Tenable Holdings (NasdaqGS:TENB) - Share price, News & Analysis

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

TENB ($46.71) is trading above our estimate of [[fair value]] ($34.28)

TENB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

TENB Stock Overview

Tenable Holdings, Inc. provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan.

Rewards

Revenue is forecast to grow 18.53% per year

Risk Analysis

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

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Tenable Holdings Competitors

SailPoint Technologies Holdings

NYSE:SAIL

US$5.9b

Qualys

NasdaqGS:QLYS

US$5.0b

CyberArk Software

NasdaqGS:CYBR

US$5.3b

Rapid7

NasdaqGM:RPD

US$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for Tenable Holdings
Historical stock prices
Current Share Price	US$46.71
52 Week High	US$63.61
52 Week Low	US$38.77
Beta	1.54
1 Month Change	-11.13%
3 Month Change	-19.17%
1 Year Change	12.96%
3 Year Change	61.63%
5 Year Change	n/a
Change since IPO	54.41%

Shareholder Returns

	TENB	US Software	US Market
7D	-0.6%	2.6%	1.6%
1Y	13.0%	-22.4%	-20.8%

Return vs Industry: TENB exceeded the US Software industry which returned -23.5% over the past year.

Return vs Market: TENB exceeded the US Market which returned -20.4% over the past year.

Price Volatility

Is TENB's price volatile compared to industry and market?
TENB volatility
TENB Average Weekly Movement	9.0%
Software Industry Average Movement	11.0%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: TENB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TENB's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	1,617	Amit Yoran	https://www.tenable.com

Tenable Holdings, Inc. provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Its platforms include Tenable.io, a cloud-delivered software as a service that provides organizations with a risk-based view of traditional and modern attack surfaces; Tenable.cs, a cloud-native application platform that enables organizations to programmatically detect and fix cloud infrastructure misconfigurations; Tenable.io WAS, which provides scanning for modern web applications; and Tenable.ep, an unified platform that helps organizations identify, assess, and accurately prioritize cyber risks across the entire attack surface. The company also offers Tenable.ad, a solution to secure Active Directory environments; Tenable.ot, an on-premises solution that provides threat detection and mitigation, asset tracking, vulnerability management, and configuration control capabilities to protect OT environments, including industrial networks; Tenable.sc, an on-premises solution that provides a risk-based view of an organization’s IT, security and compliance posture.

Tenable Holdings Fundamentals Summary

How do Tenable Holdings's earnings and revenue compare to its market cap?
TENB fundamental statistics
Market Cap	US$5.17b
Earnings (TTM)	-US$63.43m
Revenue (TTM)	US$577.31m

8.9x

P/S Ratio

-81.4x

P/E Ratio

Is TENB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TENB income statement (TTM)
Revenue	US$577.31m
Cost of Revenue	US$119.25m
Gross Profit	US$458.06m
Other Expenses	US$521.49m
Earnings	-US$63.43m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.57
Gross Margin	79.34%
Net Profit Margin	-10.99%
Debt/Equity Ratio	161.6%

How did TENB perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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 TENB?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TENB. This is calculated by dividing TENB's market cap by their current preferred multiple.
What is TENB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$5.17b

TENB 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/Revenue	8.8x
Enterprise Value/EBITDA	-173.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

TENB PS Ratio vs Peers

The above table shows the PS ratio for TENB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	10.4x
SAIL SailPoint Technologies Holdings	12.7x	19.6%	US$5.9b
QLYS Qualys	11.7x	14.7%	US$5.0b
CYBR CyberArk Software	10.2x	20.4%	US$5.3b
RPD Rapid7	7x	19.1%	US$4.0b
TENB Tenable Holdings	8.9x	18.5%	US$5.2b

Forward PS

Price-To-Sales vs Peers: TENB is good value based on its Price-To-Sales Ratio (8.9x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: TENB is expensive based on its Price-To-Sales Ratio (8.9x) compared to the US Software industry average (4.4x)

Price to Sales Ratio vs Fair Ratio

What is TENB'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.

TENB PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	8.9x
Fair PS Ratio	9.3x

Price-To-Sales vs Fair Ratio: TENB is good value based on its Price-To-Sales Ratio (8.9x) compared to the estimated Fair Price-To-Sales Ratio (9.3x).

Share Price vs Fair Value

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

Below Fair Value: TENB ($46.71) is trading above our estimate of fair value ($34.28)

Significantly Below Fair Value: TENB is trading above our estimate of fair value.

Price to Earnings Growth Ratio

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

Discover undervalued companies

Future Growth

How is Tenable Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 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

6.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: TENB's revenue (18.5% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: TENB's revenue (18.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TENB's Return on Equity is forecast to be high in 3 years time (26.3%)

Discover growth companies

Past Performance

How has Tenable Holdings 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

6.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TENB is currently unprofitable.

Growing Profit Margin: TENB is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: TENB is unprofitable, but has reduced losses over the past 5 years at a rate of 6.5% per year.

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

Earnings vs Industry: TENB is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).

Return on Equity

High ROE: TENB has a negative Return on Equity (-27.95%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Tenable Holdings'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: TENB's short term assets ($722.2M) exceed its short term liabilities ($463.8M).

Long Term Liabilities: TENB's short term assets ($722.2M) exceed its long term liabilities ($547.1M).

Debt to Equity History and Analysis

Debt Level: TENB has more cash than its total debt.

Reducing Debt: TENB had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

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

Forecast Cash Runway: TENB is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 67.5% per year.

Discover healthy companies

Dividend

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

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

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

Discover strong dividend paying companies

Management

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

5.5yrs

Average management tenure

CEO

Amit Yoran (50 yo)

5.5yrs

Tenure

US$8,480,631

Compensation

Dr. Amit Yoran, Ph D., has been the Chairman and Chief Executive Officer of Tenable, Inc. since January 3, 2017. Dr. Yoran has been President at Tenable Holdings, Inc. since May 2018 and has been its Chief...

CEO Compensation Analysis

Compensation vs Market: Amit's total compensation ($USD8.48M) is about average for companies of similar size in the US market ($USD8.21M).

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

Leadership Team

Experienced Management: TENB's management team is seasoned and experienced (5.5 years average tenure).

Board Members

Experienced Board: TENB's board of directors are considered experienced (4.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: TENB insiders have only sold shares 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 4.7%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31