Secureworks Corp Stock Fair Value – SECUREWORKS CORP Announces Second Quarter Earnings Results for FY2024
September 13, 2023
🌥️Earnings Overview
On September 7 2023, SECUREWORKS CORP ($NASDAQ:SCWX) reported their earnings results for the second quarter of FY2024, which ended on July 31 2023. Total revenue decreased by 20.0% year-on-year to USD 93.0 million, while net income declined to -32.4 million from -24.7 million in the same period of the prior year.
Market Price
According to the announcement, the company’s stock opened at $6.5 and closed at $6.3, a drop of 7.2% from the previous closing price of 6.8. The results show that the company’s performance was not satisfactory for the quarter and investors did not welcome the news. The company attributed the weak results to slow economic conditions and delays in some of their product launches. Despite this setback, SECUREWORKS CORP has reaffirmed its commitment to delivering innovative products to its customers and remains confident that it can deliver strong future results.
It is also confident that its long-term prospects remain good and any short-term issues should not be seen as indicative of its future performance. SECUREWORKS CORP has a long record of providing effective cyber security solutions and its management team is confident that it can continue to build on this record in the near future. The company is working hard to improve its operational efficiency and increase its customer base to ensure that it remains competitive in an increasingly saturated market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Secureworks Corp. More…
| Total Revenues | Net Income | Net Margin |
| 413.64 | -131.51 | -29.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Secureworks Corp. More…
| Operations | Investing | Financing |
| -91.15 | -4.93 | -6.51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Secureworks Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 737.7 | 233.23 | 5.85 |
Key Ratios Snapshot
Some of the financial key ratios for Secureworks Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.8% | – | -36.9% |
| FCF Margin | ROE | ROA |
| -23.2% | -18.5% | -12.9% |
Analysis – Secureworks Corp Stock Fair Value
At GoodWhale, we analyzed the financials of SECUREWORKS CORP and have come up with a fair value of around $9.7 per share. This was calculated using our proprietary Valuation Line which takes into account several factors and metrics. Currently, the SECUREWORKS CORP share is being traded at $6.3 on the stock market, making them undervalued by 34.7%. This provides an opportunity for investors to buy the shares at a discounted price. More…
Peers
There is fierce competition between SecureWorks Corp and its competitors DBAPPSecurity Co Ltd, Mandiant Inc, Cyber Security Cloud Inc. All four companies are vying for a share of the market in providing security solutions to businesses. All four companies offer similar products and services, but each has its own unique selling points. The company has a comprehensive portfolio of products and services that helps businesses protect their data and infrastructure from threats. DBAPPSecurity Co Ltd is a well-established player in the security industry, with a wide range of products and services that cater to the needs of businesses. The company has a strong focus on research and development, and has a team of experts who are constantly innovating new security solutions. Mandiant Inc is a leading provider of security solutions, with a strong focus on incident response and forensics. The company has a team of highly skilled and experienced security professionals who are experts in investigating and responding to cyber incidents. Cyber Security Cloud Inc is a relative newcomer to the security industry, but has quickly made a name for itself with its innovative cloud-based security solutions. The company offers a comprehensive suite of security products and services that helps businesses protect their data and infrastructure from threats.
– DBAPPSecurity Co Ltd ($SHSE:688023)
Dabao Security Co Ltd is a leading provider of security and surveillance products and services in China. The company has a market cap of 13.01B as of 2022 and a Return on Equity of -5.12%. Dabao Security Co Ltd offers a wide range of security and surveillance products and services, including CCTV cameras, access control systems, alarm systems, and more. The company has a strong presence in the Chinese market and is dedicated to providing its customers with the highest quality products and services.
– Mandiant Inc ($TSE:4493)
Cyber Security Cloud Inc is a leading provider of cyber security solutions. The company has a market cap of 18.22B as of 2022 and a return on equity of 15.4%. The company provides a wide range of cyber security solutions including data protection, identity and access management, and threat detection and response. Cyber Security Cloud Inc is a trusted partner for businesses and organizations of all sizes.
Summary
SECUREWORKS CORP reported an overall 20.0% decline in total revenue for the second quarter of FY2024 ending on July 31 2023, with net income standing at -32.4 million compared to -24.7 million in the same period last year. This has caused the stock price to move down on September 7 2023. As an investor, it is important to consider the impact of these results on future earnings and cash flow. Furthermore, potential investors should analyse the company’s competitive position and strategy to determine whether the company is well positioned to rebound in future quarters.
It may also be beneficial to review past financial statements and performance metrics. Overall, SECUREWORKS CORP appears to be facing some challenges, however, further analysis is needed to determine the extent of the company’s financial health.
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