N-able (NABL) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 40.7
• Beta (1Y): 0.64
• Revenue Growth: 10.49%
• EPS Growth: 30.42%
• Country: US
• Employees: 1,765
• Sector: Technology
• Sector Strength: 45
• Industry: Information Technology Services
• EPS (TTM): 0.17
• Shares Outstanding: 188,957,200
• 10 Day Avg. Volume: 975,576
• 30 Day Avg. Volume: 1,283,531
• PEG Ratio: 1.34
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.04
• Price to Cash Flow (P/CF): 13.60
• P/FCF Ratio: 19.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.10
• Price Target Upside: 35.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

N-able's overall stock score reflects a strong financial foundation with consistent revenue growth and solid profitability margins. Despite the positive financial performance and strategic acquisitions, technical indicators suggest bearish momentum, and the high P/E ratio indicates a premium valuation. While the earnings call provided positive insights into growth prospects, anticipated challenges related to revenue recognition and EBITDA margins present notable risks.

Positive Factors

Financial Targets

Management reiterated its guidance, emphasizing confidence in achieving future financial targets.

Market Competition

NABL competes in a large, healthy market with sound growth drivers and a compelling portfolio.

Revenue Growth

NABL reported revenue growth of 7.5% y/y CC, and total revenue of about $117 million, which exceeded consensus of $114 million.

Negative Factors

Organic Growth

NABL’s implied organic growth for next year is disappointing, partially due to ongoing annual contract initiative headwinds.

Revenue Growth Challenges

The ongoing transition to annual contracts is expected to continue to negatively impact revenue growth for the next few years.

Revenue Guidance

Management’s FY25 revenue and adjusted EBITDA margin guide, inclusive of Adlumin, is weaker than expected.

N-able Business Overview & Revenue Model

Company Description

N-able, Inc. provides cloud-based software solutions for managed service providers (MSPs) in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. Its software platform is designed to be an enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. The company's platform consists of solution categories including remote monitoring and management; security and data protection solutions through its data protection, patch management, endpoint security, web protection, e-mail security and archiving, and vulnerability assessment solutions; and business management, such as professional services automation, automation and scripting management, password management policies and reporting and analytics. The company was founded in 2000 and is headquartered in Burlington, Massachusetts.

How the Company Makes Money

N-able generates revenue primarily through a subscription-based model for its software solutions. The company's key revenue streams include selling licenses for its cloud-based IT management and security software platforms, which are typically sold on a recurring subscription basis. This model provides a steady and predictable revenue stream as clients pay for ongoing access to N-able's services. Additionally, N-able may offer professional services and training to complement its software offerings, which can also contribute to its revenue. Strategic partnerships with technology vendors and service providers can further enhance its market reach and customer base, thus supporting its financial performance.

N-able Financial Statement Overview

Summary

N-able demonstrates strong financial performance with robust revenue growth and profitability margins. The company shows low leverage and a strong equity base, alongside efficient cash flow generation, indicating solid financial health.

Income Statement

N-able shows strong revenue growth with a 10.01% increase in TTM (Trailing-Twelve-Months) revenue compared to the previous year. The Gross Profit Margin for the TTM is 83.07%, indicating efficient cost management. The Net Profit Margin improved to 6.67%, reflecting increased profitability. EBIT and EBITDA margins are healthy at 16.48% and 22.38% respectively, showcasing robust operational performance.

Balance Sheet

The Debt-to-Equity Ratio in TTM stands at 0.05, indicating low leverage, which is positive for financial stability. The Return on Equity (ROE) is 4.08%, showing a modest return to shareholders. The Equity Ratio is solid at 56.69%, suggesting a well-capitalized company with a strong equity base.

Cash Flow

Free Cash Flow for TTM grew by 6.52% compared to the previous year, demonstrating strong cash generation capability. The Operating Cash Flow to Net Income Ratio is 2.57, highlighting efficient cash conversion. The Free Cash Flow to Net Income Ratio is 2.00, indicating solid free cash flow generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
462.63M	421.88M	371.77M	346.46M	302.87M
	Gross Profit
385.47M	353.67M	313.16M	294.02M	239.70M
	EBIT
82.37M	70.32M	47.40M	33.33M	33.77M
	EBITDA
110.03M	94.65M	72.55M	65.09M	89.44M
	Net Income Common Stockholders
30.96M	23.41M	16.71M	113.00K	-7.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.20M	153.05M	98.85M	66.74M	99.79M
	Total Assets
1.34B	1.16B	1.08B	1.06B	1.08B
	Total Debt
39.59M	374.52M	375.87M	381.53M	390.15M
	Net Debt
-45.61M	221.47M	277.02M	314.80M	290.36M
	Total Liabilities
579.56M	451.43M	436.79M	437.34M	448.54M
	Stockholders Equity
759.29M	711.36M	642.07M	618.36M	631.20M
Cash Flow		Free Cash Flow
61.87M	67.75M	50.40M	10.51M	69.53M
	Operating Cash Flow
79.44M	90.09M	71.41M	45.34M	85.67M
	Investing Cash Flow
-122.42M	-22.34M	-30.21M	-34.83M	-16.14M
	Financing Cash Flow
-22.59M	-15.17M	-10.40M	-50.62M	-10.56M

N-able Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABL, the sentiment is Neutral. The current price of 6.71 is below the 20-day moving average (MA) of 6.75, below the 50-day MA of 7.74, and below the 200-day MA of 10.70, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 82.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NABL.

N-able Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORTY	71 Outperform	$1.36B	16.77	12.21%	0.96%	3.51%	18.34%
NABL	68 Neutral	$1.27B	40.67	4.21%	―	10.49%	30.42%
GDYN	63 Neutral	$1.17B	305.90	0.90%	―	12.04%	―
TASK	62 Neutral	$1.24B	27.63	9.78%	―	7.64%	5.22%
Sector *	59 Neutral	$10.59B	10.09	-6.37%	3.05%	7.44%	-10.67%
PSFE	55 Neutral	$904.24M	43.22	2.51%	―	6.48%	―
VYX	43 Neutral	$1.18B	―	-20.40%	―	-54.34%	-34.10%

N-able Corporate Events

N-able Announces 2025 Investor Day in New York

N-able, Inc. announced that it will host its 2025 Investor Day on March 13, 2025, in New York City. The event will feature presentations from the company’s leadership team and a live Q&A session, with a webcast available on their Investor Relations website. This event is part of N-able’s efforts to engage with financial analysts and stakeholders, providing insights into the company’s operations and future prospects. The announcement highlights the company’s transparency and commitment to maintaining investor relations, which could impact its market positioning and stakeholder confidence.