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.
  • The reported net income has been mixed in the past 5 years: SWI reported negative net income in multiple 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

  • Looking at the Return On Assets, with a value of 3.53%, SWI is in the better half of the industry, outperforming 72.18% of the companies in the same industry.
  • 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.
  • The Average Return On Invested Capital over the past 3 years for SWI is significantly below the industry average of 10.92%.
  • 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's Profit Margin of 14.04% is fine compared to the rest of the industry. SWI outperforms 78.52% of its industry peers.
  • SWI's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 26.15%, SWI belongs to the top of the industry, outperforming 92.61% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SWI has grown nicely.
  • SWI has a better Gross Margin (89.55%) than 97.54% of its industry peers.
  • 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. 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.
  • 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

  • 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.
  • 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's Debt to FCF ratio of 7.19 is in line compared to the rest of the industry. SWI outperforms 53.87% of its industry peers.
  • SWI has a Debt/Equity ratio of 0.85. This is a neutral value indicating 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 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.
  • Looking at the Current ratio, with a value of 0.85, SWI is doing worse than 80.99% of the companies in the same industry.
  • 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. SWI Growth Analysis

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

  • Based on estimates for the next years, SWI will show a decrease in Earnings Per Share. The EPS will decrease by -6.26% on average per year.
  • 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

  • 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.
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

  • SWI is valuated correctly with a Price/Earnings ratio of 13.90.
  • 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 (24.88), we can say SWI is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 16.78, which indicates a correct valuation of SWI.
  • Based on the Price/Forward Earnings ratio, SWI is valued cheaply inside the industry as 83.10% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, SWI is valued a bit 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

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

  • The decent profitability rating of SWI 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.


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%.