DB:07S

Stock Analysis Report

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Executive Summary

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers from cyber attacks in the United States and internationally.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has SecureWorks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 07S has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

07S

1.5%

DE Software

1.5%

DE Market


1 Year Return

0.4%

07S

25.5%

DE Software

6.4%

DE Market

Return vs Industry: 07S underperformed the German Software industry which returned 29.2% over the past year.

Return vs Market: 07S underperformed the German Market which returned 8% over the past year.


Shareholder returns

07SIndustryMarket
7 Day-1.0%1.5%1.5%
30 Day-2.9%3.4%-0.6%
90 Day-6.4%22.1%11.0%
1 Year0.4%0.4%27.3%25.5%8.7%6.4%
3 Year13.9%13.9%61.5%55.0%5.7%-2.7%
5 Yearn/a131.1%115.4%14.8%-0.7%

Price Volatility Vs. Market

How volatile is SecureWorks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SecureWorks undervalued compared to its fair value and its price relative to the market?

33.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 07S (€10.2) is trading below our estimate of fair value (€15.26)

Significantly Below Fair Value: 07S is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 07S is unprofitable, so we can't compare its PE Ratio to the DE Software industry average.

PE vs Market: 07S is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 07S's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 07S is good value based on its PB Ratio (1.5x) compared to the DE Software industry average (3.5x).


Next Steps

Future Growth

How is SecureWorks forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 07S is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 07S is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 07S is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 07S's revenue (5.4% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: 07S's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 07S's Return on Equity is forecast to be low in 3 years time (2%).


Next Steps

Past Performance

How has SecureWorks performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 07S is currently unprofitable.

Growing Profit Margin: 07S is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 07S is unprofitable, but has reduced losses over the past 5 years at a rate of 19.9% per year.

Accelerating Growth: Unable to compare 07S's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 07S is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (32.1%).


Return on Equity

High ROE: 07S has a negative Return on Equity (-4.69%), as it is currently unprofitable.


Next Steps

Financial Health

How is SecureWorks's financial position?


Financial Position Analysis

Short Term Liabilities: 07S's short term assets ($301.0M) exceed its short term liabilities ($266.6M).

Long Term Liabilities: 07S's short term assets ($301.0M) exceed its long term liabilities ($87.8M).


Debt to Equity History and Analysis

Debt Level: 07S is debt free.

Reducing Debt: 07S had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 07S has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 07S is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 60.9% per year.


Next Steps

Dividend

What is SecureWorks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 07S's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 07S's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 07S's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 07S's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 07S's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Mike Cote (59 yo)

5.25yrs

Tenure

US$4,482,273

Compensation

Mr. Michael R. Cote, also known as Mike, serves as Director at ExtraHop Networks, Inc. since March 2019. He has been the Chief Executive Officer of SecureWorks Corp. since May 2015 and served as its Presid ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.48M) is above average for companies of similar size in the German market ($USD1.29M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Cote
CEO & Director5.25yrsUS$4.48m1.51%
$ 12.6m
Paul Parrish
Senior VP & CFO1.58yrsUS$3.56mno data
Kevin Hanes
Chief Operating Officer3.58yrsno datano data
Christian Grant
VP & Chief Accounting Officer0.33yrno data0.025%
$ 205.1k
Jon Ramsey
Chief Technology Officerno datano datano data
George Hanna
Senior VP3.58yrsno datano data
Elizabeth Clarke
Director of Media Relationsno datano datano data
Steve Hardy
Chief Marketing Officer0.83yrno datano data
Ian Bancroft
Chief Sales Officer1.58yrsno datano data
Stacie Hagan
Chief People Officer5.08yrsno datano data
Barry Hensley
Chief Threat Intelligence Officer3.58yrsno datano data
Wendy Thomas
President of Customer Success2.5yrsno data0.40%
$ 3.3m

3.0yrs

Average Tenure

53yo

Average Age

Experienced Management: 07S's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Cote
CEO & Director5.25yrsUS$4.48m1.51%
$ 12.6m
Yagyensh Pati
Independent Director3.92yrsUS$228.99k0.064%
$ 530.6k
Michael Dell
Non-Executive Chairman4.67yrsno datano data
Pamela Daley
Independent Director4.33yrsUS$270.49k0.18%
$ 1.5m
Mark Hawkins
Independent Director4.33yrsUS$278.49k0.12%
$ 1.0m
Kyle Paster
Director0.25yrno datano data

4.3yrs

Average Tenure

59yo

Average Age

Experienced Board: 07S's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SecureWorks Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SecureWorks Corp.
  • Ticker: 07S
  • Exchange: DB
  • Founded: 1999
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$988.144m
  • Listing Market Cap: US$834.191m
  • Shares outstanding: 82.14m
  • Website: https://www.secureworks.com

Number of Employees


Location

  • SecureWorks Corp.
  • One Concourse Parkway NE
  • Suite 500
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCWXNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2016
07SDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2016

Biography

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers from cyber attacks in the United States and internationally. The company’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 22:36
End of Day Share Price2020/08/06 00:00
Earnings2020/05/01
Annual Earnings2020/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.