SOLARWINDS CORP (SWI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWI - US83417Q2049 - Common Stock
18.49 USD
0 (0%)
18.4899 USD
0 (0%)
SWI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. SWI has an excellent profitability rating, but there are concerns on its financial health. SWI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year SWI was profitable.
- In the past year SWI had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 3.53%, SWI is doing good in the industry, outperforming 72.18% of the companies in the same industry.
- With a decent Return On Equity value of 7.99%, SWI is doing good in the industry, outperforming 72.89% of the companies in the same industry.
- With a decent Return On Invested Capital value of 6.11%, SWI is doing good in 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 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
- 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.
- SWI's Profit Margin has improved in the last couple of years.
- SWI's Operating Margin of 26.15% is amongst the best of the industry. SWI outperforms 92.61% of its industry peers.
- SWI's Operating Margin has improved in the last couple of years.
- SWI's Gross Margin of 89.55% is amongst the best of the industry. SWI outperforms 97.54% of its industry peers.
- SWI's Gross Margin has improved in the last couple of years.
| 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. 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.
- Compared to 1 year ago, SWI has more shares outstanding
- Compared to 5 years ago, SWI has more shares outstanding
- SWI has a worse debt/assets ratio than last year.
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.
- 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.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.19 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.54
WACC11.32%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that SWI may have some problems paying 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.
- SWI has a worse Quick ratio (0.85) than 80.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
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.
- 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.
- The Revenue is expected to grow by 4.00% on average over the next years.
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.
- 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. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.90, the valuation of SWI can be described as correct.
- 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 27.32.
- With a Price/Forward Earnings ratio of 16.78, SWI is valued correctly.
- Based on the Price/Forward Earnings ratio, SWI is valued cheaper than 83.10% of the companies in the same industry.
- SWI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SWI is valued cheaper than 85.56% of the companies in the same industry.
- 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 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.
- 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
5. Dividend
5.1 Amount
- No dividends for SWI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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-2.58%
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 NumberN/A
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 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%.