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KNBE

KnowBe4 NasdaqGS:KNBE Stock Report

Last Price

US$16.28

Market Cap

US$2.9b

7D

-6.9%

1Y

-40.6%

Updated

01 Jul, 2022

Data

Company Financials +
KNBE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance0/6
Financial Health6/6
Dividends0/6

KNBE Stock Overview

KnowBe4, Inc. engages in the development, marketing, and sale of its Software-as-a-Service-based security awareness platform.

KnowBe4 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for KnowBe4
Historical stock prices
Current Share PriceUS$16.28
52 Week HighUS$33.64
52 Week LowUS$13.78
Beta0
1 Month Change-5.62%
3 Month Change-30.49%
1 Year Change-40.65%
3 Year Changen/a
5 Year Changen/a
Change since IPO-32.56%

Recent News & Updates

Jun 08

KnowBe4 Grows While Producing Profits And Free Cash Flow

KnowBe4 went public in April 2021, raising $152 million in an IPO. The firm provides cybersecurity technologies to organizations seeking to defend themselves against phishing and other social engineering attacks. KNBE has grown revenue, is earnings positive and generates free cash flow while being reasonably valued. My outlook on KNBE is a Buy at around $18.80 per share.

Shareholder Returns

KNBEUS SoftwareUS Market
7D-6.9%-4.7%-2.5%
1Y-40.6%-23.7%-21.2%

Return vs Industry: KNBE underperformed the US Software industry which returned -23.6% over the past year.

Return vs Market: KNBE underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is KNBE's price volatile compared to industry and market?
KNBE volatility
KNBE Average Weekly Movement10.4%
Software Industry Average Movement11.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: KNBE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: KNBE's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20101,366Stu Sjouwermanhttps://www.knowbe4.com

KnowBe4, Inc. engages in the development, marketing, and sale of its Software-as-a-Service-based security awareness platform. The company provides a platform incorporating security awareness training and simulated phishing with analytics and reporting that helps organizations manage the ongoing problem of social engineering. Its products include Kevin Mitnick Security Awareness Training, a security awareness training product; Compliance Plus, a compliance training product, which enables organizations to offer their employees with relevant, timely, and engaging compliance content across a range of topics from data privacy to diversity, equity, and inclusion; PhishER, its security orchestration, automation, and response product, which enables security professionals to prioritize and automate security workstreams in response to attacks targeted at the human layer; and KnowBe4 Compliance Manager, its governance, risk, and compliance product that enables organizations to analyze security risk and automate the management of compliance and audit functions.

KnowBe4 Fundamentals Summary

How do KnowBe4's earnings and revenue compare to its market cap?
KNBE fundamental statistics
Market CapUS$2.85b
Earnings (TTM)-US$12.68m
Revenue (TTM)US$267.78m

10.6x

P/S Ratio

-224.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KNBE income statement (TTM)
RevenueUS$267.78m
Cost of RevenueUS$37.92m
Gross ProfitUS$229.86m
Other ExpensesUS$242.55m
Earnings-US$12.68m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.072
Gross Margin85.84%
Net Profit Margin-4.74%
Debt/Equity Ratio0%

How did KNBE perform over the long term?

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

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

KNBE 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/Revenue9.6x
Enterprise Value/EBITDA-1668x
PEG Ration/a

Price to Sales Ratio vs Peers

How does KNBE's PS Ratio compare to its peers?

KNBE PS Ratio vs Peers
The above table shows the PS ratio for KNBE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6.1x
CVLT Commvault Systems
3.7x6.5%US$2.9b
IS ironSource
3.9x19.4%US$2.5b
VRNS Varonis Systems
8.1x17.9%US$3.3b
APPN Appian
8.6x18.3%US$3.4b
KNBE KnowBe4
10.6x22.7%US$2.9b

Price-To-Sales vs Peers: KNBE is expensive based on its Price-To-Sales Ratio (10.6x) compared to the peer average (6.1x).


Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: KNBE is expensive based on its Price-To-Sales Ratio (10.6x) compared to the US Software industry average (4.4x)


Price to Sales Ratio vs Fair Ratio

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

KNBE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio10.6x
Fair PS Ratio10.5x

Price-To-Sales vs Fair Ratio: KNBE is expensive based on its Price-To-Sales Ratio (10.6x) compared to the estimated Fair Price-To-Sales Ratio (10.5x).


Share Price vs Fair Value

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

Below Fair Value: KNBE ($16.28) is trading below our estimate of fair value ($18.2)

Significantly Below Fair Value: KNBE is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

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


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Future Growth

How is KnowBe4 forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


114.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNBE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: KNBE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KNBE is expected to become profitable in the next 3 years.

Revenue vs Market: KNBE's revenue (22.7% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: KNBE's revenue (22.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KNBE's Return on Equity is forecast to be low in 3 years time (17.6%).


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Past Performance

How has KnowBe4 performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


56.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KNBE is currently unprofitable.

Growing Profit Margin: KNBE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KNBE is unprofitable, but has reduced losses over the past 5 years at a rate of 56.8% per year.

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

Earnings vs Industry: KNBE is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (26.8%).


Return on Equity

High ROE: KNBE has a negative Return on Equity (-5.64%), as it is currently unprofitable.


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Financial Health

How is KnowBe4's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: KNBE's short term assets ($382.0M) exceed its short term liabilities ($240.2M).

Long Term Liabilities: KNBE's short term assets ($382.0M) exceed its long term liabilities ($103.0M).


Debt to Equity History and Analysis

Debt Level: KNBE is debt free.

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


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 KNBE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: KNBE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 45.7% per year.


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Dividend

What is KnowBe4 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

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if KNBE'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 KNBE has not reported any payouts.


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Management

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

2.1yrs

Average management tenure


CEO

Stu Sjouwerman (65 yo)

11.83yrs

Tenure

US$7,530,436

Compensation

Mr. Sjoerd Sjouwerman, also known as Stu, founded KnowBe4, Inc. in August 2010 and has been its Chief Executive Officer and Director since August 2010 and serves as its Chairman of the Board. Mr. Sjouwerma...


CEO Compensation Analysis

Compensation vs Market: Stu's total compensation ($USD7.53M) is about average for companies of similar size in the US market ($USD6.90M).

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


Leadership Team

Experienced Management: KNBE's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: KNBE's board of directors are not considered experienced ( 2.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Top Shareholders

Company Information

KnowBe4, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: KnowBe4, Inc.
  • Ticker: KNBE
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$2.850b
  • Shares outstanding: 175.07m
  • Website: https://www.knowbe4.com

Number of Employees


Location

  • KnowBe4, Inc.
  • 33 North Garden Avenue
  • Suite 1200
  • Clearwater
  • Florida
  • 33755
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
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.