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SecureWorks Corp.NasdaqGS:SCWX Stock Report

Market Cap US$756.5m
Share Price
n/a
US$8.22
n/aintrinsic discount
1Y16.6%
7D0.2%
1D
Portfolio Value
​
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SecureWorks Corp.

NasdaqGS:SCWX Stock Report

Market Cap: US$756.5m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

SecureWorks (SCWX) Stock Overview

Through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. More details

SCWX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

Rewards

Trading at good value compared to peers and industry

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years


SCWX Community Fair Values

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SecureWorks Corp. Competitors

Price History & Performance

Summary of share price highs, lows and changes for SecureWorks
Historical stock prices
Current Share PriceUS$8.51
52 Week HighUS$9.76
52 Week LowUS$5.61
Beta0.94
1 Month Change0.83%
3 Month Change1.67%
1 Year Change16.58%
3 Year Change-38.73%
5 Year Change-46.68%
Change since IPO-39.21%

Recent News & Updates

Seeking Alpha • Oct 11

SecureWorks: Expecting Mediocre Growth And Slow Margin Gains

Summary SecureWorks is up 10% this year amid speculation that the company is up for sale. I anticipate muted growth and modest margin improvement in upcoming quarters. Given this outlook, valuation appears unappealing versus its peers. As a result, I am assigning a Hold rating on SCWX. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Oct 11

SecureWorks: Expecting Mediocre Growth And Slow Margin Gains

Summary SecureWorks is up 10% this year amid speculation that the company is up for sale. I anticipate muted growth and modest margin improvement in upcoming quarters. Given this outlook, valuation appears unappealing versus its peers. As a result, I am assigning a Hold rating on SCWX. Read the full article on Seeking Alpha
Analysis Article • Aug 02

Companies Like SecureWorks (NASDAQ:SCWX) Can Afford To Invest In Growth

Just because a business does not make any money, does not mean that the stock will go down. For example, although...
Seeking Alpha • Jul 09

SecureWorks Makes Progress On Possible 2nd Half Revenue Growth (Upgrade)

Summary SecureWorks Corp. provides endpoint security and vulnerability management software and services globally. Subscription revenue is improving as operating losses decrease, with a focus on its Taegis XDR platform. The market outlook shows potential growth in the endpoint security market, with a shift towards BYOD policies and AI/ML solutions. I'm cautiously optimistic about SecureWorks Corp. as it potentially returns to growth in the second half of fiscal 2025. Read the full article on Seeking Alpha
Analysis Article • Jul 05

SecureWorks Corp.'s (NASDAQ:SCWX) Price Is Right But Growth Is Lacking After Shares Rocket 27%

SecureWorks Corp. ( NASDAQ:SCWX ) shareholders would be excited to see that the share price has had a great month...
Analysis Article • Jun 19

We Discuss Why SecureWorks Corp.'s (NASDAQ:SCWX) CEO Compensation May Be Closely Reviewed

Key Insights SecureWorks' Annual General Meeting to take place on 25th of June Salary of US$500.0k is part of CEO Wendy...
Analysis Article • May 10

SecureWorks Corp.'s (NASDAQ:SCWX) Price Is Right But Growth Is Lacking

SecureWorks Corp.'s ( NASDAQ:SCWX ) price-to-sales (or "P/S") ratio of 1.6x might make it look like a strong buy right...
Analysis Article • Mar 29

Here's Why We're Not Too Worried About SecureWorks' (NASDAQ:SCWX) Cash Burn Situation

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...
Analysis Article • Jan 17

Investors Don't See Light At End Of SecureWorks Corp.'s (NASDAQ:SCWX) Tunnel

With a price-to-sales (or "P/S") ratio of 1.6x SecureWorks Corp. ( NASDAQ:SCWX ) may be sending very bullish signals at...
Analysis Article • Dec 30

Should You Think About Buying SecureWorks Corp. (NASDAQ:SCWX) Now?

While SecureWorks Corp. ( NASDAQ:SCWX ) might not have the largest market cap around , it led the NASDAQGS gainers with...
Analysis Article • Sep 11

Here's Why We're A Bit Worried About SecureWorks' (NASDAQ:SCWX) Cash Burn Situation

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...
Analysis Article • Jun 22

It's Down 25% But SecureWorks Corp. (NASDAQ:SCWX) Could Be Riskier Than It Looks

SecureWorks Corp. ( NASDAQ:SCWX ) shareholders won't be pleased to see that the share price has had a very rough month...
Analysis Article • Jun 09

We Think SecureWorks (NASDAQ:SCWX) Needs To Drive Business Growth Carefully

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining...
Analysis Article • Dec 31

Companies Like SecureWorks (NASDAQ:SCWX) Are In A Position To Invest In Growth

Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and...
Seeking Alpha • Sep 13

SecureWorks Sees Taegis XDR Platform Growth But Forex Headwinds Remain

Summary SecureWorks recently reported its FQ2 2023 financial results. The firm provides organizations with cybersecurity threat detection and response software and services. SCWX has produced growth for its Taegis platform but overall results have disappointed. I'm on Hold for SCWX in the near term. A Quick Take On SecureWorks SecureWorks (NASDAQ:SCWX) reported its FQ2 2023 financial results on September 1, 2022, meeting expected revenue but missing EPS estimates. The company provides organizations with cybersecurity software and services to manage their IT threat environment. While the firm is making progress away from its legacy business, given a slowing macroeconomic environment, strong dollar and increasing operating losses, I’m on Hold for SCWX in the near term. SecureWorks Overview Atlanta, Georgia based SecureWorks was founded in 1999 to provide a variety of endpoint protection and vulnerability management and response software to organizations of all sizes. The firm is headed by Chief Executive Officer Wendy Thomas, who was previously Chief Financial Officer at Bridgevine and VP Finance at First Data Corporation. The company’s primary offerings include: Taegis extended detection & response [XDR] Managed detection & response Vulnerability management Managed services Security assessments & training The firm acquires customers through its direct sales and marketing efforts as well as through partner referrals and technology alliances. SCWX now counts a total of 1,500 customers for its flagship Taegis XDR platform. SecureWorks' Market & Competition According to a 2019 market research report by Global Market Insights, the global endpoint security market is projected to reach $7.5 billion by 2024, growing at a CAGR of 7% between 2017 and 2024. Endpoints are considered to be the weakest links in network security; hence, securing them plays a critical role in effectively strengthening the overall network. Additionally, growing in number and increasingly complex malware attacks force antivirus/antimalware solutions providers to constantly update their detection tools with the latest security patches. Major vendors that provide or are developing endpoint security solutions include: McAfee Symantec Corporation Cylance Palo Alto Networks (PANW) FireEye F-Secure Webroot Okta (OKTA) Per a market research report by Grand View Research on the Extended Detection and Response market, the firm estimated the value of the XDR market to have been $628 million in 2021 and forecasts its growth to reach $3.4 billion by 2030. If achieved, this would represent CAGR of 20.7% from 2022 to 2030. The U.S. XDR market history and forecast is shown in the chart below: U.S. XDR Market (Grand View Research) SecureWorks’ Recent Financial Performance Total revenue by quarter has trended lower in recent quarters: 9 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has also been lower more recently, as the chart shows below: 9 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have risen in recent quarters, a negative signal: 9 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating losses by quarter have worsened as shown below: 9 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have also grown increasingly negative: 9 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, SCWX's stock price has fallen 51.3% vs. the U.S. S&P 500 index's drop of around 8.5%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For SecureWorks Below is a table of relevant capitalization and valuation figures for the company: Measure [TTM] Amount Enterprise Value / Sales 1.50 Revenue Growth Rate -10.1% Net Income Margin -13.6% GAAP EBITDA % -10.0% Market Capitalization $900,690,000 Enterprise Value $747,550,000 Operating Cash Flow -$11,400,000 Earnings Per Share (Fully Diluted) -$0.81 (Source - Seeking Alpha) 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. SCWX’s most recent GAAP Rule of 40 calculation was negative (20.2%) as of FQ2 2023, so the firm needs substantial improvement in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % -10.1% GAAP EBITDA % -10.0% Total -20.2% (Source - Seeking Alpha) Commentary On SecureWorks In its last earnings call (Source - Seeking Alpha), covering FQ2 2023’s results, management highlighted the growth in adoption for its Taegis XDR platform, which crossed the $200 million ARR (Annual Recurring Revenue) mark 14 quarters after launch.
Analysis Article • Sep 03

Companies Like SecureWorks (NASDAQ:SCWX) Can Afford To Invest In Growth

We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining...
Seeking Alpha • Aug 31

SecureWorks Q2 2023 Earnings Preview

SecureWorks (NASDAQ:SCWX) is scheduled to announce Q2 earnings results on Thursday, September 1st, before market open. The consensus EPS Estimate is -$0.17 (-1800.0% Y/Y) and the consensus Revenue Estimate is $116.1M (-13.5% Y/Y). Over the last 2 years, SCWX has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 4 downward. Revenue estimates have seen 0 upward revisions and 2 downward.

Shareholder Returns

SCWXUS SoftwareUS Market
7D0.2%9.9%1.2%
1Y16.6%-1.3%27.0%

Return vs Industry: SCWX exceeded the US Software industry which returned 11.8% over the past year.

Return vs Market: SCWX underperformed the US Market which returned 22.2% over the past year.

Price Volatility

Is SCWX's price volatile compared to industry and market?
SCWX volatility
SCWX Average Weekly Movement0.4%
Software Industry Average Movement9.9%
Market Average Movement7.2%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.0%

Stable Share Price: SCWX has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: SCWX's weekly volatility has decreased from 8% to 0% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19991,516Wendy Thomaswww.secureworks.com

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. The company’s solutions include software-as-a-service solutions; managed security services; and professional services, including incident response and penetration testing services. Its solutions enable organizations to prevent security breaches, detect malicious activity, respond rapidly to security breaches, and identify emerging threats.

SecureWorks Corp. Fundamentals Summary

How do SecureWorks's earnings and revenue compare to its market cap?
SCWX fundamental statistics
Market capUS$756.45m
Earnings (TTM)-US$86.60m
Revenue (TTM)US$339.72m
2.2x
P/S Ratio
-8.7x
P/E Ratio

Is SCWX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SCWX income statement (TTM)
RevenueUS$339.72m
Cost of RevenueUS$112.65m
Gross ProfitUS$227.07m
Other ExpensesUS$313.67m
Earnings-US$86.60m

Last Reported Earnings

Nov 01, 2024

Next Earnings Date

n/a

Earnings per share (EPS)-0.97
Gross Margin66.84%
Net Profit Margin-25.49%
Debt/Equity Ratio0%

How did SCWX perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/04 08:16
End of Day Share Price 2025/01/31 00:00
Earnings2024/11/01
Annual Earnings2024/02/02

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

SecureWorks Corp. is covered by 8 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Gabriela BorgesGoldman Sachs
Peter Sterling AutyJ.P. Morgan
Robbie OwensKeyBanc Capital Markets Inc.