CyberArk Software (CYBR) AI Stock Analysis

• Market Cap: $19.54B
• Dividend Yield: N/A
• Average Volume (3M): 721.53K
• Price to Earnings (P/E): 1777.4
• Beta (1Y): 1.35
• Revenue Growth: 35.12%
• EPS Growth: -191.84%
• Country: US
• Employees: 3,793
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): 0.98
• Shares Outstanding: 50,293,728
• 10 Day Avg. Volume: 633,304
• 30 Day Avg. Volume: 721,532
• PEG Ratio: -0.78
• Price to Book (P/B): 7.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 141.47
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 6.43
• Enterprise Value/Ebitda: 2.27K
• 1Y Price Target: $449.52
• Price Target Upside: 15.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 28

• Rating: 73 Outperform
• Price Target: $441.00 ▲(13.52%Upside)

CyberArk's strong earnings call performance and technical momentum are the primary drivers of its positive outlook. While profitability challenges and valuation concerns exist, the company's robust growth in ARR and strategic market positioning highlight its potential for future success.

Positive Factors

Cross-selling and Partnerships

CYBR has not been impacted by macro uncertainty and saw healthy traction with Venafi, especially cross-selling into its existing base.

Demand and Growth

CyberArk continued its strong momentum with 50% year-over-year ARR growth and 65% year-over-year subscription ARR growth.

Profitability and Financial Performance

Operating income and FCF came in substantially above Street expectations.

Negative Factors

Deal Activity

CyberArk's quarter lacked the level of 7-figure deal activity seen in Q4.

Guidance Expectations

The FY25 guidance is more conservative than Street expectations anticipated.

Organic Growth Concerns

Management's reluctance to raise the annual outlook despite adding a contribution from Zilla is bit concerning as it relates to the implied organic growth.

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 strong revenue growth and cash flow improvement, supported by a robust balance sheet with zero debt. However, ongoing profitability challenges, with negative net income and EBIT margins, temper the overall financial performance.

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
1.10B	1.00B	751.89M	591.71M	502.92M	464.43M
	Gross Profit
854.56M	792.37M	595.76M	465.66M	409.61M	381.86M
	EBIT
-71.78M	-72.80M	-116.47M	-152.45M	-78.34M	6.01M
	EBITDA
41.92M	30.08M	-43.77M	-117.57M	-59.06M	24.41M
	Net Income Common Stockholders
-87.47M	-93.46M	-66.50M	-130.37M	-83.95M	-5.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
722.39M	819.78M	993.42M	954.28M	926.43M	952.99M
	Total Assets
3.34B	3.35B	2.02B	1.82B	1.69B	1.56B
	Total Debt
0.00	11.11M	602.87M	577.20M	520.09M	502.30M
	Net Debt
-413.55M	-515.36M	246.94M	229.86M	163.24M	2.31M
	Total Liabilities
910.26M	978.59M	1.23B	1.14B	966.69M	855.06M
	Stockholders Equity
2.43B	2.37B	792.33M	678.14M	726.51M	707.29M
Cash Flow		Free Cash Flow
249.58M	220.83M	51.26M	37.19M	65.81M	99.59M
	Operating Cash Flow
261.78M	231.89M	56.20M	49.71M	74.74M	106.77M
	Investing Cash Flow
-577.12M	-346.26M	-85.83M	-68.39M	-228.19M	-412.39M
	Financing Cash Flow
287.56M	288.81M	38.08M	12.22M	10.95M	13.25M

CyberArk Software Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 388.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 388.47 is above the 20-day moving average (MA) of 387.56, above the 50-day MA of 363.54, and above the 200-day MA of 333.09, indicating a bullish trend. The MACD of 7.89 indicates Positive momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 25.75 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	82 Outperform	$23.76B	28.84	30.92%	―	6.40%	6.49%
CYBR	73 Outperform	$19.54B	1,777.39	-5.36%	―	35.12%	-191.84%
ZS	72 Outperform	$47.85B	―	-2.68%	―	25.46%	49.20%
OKTA	65 Neutral	$17.33B	153.70	2.08%	―	13.51%	―
TENB	64 Neutral	$4.01B	―	-12.09%	―	11.79%	35.35%
S	64 Neutral	$5.86B	―	-26.98%	―	32.25%	20.56%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%