.38 | 16.66 | 4.41% | $0.56 | $2.08 | 24.19% |
| Palo Alto Networks Inc | 49.20 | 23.57 | 14.85 | 53.52% | $0.21 | $1.48 | 19.33% |
| Gen Digital Inc | 26.07 | 7.13 | 4.22 | 5.81% | $0.49 | $0.78 | 2.11% |
| Monday.Com Ltd | 558.12 | 13.08 | 14.41 | 0.85% | $-0.0 | $0.19 | 33.69% |
| Dolby Laboratories Inc | 43.22 | 3.32 | 6.46 | 4.1% | $0.13 | $0.33 | -3.02% |
| Qualys Inc | 34.13 | 13.45 | 9.72 | 10.29% | $0.05 | $0.12 | 11.57% |
| CommVault Systems Inc | 29.66 | 17.36 | 5.98 | 55.72% | $0.02 | $0.18 | 9.74% |
| Teradata Corp | 79.93 | 60.12 | 1.87 | 21.16% | $0.07 | $0.28 | -2.31% |
| N-able Inc | 85.20 | 3.33 | 5.48 | 1.05% | $0.03 | $0.1 | 13.96% |
| Progress Software Corp | 33.17 | 4.81 | 3.22 | 4.91% | $0.06 | $0.15 | 12.46% |
| SolarWinds Corp | 202.33 | 1.59 | 2.64 | 1.14% | $0.07 | $0.17 | 3.94% |
| Average | 99.37 | 18.45 | 8.11 | 17.12% | $3.12 | $4.51 | 11.52% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } By carefully studying CrowdStrike Holdings, we can deduce the following trends:
- Notably, the current Price to Earnings ratio for this stock, 934.95, is 9.41x above the industry norm, reflecting a higher valuation relative to the industry.
- The elevated Price to Book ratio of 36.51 relative to the industry average by 1.98x suggests company might be overvalued based on its book value.
- With a relatively high Price to Sales ratio of 27.58, which is 3.4x the industry average, the stock might be considered overvalued based on sales performance.
- The company has a lower Return on Equity (ROE) of 2.48%, which is 14.64% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
- The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $120 Million is 0.04x below the industry average, suggesting potential lower profitability or financial challenges.
- The gross profit of $640 Million is 0.14x below that of its industry, suggesting potential lower revenue after accounting for production costs.
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The company is experiencing remarkable revenue growth, with a rate of 32.63%, outperforming the industry average of 11.52%.
The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In light of the Debt-to-Equity ratio, a comparison between CrowdStrike Holdings and its top 4 peers reveals the following information:
- Among its top 4 peers, CrowdStrike Holdings has a stronger financial position with a lower debt-to-equity ratio of 0.34.
- This indicates that the company relies less on debt financing and maintains a more favorable balance between debt and equity, which can be viewed positively by investors.
On the other hand, the low ROE, EBITDA, and gross profit margins, coupled with high revenue growth, indicate that CrowdStrike Holdings may be prioritizing growth over profitability. This strategy could be driving the high valuation multiples but may also pose risks in terms of sustainability and long-term financial performance compared to industry peers.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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