10Y annualized return is
excellent
at 20.2% per year
CRWD has met or exceeded earnings expectations in
all
recent quarters (10/10)
High Gross Profit Margin
Strong Liquidity Ratios
Low Debt Levels
Strong Customer Retention
Robust Financial Performance
Innovative Product Offerings
Growth in Emerging Markets
AI-Driven Innovation
Extremely High P/E Ratio
High Price-to-Sales Ratio
Negative Operating and Net Profit Margins
Negative Return on Equity
Negative Interest Coverage Ratio
Impact of Customer Commitment Packages
Potential Slowdown in Growth
CrowdStrike demonstrates strong business quality through high customer retention and robust financial performance, but faces challenges with upselling existing clients and potential growth slowdown. The future prospects remain optimistic due to growth in emerging markets and innovative AI-driven offerings.
Analysis Date: March 4, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CrowdStrike Holdings, Inc. is a company that helps protect computers and data from online threats. They offer a subscription service called the Falcon platform, which customers use to keep their systems safe from hackers and malware. They also provide services that help businesses manage their IT operations and secure their identities online. Based in Austin, Texas, CrowdStrike serves customers all over the world.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
AUSTIN, Texas--(BUSINESS WIRE)--CrowdStrike (NASDAQ: CRWD) today announced the general availability of Falcon® Privileged Access, a new module within ...
CRWD's overvaluation at a time when it is battling legal risks, slower upsells and a disappointing profit outlook makes the stock worth selling at pre...
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
CRWD: No Graham value data available
Margin of Safety
Gap between intrinsic value and market price
CRWD: No margin of safety data available
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CRWD
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (-4121.27)
P/B ratio ≤ 1.5 (24.22)
Current ratio ≥ 2.0 (1.77x)
Long-term debt < Net current assets (0.29x)
Margin of safety
CRWD does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
-0.66%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
74.92%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
-0.49%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The company has negative operating profit margin (-3.05%) and net profit margin (-0.49%), indicating that the company is currently unable to convert sales into profits efficiently.
With a return on equity of -0.66%, it indicates that the company is not generating returns for shareholders, which is a red flag for investors.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.24x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2025
Current Ratio
Current assets divided by current liabilities
1.77x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2025
The current ratio (1.77) and quick ratio (1.77) indicate that the company has good short-term liquidity to cover its current liabilities.
With a debt-to-equity ratio of 0.24 and a debt-to-assets ratio of 0.09, the company is not heavily leveraged, which provides financial flexibility.
An interest coverage ratio of -9.28 indicates that the company is unable to cover its interest expenses with its earnings, which is a significant concern for creditors.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
CrowdStrike demonstrated exceptional customer loyalty with a gross dollar retention rate of 97%. This high retention rate reflects customers' commitment to the Falcon platform, indicating satisfaction and trust in the services provided.
The company achieved record free cash flow of $1.07 billion, accounting for 27% of revenue. This indicates strong operational efficiency and financial health, allowing for reinvestment in growth initiatives.
CrowdStrike's Falcon Flex subscription model allows customers to customize their cybersecurity solutions, enhancing customer engagement and increasing average deal sizes. This model has shown significant growth, with Falcon Flex deal value increasing by 80% quarter over quarter.
While the customer commitment program initially boosted sales, it may have led to a decline in upsell growth to existing customers, as evidenced by the decrease in dollar-based net retention rates.
CrowdStrike is expanding its cloud security, identity protection, and next-gen SIEM businesses, with each segment seeing substantial growth. The company is on track to reach $10 billion in ARR by FY 2031, showing confidence in long-term growth.
The integration of AI capabilities, such as Charlotte AI, enhances operational efficiencies and positions CrowdStrike as a leader in the evolving cybersecurity landscape. This innovation is expected to drive further adoption and customer satisfaction.
Despite strong overall performance, net new ARR was down approximately 1% year over year, suggesting that customers may be cautious with spending, which could impact future growth if not addressed.