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SWI

SolarWindsNYSE:SWI Stock Report

Market Cap

US$2.4b

7D

-4.7%

1Y

-68.6%

Updated

30 Nov, 2021

Data

Company Financials +
SWI fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends0/6

SWI Stock Overview

SolarWinds Corporation provides information technology (IT) infrastructure management software products in the United States and internationally.

SolarWinds Competitors

Microsoft

NasdaqGS:MSFT

US$2.5t

Oracle

NYSE:ORCL

US$254.1b

Broadcom

NasdaqGS:AVGO

US$232.3b

ServiceNow

NYSE:NOW

US$133.9b

Price History & Performance

Summary of all time highs, changes and price drops for SolarWinds
Historical stock prices
Current Share PriceUS$14.39
52 Week HighUS$48.68
52 Week LowUS$14.30
Beta0.87
1 Month Change-10.62%
3 Month Change-15.70%
1 Year Change-68.55%
3 Year Change-55.70%
5 Year Changen/a
Change since IPO-52.13%

Recent News & Updates

Oct 26
Investors Will Want SolarWinds' (NYSE:SWI) Growth In ROCE To Persist

Investors Will Want SolarWinds' (NYSE:SWI) Growth In ROCE To Persist

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Oct 11
Is It Too Late To Consider Buying SolarWinds Corporation (NYSE:SWI)?

Is It Too Late To Consider Buying SolarWinds Corporation (NYSE:SWI)?

SolarWinds Corporation ( NYSE:SWI ), might not be a large cap stock, but it saw significant share price movement during...

Sep 09
Are Investors Undervaluing SolarWinds Corporation (NYSE:SWI) By 32%?

Are Investors Undervaluing SolarWinds Corporation (NYSE:SWI) By 32%?

How far off is SolarWinds Corporation ( NYSE:SWI ) from its intrinsic value? Using the most recent financial data...

Aug 09
SolarWinds Corporation (NYSE:SWI) Analysts Are Reducing Their Forecasts For This Year

SolarWinds Corporation (NYSE:SWI) Analysts Are Reducing Their Forecasts For This Year

The latest analyst coverage could presage a bad day for SolarWinds Corporation ( NYSE:SWI ), with the analysts making...

Aug 05
SolarWinds Corporation's (NYSE:SWI) 40% Share Price Plunge Could Signal Some Risk

SolarWinds Corporation's (NYSE:SWI) 40% Share Price Plunge Could Signal Some Risk

The SolarWinds Corporation ( NYSE:SWI ) share price has fared very poorly over the last month, falling by a substantial...

Shareholder Returns

SWIUS ITUS Market
7D-4.7%0.1%-0.9%
1Y-68.6%3.1%23.3%

Return vs Industry: SWI underperformed the US IT industry which returned 2.9% over the past year.

Return vs Market: SWI underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is SWI's price volatile compared to industry and market?
SWI volatility
SWI Average Weekly Movement5.8%
IT Industry Average Movement7.0%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: SWI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SWI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19992,155Sudhakar Ramakrishnahttps://www.solarwinds.com

SolarWinds Corporation provides information technology (IT) infrastructure management software products in the United States and internationally. It offers products to monitor and manage network, system, desktop, application, storage, database, and website infrastructures, whether on-premise, in the public or private cloud, or in a hybrid IT infrastructure. It provides a suite of network management software that provides real-time visibility into network utilization and bandwidth, as well as the ability to detect, diagnose, and resolve network performance problems; and a suite of infrastructure management products, which monitor and analyze the performance of applications and their supporting infrastructure.

SolarWinds Fundamentals Summary

How do SolarWinds's earnings and revenue compare to its market cap?
SWI fundamental statistics
Market CapUS$2.38b
Earnings (TTM)US$125.69m
Revenue (TTM)US$1.02b

18.2x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWI income statement (TTM)
RevenueUS$1.02b
Cost of RevenueUS$103.05m
Gross ProfitUS$916.89m
ExpensesUS$791.20m
EarningsUS$125.69m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.79
Gross Margin89.90%
Net Profit Margin12.32%
Debt/Equity Ratio81.5%

How did SWI perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWI ($14.39) is trading below our estimate of fair value ($30.33)

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


Price To Earnings Ratio

PE vs Industry: SWI is good value based on its PE Ratio (18.2x) compared to the US IT industry average (34.7x).

PE vs Market: SWI is poor value based on its PE Ratio (18.2x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: SWI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SWI is good value based on its PB Ratio (1x) compared to the US IT industry average (4.7x).


Future Growth

How is SolarWinds forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-68.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWI's earnings are forecast to decline over the next 3 years (-68.3% per year).

Earnings vs Market: SWI's earnings are forecast to decline over the next 3 years (-68.3% per year).

High Growth Earnings: SWI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SWI's revenue (0.01% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: SWI's revenue (0.01% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWI's Return on Equity is forecast to be low in 3 years time (8.3%).


Past Performance

How has SolarWinds performed over the past 5 years?

42.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWI has a large one-off loss of $35.6M impacting its September 30 2021 financial results.

Growing Profit Margin: SWI's current net profit margins (12.3%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: SWI has become profitable over the past 5 years, growing earnings by 42% per year.

Accelerating Growth: SWI's earnings growth over the past year (5743.5%) exceeds its 5-year average (42% per year).

Earnings vs Industry: SWI earnings growth over the past year (5743.5%) exceeded the IT industry 38.3%.


Return on Equity

High ROE: SWI's Return on Equity (5.5%) is considered low.


Financial Health

How is SolarWinds's financial position?


Financial Position Analysis

Short Term Liabilities: SWI's short term assets ($820.5M) exceed its short term liabilities ($406.6M).

Long Term Liabilities: SWI's short term assets ($820.5M) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: SWI's net debt to equity ratio (51%) is considered high.

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

Debt Coverage: SWI's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: SWI's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SWI'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 SWI'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?

1.8yrs

Average management tenure


CEO

Sudhakar Ramakrishna (53 yo)

0.83

Tenure

Mr. Sudhakar Ramakrishna is an Independent Director of Enterprise 4.0 Technology Acquisition Corp., since 2021. He serves as Independent Director at SailPoint Technologies Holdings, Inc. since June 14, 202...


Leadership Team

Experienced Management: SWI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SWI's board of directors are not considered experienced ( 1.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SolarWinds Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: SolarWinds Corporation
  • Ticker: SWI
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$2.380b
  • Shares outstanding: 159.09m
  • Website: https://www.solarwinds.com

Number of Employees


Location

  • SolarWinds Corporation
  • Building 400
  • 7171 Southwest Parkway
  • Austin
  • Texas
  • 78735
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:22
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.