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CLBT

Cellebrite DI NasdaqGS:CLBT Stock Report

Last Price

US$4.30

Market Cap

US$815.3m

7D

-1.6%

1Y

-58.1%

Updated

25 Sep, 2022

Data

Company Financials +

Cellebrite DI Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cellebrite DI
Historical stock prices
Current Share PriceUS$4.30
52 Week HighUS$11.40
52 Week LowUS$4.07
Beta0
1 Month Change-10.42%
3 Month Change-15.35%
1 Year Change-58.13%
3 Year Changen/a
5 Year Changen/a
Change since IPOn/a

Recent News & Updates

Aug 30

Cellebrite DI Lowers Sights For 2022

Summary Cellebrite DI Ltd. recently reported its Q2 2022 financial results. The company provides an array of software and services to assist agencies, companies and services providers in their investigation efforts. Cellebrite DI has produced flattening revenue growth, increasingly variable operating losses, and is seeing longer sales cycles while continuing to add headcount. Although longer term trends in the U.S. are favorable, I'm on Hold for Cellebrite DI in the near term. A Quick Take On Cellebrite DI Cellebrite DI Ltd. (CLBT) recently reported its Q2 2022 financial results on August 11, 2022, missing expected revenue and EPS estimates. The company has developed a range of legal investigation tools and services for government agencies and companies globally. While the second half of the year tends to be a stronger period for the firm, I’m on Hold for Cellebrite for the near term until it can grow faster, produce better Rule of 40 results and generate consistent GAAP profits. Cellebrite DI Overview Petah Tikvah, Israel-based Cellebrite was founded in 1999 and provides an investigation and legal case management platform to agencies, companies, and service providers worldwide. The firm is headed by Chief Executive Officer Mr. Yossi Carmil, who was previously VP of Commercial for Siemens Israel and Sales Director at Elgad Com Group. The company’s primary offerings include: Evidence access Physical analyzer Frontline collection Digital collection Analyze and investigate Manage and safeguard. The firm acquires customers through direct sales and marketing efforts as well as through project tender offers and partner referrals. Cellebrite DI’s Market & Competition According to a 2020 market research report by Absolute Market Insights, the global market for legal operations software was an estimated $1.4 billion in 2020 and is expected to reach $5.2 billion by 2029. This represents a forecast CAGR of 15.8% from 2021 to 2029. The main drivers for this expected growth are a presence of large law firms in North America combined with ample legal software players providing increased capabilities. Also, large organizations appear to seek online solutions that can be easily used throughout their organization, providing large amounts of data capacity and processing power from SaaS-delivery systems. Major competitive or other industry participants include: Consilio Epiq Systems KL Discovery Everlaw Logik Systems Relativity Reveal Data Cellebrite also provides other software and services more specific to the intelligence and information gathering and analysis functions. Cellebrite DI’s Recent Financial Performance Total revenue by quarter has plateaued in recent quarters: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has followed a similar path as total revenue: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have varied within a range as shown below: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating income by quarter has fluctuated materially in recent quarters: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have remained positive in the past five quarters: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP.) In the past 12 months, CLBT’s stock price has fallen 52.9% vs. the U.S. S&P 500 index’ drop of around 11.9%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For Cellebrite DI Below is a table of relevant capitalization and valuation figures for the company: Measure [TTM] Amount Enterprise Value / Sales 3.87 Revenue Growth Rate 16.1% Net Income Margin 57.5% GAAP EBITDA % 0.72% Market Capitalization $1,220,000,000 Enterprise Value $1,000,000,000 Operating Cash Flow $7,620,000 Earnings Per Share (Fully Diluted) $0.75 (Source - Seeking Alpha) Below is an estimated DCF (Discounted Cash Flow) analysis of the firm’s projected growth and earnings: Discounted Cash Flow Analysis - CLBT (GuruFocus) Assuming generous DCF parameters, the firm’s shares would be valued at approximately $4.19 versus the current price of $4.81, indicating they are potentially currently overvalued, with the given earnings, growth and discount rate assumptions of the DCF. The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. CLBT’s most recent GAAP Rule of 40 calculation was 16.8% as of Q2 2022, so the firm needs some improvement in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % 16.1% GAAP EBITDA % 0.7% Total 16.8% (Source - Seeking Alpha) Commentary On Cellebrite DI In its last earnings call (Source - Seeking Alpha), covering Q2 2022’s results, management highlighted longer sales cycles from some of the company's strategic customers. Also, the company continues to transition from perpetual licenses to subscription in new deals and is ahead of management’s expectations in that regard. Additionally, the firm has seen hiring challenges in its go-to-market refocus. On the plus side, a recent rise in crime in the U.S., its primary market, is increasing pressures on agency budgets to more effectively fight criminal activity, providing the firm with greater opportunities to assist agencies in becoming more efficient. As to its financial results, total revenue grew only 6% year-over-year, with 98% of software revenue now coming from the subscription model. The company’s net dollar retention rate was 128%, an impressive result indicating strong product/market fit and sales & marketing efficiency.

Shareholder Returns

CLBTUS SoftwareUS Market
7D-1.6%-4.4%-5.2%
1Y-58.1%-35.3%-23.0%

Return vs Industry: CLBT underperformed the US Software industry which returned -35.3% over the past year.

Return vs Market: CLBT underperformed the US Market which returned -23% over the past year.

Price Volatility

Is CLBT's price volatile compared to industry and market?
CLBT volatility
CLBT Average Weekly Movement6.6%
Software Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: CLBT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CLBT's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999900Yossi Carmilhttps://www.cellebrite.com

Cellebrite DI Ltd. develops solutions for legally sanctioned investigations. Its DI platform allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations and solutions are used in a various case, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, intellectual property theft, and civil litigation. The company’s Universal Forensic Extraction Device solution addresses problems in accessing digital information, including complicated device locks, encryption barriers, deleted and unknown content, and other obstacles that can prevent critical evidence from coming to light.

Cellebrite DI Fundamentals Summary

How do Cellebrite DI's earnings and revenue compare to its market cap?
CLBT fundamental statistics
Market CapUS$815.31m
Earnings (TTM)US$151.74m
Revenue (TTM)US$258.75m

5.4x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CLBT income statement (TTM)
RevenueUS$258.75m
Cost of RevenueUS$48.37m
Gross ProfitUS$210.38m
Other ExpensesUS$58.64m
EarningsUS$151.74m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.80
Gross Margin81.31%
Net Profit Margin58.64%
Debt/Equity Ratio0.0%

How did CLBT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CLBT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CLBT?

Other financial metrics that can be useful for relative valuation.

CLBT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA348.5x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does CLBT's PE Ratio compare to its peers?

CLBT PE Ratio vs Peers
The above table shows the PE ratio for CLBT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.9x
MGIC Magic Software Enterprises
28.5x33.3%US$786.5m
KARO Karooooo
27.3x16.8%US$783.1m
CCSI Consensus Cloud Solutions
11.8x16.4%US$990.0m
ECOM ChannelAdvisor
16.1x13.8%US$656.0m
CLBT Cellebrite DI
5.4x-46.2%US$815.3m

Price-To-Earnings vs Peers: CLBT is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (20.9x).


Price to Earnings Ratio vs Industry

How does CLBT's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: CLBT is good value based on its Price-To-Earnings Ratio (5.4x) compared to the US Software industry average (39.4x)


Price to Earnings Ratio vs Fair Ratio

What is CLBT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CLBT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.4x
Fair PE Ratio15.2x

Price-To-Earnings vs Fair Ratio: CLBT is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).


Share Price vs Fair Value

What is the Fair Price of CLBT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CLBT ($4.3) is trading below our estimate of fair value ($9.02)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Cellebrite DI forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-46.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLBT's earnings are forecast to decline over the next 3 years (-46.2% per year).

Earnings vs Market: CLBT's earnings are forecast to decline over the next 3 years (-46.2% per year).

High Growth Earnings: CLBT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CLBT's revenue (17.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CLBT's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLBT's Return on Equity is forecast to be high in 3 years time (34.4%)


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Past Performance

How has Cellebrite DI performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


1,968.7%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: CLBT has high quality earnings.

Growing Profit Margin: CLBT's current net profit margins (58.6%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CLBT's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare CLBT's past year earnings growth to its 5-year average.

Earnings vs Industry: CLBT earnings growth over the past year (1968.7%) exceeded the Software industry 18.3%.


Return on Equity

High ROE: CLBT's Return on Equity (617.9%) is considered outstanding.


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Financial Health

How is Cellebrite DI's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CLBT's short term assets ($233.6M) exceed its short term liabilities ($172.9M).

Long Term Liabilities: CLBT's short term assets ($233.6M) exceed its long term liabilities ($127.9M).


Debt to Equity History and Analysis

Debt Level: CLBT is debt free.

Reducing Debt: CLBT has not had any debt for past 5 years.

Debt Coverage: CLBT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CLBT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Cellebrite DI current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate CLBT'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 CLBT's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CLBT has not reported any payouts.


Discover strong dividend paying companies

Management

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

5.6yrs

Average management tenure


CEO

Yossi Carmil (55 yo)

17.67yrs

Tenure

Mr. Yossi Carmil has been Chief Executive Officer at Cellebrite DI Ltd. since 2005 and its Director since June 2019. He is the Founder of Cellebrite DI Ltd.Mr. Carmil served as Global Co-Chief Executive O...


Leadership Team

Experienced Management: CLBT's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: CLBT's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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.


Ownership Breakdown

What is the ownership structure of CLBT?
Owner TypeNumber of SharesOwnership Percentage
General Public11,135,9945.9%
Individual Insiders11,584,2546.1%
Institutions25,270,53313.3%
VC/PE Firms46,018,99224.3%
Private Companies95,597,71850.4%

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


Top Shareholders

Top 25 shareholders own 93.32% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
50.42%
Sun Corp.
95,597,718$411.1m0%no data
17.21%
Israel Growth Partners
32,631,492$140.3m0%100%
7.06%
True Wind Capital Management, L.P.
13,387,500$57.6m0%32.72%
3.57%
Light Street Capital Management, LLC
6,762,686$29.1m-0.48%4.38%
2.4%
The Phoenix Investment and Finances Ltd.
4,557,942$19.6m98.49%0.21%
2.13%
Yossi Carmil
4,031,120$17.3m0%no data
1.62%
Isomer Partners LP
3,075,000$13.2m0%7.49%
1.62%
Greenhaven Road Investment Management, LP
3,069,869$13.2m53.49%7.87%
1.16%
CrossLink Capital, Inc.
2,202,339$9.5m3.22%2.44%
0.75%
Dana Gerner
1,414,961$6.1m0%no data
0.6%
Leeor Ben-Peretz
1,136,277$4.9m0%no data
0.6%
Osnat Tirosh
1,134,001$4.9m0%no data
0.52%
Alon Klomek
976,989$4.2m0%no data
0.46%
CIBC Asset Management Inc.
873,717$3.8m-62.86%0.01%
0.43%
Mark Gambill
811,781$3.5m0%no data
0.4%
Adam Clammer
750,000$3.2m0%no data
0.4%
James Greene
750,000$3.2m0%no data
0.34%
Makena Capital Management, LLC
649,554$2.8m0%0.43%
0.33%
Rubric Capital Management LP
629,020$2.7m0%0.14%
0.32%
Crescent Park Management, L.P.
601,537$2.6m2.49%0.56%
0.27%
William Blair Investment Management, LLC
512,301$2.2m-2.23%no data
0.22%
BlackRock, Inc.
422,389$1.8m-3.46%no data
0.21%
ARK Investment Management LLC
399,956$1.7m-2.35%0.01%
0.15%
Ronnen Armon
293,840$1.3m0%no data
0.14%
Mawer Investment Management Ltd.
272,635$1.2m30.61%no data

Company Information

Cellebrite DI Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cellebrite DI Ltd.
  • Ticker: CLBT
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$815.312m
  • Shares outstanding: 189.61m
  • Website: https://www.cellebrite.com

Number of Employees


Location

  • Cellebrite DI Ltd.
  • 94 Shlomo Shmelzer Road
  • P.O.B 3925
  • Petah Tikva
  • 4970602
  • Israel


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLBTNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDNov 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.