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.
1. SWI Profitability Analysis
1.1 Basic Checks
- In the past year SWI was profitable.
- SWI had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: SWI reported negative net income in multiple years.
- Each year in the past 5 years SWI had a positive operating cash flow.
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.
- 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.
- 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.
- SWI had an Average Return On Invested Capital over the past 3 years of 4.19%. This is significantly below the industry average of 10.91%.
- The 3 year average ROIC (4.19%) for SWI is below the current ROIC(6.11%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
1.3 Margins
- Looking at the Profit Margin, with a value of 14.04%, SWI is in the better half of 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.
- In the last couple of years the Operating Margin of SWI has grown nicely.
- SWI's Gross Margin of 89.55% is amongst the best of the industry. SWI outperforms 97.54% of its industry peers.
- In the last couple of years the Gross Margin of SWI has grown nicely.
| Industry Rank | Sector 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%
2. SWI Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWI is destroying value.
- Compared to 1 year ago, SWI has more shares outstanding
- SWI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SWI has a worse debt to assets ratio.
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.
- SWI has a Altman-Z score (1.03) which is comparable to the rest of the 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.
- 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.
- The Debt to Equity ratio of SWI (0.85) is worse than 72.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.19 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.54
WACC11.32%
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.
- 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.
- The Quick ratio of SWI (0.85) is worse than 80.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
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.
- SWI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.79% yearly.
- The Revenue has been growing slightly by 5.03% in the past year.
- SWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.56% yearly.
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.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. SWI Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.90, SWI is valued correctly.
- 86.27% of the companies in the same industry are more expensive than SWI, based on the Price/Earnings ratio.
- SWI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- Based on the Price/Forward Earnings ratio of 16.78, the valuation of SWI can be described as correct.
- 83.10% of the companies in the same industry are more expensive than SWI, based on the Price/Forward Earnings ratio.
- SWI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
- SWI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SWI is cheaper than 85.56% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SWI is valued cheaper than 82.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.91 | ||
| EV/EBITDA | 14.54 |
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
5. SWI Dividend Analysis
5.1 Amount
- SWI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SWI Fundamentals: All Metrics, Ratios and Statistics
18.49
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)05-01 2025-05-01/bmo
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 Rank | Sector 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 Rank | Sector 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 Number0 (-100%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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%.