Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Amidst today's fast-paced and highly competitive business environment, it is crucial for investors and industry enthusiasts to conduct comprehensive company evaluations. In this article, we will delve into an extensive industry comparison, evaluating CrowdStrike Holdings (NASDAQ:CRWD) in comparison to its major competitors within the Software industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of 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.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| CrowdStrike Holdings Inc | 834.91 | 32.43 | 24.63 | 2.48% | $0.12 | $0.64 | 32.63% |
| Microsoft Corp | 37.78 | 13.03 | 13.71 | 9.53% | $33.39 | $42.4 | 17.58% |
| Oracle Corp | 32.77 | 60.70 | 6.65 | 50.61% | $5.3 | $9.41 | 7.11% |
| ServiceNow Inc | 89.97 | 20.36 | 17.36 | 3.98% | $0.51 | $1.92 | 25.62% |
| Palo Alto Networks Inc | 41.05 | 19.67 | 12.39 | 53.52% | $0.21 | $1.48 | 19.33% |
| Gen Digital Inc | 9.97 | 5.80 | 3.74 | 5.96% | $0.47 | $0.77 | 1.6% |
| Dolby Laboratories Inc | 42.78 | 3.35 | 6.28 | 2.85% | $0.09 | $0.28 | -5.78% |
| Qualys Inc | 40.71 | 16.48 | 11.13 | 11.75% | $0.05 | $0.12 | 10.49% |
| Teradata Corp | 63.31 | 27.94 | 2.16 | -5.45% | $0.06 | $0.28 | 1.11% |
| N-able Inc | 98.38 | 3.32 | 5.64 | 1.35% | $0.03 | $0.09 | 13.22% |
| Progress Software Corp | 32.93 | 4.78 | 3.20 | 4.91% | $0.07 | $0.15 | 4.36% |
| Average | 48.96 | 17.54 | 8.23 | 13.9% | $4.02 | $5.69 | 9.46% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } After a detailed analysis of CrowdStrike Holdings, the following trends become apparent:
- Notably, the current Price to Earnings ratio for this stock, 834.91, is 17.05x above the industry norm, reflecting a higher valuation relative to the industry.
- The elevated Price to Book ratio of 32.43 relative to the industry average by 1.85x suggests company might be overvalued based on its book value.
- The stock's relatively high Price to Sales ratio of 24.63, surpassing the industry average by 2.99x, may indicate an aspect of overvaluation in terms of sales performance.
- With a Return on Equity (ROE) of 2.48% that is 11.42% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.
- With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $120 Million, which is 0.03x below the industry average, the company may face lower profitability or financial challenges.
- The gross profit of $640 Million is 0.11x below that of its industry, suggesting potential lower revenue after accounting for production costs.
- The company's revenue growth of 32.63% is notably higher compared to the industry average of 9.46%, showcasing exceptional sales performance and strong demand for its products or services.
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 terms of the Debt-to-Equity ratio, CrowdStrike Holdings can be assessed by comparing it to its top 4 peers, resulting in the following observations:
- CrowdStrike Holdings is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.34.
- This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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