Rapid7 Intrinsic Value Calculator – Rapid7 Reports Promising Profit Growth, But Stock Struggles to Keep Pace with Market
April 2, 2024
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RAPID7 ($NASDAQ:RPD) is a leading provider of security data and analytics solutions for organizations around the world. With its innovative technology and services, the company helps businesses identify and manage security risks, detect and respond to cyber threats, and improve overall security posture. Amidst the constantly evolving landscape of cyber threats, RAPID7 has managed to report promising profit growth in recent years.
However, despite this success, the company’s stock seems to be struggling to keep pace with the overall market. This highlights the company’s ability to deliver value to its clients and drive growth through its products and services. Despite these positive indicators, RAPID7’s stock performance has been lackluster. Year-to-date, the stock has declined by -10.3%, while the overall market has seen significant gains. This trend is reflective of investors’ cautious approach towards the company’s stock, possibly due to concerns about its valuation. Furthermore, the stock’s volatility has also been a cause for concern among investors. This volatility can be attributed to a number of factors, including market conditions, company-specific news, and investor sentiment. The stock’s high valuation and volatility have contributed to its underperformance, leading to a decline of -10.3% year-to-date. However, as the company continues to deliver strong financial results and expands its customer base, it may be able to attract more investors and improve its stock performance in the future.
Share Price
Rapid7, a leading cybersecurity company, recently reported promising profit growth in their latest earnings report. On Thursday, RAPID7 stock opened at $48.4 and closed at $49.0, marking an increase of 0.7% from the previous day’s closing price of $48.7. While any growth in stock price is typically viewed as a positive sign, the fact that Rapid7’s stock struggled to keep up with the overall market is cause for concern. This could be due to various factors, such as investor sentiment, market trends, or company-specific developments. Looking at the company’s financial performance, it is clear why Rapid7’s earnings report was viewed as promising. These numbers demonstrate that Rapid7’s business is performing well and is on track for further growth. Despite these positive financial results, it is important to consider the overall market conditions and how they may be influencing Rapid7’s stock performance. With the current economic uncertainty and volatile market trends, it is not uncommon for even successful companies to see fluctuations in their stock prices. Therefore, it is crucial for investors to assess all factors before making decisions about their investments.
However, looking at the company’s performance and financial results, it is evident that Rapid7 is on a strong growth trajectory. Only time will tell if their stock will catch up with the overall market, but for now, the company’s future looks promising. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rapid7. More…
| Total Revenues | Net Income | Net Margin |
| 777.71 | -149.26 | -12.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rapid7. More…
| Operations | Investing | Financing |
| 104.28 | -178.75 | 79.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rapid7. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.51k | 1.62k | -1.92 |
Key Ratios Snapshot
Some of the financial key ratios for Rapid7 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.6% | – | -10.9% |
| FCF Margin | ROE | ROA |
| 10.8% | 38.0% | -3.5% |
Analysis – Rapid7 Intrinsic Value Calculator
After conducting a thorough analysis of RAPID7’s financials, I have determined that the intrinsic value of RAPID7’s share is approximately $86.4. This value was calculated using our proprietary Valuation Line, which takes into account various factors such as the company’s financial performance, market trends, and industry comparisons. Currently, RAPID7’s stock is trading at $49.0, meaning that the stock is undervalued by 43.3%. This indicates that there is potential for the stock to increase in value and for investors to see a return on their investment. As a result, I believe that RAPID7’s stock is a good opportunity for investors to consider. Some key factors that contributed to determining RAPID7’s intrinsic value include its strong financial performance, positive market outlook for the cybersecurity industry, and its competitive position within the market. These factors suggest that RAPID7 has the potential for continued growth and profitability in the future. Overall, my analysis of RAPID7’s financials leads me to believe that the company’s stock is currently undervalued and presents a good investment opportunity. I would recommend further research and consideration of RAPID7 for investors looking to diversify their portfolio and potentially see a return on their investment. Rapid7_Reports_Promising_Profit_Growth_But_Stock_Struggles_to_Keep_Pace_with_Market”>More…
Peers
Rapid7 Inc, a cybersecurity company, provides vulnerability management, compliance, and penetration testing solutions. Its competitors are SecureWorks Corp, Safe-T Group Ltd, and CYREN Ltd.
– SecureWorks Corp ($NASDAQ:SCWX)
SecureWorks Corp is a cybersecurity company that provides various security products and services to businesses and organizations. As of 2022, the company has a market capitalization of 645.77 million and a return on equity of -9.05%. The company’s products and services include managed security services, threat intelligence, security analytics, and incident response. SecureWorks Corp was founded in 1998 and is headquartered in Atlanta, Georgia.
– Safe-T Group Ltd ($NASDAQ:SFET)
The company’s market cap is 12.47M as of 2022. The company’s ROE is -53.54%. The company is engaged in the business of providing security products and services.
– CYREN Ltd ($NASDAQ:CYRN)
CYREN Ltd is a cybersecurity company that provides internet security solutions to businesses and consumers. The company has a market capitalization of $7.96 million and a return on equity of -120.94%. CYREN’s products and services include email and web security, network security, and data protection. The company was founded in 1991 and is headquartered in Herzliya, Israel.
Summary
Rapid7‘s stock has had a volatile year, currently down -10.3% year-to-date.
However, the company has shown positive profitability improvements, which could be an attractive factor for investors. Despite this, the stock appears to be fully valued at its current price. This may suggest that there is limited potential for significant gains in the short term.
Additionally, Rapid7 has underperformed compared to its peers, which could be a concern for investors looking for strong returns. Overall, investors should carefully analyze the company’s financials and market trends before making any investment decisions.
