SOLARWINDS CORP (SWI) Fundamental Analysis & Valuation

NYSE:SWI • US83417Q2049

Current stock price

18.49 USD
0 (0%)
At close:
18.4899 USD
0 (0%)
After Hours:

This SWI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. SWI Profitability Analysis

1.1 Basic Checks

  • In the past year SWI was profitable.
  • In the past year SWI had a positive cash flow from operations.
  • In multiple years SWI reported negative net income over the last 5 years.
  • In the past 5 years SWI always reported a positive cash flow from operatings.
SWI Yearly Net Income VS EBIT VS OCF VS FCFSWI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M -800M

1.2 Ratios

  • SWI has a better Return On Assets (3.53%) than 72.18% of its industry peers.
  • SWI has a Return On Equity of 7.99%. This is in the better half of the industry: SWI outperforms 72.89% of its industry peers.
  • SWI has a Return On Invested Capital of 6.11%. This is in the better half of the industry: SWI outperforms 77.46% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for SWI is significantly below the industry average of 10.99%.
  • The last Return On Invested Capital (6.11%) for SWI is above the 3 year average (4.19%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.53%
ROE 7.99%
ROIC 6.11%
ROA(3y)-8.6%
ROA(5y)-4.82%
ROE(3y)-20.17%
ROE(5y)-11.5%
ROIC(3y)4.19%
ROIC(5y)N/A
SWI Yearly ROA, ROE, ROICSWI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60

1.3 Margins

  • SWI has a better Profit Margin (14.04%) than 78.52% of its industry peers.
  • SWI's Profit Margin has improved in the last couple of years.
  • The Operating Margin of SWI (26.15%) is better than 92.61% of its industry peers.
  • SWI's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 89.55%, SWI belongs to the top of the industry, outperforming 97.54% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SWI has grown nicely.
Industry RankSector Rank
OM 26.15%
PM (TTM) 14.04%
GM 89.55%
OM growth 3YN/A
OM growth 5Y16.98%
PM growth 3YN/A
PM growth 5Y38.56%
GM growth 3Y9.39%
GM growth 5Y4.93%
SWI Yearly Profit, Operating, Gross MarginsSWI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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1

2. SWI Health Analysis

2.1 Basic Checks

  • SWI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for SWI has been increased compared to 1 year ago.
  • Compared to 5 years ago, SWI has more shares outstanding
  • The debt/assets ratio for SWI is higher compared to a year ago.
SWI Yearly Shares OutstandingSWI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SWI Yearly Total Debt VS Total AssetsSWI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

  • SWI has an Altman-Z score of 1.03. This is a bad value and indicates that SWI is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of SWI (1.03) is comparable to the rest of the industry.
  • The Debt to FCF ratio of SWI is 7.19, which is on the high side as it means it would take SWI, 7.19 years of fcf income to pay off all of its debts.
  • SWI has a Debt to FCF ratio of 7.19. This is comparable to the rest of the industry: SWI outperforms 53.87% of its industry peers.
  • A Debt/Equity ratio of 0.85 indicates that SWI is somewhat dependend on debt financing.
  • SWI has a worse Debt to Equity ratio (0.85) than 72.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF 7.19
Altman-Z 1.03
ROIC/WACC0.54
WACC11.32%
SWI Yearly LT Debt VS Equity VS FCFSWI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 0.85 indicates that SWI may have some problems paying its short term obligations.
  • With a Current ratio value of 0.85, SWI is not doing good in the industry: 80.99% of the companies in the same industry are doing better.
  • SWI has a Quick Ratio of 0.85. This is a bad value and indicates that SWI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SWI has a Quick ratio of 0.85. This is amonst the worse of the industry: SWI underperforms 80.63% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.85
SWI Yearly Current Assets VS Current LiabilitesSWI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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3

3. SWI Growth Analysis

3.1 Past

  • SWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.14%, which is quite impressive.
  • Measured over the past years, SWI shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.79% on average per year.
  • Looking at the last year, SWI shows a small growth in Revenue. The Revenue has grown by 5.03% in the last year.
  • Measured over the past years, SWI shows a small growth in Revenue. The Revenue has been growing by 3.56% on average per year.
EPS 1Y (TTM)51.14%
EPS 3Y-5.38%
EPS 5Y-4.79%
EPS Q2Q%112.5%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y3.51%
Revenue growth 5Y3.56%
Sales Q2Q%6.14%

3.2 Future

  • The Earnings Per Share is expected to decrease by -6.26% on average over the next years.
  • Based on estimates for the next years, SWI will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
EPS Next Y-17.13%
EPS Next 2Y-6.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.5%
Revenue Next 2Y4%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
SWI Yearly Revenue VS EstimatesSWI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
SWI Yearly EPS VS EstimatesSWI Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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6

4. SWI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.90, SWI is valued correctly.
  • Based on the Price/Earnings ratio, SWI is valued cheaper than 86.27% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of SWI to the average of the S&P500 Index (26.91), we can say SWI is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 16.78, which indicates a correct valuation of SWI.
  • SWI's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWI is cheaper than 83.10% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.68. SWI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13.9
Fwd PE 16.78
SWI Price Earnings VS Forward Price EarningsSWI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 85.56% of the companies in the same industry are more expensive than SWI, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, SWI is valued cheaply inside the industry as 82.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.91
EV/EBITDA 14.54
SWI Per share dataSWI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

4.3 Compensation for Growth

  • SWI has a very decent profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as SWI's earnings are expected to decrease with -6.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.26%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SWI Dividend Analysis

5.1 Amount

  • No dividends for SWI!.
Industry RankSector Rank
Dividend Yield N/A

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SWI Fundamentals: All Metrics, Ratios and Statistics

SOLARWINDS CORP

NYSE:SWI (4/15/2025, 8:04:00 PM)

After market: 18.4899 0 (0%)

18.49

0 (0%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)05-01
Inst Owners31.68%
Inst Owner Change-99.93%
Ins Owners1.27%
Ins Owner Change0%
Market Cap3.17B
Revenue(TTM)796.89M
Net Income(TTM)111.90M
Analysts51.43
Price Target17.49 (-5.41%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.99
Dividend Growth(5Y)N/A
DP150.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.74%
Min EPS beat(2)8.17%
Max EPS beat(2)85.3%
EPS beat(4)4
Avg EPS beat(4)34.6%
Min EPS beat(4)8.17%
Max EPS beat(4)85.3%
EPS beat(8)8
Avg EPS beat(8)27.79%
EPS beat(12)10
Avg EPS beat(12)18.98%
EPS beat(16)14
Avg EPS beat(16)18.3%
Revenue beat(2)2
Avg Revenue beat(2)2.33%
Min Revenue beat(2)2.07%
Max Revenue beat(2)2.6%
Revenue beat(4)4
Avg Revenue beat(4)1.59%
Min Revenue beat(4)0.29%
Max Revenue beat(4)2.6%
Revenue beat(8)8
Avg Revenue beat(8)2.03%
Revenue beat(12)10
Avg Revenue beat(12)1.35%
Revenue beat(16)12
Avg Revenue beat(16)-2.87%
PT rev (1m)0%
PT rev (3m)17.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.92%
EPS NY rev (1m)0%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
Industry RankSector Rank
PE 13.9
Fwd PE 16.78
P/S 3.98
P/FCF 18.91
P/OCF 16.85
P/B 2.27
P/tB N/A
EV/EBITDA 14.54
EPS(TTM)1.33
EY7.19%
EPS(NY)1.1
Fwd EY5.96%
FCF(TTM)0.98
FCFY5.29%
OCF(TTM)1.1
OCFY5.93%
SpS4.64
BVpS8.16
TBVpS-6.36
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 3.53%
ROE 7.99%
ROCE 7.74%
ROIC 6.11%
ROICexc 6.77%
ROICexgc N/A
OM 26.15%
PM (TTM) 14.04%
GM 89.55%
FCFM 21.06%
ROA(3y)-8.6%
ROA(5y)-4.82%
ROE(3y)-20.17%
ROE(5y)-11.5%
ROIC(3y)4.19%
ROIC(5y)N/A
ROICexc(3y)4.61%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)5.3%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y38.26%
OM growth 3YN/A
OM growth 5Y16.98%
PM growth 3YN/A
PM growth 5Y38.56%
GM growth 3Y9.39%
GM growth 5Y4.93%
F-Score7
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.85
Debt/FCF 7.19
Debt/EBITDA 4.22
Cap/Depr 27.54%
Cap/Sales 2.57%
Interest Coverage 1.99
Cash Conversion 66.59%
Profit Quality 149.97%
Current Ratio 0.85
Quick Ratio 0.85
Altman-Z 1.03
F-Score7
WACC11.32%
ROIC/WACC0.54
Cap/Depr(3y)23.89%
Cap/Depr(5y)17.54%
Cap/Sales(3y)2.62%
Cap/Sales(5y)2.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.14%
EPS 3Y-5.38%
EPS 5Y-4.79%
EPS Q2Q%112.5%
EPS Next Y-17.13%
EPS Next 2Y-6.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.03%
Revenue growth 3Y3.51%
Revenue growth 5Y3.56%
Sales Q2Q%6.14%
Revenue Next Year3.5%
Revenue Next 2Y4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y38.7%
EBIT growth 3YN/A
EBIT growth 5Y21.14%
EBIT Next Year9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.59%
FCF growth 3Y5.65%
FCF growth 5Y-10.12%
OCF growth 1Y2.63%
OCF growth 3Y6.43%
OCF growth 5Y-8.95%

SOLARWINDS CORP / SWI Fundamental Analysis FAQ

What is the fundamental rating for SWI stock?

ChartMill assigns a fundamental rating of 4 / 10 to SWI.


What is the valuation status of SOLARWINDS CORP (SWI) stock?

ChartMill assigns a valuation rating of 6 / 10 to SOLARWINDS CORP (SWI). This can be considered as Fairly Valued.


Can you provide the profitability details for SOLARWINDS CORP?

SOLARWINDS CORP (SWI) has a profitability rating of 7 / 10.


How financially healthy is SOLARWINDS CORP?

The financial health rating of SOLARWINDS CORP (SWI) is 1 / 10.


How sustainable is the dividend of SOLARWINDS CORP (SWI) stock?

The dividend rating of SOLARWINDS CORP (SWI) is 0 / 10 and the dividend payout ratio is 150.27%.