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.
  • SWI had a positive operating cash flow in the past year.
  • In multiple years SWI reported negative net income over the last 5 years.
  • Each year in the past 5 years SWI had a positive operating cash flow.
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's Return On Assets of 3.53% is fine compared to the rest of the industry. SWI outperforms 72.18% of its industry peers.
  • 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.
  • SWI's Return On Invested Capital of 6.11% is fine compared to the rest 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 10.91%.
  • The 3 year average ROIC (4.19%) for SWI is below the current ROIC(6.11%), indicating increased profibility in the last year.
Industry 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.
  • In the last couple of years the Profit Margin of SWI has grown nicely.
  • With an excellent Operating Margin value of 26.15%, SWI belongs to the best of the industry, outperforming 92.61% of the companies in the same industry.
  • 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.
  • 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWI is destroying value.
  • SWI has more shares outstanding than it did 1 year ago.
  • SWI has more shares outstanding than it did 5 years ago.
  • SWI has a worse debt/assets ratio than last year.
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.
  • The Debt to FCF ratio of SWI (7.19) is comparable to the rest of the industry.
  • SWI has a Debt/Equity ratio of 0.85. This is a neutral value indicating SWI is somewhat dependend on debt financing.
  • SWI has a Debt to Equity ratio of 0.85. This is in the lower half of the industry: SWI underperforms 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

  • 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's Current ratio of 0.85 is on the low side compared to the rest of the industry. SWI is outperformed by 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.
  • SWI's Quick ratio of 0.85 is on the low side compared to the rest of the industry. SWI is outperformed by 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. SWI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 51.14% over the past year.
  • The Earnings Per Share has been decreasing by -4.79% on average over the past years.
  • 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

  • The Earnings Per Share is expected to decrease by -6.26% on average over the next years.
  • 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.
  • 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. SWI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.90, the valuation of SWI can be described as correct.
  • 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.
  • Compared to an average S&P500 Price/Earnings ratio of 27.79, SWI is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 16.78, which indicates a correct valuation of SWI.
  • 83.10% of the companies in the same industry are more expensive than SWI, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of SWI to the average of the S&P500 Index (38.88), we can say SWI is valued rather cheaply.
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

  • 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.
  • 82.75% of the companies in the same industry are more expensive than SWI, based on the Price/Free Cash Flow ratio.
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.
  • 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. SWI Dividend Analysis

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

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 Number0 (-100%)
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%.