CrowdStrike CRWD
What does CrowdStrike do?
CrowdStrike is a provider of cybersecurity solutions and operates the Falcon platform, a cloud-based system that protects endpoints, cloud workloads, identities and data. The software is delivered through a lightweight agent and a central cloud architecture, in which telemetry data is collected and analyzed using AI methods.
Revenue arises predominantly from recurring software subscriptions, which are purchased as modules of the platform. These include endpoint protection, vulnerability and IT operations management, identity protection, threat intelligence, data protection, log management, and SIEM and automation solutions. The offering is complemented by managed security services and incident response services. Customers are companies, government agencies and organizations of various sizes worldwide. Competitively, CrowdStrike faces Microsoft, Palo Alto Networks, SentinelOne and other security providers, among others. Its positioning rests on the breadth of the platform, the data base for threat detection and the ability to consolidate multiple security functions.
Score profile
Rank vs. Software - Infrastructure (50 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, CrowdStrike ranks below average in the group Software - Infrastructure (2.5/10). On growth, the company ranks in the middle in the group Software - Infrastructure (5.5/10). On valuation (higher = cheaper), the stock ranks in the bottom fifth in the group Software - Infrastructure (0.4/10). On financial strength, CrowdStrike ranks below average in the group Software - Infrastructure (4.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 140.2x | 16.0x | better than 3 % |
| PEG ratio | 5.6x | 1.4x | better than 6 % |
| Price/sales | 42.8x | 3.8x | better than 3 % |
| Price/book | 45.3x | 5.8x | better than 1 % |
| Revenue growth | 25.8% | 14.3% | better than 81 % |
| Earnings growth | 0.0% | 24.4% | better than 29 % |
| Gross margin | 75.2% | 72.3% | better than 59 % |
| Operating margin | -2.3% | 13.3% | better than 7 % |
| Net margin | 0.8% | 10.5% | better than 13 % |
| Return on equity | 1.5% | 12.4% | better than 19 % |
| Debt/equity | 16.0% | 17.5% | better than 51 % |
| Current ratio | 1.6x | 1.5x | better than 55 % |
| Free cash flow yield | 0.9% | 3.7% | better than 13 % |
| Dividend yield | 0.0% | 1.1% | – |
| Payout ratio | 0.0% | 31.4% | – |
| Beta | 1.15 | 1.04 | – |
Valuation: what is CrowdStrike worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give CrowdStrike a model range of 94.58 USD to 94.58 USD per share.
50 analysts, average rating “Buy”, average price target 249.68 USD (+10.6%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Demand depends on companies' willingness to invest security budgets in cloud platforms rather than in individual legacy solutions.
- Add-on modules sold to existing customers increase revenue per customer and strengthen platform stickiness.
- Rising cyber threats and regulatory requirements increase the need for detection, response and identity protection.
Risks
- An outage or error in the software agent can cause widespread operational disruptions for customers and have liability and reputational consequences.
- Strong competition from large technology groups and specialized providers can put pressure on prices and market share.
- Security incidents or weaknesses in the company's own platform would damage customers' trust in its core value proposition.
What to look for with CrowdStrike
Annual recurring revenue (ARR) from subscriptions is central, as it most directly reflects predictability, customer retention and the expansion of the platform business.