Investors in CrowdStrike Holdings Inc (CRWD, Financial) have witnessed a remarkable surge in the company's stock price, with a 2.73% gain over the past week and an impressive 37.71% gain over the past three months. The current market capitalization stands at a robust $79.18 billion, reflecting the market's confidence in the cybersecurity giant. The stock's current price of $329.7, when compared to the GF Value of $356.34, indicates that CrowdStrike is fairly valued. This assessment is a shift from three months ago when the stock was considered modestly undervalued with a past GF Value of $321.19. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. This valuation change suggests that the company's growth prospects and market position are being recognized by investors.
Company Overview
CrowdStrike Holdings Inc (CRWD, Financial), a leader in the software industry, specializes in cutting-edge cybersecurity solutions. The company's flagship Falcon platform provides comprehensive security through a single interface, enabling enterprises to effectively combat IT infrastructure threats. Founded in 2011 and going public in 2019, CrowdStrike has established itself as a key player in the cybersecurity space. The Texas-based firm's cloud-based approach has set a new standard for security operations, endpoint protection, cloud workload, and identity management.
Assessing Profitability
CrowdStrike's Profitability Rank currently stands at 4/10, which suggests there is room for improvement when compared to industry peers. The company's operating margin is at -3.27%, which is better than 37.24% of 2,779 companies in the software industry. In terms of return on equity (ROE), CrowdStrike has a rate of -0.72%, outperforming 41.79% of its industry counterparts. The return on assets (ROA) is at -0.23%, surpassing 46.13% of the industry, while the return on invested capital (ROIC) is 3.54%, which is higher than 54.7% of the industry. These figures indicate that while CrowdStrike is not the most profitable in its sector, it holds a competitive position with potential for improvement.
Growth Trajectory
The company's Growth Rank is a perfect 10/10, signaling exceptional growth compared to its industry peers. CrowdStrike's 3-year revenue growth rate per share is an impressive 43.50%, better than 91.04% of 2,410 companies in the software industry. The 5-year revenue growth rate per share is even more remarkable at 66.20%, surpassing 97.95% of 1,906 companies. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 29.06%, which is higher than 95.9% of the industry. The 3-year EPS without NRI growth rate stands at 6.30%, and the 5-year rate at 0.30%, indicating steady profitability growth. The future EPS growth rate (3Y to 5Y Est) is projected at 34.13%, outperforming 88.24% of the industry. These growth metrics underscore CrowdStrike's strong momentum and potential for continued expansion.
Notable Shareholders
Among the notable investors in CrowdStrike, Jim Simons (Trades, Portfolio) leads the pack with 1,765,983 shares, representing a 0.74% stake in the company. Following closely is the Harbor Capital Appreciation Fund (Trades, Portfolio), holding 1,325,527 shares, which translates to a 0.55% share percentage. Chase Coleman (Trades, Portfolio) also holds a significant position with 900,000 shares, amounting to a 0.37% stake. These prominent investors' commitment to CrowdStrike reflects their confidence in the company's future prospects.
Competitive Landscape
In the competitive cybersecurity market, CrowdStrike stands among the top players. Its closest competitors based on market capitalization include Fortinet Inc (FTNT, Financial) with a market cap of $54.43 billion, Palantir Technologies Inc (PLTR, Financial) valued at $57.89 billion, and Splunk Inc (SPLK, Financial) at $26.34 billion. While each company brings unique strengths to the table, CrowdStrike's recent stock performance and growth trajectory suggest it is well-positioned to maintain its competitive edge.
Conclusion
In summary, CrowdStrike Holdings Inc's recent stock performance has been stellar, with a significant 37.71% gain over the past three months, reflecting investor confidence in its valuation and growth prospects. The company's profitability, while not leading the industry, shows competitive potential, and its growth metrics are outstanding. With a strong market position and a competitive edge in the cybersecurity industry, CrowdStrike is poised for continued success. Investors and industry watchers alike will be keen to see how the company leverages its strengths in the evolving cybersecurity landscape.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
