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Cyberark Software - AI Stock Analysis

Analysis generated February 23, 2025

Cyberark Software Ltd. is a global leader in privileged access management (PAM), a critical layer of IT security to protect data, infrastructure, and assets across the enterprise, in the cloud, and throughout the DevOps pipeline. Established in 1999, Cyberark is headquartered in Petah Tikva, Israel. The company's suite of products provides end-to-end solutions for securing privileged accounts and reducing cybersecurity risks.

Fundamental Analysis

For the last quarter, Cyberark Software reported revenue of $240M. This figure represents an increase of 6.85% from the previous quarter and a year-over-year increase of 7.62%. These growth numbers indicate a positive trajectory in sales, highlighting the company's ability to generate higher revenues consistently.

The net income for the last quarter stood at $11M, marking a remarkable increase of 185.97% from the previous quarter and a year-over-year increase of 24.68%. The substantial rise in net income suggests that Cyberark Software is effectively managing its costs and increasing its profitability.

EBITDA was $7.2M, unchanged from the previous quarter. However, this is down by a staggering 574.02% compared to the same quarter last year, indicating potential operational inefficiencies or higher expenditures that need addressing.

The current Price-to-Earnings (P/E) ratio of 1269.53 is relatively high, which may imply that the stock is overvalued. Such a high P/E ratio might be cause for concern, as it suggests investor expectations are significantly high relative to the company's current earnings.

Technical Analysis

The current stock price is $383.29, representing a 6.79% increase from a month ago and a 49.78% increase from a year ago. These growth numbers indicate positive short-term and long-term trends in the stock price.

The trend, however, appears to be bearish, with the SMA10 (Simple Moving Average over the last 10 days) at 402.30, which is lower than the previous SMA10 of 405.40. This downward movement in SMA indicates a potential decrease in price movement.

The Relative Strength Index (RSI) is 61.4, marking a neutral condition. An RSI value between 30 and 70 typically indicates that a stock is neither overbought nor oversold, suggesting that the stock price is fair at this stage.

Alternative Data Analysis

Cyberark Software currently has 134 open positions, indicating a 34% increase in job postings over the last couple of months. This suggests the company is in growth mode, potentially expanding its operations and capabilities.

The business outlook among employees is neutral, neither optimistic nor pessimistic. The number of webpage visitors is estimated at 760,000, down by 14% over the last couple of months. This decline in webpage traffic could indicate a loss of customer interest or engagement, which is a worrisome trend.

On a brighter note, there are 47 daily downloads of the company's mobile apps, indicating a 34% increase in the last couple of months. This uptick signifies rising customer engagement and interest in Cyberark’s products. The company has about 17,000 followers on Twitter, with no significant increase or decrease, indicating stable yet unremarkable social media engagement.

According to AltIndex's AI score, which predicts a company's stock price based on fundamental, technical, and alternative data analysis, Cyberark Software scores a 63. This score signifies a buy signal, suggesting that the stock might have bullish prospects based on a composite of various analyses.

Conclusion and Recommendation

Cyberark Software exhibits promising growth in fundamental metrics like revenue and net income, which has been bolstered by positive year-over-year increases. However, some concerns linger, particularly around EBITDA and the very high P/E ratio, which might suggest overvaluation.

The technical outlook is mixed, with a positive trend in stock price juxtaposed with a bearish SMA trend. Alternative data provides a mixed picture; the increase in job postings and mobile app downloads are positive signs, but the decline in web traffic raises concerns.

Overall, based on the composite of fundamental, technical, and alternative data analysis, Cyberark Software shows potential for continued growth but also some areas of concern. Given the high AI score of 63 from AltIndex and the positive signals from job postings and app downloads, a cautious buy recommendation is given. Monitoring the areas of concern closely in future evaluations is advised.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.