SOLARWINDS CORP (SWI) Stock Fundamental Analysis
USA - 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 281 industry peers in the Software industry. While SWI belongs to the best of the industry regarding profitability, 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
SWI had positive earnings in the past year.
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.
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.
SWI has a Return On Invested Capital of 6.11%. This is in the better half of the industry: SWI outperforms 77.46% of its industry peers.
SWI had an Average Return On Invested Capital over the past 3 years of 4.19%. This is significantly below the industry average of 11.95%.
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.
SWI's Profit Margin has improved in the last couple of years.
SWI has a better Operating Margin (26.15%) than 92.61% of its industry peers.
SWI's Operating Margin has improved in the last couple of years.
SWI has a Gross Margin of 89.55%. This is amongst the best in 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWI 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.
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.
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.
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
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 worse Current ratio (0.85) than 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.
Looking at the Quick ratio, with a value of 0.85, SWI is doing worse than 80.63% of the companies in the same industry.
| 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.
SWI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.79% yearly.
Looking at the last year, SWI shows a small growth in Revenue. The Revenue has grown by 5.03% in the last 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.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
SWI is valuated correctly with a Price/Earnings ratio of 13.90.
Compared to the rest of the industry, the Price/Earnings ratio of SWI indicates a rather cheap valuation: SWI is cheaper than 86.27% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SWI to the average of the S&P500 Index (26.35), we can say SWI is valued slightly cheaper.
SWI is valuated correctly with a Price/Forward Earnings ratio of 16.78.
Based on the Price/Forward Earnings ratio, SWI is valued cheaper than 83.10% of the companies in the same industry.
SWI is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.72, 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 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 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. Dividend
5.1 Amount
SWI does not give a dividend.
| 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)
Earnings (Next)
Inst Owners31.68%
Inst Owner Change-3.11%
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 for 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.
What is the valuation of SOLARWINDS CORP based on its PE and PB ratios?
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%.