SolarWinds Corporation provides information technology (IT) infrastructure management software products in the United States and internationally.
Reasonable growth potential and fair value.
Share Price & News
How has SolarWinds's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SWI has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SWI underperformed the US Software industry which returned 42.2% over the past year.
Return vs Market: SWI underperformed the US Market which returned 20.1% over the past year.
Price Volatility Vs. Market
How volatile is SolarWinds's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StSolarWinds Corporation Full-Year Results: Here's What Analysts Are Forecasting For Next Year
1 week ago | Simply Wall StUpdate: SolarWinds (NYSE:SWI) Stock Gained 19% In The Last Year
1 month ago | Simply Wall StWhy SolarWinds Corporation’s (NYSE:SWI) Return On Capital Employed Might Be A Concern
Is SolarWinds undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SWI ($18.57) is trading below our estimate of fair value ($31.22)
Significantly Below Fair Value: SWI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SWI is poor value based on its PE Ratio (308.9x) compared to the Software industry average (52.1x).
PE vs Market: SWI is poor value based on its PE Ratio (308.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: SWI is poor value based on its PEG Ratio (5.5x)
Price to Book Ratio
PB vs Industry: SWI is good value based on its PB Ratio (2.2x) compared to the US Software industry average (6x).
How is SolarWinds forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SWI's forecast earnings growth (55.8% per year) is above the savings rate (1.7%).
Earnings vs Market: SWI's earnings (55.8% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SWI's revenue (10.5% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: SWI's revenue (10.5% 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 (12.9%).
How has SolarWinds performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SWI has a large one-off loss of $14.1M impacting its December 31 2019 financial results.
Growing Profit Margin: SWI's current net profit margins (2%) are lower than last year (43.8%).
Past Earnings Growth Analysis
Earnings Trend: SWI's earnings have grown by 15.9% per year over the past 5 years.
Accelerating Growth: SWI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SWI had negative earnings growth (-94.9%) over the past year, making it difficult to compare to the Software industry average (17.1%).
Return on Equity
High ROE: SWI's Return on Equity (0.7%) is considered low.
Return on Assets
Return on Capital Employed
How is SolarWinds's financial position?
Financial Position Analysis
Short Term Liabilities: SWI's short term assets ($319.9M) do not cover its short term liabilities ($423.0M).
Long Term Liabilities: SWI's short term assets ($319.9M) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: SWI's debt to equity ratio (72.2%) is considered high.
Reducing Debt: Insufficient data to determine if SWI's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: SWI's debt is not well covered by operating cash flow (15.7%).
Interest Coverage: SWI's interest payments on its debt are not well covered by EBIT (1.4x coverage).
Inventory Level: SWI has a low level of unsold assets or inventory.
Debt Coverage by Assets: SWI's debt is not covered by short term assets (assets are 0.2x debt).
What is SolarWinds's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate SWI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate SWI's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Thompson (54yo)
Mr. Kevin B. Thompson has been the Chief Executive Officer and President of SolarWinds Corporation since March 01, 2010 and since January 2009 respectively. Mr. Thompson serves as the President and Chief E ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD8.71M) is above average for companies of similar size in the US market ($USD6.26M).
Compensation vs Earnings: Kevin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Executive VP||3.8yrs||US$2.93m||0.19% $11.0m|
|Executive Vice President of Core IT||6.6yrs||US$3.48m||0.18% $10.2m|
|Executive VP & President of Business Operations||6yrs||US$3.39m||no data|
|Executive VP of Engineering & CTO||4yrs||no data||0.10% $6.0m|
|Chief Information Officer & Global VP||2.8yrs||no data||no data|
|Vice President of Investor Relations||0yrs||no data||no data|
|Executive VP||3.8yrs||no data||0.12% $6.7m|
|Senior VP & Chief Marketing Officer||2.1yrs||no data||no data|
|Senior Vice President of International Sales||2.1yrs||no data||no data|
Experienced Management: SWI's management team is considered experienced (3.8 years average tenure).
|Independent Director||4yrs||US$471.20k||no data|
|Independent Director||4yrs||US$471.96k||no data|
|Independent Director||1.3yrs||US$471.20k||no data|
|Independent Director||4yrs||US$471.96k||no data|
|Independent Director||1.3yrs||US$478.84k||no data|
|Lead Independent Director||1.3yrs||US$476.29k||no data|
|Independent Director||4yrs||US$572.73k||0.018% $1.0m|
|Independent Director||1.3yrs||US$470.18k||no data|
|Independent Director||4yrs||US$472.73k||no data|
Experienced Board: SWI's board of directors are considered experienced (4 years average tenure).
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
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 118.7%.
SolarWinds Corporation's company bio, employee growth, exchange listings and data sources
- Name: SolarWinds Corporation
- Ticker: SWI
- Exchange: NYSE
- Founded: 1999
- Industry: Systems Software
- Sector: Software
- Market Cap: US$5.725b
- Shares outstanding: 308.29m
- Website: https://www.solarwinds.com
Number of Employees
- SolarWinds Corporation
- Building 400
- 7171 Southwest Parkway
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SWI||NYSE (New York Stock Exchange)||Yes||New Common Stock||US||USD||Oct 2018|
|0OI||DB (Deutsche Boerse AG)||Yes||New Common Stock||DE||EUR||Oct 2018|
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, and database and Website infrastructures, whether on-premise, in the public or private cloud, or in a hybrid IT infrastructure. The company 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 system management products, which monitor and analyze the performance of applications and their supporting infrastructure. It also offers cloud-based monitoring of the full IT stack whether deployed in the cloud or on-premise; and AppOptics, which integrates application performance, server infrastructure monitoring, and custom metrics into one unified cloud-based solution. Its cloud management products enable visibility into log data, cloud infrastructure metrics, applications, tracing, and Web performance management. In addition, the company provides IT service management solutions to enable managed service providers (MSPs) to deliver outsourced IT services and manage their own businesses. Its remote monitoring and management software, which monitors desktops, laptops, servers, and mobile devices across operating systems and platforms. Further, it offers an email protection and archiving platform on a standalone basis that protects businesses from phishing, malware, and other email-borne threats. The company markets and sells its products directly to network and systems engineers, database administrators, storage administrators, DevOps professionals, and managed service providers. The company was formerly known as SolarWinds Parent, Inc. and changed its name to SolarWinds Corporation in May 2018. SolarWinds Corporation was founded in 1999 and is headquartered in Austin, Texas.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/17 01:39|
|End of Day Share Price||2020/02/14 00:00|
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.