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SolarWinds

NYSE:SWI
Snowflake Description

Fair value with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SWI
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Software
Company description

SolarWinds Corporation provides information technology (IT) infrastructure management software products in the United States and internationally. The last earnings update was 23 days ago. More info.


Add to Portfolio Compare Print
  • SolarWinds has significant price volatility in the past 3 months.
SWI Share Price and Events
7 Day Returns
8.1%
NYSE:SWI
2.5%
US Software
1.6%
US Market
1 Year Returns
-
NYSE:SWI
24.3%
US Software
3.2%
US Market
SWI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SolarWinds (SWI) 8.1% 6% 50.4% - - -
US Software 2.5% 5.1% 18.3% 24.3% 108.3% 136.1%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • No trading data on SWI.
  • No trading data on SWI.
Price Volatility
Industry
5yr Volatility vs Market

SWI Value

 Is SolarWinds undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SolarWinds to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for SolarWinds.

NYSE:SWI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SWI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.139 (1 + (1- 21%) (30.79%))
1.279
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.28
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.279 * 5.96%)
10.35%

Discounted Cash Flow Calculation for NYSE:SWI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SolarWinds is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:SWI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.35%)
2019 335.47 Analyst x8 303.99
2020 391.86 Analyst x8 321.79
2021 437.52 Est @ 11.65% 325.58
2022 476.79 Est @ 8.98% 321.51
2023 510.65 Est @ 7.1% 312.04
2024 540.22 Est @ 5.79% 299.14
2025 566.54 Est @ 4.87% 284.28
2026 590.50 Est @ 4.23% 268.51
2027 612.82 Est @ 3.78% 252.52
2028 634.05 Est @ 3.46% 236.75
Present value of next 10 years cash flows $2,926.11
NYSE:SWI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $634.05 × (1 + 2.73%) ÷ (10.35% – 2.73%)
$8,545.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,545.11 ÷ (1 + 10.35%)10
$3,190.73
NYSE:SWI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,926.11 + $3,190.73
$6,116.84
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,116.84 / 309.94
$19.74
NYSE:SWI Discount to Share Price
Calculation Result
Value per share (USD) From above. $19.74
Current discount Discount to share price of $20.16
= -1 x ($20.16 - $19.74) / $19.74
-2.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of SolarWinds is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SolarWinds's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SolarWinds's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SWI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.60
NYSE:SWI Share Price ** NYSE (2019-03-19) in USD $20.16
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 52.56x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SolarWinds.

NYSE:SWI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SWI Share Price ÷ EPS (both in USD)

= 20.16 ÷ 2.60

7.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SolarWinds is good value based on earnings compared to the US Software industry average.
  • SolarWinds is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does SolarWinds's expected growth come at a high price?
Raw Data
NYSE:SWI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
-95.5%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.58x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

NYSE:SWI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.76x ÷ -95.5%

-0.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SolarWinds earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SolarWinds's assets?
Raw Data
NYSE:SWI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $8.58
NYSE:SWI Share Price * NYSE (2019-03-19) in USD $20.16
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.72x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NYSE:SWI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SWI Share Price ÷ Book Value per Share (both in USD)

= 20.16 ÷ 8.58

2.35x

* Primary Listing of SolarWinds.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SolarWinds is good value based on assets compared to the US Software industry average.
X
Value checks
We assess SolarWinds's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. SolarWinds has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SWI Future Performance

 How is SolarWinds expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-95.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SolarWinds expected to grow at an attractive rate?
  • SolarWinds's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • SolarWinds's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • SolarWinds's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SWI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SWI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts -95.5%
NYSE:SWI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 10.4%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SWI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SWI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,143 4
2020-12-31 1,034 360 76 14
2019-12-31 929 311 32 14
NYSE:SWI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 833 254 365
2018-09-30 810 263 -414
2018-06-30 786 243 -405
2018-03-31 757 238 -379
2017-12-31 728 233 -352
2016-12-31 469 90 -334

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SolarWinds's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • SolarWinds's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SWI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from SolarWinds Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SWI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.25 0.32 0.20 4.00
2019-12-31 0.09 0.16 0.03 5.00
NYSE:SWI Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.60
2018-09-30 -4.07
2018-06-30 -4.00
2018-03-31 -3.75
2017-12-31 -3.50
2016-12-31 -3.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SolarWinds is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SolarWinds's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SolarWinds has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SWI Past Performance

  How has SolarWinds performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SolarWinds's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SolarWinds's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • SolarWinds has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • SolarWinds has become profitable in the last year making it difficult to compare the US Software industry average.
Earnings and Revenue History
SolarWinds's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SolarWinds Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SWI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 833.09 364.64 306.91 96.27
2018-09-30 810.25 -413.51 275.98 90.79
2018-06-30 786.08 -405.13 265.27 88.47
2018-03-31 757.05 -378.50 258.18 85.44
2017-12-31 728.02 -351.87 272.93 86.62
2016-12-31 469.42 -334.41 352.97 97.99
2015-09-30 485.93 90.29 243.68 63.65
2015-06-30 467.17 87.40 236.35 59.96
2015-03-31 449.60 78.63 225.97 58.71
2014-12-31 428.71 78.11 211.95 56.48
2014-09-30 407.37 76.31 198.84 53.68
2014-06-30 382.37 75.01 184.47 49.47
2014-03-31 358.38 84.43 164.20 43.81
2013-12-31 335.39 89.78 144.99 37.51
2013-09-30 311.82 90.92 127.28 33.58
2013-06-30 295.68 90.58 118.20 31.23
2013-03-31 282.20 87.21 112.81 29.94
2012-12-31 268.96 81.34 107.70 28.77
2012-09-30 251.04 75.34 101.24 26.51
2012-06-30 233.27 73.74 94.00 24.86
2012-03-31 215.05 67.86 87.14 22.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if SolarWinds has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • SolarWinds used its assets more efficiently than the US Software industry average last year based on Return on Assets.
  • SolarWinds's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SolarWinds's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SolarWinds has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SWI Health

 How is SolarWinds's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SolarWinds's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SolarWinds is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SolarWinds's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of SolarWinds's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SolarWinds Company Filings, last reported 2 months ago.

NYSE:SWI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,616.10 1,923.97 382.62
2018-09-30 -1,069.53 2,236.17 278.33
2018-06-30 -983.74 2,238.58 278.08
2018-03-31 -729.76 2,262.57 277.72
2017-12-31 -729.76 2,262.57 277.72
2016-12-31 -519.64 2,259.89 103.64
2015-09-30 483.82 90.00 193.54
2015-06-30 642.33 0.00 246.40
2015-03-31 603.07 0.00 239.81
2014-12-31 588.86 0.00 250.33
2014-09-30 553.68 0.00 209.60
2014-06-30 530.06 40.00 202.13
2014-03-31 510.98 40.00 222.82
2013-12-31 483.89 40.00 185.30
2013-09-30 468.21 0.00 206.11
2013-06-30 445.79 0.00 175.92
2013-03-31 414.01 0.00 265.76
2012-12-31 382.81 0.00 228.98
2012-09-30 351.33 0.00 195.71
2012-06-30 317.11 0.00 183.13
2012-03-31 292.38 0.00 171.19
  • SolarWinds's level of debt (73.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (8.3% vs 73.5% today).
  • Debt is not well covered by operating cash flow (13.2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 0.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess SolarWinds's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SolarWinds has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SWI Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from SolarWinds dividends. Estimated to be 0% next year.
If you bought $2,000 of SolarWinds shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate SolarWinds's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate SolarWinds's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SWI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SWI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 3.00
2020-12-31 0.00 4.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as SolarWinds has not reported any payouts.
  • Unable to verify if SolarWinds's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of SolarWinds's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as SolarWinds has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of SolarWinds's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess SolarWinds's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SolarWinds afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SolarWinds has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SWI Management

 What is the CEO of SolarWinds's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Thompson
COMPENSATION $1,352,988
AGE 53
TENURE AS CEO 9 years
CEO Bio

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 Executive Officer of SolarWinds Worldwide, LLC. He has been the President of SolarWinds North America, Inc. since January 2009 and has been its Chief Executive Officer since March 2010. He has nearly 20 years of corporate finance, strategic planning and management experience. Mr. Thompson also has extensive experience in identifying, negotiating and leading acquisition diligence efforts. Drawing on his experience as a successful CEO and previously as chief financial officer at several leading technology companies, the seasoned finance professional and cloud software veteran. He served as Treasurer of SolarWinds, Inc. from July 2006 to March 2010. He served as the Chief Financial Officer of SolarWinds, Inc. from July 2006 to March 1, 2010 and served as its Chief Operating Officer from July 2007 to March 2010. Mr. Thompson served as an Interim Chief Financial Officer of Red Hat, Inc. until September 2004, Chief Financial Officer since October 2000 until August 2004, Executive Vice President since February 2001, Senior Vice President from November 2000 to February 2001, Vice President of Operations from September 2000 to November 2000 and also served as its Principal Accounting Officer and Treasurer. At Red Hat, Mr. Thompson worked extensively with customers and analysts. He served as Chief Financial Officer and Senior Vice President of Finance at SAS Institute Inc. and was responsible for global financial operations, business analysis, financial and operational planning and financial reporting. He also oversaw mergers and acquisitions. He was “testing ground“ for SAS' financial intelligence software suite. He served as Chief Financial Officer of Surgient, Inc. since From November 2005 to March 2006. He joined SAS in September 2004. Before joining Red Hat, Mr. Thompson worked 10 years at Andersen LLP and served as its Senior Manager from May 1988 to January 1998. From June 2000 to September 2000, he was a Technology Partner with the international accounting firm of Pricewater Housecoopers LLP. He joined Pricewater Housecoopers in January 1998 and was its Partner since 2000. He spent almost three years in the Global Technology Industry Group of PricewaterhouseCoopers, where he directed stock offerings and mergers and acquisitions at public and private technology companies and also led the startup technology practice in northern Virginia. During his career, Mr. Thompson has led teams in countries throughout South America, Europe and Asia/Pacific. He has been a Director of BlackLine, Inc. since October 1, 2017; SolarWinds, Inc. since March 2010 and Instructure, Inc. since November 16, 2016. He serves as a Director of SolarWinds North America, Inc. He served as a Director of Barracuda Networks, Inc. from September 2013 to June 2016. He served as a Director of NetSuite Inc. from September 2006 to November 7, 2016. Mr. Thompson is a Certified Public Accountant. He holds a Bachelor's degree in Business Administration from the University of Oklahoma, where he graduated with highest honors.

CEO Compensation
  • Kevin's compensation has been consistent with company performance over the past year.
  • Kevin's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the SolarWinds management team in years:

1.8
Average Tenure
50
Average Age
  • The average tenure for the SolarWinds management team is less than 2 years, this suggests a new team.
Management Team

Kevin Thompson

TITLE
President
COMPENSATION
$1M
AGE
53
TENURE
9 yrs

Bart Kalsu

TITLE
Executive VP
COMPENSATION
$649K
AGE
50
TENURE
1.2 yrs

David Gardiner

TITLE
Executive Vice President of Core IT
COMPENSATION
$886K
AGE
43

Doug Hibberd

TITLE
Executive VP & President of Business Operations
COMPENSATION
$3M
AGE
53
TENURE
5.1 yrs

Joe Kim

TITLE
Executive VP of Engineering & Global CTO
TENURE
1.7 yrs

Rani Johnson

TITLE
Chief Information Officer & Global VP
TENURE
1.9 yrs

David Hafner

TITLE
Vice President of Investor Relations

Jason Bliss

TITLE
Executive VP
AGE
44
TENURE
4.9 yrs

Darren Beck

TITLE
Chief Marketing Officer
TENURE
1.2 yrs

David Cronk

TITLE
Senior Vice President of International Sales
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the SolarWinds board of directors in years:

3.1
Average Tenure
53
Average Age
  • The tenure for the SolarWinds board of directors is about average.
Board of Directors

Cathy Kinney

TITLE
Lead Independent Director
AGE
66
TENURE
0.4 yrs

Kevin Thompson

TITLE
President
COMPENSATION
$1M
AGE
53
TENURE
9 yrs

Bill Bock

TITLE
Director
AGE
67
TENURE
0.4 yrs

Paul Cormier

TITLE
Director
COMPENSATION
$471K
AGE
61
TENURE
0.4 yrs

Seth Boro

TITLE
Director
AGE
43
TENURE
3.1 yrs

Kenneth Hao

TITLE
Director
AGE
49
TENURE
3.1 yrs

Mike Bingle

TITLE
Director
AGE
46
TENURE
3.1 yrs

Jason White

TITLE
Director
TENURE
3.1 yrs

Mike Hoffmann

TITLE
Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Jan 19 Buy PGIM, Inc. Company 08. Jan 19 08. Jan 19 250 $15.15 $3,788
X
Management checks
We assess SolarWinds's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SolarWinds has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SWI News

Simply Wall St News

A Look At The Fair Value Of SolarWinds Corporation (NYSE:SWI)

by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

SWI Company Info

Description

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.

Details
Name: SolarWinds Corporation
SWI
Exchange: NYSE
Founded: 1999
$6,248,442,291
309,942,574
Website: http://www.solarwinds.com
Address: SolarWinds Corporation
Building 400,
7171 Southwest Parkway,
Austin,
Texas, 78735,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SWI New Common Stock New York Stock Exchange US USD 19. Oct 2018
Number of employees
Current staff
Staff numbers
2,738
SolarWinds employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 00:49
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.