CyberArk Software (CYBR) AI Stock Analysis

• Market Cap: $20.42B
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 1777.4
• Beta (1Y): 1.28
• Revenue Growth: 39.45%
• EPS Growth: -982.51%
• Country: US
• Employees: 3,793
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Infrastructure
• EPS (TTM): 0.88
• Shares Outstanding: 50,407,204
• 10 Day Avg. Volume: 3,783,251
• 30 Day Avg. Volume: 1,703,706
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 16.73
• Enterprise Value/Gross Profit: 21.96
• Enterprise Value/Ebitda: 276.83
• 1Y Price Target: $468.46
• Price Target Upside: 15.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 32

• Rating: 70 Neutral
• Price Target: $455.00 ▲(12.33% Upside)

CyberArk Software's overall score is driven by strong financial performance and a positive earnings call, indicating robust growth prospects in identity security despite macroeconomic uncertainties. Technical indicators support a bullish trend, though valuation concerns persist due to profitability challenges.

Positive Factors

Acquisition Premium

The acquisition by Palo Alto Networks represents a 26% premium to the unaffected 10-day average of CyberArk's daily VWAPs.

Revenue Performance

CyberArk pre-announced solid 2Q results with revenue beating consensus by $12M and subscription revenue by $13M.

Negative Factors

Stock Downgrade

The rating on CYBR stock is downgraded to Peer Perform from Outperform.

Stock Valuation

The stock is trading below its implied transaction price, which limits the short-term upside potential for investors.

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 makes money primarily through the sale of its cybersecurity software and services. The company's revenue model includes the licensing of its software solutions, which provide organizations with tools for managing and securing privileged accounts and identities. CyberArk also generates revenue from subscription services, offering cloud-based solutions that provide continuous security management and updates. Additionally, the company earns from maintenance and support services, helping customers with product implementation, training, and ongoing technical support. Key partnerships with technology providers and resellers further enhance its market reach and contribute to its earnings by expanding its customer base and offering integrated solutions.

CyberArk Software Financial Statement Overview

Summary

CyberArk Software demonstrates robust revenue growth and cash flow improvement, supported by a strong balance sheet with zero debt. Despite these strengths, the company faces profitability challenges, with negative net income and EBIT margins. The focus on revenue expansion and cash management provides a solid foundation for future profitability improvement.

Income Statement

The company shows strong revenue growth with a 33% increase from 2023 to 2024, reflecting a positive trajectory. However, profitability metrics such as EBIT and net income margins are negative, indicating ongoing operational challenges. The gross profit margin is healthy at 78%, showing strong core operations despite bottom-line losses.

Balance Sheet

The balance sheet is robust with zero debt and significant cash reserves, highlighting financial stability. The equity ratio is high at 71%, indicating a strong equity base relative to assets. Return on equity is negative due to net losses, which is a key area of concern.

Cash Flow

Operating cash flow has improved significantly, leading to a positive free cash flow growth of 330%. The ratio of operating cash flow to net income is favorable, indicating good cash conversion. The ongoing improvement in cash flow metrics suggests strengthening liquidity, though historical fluctuations in free cash flow remain a potential risk.

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: 405.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 405.04 is above the 20-day moving average (MA) of 392.26, above the 50-day MA of 392.57, and above the 200-day MA of 351.48, indicating a bullish trend. The MACD of 6.76 indicates Negative momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 46.23 is Neutral, 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
CHKP	76 Outperform	$20.47B	24.62	30.30%	―	6.27%	7.14%
ZS	76 Outperform	$43.90B	―	-2.68%	―	25.46%	49.20%
CYBR	70 Neutral	$20.42B	1,777.39	-10.35%	―	39.45%	-982.51%
OKTA	68 Neutral	$16.80B	149.01	2.08%	―	13.51%	―
S	64 Neutral	$5.73B	―	-26.98%	―	32.25%	20.56%
TENB	60 Neutral	$3.63B	―	-12.60%	―	11.41%	33.76%
Sector *	50 Neutral	AU$1.62B	3.22	-31.35%	3.49%	16.14%	-6.73%