Tenable Holdings (TENB) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: 11.05%
• EPS Growth: 45.23%
• Country: US
• Employees: 1,872
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.42
• Shares Outstanding: 119,344,270
• 10 Day Avg. Volume: 988,464
• 30 Day Avg. Volume: 1,307,761
• PEG Ratio: 2.37
• Price to Book (P/B): 11.70
• Price to Sales (P/S): 5.20
• P/FCF Ratio: 21.94
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 3.68
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 47.84
• 1Y Price Target: $36.50
• Price Target Upside: 54.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 1.77
• Revenue Forecast (FY): $1.07B

• Rating: 61 Neutral
• Price Target: $30.00 ▲(27.33% Upside)

Tenable Holdings' overall stock score is primarily driven by strong earnings call results, reflecting robust revenue growth and strategic initiatives. However, financial performance and technical analysis indicate challenges, particularly in profitability and market sentiment. The valuation remains a concern due to negative earnings, but the company's strategic focus on innovation and growth could improve its outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term financial stability.

R&D Investments

Increased R&D spending underscores a commitment to innovation, which can enhance product offerings and competitive positioning.

Operating Margin Improvement

Improved operating margins reflect enhanced operational efficiency, contributing to better profitability and financial health.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder financial flexibility and investment capacity, affecting long-term growth prospects.

Federal Market Concerns

Uncertainties in the federal market could impact revenue stability, given potential budget constraints and policy changes.

Return on Equity

Negative return on equity indicates inefficient use of shareholder funds, which can deter investment and affect growth.

Tenable Holdings Business Overview & Revenue Model

Company Description

Tenable Holdings, Inc. provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Its platforms include Tenable.io, a cloud-delivered software as a service that provides organizations with a risk-based view of traditional and modern attack surfaces; Tenable.cs, a cloud-native application platform that enables organizations to programmatically detect and fix cloud infrastructure misconfigurations; Tenable.io WAS, which provides scanning for modern web applications; and Tenable.ep, an unified platform that helps organizations identify, assess, and accurately prioritize cyber risks across the entire attack surface. The company also offers Tenable.ad, a solution to secure Active Directory environments; Tenable.ot, an on-premises solution that provides threat detection and mitigation, asset tracking, vulnerability management, and configuration control capabilities to protect OT environments, including industrial networks; Tenable.sc, an on-premises solution that provides a risk-based view of an organization's IT, security and compliance posture. In addition, it provides Nessus Professional, a vulnerability assessment solution for identifying security vulnerabilities, configuration issues, and malware; and Nessus Essentials, which includes vulnerability and configuration assessment for a limited number of assets. The company was founded in 2002 and is headquartered in Columbia, Maryland.

How the Company Makes Money

Tenable generates revenue primarily through subscription-based licensing for its software products and services. The company offers tiered pricing plans based on the number of assets to be monitored, allowing customers to select a package that meets their specific needs. Key revenue streams include renewals from existing customers, new customer acquisitions, and upselling additional features or services. Additionally, Tenable partners with various technology providers and cybersecurity firms to enhance its product offerings and reach new markets, which can contribute to increased sales and revenue growth.

Tenable Holdings Financial Statement Overview

Summary

Tenable Holdings demonstrates solid revenue growth and strong cash flow management, with a positive free cash flow growth rate. However, profitability remains a challenge due to negative net profit margins and EBIT margins. The company's reduced leverage is a positive sign, but efforts are needed to enhance operational efficiency and return on equity.

Income Statement

Tenable Holdings shows a consistent revenue growth trajectory, with a TTM revenue growth rate of 2.67%. However, profitability remains a challenge, as indicated by negative net profit margins and EBIT margins. The gross profit margin is strong at 77.93%, but the company needs to address its operational inefficiencies to improve overall profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period to 0.18, indicating reduced leverage compared to previous years. However, the return on equity remains negative, reflecting ongoing profitability challenges. The equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Tenable Holdings demonstrates strong cash flow management, with a positive free cash flow growth rate of 10.9% in the TTM period. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also robust, highlighting effective cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	974.60M	900.02M	798.71M	683.19M	541.13M	440.22M
Gross Profit	759.52M	700.35M	615.13M	528.40M	434.73M	362.67M
EBITDA	75.04M	46.24M	-8.95M	-44.09M	-27.56M	-25.95M
Net Income	-33.51M	-36.30M	-78.28M	-92.22M	-46.68M	-42.73M
Balance Sheet
Total Assets	1.65B	1.74B	1.61B	1.44B	1.25B	690.59M
Cash, Cash Equivalents and Short-Term Investments	383.57M	577.19M	473.97M	567.43M	512.29M	291.85M
Total Debt	417.72M	422.31M	413.31M	420.40M	422.09M	58.34M
Total Liabilities	1.31B	1.34B	1.26B	1.17B	1.03B	539.92M
Stockholders Equity	344.38M	399.95M	346.34M	270.87M	215.31M	150.66M
Cash Flow
Free Cash Flow	250.75M	213.23M	141.10M	112.00M	90.20M	43.95M
Operating Cash Flow	264.84M	217.48M	149.85M	131.15M	96.77M	64.23M
Investing Cash Flow	-184.62M	-41.43M	-212.62M	-128.04M	-391.59M	4.08M
Financing Cash Flow	-218.87M	-79.40M	1.25M	23.32M	397.65M	36.40M

Tenable Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TENB, the sentiment is Negative. The current price of 23.56 is below the 20-day moving average (MA) of 24.43, below the 50-day MA of 26.06, and below the 200-day MA of 30.28, indicating a bearish trend. The MACD of -0.83 indicates Negative momentum. The RSI at 36.20 is Neutral, neither overbought nor oversold. The STOCH value of 58.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TENB.

Tenable Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	79 Outperform	$1.26B	25.38	23.88%	1.33%	10.27%	3.52%
QLYS	78 Outperform	$4.73B	25.83	38.64%	―	9.95%	12.72%
CPAY	75 Outperform	$22.43B	22.50	29.35%	―	11.27%	4.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$2.85B	-84.47	-8.95%	―	11.05%	45.23%
RPD	56 Neutral	$956.67M	41.12	37.09%	―	3.08%	-54.07%
VRNS	48 Neutral	$4.18B	-35.28	-22.17%	―	11.37%	-34.44%