N-able (NABL) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 687.57K
• Price to Earnings (P/E): 530.7
• Beta (1Y): 0.92
• Revenue Growth: 7.40%
• EPS Growth: -90.72%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.11
• Shares Outstanding: 187,096,100
• 10 Day Avg. Volume: 593,261
• 30 Day Avg. Volume: 687,569
• 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: 1.21
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 20.41
• 1Y Price Target: $9.25
• Price Target Upside: 13.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $8.50 ▲(4.68% Upside)

N-able's overall stock score is driven by strong earnings call performance and stable financials, but is offset by technical analysis indicators showing lack of momentum and a high P/E ratio suggesting overvaluation. The company's focus on growth-oriented investments and strategic initiatives provides a positive outlook, though profitability and cash flow challenges remain.

Positive Factors

ARR Growth

The significant ARR growth indicates robust demand for N-able's services, showcasing its strong market position and potential for sustained revenue expansion.

Customer Base Expansion

An expanding customer base enhances revenue stability and reflects successful customer retention and acquisition strategies, supporting long-term growth.

Security Operations Expansion

The expansion in security operations underscores N-able's competitive edge in cybersecurity, a critical growth area, ensuring relevance in a security-conscious market.

Negative Factors

Gross Margin Decline

A declining gross margin may indicate rising costs or pricing pressures, which could affect profitability if not addressed, impacting long-term financial health.

Profitability Challenges

Low net profit margins suggest inefficiencies in converting revenue to profit, potentially hindering reinvestment capabilities and shareholder returns over time.

Cash Flow Concerns

Decreasing free cash flow growth limits the company's ability to fund new projects and investments, potentially constraining future growth opportunities.

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 stable revenue growth and strong gross margins, but faces challenges in profitability and cash flow generation. The balance sheet remains solid with manageable leverage, providing financial stability. Improvement in net profit margins and cash flow efficiency is needed.

Income Statement

N-able's income statement shows moderate performance with a stable revenue growth rate of 2.51% TTM. The gross profit margin remains strong at 79.27% TTM, indicating efficient cost management. However, the net profit margin is low at 0.59% TTM, suggesting challenges in translating revenue into net income. The EBIT and EBITDA margins have declined compared to the previous year, reflecting potential operational inefficiencies.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.46 TTM, showing manageable leverage. The equity ratio is healthy, and the return on equity is positive, albeit low at 0.37% TTM. The company maintains a solid equity base, which provides a buffer against potential financial risks.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -2.19% TTM, which could impact future investments. The operating cash flow to net income ratio is robust at 0.61 TTM, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests limited cash available after capital expenditures.

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: 8.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 8.12 is above the 20-day moving average (MA) of 7.82, above the 50-day MA of 7.95, and above the 200-day MA of 8.06, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 91.48 is Negative, 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
FLYW	69 Neutral	$1.68B	335.04	0.86%	―	22.20%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NABL	61 Neutral	$1.50B	530.72	0.37%	―	7.40%	-90.72%
TASK	56 Neutral	$1.25B	20.90	12.49%	―	19.04%	24.49%
AI	52 Neutral	$2.47B	―	-40.94%	―	14.34%	-13.27%
VYX	51 Neutral	$1.63B	-3.49	-8.85%	―	-43.28%	15.29%
BBAI	44 Neutral	$3.08B	-4.90	-222.48%	―	3.46%	-74.21%

N-able Corporate Events

N-able, Inc. Reports Strong Earnings and Growth Prospects

The recent earnings call for N-able, Inc. reflected a positive sentiment overall, driven by notable achievements such as surpassing $500 million in Annual Recurring Revenue (ARR) and maintaining strong profitability metrics. The company celebrated successful product performances, particularly with Cove, although it acknowledged challenges like a decline in gross margins and slower growth in the end-device management segment. Additionally, the impact of foreign exchange rates on revenue highlighted some external dependencies that the company faces.

N-able, Inc. Reports Strong Q2 2025 Results

N-able, Inc. is a global software company that specializes in delivering a unified cyber-resiliency platform to protect businesses from evolving cyberthreats, operating primarily in the cybersecurity industry.