SOLARWINDS CORP (SWI) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:SWI • US83417Q2049

18.49 USD
0 (0%)
At close: Apr 15, 2025
18.4899 USD
0 (0%)
After Hours: 4/15/2025, 8:04:00 PM
Fundamental Rating

4

SWI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. While SWI has a great profitability rating, there are quite some concerns on its financial health. SWI has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • SWI had positive earnings in the past year.
  • SWI had a positive operating cash flow in the past year.
  • In multiple years SWI reported negative net income over the last 5 years.
  • SWI had a positive operating cash flow in each of the past 5 years.
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 Return On Assets of 3.53%. This is in the better half of the industry: SWI outperforms 72.18% of its industry peers.
  • The Return On Equity of SWI (7.99%) is better than 72.89% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.11%, SWI is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SWI is significantly below the industry average of 10.78%.
  • 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

  • With a decent Profit Margin value of 14.04%, SWI is doing good in the industry, outperforming 78.52% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SWI has grown nicely.
  • SWI has a Operating Margin of 26.15%. This is amongst the best in the industry. SWI outperforms 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.
  • SWI's Gross Margin has improved in the last couple of years.
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. Health

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.
  • SWI has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for SWI has been increased compared to 5 years ago.
  • 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

  • Based on the Altman-Z score of 1.03, we must say that SWI is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.03, SWI is in line with its industry, outperforming 40.14% of the companies in the same industry.
  • SWI has a debt to FCF ratio of 7.19. This is a slightly negative value and a sign of low solvency as SWI would need 7.19 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 7.19, SWI is in line with its industry, outperforming 53.87% of the companies in the same industry.
  • A Debt/Equity ratio of 0.85 indicates that SWI is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.85, SWI is not doing good in the industry: 72.18% of the companies in the same industry are doing better.
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

  • SWI has a Current 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 Current ratio of 0.85. This is amonst the worse of the industry: SWI underperforms 80.99% of its industry peers.
  • A Quick Ratio of 0.85 indicates that SWI may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.85, SWI is not doing good in the industry: 80.63% of the companies in the same industry are doing better.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 51.14% over the past year.
  • 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.
  • The Revenue has been growing slightly by 5.03% in the past year.
  • The Revenue has been growing slightly by 3.56% on average over the past years.
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

  • SWI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.26% yearly.
  • SWI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.90, which indicates a correct valuation of SWI.
  • SWI's Price/Earnings ratio is rather cheap when compared to the industry. SWI is cheaper than 86.27% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.25. SWI is valued rather cheaply when compared to this.
  • SWI is valuated correctly with a Price/Forward Earnings ratio of 16.78.
  • Based on the Price/Forward Earnings ratio, SWI is valued cheaply inside the industry as 83.10% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of SWI to the average of the S&P500 Index (27.50), we can say SWI is valued slightly cheaper.
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 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SWI is valued cheaply inside the industry as 85.56% of the companies are valued more expensively.
  • 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

  • The decent profitability rating of SWI may justify a higher PE ratio.
  • SWI's earnings are expected to decrease with -6.26% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.26%
EPS Next 3YN/A

More info and screens

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

0

5. Dividend

5.1 Amount

  • SWI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

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-99.92%
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 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.


How profitable is SOLARWINDS CORP (SWI) stock?

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


Can you provide the PE and PB ratios for SWI stock?

The Price/Earnings (PE) ratio for SOLARWINDS CORP (SWI) is 13.9 and the Price/Book (PB) ratio is 2.27.


Can you provide the dividend sustainability for SWI stock?

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