N-able (NABL) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: N/A
• Average Volume (3M): 741.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 8.65%
• EPS Growth: -117.14%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.13
• Shares Outstanding: 186,329,600
• 10 Day Avg. Volume: 900,622
• 30 Day Avg. Volume: 741,677
• PEG Ratio: 1.82
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 3.71
• P/FCF Ratio: 27.97
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 3.49
• Enterprise Value/Gross Profit: 4.43
• Enterprise Value/Ebitda: 21.94
• 1Y Price Target: $9.56
• Price Target Upside: 31.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): $501.78M

• Rating: 59 Neutral
• Price Target: $7.50 ▲(3.02% Upside)

N-able's overall stock score is driven by strong earnings call highlights, including ARR growth and AI integration, but is weighed down by poor valuation metrics and bearish technical indicators. Financial performance shows potential but is hindered by profitability and cash flow challenges.

Positive Factors

Strong ARR Growth

The significant increase in Annual Recurring Revenue (ARR) indicates strong customer retention and expanding subscription base, which supports long-term revenue stability and growth.

AI Integration

Strategic advancements in AI integration enhance product offerings, potentially leading to improved operational efficiencies and competitive advantages in the IT services market.

Market Expansion

Expanding market presence in the U.K. and building relationships with top partners can drive revenue growth and strengthen market position in the region.

Negative Factors

Decreased Gross Margin

A decline in gross margin suggests increased costs or pricing pressures, which could impact profitability if not managed effectively over the long term.

FX Impact on Revenue

Foreign exchange rate fluctuations can affect revenue predictability and profitability, posing a risk to financial performance in international markets.

Cash Flow Constraints

Declining free cash flow growth indicates potential issues in cash generation, which could limit the company's ability to invest in growth opportunities or manage debt effectively.

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, where MSPs pay recurring fees for access to its software and services. Key revenue streams include monthly or annual subscriptions for its RMM platform, backup solutions, and security products. Additionally, N-able may earn income from professional services, training, and support. Strategic partnerships with other technology providers and integrations with third-party software can also enhance its offerings and contribute to its revenue. The growth in the managed services market and the increasing need for cybersecurity solutions further support its revenue generation.

N-able Financial Statement Overview

Summary

N-able shows moderate revenue growth and strong gross margins, but faces challenges in profitability and cash flow generation. The balance sheet is stable with manageable debt levels, but low return on equity indicates room for improvement in generating returns for shareholders.

Income Statement

N-able's income statement shows moderate revenue growth with a TTM growth rate of 2.29%. Gross profit margins are strong at 79.27%, indicating efficient cost management. However, the net profit margin is low at 0.59% due to a recent net loss, suggesting challenges in converting revenue into profit. EBIT and EBITDA margins have decreased compared to previous years, reflecting potential operational inefficiencies.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.46, indicating manageable leverage. Return on equity is low at 0.37%, suggesting limited profitability relative to shareholder equity. The equity ratio stands at 58.18%, reflecting a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 5.71% TTM, indicating potential cash generation issues. The operating cash flow to net income ratio is healthy at 0.61, suggesting good cash conversion from operations. However, the free cash flow to net income ratio of 0.84 indicates that free cash flow is not fully covering net income, highlighting potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	497.67M	466.15M	421.88M	371.77M	346.46M	302.87M
Gross Profit	392.56M	385.47M	353.67M	313.16M	294.02M	239.70M
EBITDA	79.17M	110.03M	94.65M	72.55M	65.09M	89.44M
Net Income	-6.51M	30.96M	23.41M	16.71M	113.00K	-7.16M
Balance Sheet
Total Assets	1.40B	1.34B	1.16B	1.08B	1.06B	1.08B
Cash, Cash Equivalents and Short-Term Investments	101.44M	85.20M	153.05M	98.85M	66.74M	99.79M
Total Debt	369.03M	369.19M	374.52M	375.87M	381.53M	390.15M
Total Liabilities	584.67M	579.56M	451.43M	436.79M	437.34M	448.54M
Stockholders Equity	813.39M	759.29M	711.36M	642.07M	618.36M	631.20M
Cash Flow
Free Cash Flow	70.26M	55.71M	67.75M	50.40M	10.51M	69.53M
Operating Cash Flow	93.85M	79.44M	90.09M	71.41M	45.34M	85.67M
Investing Cash Flow	-128.83M	-122.42M	-22.34M	-30.21M	-34.83M	-16.14M
Financing Cash Flow	-40.33M	-22.59M	-15.17M	-10.40M	-42.32M	-10.56M

N-able Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABL, the sentiment is Negative. The current price of 7.28 is below the 20-day moving average (MA) of 7.71, below the 50-day MA of 7.85, and below the 200-day MA of 7.88, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 41.16 is Neutral, neither overbought nor oversold. The STOCH value of 11.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NABL.

N-able Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLYW	69 Neutral	$1.63B	―	-0.29%	―	22.71%	-111.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NABL	59 Neutral	$1.36B	―	-0.83%	―	8.65%	-117.14%
TASK	59 Neutral	$1.01B	12.77	15.40%	―	19.88%	51.03%
VYX	49 Neutral	$1.35B	―	-3.73%	―	-22.36%	94.85%
AI	45 Neutral	$1.88B	―	-40.94%	―	14.34%	-13.27%
BBAI	44 Neutral	$2.55B	―	-111.83%	―	-6.95%	-53.69%

N-able Corporate Events

N-able, Inc. Reports Strong Q3 2025 Results

N-able, Inc. is a global software company specializing in cyber resilience solutions, offering a comprehensive platform to manage, secure, and recover IT environments, primarily serving the cybersecurity industry.

N-Able Earnings Call: Strong ARR Growth and AI Integration

N-Able, Inc. recently held its third-quarter earnings call, revealing a generally positive sentiment driven by strong financial performance. The company reported significant growth in Annual Recurring Revenue (ARR) and a high adjusted EBITDA margin, showcasing strategic advancements in AI integration and market expansion. However, challenges were noted, including decreased gross margin and foreign exchange impacts on revenue, alongside the effects of the Adlumin acquisition on growth rates.