NasdaqGS:SCWX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has SecureWorks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SCWX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.5%

SCWX

-7.0%

US Software

-5.3%

US Market


1 Year Return

-16.1%

SCWX

43.3%

US Software

10.4%

US Market

Return vs Industry: SCWX underperformed the US Software industry which returned 46.8% over the past year.

Return vs Market: SCWX underperformed the US Market which returned 12% over the past year.


Shareholder returns

SCWXIndustryMarket
7 Day-6.5%-7.0%-5.3%
30 Day-11.6%-4.6%-2.1%
90 Day-13.0%2.7%1.7%
1 Year-16.1%-16.1%44.3%43.3%12.9%10.4%
3 Year7.1%7.1%122.2%114.8%34.3%25.4%
5 Yearn/a219.7%201.2%73.7%54.3%

Price Volatility Vs. Market

How volatile is SecureWorks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCWX ($10.4) is trading below our estimate of fair value ($18.86)

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


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 (1.3x) compared to the US Software industry average (6.9x).


Next Steps

Future Growth

How is SecureWorks forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-3.8%

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 (5.8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: SCWX's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SCWX's Return on Equity is forecast to be low in 3 years time (3.1%).


Next Steps

Past Performance

How has SecureWorks performed over the past 5 years?

21.7%

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, but has reduced losses over the past 5 years at a rate of 21.7% 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 (15.7%).


Return on Equity

High ROE: SCWX has a negative Return on Equity (-3.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is SecureWorks's financial position?


Financial Position Analysis

Short Term Liabilities: SCWX's short term assets ($318.7M) exceed its short term liabilities ($273.6M).

Long Term Liabilities: SCWX's short term assets ($318.7M) exceed its long term liabilities ($82.6M).


Debt to Equity History and Analysis

Debt Level: SCWX is debt free.

Reducing Debt: SCWX has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.


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 59.6% per year.


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SCWX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Mike Cote (59 yo)

5.42yrs

Tenure

US$4,482,273

Compensation

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 of SecureWorks Corp. since May 2015 and served as its Presid ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.48M) is above average for companies of similar size in the US market ($USD2.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Cote
CEO & Director5.42yrsUS$4.48m1.51%
$ 12.9m
Paul Parrish
Chief Financial Officer1.75yrsUS$3.56mno data
Kevin Hanes
Chief Operating Officer3.75yrsno datano data
Christian Grant
VP & Chief Accounting Officer0.42yrno data0.0038%
$ 32.5k
Jon Ramsey
Chief Technology Officerno datano datano data
George Hanna
Chief Legal & Administrative Officerno datano datano data
Elizabeth Clarke
Director of Media Relationsno datano datano data
Steve Hardy
Chief Marketing Officer1yrno datano data
Ian Bancroft
Chief Sales Officer1.75yrsno datano data
Barry Hensley
Chief Threat Intelligence Officer3.75yrsno datano data
Wendy Thomas
President of Customer Success2.58yrsno data0.39%
$ 3.3m
Steve Fulton
Chief Product Officerno datano datano data

2.2yrs

Average Tenure

53yo

Average Age

Experienced Management: SCWX's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Cote
CEO & Director5.42yrsUS$4.48m1.51%
$ 12.9m
Yagyensh Pati
Independent Director4yrsUS$228.99k0.064%
$ 543.4k
Michael Dell
Non-Executive Chairman4.83yrsno datano data
Pamela Daley
Independent Director4.42yrsUS$270.49k0.18%
$ 1.5m
Mark Hawkins
Independent Director4.42yrsUS$278.49k0.12%
$ 1.1m
Kyle Paster
Director0.42yrno datano data

4.4yrs

Average Tenure

59yo

Average Age

Experienced Board: SCWX's board of directors are considered experienced (4.4 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SecureWorks Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SecureWorks Corp.
  • Ticker: SCWX
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$854.766m
  • Shares outstanding: 82.19m
  • Website: https://www.secureworks.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCWXNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2016
07SDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2016

Biography

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers from cyber attacks in the United States and internationally. The company’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:08
End of Day Share Price2020/10/30 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.