CyberArk Software (CYBR) AI Stock Analysis

• Market Cap: $25.95B
• Dividend Yield: N/A
• Average Volume (3M): 699.68K
• Price to Earnings (P/E): 1777.4
• Beta (1Y): 1.23
• Revenue Growth: 39.45%
• EPS Growth: -982.51%
• Country: US
• Employees: 3,793
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.88
• Shares Outstanding: 50,476,950
• 10 Day Avg. Volume: 468,195
• 30 Day Avg. Volume: 699,684
• PEG Ratio: -4.85
• Price to Book (P/B): 6.21
• Price to Sales (P/S): 14.71
• P/FCF Ratio: 66.65
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 16.73
• Enterprise Value/Gross Profit: 21.96
• Enterprise Value/Ebitda: 276.83
• 1Y Price Target: $468.63
• Price Target Upside: -7.76% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24

• Rating: 67 Neutral
• Price Target: $494.00 ▼(-2.77% Downside)

CyberArk Software's strong technical momentum and strategic shift towards subscription models are key strengths, driving a positive outlook. However, the negative P/E ratio and lack of profitability weigh heavily on the valuation score. The company's robust revenue growth and cash flow management provide a solid foundation, but managing leverage and improving profitability are crucial for future stability.

Positive Factors

Revenue Growth

CyberArk's robust revenue growth indicates strong market demand and successful expansion of its cybersecurity solutions, enhancing its competitive position.

Cash Flow Management

Effective cash flow management ensures CyberArk has the liquidity to invest in growth opportunities and sustain operations, supporting long-term business stability.

Strategic Shift to Subscription Models

Transitioning to subscription models provides recurring revenue, improving predictability and customer retention, which are crucial for sustainable growth.

Negative Factors

Profitability Challenges

Ongoing net losses and negative profitability metrics may hinder CyberArk's ability to reinvest in its business and compete effectively over time.

Increased Leverage

Higher leverage can increase financial risk and limit flexibility, potentially impacting CyberArk's ability to navigate economic downturns or invest in growth.

Negative Net Profit Margin

A negative net profit margin indicates operational inefficiencies and challenges in achieving profitability, which could affect long-term financial health.

CyberArk Software Business Overview & Revenue Model

Company Description

CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sales software-based security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager that offers risk-based credential security and session management to protect against attacks involving privileged access; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide fast, easy, and secure privileged access to third-party vendors; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Cloud Entitlements Manager, a SaaS solution, which reduces risk that arises from excessive privileges by implementing least privilege across cloud environments. The company also offers robust Identity and Access Management as a Services, such as workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure Web sessions, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management to enable organizations to provide their customers with easy and secure access to websites and applications. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; and Secrets Manager Conjur for cloud-native applications. The company provides its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies through direct sales force, as well as distributors, systems integrators, value-added resellers, and managed security service providers. CyberArk Software Ltd. was founded in 1999 and is headquartered in Petah Tikva, Israel.

How the Company Makes Money

CyberArk generates revenue primarily through the sale of its software products and subscription services. The company's revenue model includes both one-time license fees for on-premises software and recurring subscription fees for its cloud-based solutions. Major revenue streams consist of sales from privileged access management solutions, which are essential for organizations to manage and secure privileged accounts effectively. Additionally, CyberArk earns revenue from maintenance and support services, as well as professional services related to implementation and consulting. The company has established significant partnerships with other technology providers and integrates its solutions with various platforms, enhancing its market reach and contributing to its earnings.

CyberArk Software Financial Statement Overview

Summary

CyberArk Software shows strong revenue growth and effective cash flow management, crucial for expansion in the software infrastructure industry. However, profitability metrics are under pressure due to negative net income, and increased leverage poses risks. High liquidity and a strategic shift towards subscription models are positive indicators.

Income Statement

Revenue has shown a strong growth trajectory from $464M in 2020 to $1.2B TTM, indicating robust business expansion. However, margins remain a concern, with a negative EBIT and net income reflecting operating challenges. The gross profit margin is solid at 76.2% TTM, but the net profit margin is negative due to consistent losses.

Balance Sheet

The balance sheet is strong with a high equity ratio of 51.2% TTM and substantial cash reserves. However, the debt-to-equity ratio increased significantly, reflecting higher leverage which could pose risks if not managed properly. ROE remains negative due to ongoing net losses, although equity growth is positive.

Cash Flow

Operating cash flow is robust and exceeds net income, indicating good cash generation from operations. The free cash flow is positive and growing, signaling effective capital management. However, the significant increase in financing cash flow suggests reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.00B	751.89M	591.71M	502.92M	464.43M
Gross Profit	914.27M	792.37M	595.76M	465.66M	409.61M	381.86M
EBITDA	72.52M	28.68M	-43.77M	-117.57M	-59.06M	32.27M
Net Income	-165.37M	-93.46M	-66.50M	-130.37M	-83.95M	-5.76M
Balance Sheet
Total Assets	4.53B	3.35B	2.02B	1.82B	1.69B	1.56B
Cash, Cash Equivalents and Short-Term Investments	1.54B	819.78M	993.42M	954.28M	926.43M	952.99M
Total Debt	1.22B	29.32M	602.87M	577.20M	527.07M	525.53M
Total Liabilities	2.21B	978.59M	1.23B	1.14B	966.69M	855.06M
Stockholders Equity	2.32B	2.37B	792.33M	678.14M	726.51M	707.29M
Cash Flow
Free Cash Flow	207.49M	220.83M	51.26M	37.19M	65.81M	99.59M
Operating Cash Flow	222.17M	231.89M	56.20M	49.71M	74.74M	106.77M
Investing Cash Flow	-1.40B	-346.26M	-85.83M	-68.39M	-228.19M	-412.39M
Financing Cash Flow	1.42B	288.81M	38.08M	12.22M	10.95M	13.25M

CyberArk Software Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 508.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYBR, the sentiment is Positive. The current price of 508.07 is above the 20-day moving average (MA) of 487.54, above the 50-day MA of 455.86, and above the 200-day MA of 386.96, indicating a bullish trend. The MACD of 13.83 indicates Negative momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 88.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CYBR.

CyberArk Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PANW	80 Outperform	$142.85B	136.11	17.45%	―	14.87%	-57.43%
FTNT	78 Outperform	$65.07B	34.51	165.17%	―	14.46%	48.06%
OKTA	70 Neutral	$16.02B	109.22	2.61%	―	12.68%	―
CYBR	67 Neutral	$25.95B	1,777.39	-10.35%	―	39.45%	-982.51%
CRWD	66 Neutral	$127.97B	721.64	-8.99%	―	23.46%	-270.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SAIL	53 Neutral	$12.25B	―	-11.15%	―	25.99%	-25.47%

CyberArk Software Corporate Events

CyberArk Announces Shareholder Meeting for Proposed Merger with Palo Alto Networks

CyberArk Software Ltd. has announced a special general meeting of shareholders scheduled for November 13, 2025, to vote on a proposed merger with Palo Alto Networks, Inc. (PANW). The merger agreement, initially signed on July 30, 2025, outlines that CyberArk will become a wholly owned subsidiary of PANW. Shareholders will receive PANW common stock and cash as part of the merger consideration. The CyberArk board unanimously supports the merger, viewing it as beneficial for the company and its shareholders. The meeting will also address the approval of CyberArk’s 2024 share incentive plan. If approved, the merger will result in former CyberArk shareholders owning approximately 14.1% of PANW’s outstanding shares.

CyberArk Software Announces Merger with Palo Alto Networks

On July 30, 2025, CyberArk Software Ltd. entered into a merger agreement with Palo Alto Networks, Inc., where CyberArk will become a wholly owned subsidiary of Palo Alto Networks. The merger involves converting each CyberArk share into 2.2005 shares of Palo Alto Networks and $45 in cash. This strategic move is expected to enhance CyberArk’s market position and expand Palo Alto Networks’ cybersecurity offerings. The merger is subject to customary closing conditions, including shareholder and regulatory approvals, and is anticipated to have significant implications for stakeholders, including potential delisting of CyberArk shares from Nasdaq.

Palo Alto Networks to Acquire CyberArk in $25 Billion Deal

On July 30, 2025, CyberArk Software Ltd. announced its acquisition by Palo Alto Networks, marking a significant strategic move for both companies. This acquisition, valued at approximately $25 billion, will integrate CyberArk’s Identity Security expertise with Palo Alto Networks’ AI-driven security platforms, enhancing their market position and offering comprehensive security solutions to customers. The transaction is expected to close in the second half of Palo Alto Networks’ fiscal 2026, subject to customary conditions.