As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of CyberArk Software Ltd. (NASDAQ:CYBR), it is a financially-robust company with a great track record and a excellent growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on CyberArk Software here.
Flawless balance sheet with proven track record
CYBR delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did CYBR outperformed its past performance, its growth also exceeded the Software industry expansion, which generated a 23% earnings growth. This is an optimistic signal for the future.
CYBR's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that CYBR manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at CYBR's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$3.8b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For CyberArk Software, I've put together three relevant aspects you should further examine:
- Valuation: What is CYBR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CYBR is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does CYBR return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from CYBR as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CYBR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.