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SCWX

SecureWorks NasdaqGS:SCWX Stock Report

Last Price

US$10.41

Market Cap

US$883.4m

7D

0.6%

1Y

-23.6%

Updated

16 May, 2022

Data

Company Financials +
SCWX fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

SCWX Stock Overview

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

SecureWorks Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SecureWorks
Historical stock prices
Current Share PriceUS$10.41
52 Week HighUS$26.89
52 Week LowUS$9.93
Beta1.01
1 Month Change-21.38%
3 Month Change-30.83%
1 Year Change-23.57%
3 Year Change-38.73%
5 Year Change-5.02%
Change since IPO-25.64%

Recent News & Updates

Shareholder Returns

SCWXUS SoftwareUS Market
7D0.6%-0.1%0.7%
1Y-23.6%-10.7%-10.8%

Return vs Industry: SCWX underperformed the US Software industry which returned -10.3% over the past year.

Return vs Market: SCWX underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is SCWX's price volatile compared to industry and market?
SCWX volatility
SCWX Average Weekly Movement10.7%
Software Industry Average Movement11.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: SCWX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: SCWX's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19992,351Wendy Thomashttps://www.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 security risk consulting services. Its solutions enable organizations to prevent security breaches, detect malicious activity, respond rapidly to security breaches, and identify emerging threats.

SecureWorks Fundamentals Summary

How do SecureWorks's earnings and revenue compare to its market cap?
SCWX fundamental statistics
Market CapUS$883.40m
Earnings (TTM)-US$39.79m
Revenue (TTM)US$535.21m

1.7x

P/S Ratio

-22.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCWX income statement (TTM)
RevenueUS$535.21m
Cost of RevenueUS$217.13m
Gross ProfitUS$318.09m
Other ExpensesUS$357.88m
Earnings-US$39.79m

Last Reported Earnings

Jan 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.47
Gross Margin59.43%
Net Profit Margin-7.43%
Debt/Equity Ratio0%

How did SCWX perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


1.36x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SCWX's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SCWX's fair value for valuation analysis.


Price To Earnings Ratio

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

PE vs Market: SCWX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SCWX is good value based on its PB Ratio (1.4x) compared to the US Software industry average (3.6x).


Future Growth

How is SecureWorks forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-43.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SCWX's revenue (0.5% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: SCWX's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SCWX is forecast to be unprofitable in 3 years.


Past Performance

How has SecureWorks 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


-2.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCWX is currently unprofitable.

Growing Profit Margin: SCWX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SCWX is unprofitable, and losses have increased over the past 5 years at a rate of 2.2% per year.

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

Earnings vs Industry: SCWX is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (29.6%).


Return on Equity

High ROE: SCWX has a negative Return on Equity (-6.14%), as it is currently unprofitable.


Financial Health

How is SecureWorks'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: SCWX's short term assets ($333.4M) exceed its short term liabilities ($266.5M).

Long Term Liabilities: SCWX's short term assets ($333.4M) exceed its long term liabilities ($72.8M).


Debt to Equity History and Analysis

Debt Level: SCWX is debt free.

Reducing Debt: SCWX 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 SCWX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SCWX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 45% per year.


Dividend

What is SecureWorks's 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 SCWX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

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


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Wendy Thomas (48 yo)

0.67

Tenure

US$10,359,440

Compensation

Ms. Wendy K. Thomas serves as President & Chief Executive Officer of Secureworks at Dell Technologies Inc. since 2021. She serves as President & CEO at SecureWorks, Inc. since September 2021. She serves as...


CEO Compensation Analysis

Compensation vs Market: Wendy's total compensation ($USD10.36M) is above average for companies of similar size in the US market ($USD3.88M).

Compensation vs Earnings: Insufficient data to compare Wendy's compensation with company performance.


Leadership Team

Experienced Management: SCWX's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: SCWX's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SCWX 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 employee growth, exchange listings and data sources


Key Information

  • Name: SecureWorks Corp.
  • Ticker: SCWX
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$883.396m
  • Shares outstanding: 84.86m
  • Website: https://www.secureworks.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/01/28
Annual Earnings2022/01/28


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.