N-able (NABL) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 839.29K
• Price to Earnings (P/E): 516.3
• Beta (1Y): 0.85
• Revenue Growth: 7.40%
• EPS Growth: -90.72%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): 0.11
• Shares Outstanding: 187,096,100
• 10 Day Avg. Volume: 692,959
• 30 Day Avg. Volume: 839,295
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 20.41
• 1Y Price Target: $9.15
• Price Target Upside: 15.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $8.50 ▲(7.59% Upside)

N-able's overall score is driven by strong earnings call performance and stable financials, despite challenges in profitability and valuation concerns due to a high P/E ratio. Technical indicators suggest a neutral trend, with no significant bullish or bearish signals.

Positive Factors

Financial Performance

N-able posted solid results with $5.4 Million Revenue outperformance, split roughly 50/50 between FX tailwinds and strength with Cove delivering record Bookings and Adlumin seeing meaningful adoption.

Stock Buyback

N-able initiated its share-repurchase program, buying back $10 million of the company’s stock.

Negative Factors

Growth Expectations

Achieving FY28 targets will require solid and consistent execution.

Profitability

The EPS estimates have been lowered due to adjusted interest expense assumptions, which may impact perceived profitability.

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 through a subscription-based model, where MSPs and IT professionals pay recurring fees to utilize its software solutions. The company's key revenue streams include subscriptions to its various software products, such as remote monitoring and management tools, security solutions, and data protection services. N-able's revenue is also bolstered by its partnerships with IT service providers and its focus on scalability, allowing it to serve businesses of different sizes. Additionally, the company's extensive customer support and training services contribute to customer retention and long-term revenue growth.

N-able Financial Statement Overview

Summary

N-able's financial health is characterized by robust revenue growth and strong cash flow generation, which underscore its capacity for expansion and operational investment. While the company demonstrates effective cost management through high gross margins, the decreasing net profit and return on equity highlight areas for improvement in profitability and operational efficiency. The balance sheet remains stable with moderate leverage, positioning N-able favorably for future growth in the information technology services industry.

Income Statement

N-able has demonstrated strong revenue growth with a significant increase from $302.87M in 2020 to $470.60M TTM, reflecting a steady upward trend. The gross profit margin remains robust at 80.86% TTM, indicating effective cost management. However, the net profit margin has decreased from 6.64% in 2024 to 3.47% TTM, which may raise some concerns about operational efficiency. While EBIT and EBITDA margins indicate profitability, the decline in EBIT margin from 17.67% in 2024 to 12.44% TTM suggests a need for operational improvements.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.48 TTM, suggesting moderate leverage and financial stability. With an equity ratio of 57.34% TTM, N-able shows a strong reliance on equity financing, offering a stable financial structure. The return on equity has decreased from 4.08% in 2024 to 2.11% TTM, reflecting challenges in generating returns on shareholders' investments. Overall, the balance sheet reflects a stable financial position with potential areas for enhancement in profitability.

Cash Flow

N-able exhibits strong cash flow management with a positive trend in free cash flow, growing by 28.05% from 2024 to TTM. The operating cash flow to net income ratio of 5.81 TTM suggests efficient cash generation relative to net income. The free cash flow to net income ratio stands at 4.85 TTM, indicating a solid capability to convert income into cash flow. These metrics highlight the company's ability to maintain liquidity and invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	482.40M	466.15M	421.88M	371.77M	346.46M	302.87M
Gross Profit	382.41M	385.47M	353.67M	313.16M	294.02M	239.70M
EBITDA	88.55M	110.46M	94.65M	72.55M	65.09M	89.44M
Net Income	2.86M	30.96M	23.41M	16.71M	113.00K	-7.16M
Balance Sheet
Total Assets	1.39B	1.34B	1.16B	1.08B	1.06B	1.08B
Cash, Cash Equivalents and Short-Term Investments	93.87M	85.20M	153.05M	98.85M	66.74M	99.79M
Total Debt	371.36M	369.19M	374.52M	375.87M	381.53M	390.15M
Total Liabilities	576.59M	579.56M	451.43M	436.79M	437.34M	448.54M
Stockholders Equity	809.42M	759.29M	711.36M	642.07M	618.36M	631.20M
Cash Flow
Free Cash Flow	77.47M	61.87M	67.75M	50.40M	10.51M	69.53M
Operating Cash Flow	91.84M	79.44M	90.09M	71.41M	45.34M	85.67M
Investing Cash Flow	-124.72M	-122.42M	-22.34M	-30.21M	-34.83M	-16.14M
Financing Cash Flow	-31.29M	-22.59M	-15.17M	-10.40M	-50.62M	-10.56M

N-able Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABL, the sentiment is Positive. The current price of 7.9 is above the 20-day moving average (MA) of 7.77, below the 50-day MA of 7.95, and below the 200-day MA of 8.41, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 51.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NABL.

N-able Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORTY	76 Outperform	$2.06B	26.72	11.46%	1.43%	9.16%	16.38%
TASK	70 Outperform	$1.63B	26.95	12.49%	―	19.04%	24.49%
GDYN	66 Neutral	$662.12M	38.62	3.69%	―	22.27%	―
NABL	63 Neutral	$1.48B	516.34	0.37%	―	7.40%	-90.72%
Sector *	61 Neutral	$35.55B	8.88	-11.02%	1.87%	8.55%	-8.14%
PSFE	61 Neutral	$871.01M	39.11	-5.88%	―	0.47%	-292.07%
VYX	51 Neutral	$1.84B	―	-8.85%	―	-43.28%	15.29%

N-able Corporate Events

N-able Holds Annual Stockholders Meeting, Key Decisions Made

On May 22, 2025, N-able, Inc. held its annual meeting of stockholders, where several key decisions were made. Stockholders elected Class I directors for a three-year term, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the compensation of named executive officers. These decisions reflect the company’s ongoing commitment to strong governance and financial oversight.