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SecureWorks

DB:07S
Snowflake Description

Flawless balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
07S
DB
$1B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

SecureWorks Corp., a cybersecurity company, provides an integrated suite of intelligence-driven information security solutions focused on protecting organizations worldwide. The last earnings update was 47 days ago. More info.


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  • SecureWorks has significant price volatility in the past 3 months.
07S Share Price and Events
7 Day Returns
3.7%
DB:07S
-7.3%
DE Software
-0.7%
DE Market
1 Year Returns
-0.3%
DB:07S
11.4%
DE Software
-7.6%
DE Market
07S Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SecureWorks (07S) 3.7% -3% -28.9% -0.3% -9.3% -
DE Software -7.3% -4.8% 10.3% 11.4% 48.2% 92.6%
DE Market -0.7% -0.9% -3.8% -7.6% 8.2% 11.1%
1 Year Return vs Industry and Market
  • 07S underperformed the Software industry which returned 11.4% over the past year.
  • 07S outperformed the Market in Germany which returned -7.6% over the past year.
Price Volatility
07S
Industry
5yr Volatility vs Market

07S Value

 Is SecureWorks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SecureWorks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SecureWorks.

DB:07S Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:07S
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.121 (1 + (1- 21%) (2.65%))
1.097
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.097 * 5.96%)
6.77%

Discounted Cash Flow Calculation for DB:07S using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SecureWorks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:07S DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.77%)
2020 15.98 Analyst x5 14.97
2021 29.02 Analyst x5 25.46
2022 36.70 Est @ 26.47% 30.16
2023 43.53 Est @ 18.6% 33.50
2024 49.22 Est @ 13.09% 35.48
2025 53.77 Est @ 9.23% 36.30
2026 57.28 Est @ 6.53% 36.22
2027 59.93 Est @ 4.64% 35.50
2028 61.92 Est @ 3.32% 34.35
2029 63.40 Est @ 2.39% 32.95
Present value of next 10 years cash flows $314.89
DB:07S DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $63.40 × (1 + 0.23%) ÷ (6.77% – 0.23%)
$972.05
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $972.05 ÷ (1 + 6.77%)10
$505.12
DB:07S Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $314.89 + $505.12
$820.01
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $820.01 / 81.52
$10.06
DB:07S Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:07S represents 0.90993x of NasdaqGS:SCWX
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.90993x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 10.06 x 0.90993
€9.15
Value per share (EUR) From above. €9.15
Current discount Discount to share price of €11.82
= -1 x (€11.82 - €9.15) / €9.15
-29.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of SecureWorks is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SecureWorks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SecureWorks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:07S PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-03) in USD $-0.42
NasdaqGS:SCWX Share Price ** NasdaqGS (2019-07-19) in USD $12.99
Germany Software Industry PE Ratio Median Figure of 18 Publicly-Listed Software Companies 34.7x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.75x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SecureWorks.

DB:07S PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SCWX Share Price ÷ EPS (both in USD)

= 12.99 ÷ -0.42

-31.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SecureWorks is loss making, we can't compare its value to the DE Software industry average.
  • SecureWorks is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does SecureWorks's expected growth come at a high price?
Raw Data
DB:07S PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -31.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
5.4%per year
Germany Software Industry PEG Ratio Median Figure of 13 Publicly-Listed Software Companies 1.97x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for SecureWorks, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SecureWorks's assets?
Raw Data
DB:07S PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-03) in USD $8.35
NasdaqGS:SCWX Share Price * NasdaqGS (2019-07-19) in USD $12.99
Germany Software Industry PB Ratio Median Figure of 32 Publicly-Listed Software Companies 3.13x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.71x
DB:07S PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SCWX Share Price ÷ Book Value per Share (both in USD)

= 12.99 ÷ 8.35

1.56x

* Primary Listing of SecureWorks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SecureWorks is good value based on assets compared to the DE Software industry average.
X
Value checks
We assess SecureWorks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. SecureWorks has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

07S Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SecureWorks expected to grow at an attractive rate?
  • Unable to compare SecureWorks's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare SecureWorks's earnings growth to the Germany market average as it is expected to be loss making during the next 1-3 years.
  • SecureWorks's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:07S Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:07S Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 5.4%
DB:07S Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 7.3%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 25.7%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:07S Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:07S Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-01-31 637 -32 2
2021-01-31 577 43 -38 9
2020-01-31 540 30 -42 9
DB:07S Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-03 525 73 -34
2019-02-01 519 57 -39
2018-11-02 509 30 -22
2018-08-03 493 20 -28
2018-05-04 480 2 -11
2018-02-02 468 1 -10
2017-11-03 466 9 -40
2017-08-04 456 6 -38
2017-05-05 443 -10 -40
2017-02-03 433 -7 -32
2016-10-28 405 -22 -46
2016-07-29 386 -28 -57

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SecureWorks is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • SecureWorks's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:07S Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from SecureWorks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:07S Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-01-31 -0.38 -0.38 -0.38 1.00
2021-01-31 -0.47 -0.37 -0.52 3.00
2020-01-31 -0.52 -0.44 -0.58 4.00
DB:07S Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-03 -0.42
2019-02-01 -0.48
2018-11-02 -0.28
2018-08-03 -0.35
2018-05-04 -0.14
2018-02-02 -0.13
2017-11-03 -0.50
2017-08-04 -0.48
2017-05-05 -0.50
2017-02-03 -0.41
2016-10-28 -0.62
2016-07-29 -0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SecureWorks is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SecureWorks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SecureWorks has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

07S Past Performance

  How has SecureWorks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SecureWorks's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SecureWorks does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare SecureWorks's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare SecureWorks's 1-year growth to the DE Software industry average as it is not currently profitable.
Earnings and Revenue History
SecureWorks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SecureWorks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:07S Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-03 525.39 -33.55 234.68 87.90
2019-02-01 518.71 -39.10 233.72 87.61
2018-11-02 508.88 -22.47 246.13 87.41
2018-08-03 492.93 -28.12 246.72 85.80
2018-05-04 480.41 -10.96 233.95 83.04
2018-02-02 467.93 -10.42 232.66 80.16
2017-11-03 465.97 -39.75 228.84 77.77
2017-08-04 455.97 -38.08 223.21 75.23
2017-05-05 443.39 -39.86 220.06 72.91
2017-02-03 432.75 -31.64 205.11 71.03
2016-10-28 404.64 -46.30 190.16 84.83
2016-07-29 385.71 -57.11 194.14 80.10
2016-04-29 361.92 -66.18 195.57 75.37
2016-01-29 339.52 -72.38 192.12 69.60
2015-10-30 316.85 -66.45 195.12 46.08
2015-07-31 295.44 -56.68 176.30 42.15
2015-05-01 278.89 -45.81 157.15 37.33
2015-01-30 262.13 -38.49 133.29 45.09
2014-01-31 205.83 -11.78 133.88 26.99
2013-02-01 172.80 -41.55 118.74 22.87

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if SecureWorks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if SecureWorks has efficiently used its assets last year compared to the DE Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if SecureWorks improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess SecureWorks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SecureWorks has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

07S Health

 How is SecureWorks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SecureWorks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SecureWorks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SecureWorks's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SecureWorks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • SecureWorks has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SecureWorks Company Filings, last reported 2 months ago.

DB:07S Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-03 680.75 0.00 111.18
2019-02-01 692.71 0.00 129.59
2018-11-02 711.94 1.10 115.78
2018-08-03 712.27 1.10 103.32
2018-05-04 718.42 1.10 77.30
2018-02-02 731.09 0.00 101.54
2017-11-03 663.53 0.00 99.69
2017-08-04 672.45 0.00 97.78
2017-05-05 680.29 0.00 91.57
2017-02-03 691.42 0.00 116.60
2016-10-28 695.20 0.00 110.84
2016-07-29 701.10 0.00 113.28
2016-04-29 712.50 0.00 123.71
2016-01-29 588.46 27.99 33.42
2015-10-30 616.01 27.99 39.45
2015-07-31 634.11 0.00 20.26
2015-05-01 638.85 0.00 11.94
2015-01-30 606.93 0.00 6.67
2014-01-31 634.75 0.00 2.43
2013-02-01
  • SecureWorks has no debt.
  • SecureWorks had no debt 5 years ago.
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.

  • Whilst loss making SecureWorks has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making SecureWorks has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -125.6% per year.
X
Financial health checks
We assess SecureWorks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SecureWorks has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

07S Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from SecureWorks dividends. Estimated to be 0% next year.
If you bought €2,000 of SecureWorks shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate SecureWorks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate SecureWorks's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:07S Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:07S Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-01-31 0.00 1.00
2021-01-31 0.00 3.00
2020-01-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as SecureWorks has not reported any payouts.
  • Unable to verify if SecureWorks's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of SecureWorks's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as SecureWorks has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of SecureWorks's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess SecureWorks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SecureWorks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SecureWorks has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

07S Management

 What is the CEO of SecureWorks's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Cote
COMPENSATION $3,620,511
AGE 58
TENURE AS CEO 4.2 years
CEO Bio

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 and President of SecureWorks Corp. since May 2015. Mr. Cote has been the Chief Executive Officer and President of Dell SecureWorks, Inc. since February 22, 2017 and served as its Vice President and General Manager since February 2011 until February 22, 2017. He has more than 20 years of experience in high growth industries including Internet business solutions, pricing and revenue optimization and enterprise applications. He joined SecureWorks in 2002. he has been managing technology company acquisitions, growth and mergers since 1992. His leadership style is punctuated by open communication, high integrity and a client-centric philosophy. He served as the Chief Executive Officer and President of Dell SecureWorks, Inc. since February 2002. He served as the Chief Financial Officer of Talus Solutions Inc. from January 2000 to January 2002. He served in various roles at KPMG LLP until March 1992. He served as the Chief Operating Officer of MSI Solutions Inc. from February 1997 to September 1999. From April 1993 to January 1997, Mr. Cote served as the Chief Financial Officer of Medaphis Corporation, or Medaphis (subsequently acquired by Per-Se Technologies, Inc.), where he managed 36 acquisitions and four equity offerings. He served as the Controller of Medaphis from March 1992 to April 1993. He served as the Chairman and Director of Dell SecureWorks, Inc. He served as a Director of SecureWorks Corp. since May 2015. He served as a Director of BetterCloud, Inc. until April 4, 2017. He serves as a Member of the Marist School Board of Trustees, the St. Joseph’s Hospital Mercy Board. He served as a Director at Silverpop Systems Inc. He serves as the Chairman of Strategic Planning Committee for 10-year plan for Archdiocese of Atlanta and a Member of Business Executives for National Security (BENS). He was Ernst & Young Entrepreneur of the Year Regional winner for Alabama/Georgia/Tennessee in 2011. He awarded The Deal of the Year by The Association of Corporate Growth (ACG) and The IndUS Entrepreneurs (TiE) in 2011. He is an Ardent Little League coach. He is a Certified Public Accountant and is a Member of Business Executives for National Security. Mr. Cote graduated from Boston College, with a double major in Computer Science and Accounting.

CEO Compensation
  • Mike's compensation has increased whilst company is loss making.
  • Mike's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the SecureWorks management team in years:

2.5
Average Tenure
54
Average Age
  • The tenure for the SecureWorks management team is about average.
Management Team

Mike Cote

TITLE
President
COMPENSATION
$4M
AGE
58
TENURE
4.2 yrs

R. Jackson

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
61
TENURE
4 yrs

Kevin Hanes

TITLE
Chief Operating Officer
TENURE
2.5 yrs

Teri Miller

TITLE
VP & Chief Accounting Officer
AGE
51
TENURE
1.6 yrs

Jon Ramsey

TITLE
Chief Technology Officer

George Hanna

TITLE
Senior VP
TENURE
2.5 yrs

Elizabeth Clarke

TITLE
Director of Media Relations

Stacie Hagan

TITLE
Chief People Officer
AGE
52
TENURE
4 yrs

Barry Hensley

TITLE
Chief Threat Intelligence Officer
TENURE
2.5 yrs

Geoff Haydon

TITLE
Chief Revenue Officer
AGE
54
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the SecureWorks board of directors in years:

3.3
Average Tenure
57
Average Age
  • The tenure for the SecureWorks board of directors is about average.
Board of Directors

Michael Dell

TITLE
Non-Executive Chairman
AGE
54
TENURE
3.6 yrs

Mike Cote

TITLE
President
COMPENSATION
$4M
AGE
58
TENURE
4.2 yrs

Pam Daley

TITLE
Independent Director
COMPENSATION
$229K
AGE
66
TENURE
3.3 yrs

Mark Hawkins

TITLE
Independent Director
COMPENSATION
$241K
AGE
60
TENURE
3.3 yrs

Bill McDermott

TITLE
Independent Director
COMPENSATION
$229K
AGE
57
TENURE
3.3 yrs

Egon Durban

TITLE
Director
AGE
46
TENURE
3.6 yrs

Buno Pati

TITLE
Independent Director
COMPENSATION
$229K
AGE
55
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess SecureWorks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SecureWorks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

07S News

Simply Wall St News

07S Company Info

Description

SecureWorks Corp., a cybersecurity company, provides an integrated suite of intelligence-driven information security solutions focused on protecting organizations worldwide. The company’s solutions include managed security, threat intelligence, security and risk consulting, and incident response. Its solutions enable organizations to fortify their cyber defenses to prevent security breaches, detect malicious activity, respond to security breaches, and predict emerging threats. The company serves clients in a range of industries, including the financial services, manufacturing, technology, retail, insurance, utility, and healthcare sectors. As of February 1, 2019, it served approximately 4,700 customers in 52 countries. The company was formerly known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. The company was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Inc.

Details
Name: SecureWorks Corp.
07S
Exchange: DB
Founded: 1999
$943,738,910
81,520,631
Website: http://www.secureworks.com
Address: SecureWorks Corp.
One Concourse Parkway NE,
Suite 500,
Atlanta,
Georgia, 30328,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SCWX Class A Common Stock Nasdaq Global Select US USD 22. Apr 2016
DB 07S Class A Common Stock Deutsche Boerse AG DE EUR 22. Apr 2016
Number of employees
Current staff
Staff numbers
2,684
SecureWorks employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 00:06
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/06/24
Last earnings filing: 2019/06/05
Last earnings reported: 2019/05/03
Last annual earnings reported: 2019/02/01


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.