Rapid7 Stock Fair Value – Rapid7, Receives “Hold” Rating from Brokerages
December 19, 2023
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Rapid7 ($NASDAQ:RPD), Inc. (NASDAQ: RPD) recently received a “Hold” rating from several brokerages. Rapid7 is a leading provider of security analytics and automation solutions that combine insight, analytics, and automation to help organizations reduce their attack surface and protect against threats. The recent “Hold” rating from brokerages comes as a result of the company’s declining revenue growth and increased competition in the security analytics market. Despite this, many analysts agree that Rapid7 has strong product offerings and has seen strong customer adoption. The company also has a robust partner ecosystem that has helped it gain market share.
However, with its strong product offerings and solid customer base, Rapid7 could be well-positioned in the long run.
Market Price
This rating drove the company’s stock to open at $59.0, the same as the previous day’s closing price of 59.4. However, by the end of the day, the stock had dropped by 0.7%, closing at the same price that it opened at. It is unclear what impact this rating will have on Rapid7‘s stock in the near future. 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 |
| 756.92 | -180.69 | -18.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rapid7. More…
| Operations | Investing | Financing |
| 81.05 | -150.33 | 82.77 |
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 |
| 1.4k | 1.56k | -2.65 |
Key Ratios Snapshot
Some of the financial key ratios for Rapid7 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.7% | – | -14.9% |
| FCF Margin | ROE | ROA |
| 6.9% | 51.6% | -5.0% |
Analysis – Rapid7 Stock Fair Value
At GoodWhale, we have conducted an analysis of RAPID7’s financials and concluded that the intrinsic value of RAPID7 shares is around $89.9, determined by our proprietary Valuation Line. This suggests that the stock is currently being undervalued by 34.3%. Currently, RAPID7 stock is traded at $59.0, meaning investors have the potential to capitalize on this price difference. Rapid7_Receives_Hold_Rating_from_Brokerages”>More…
Peers
Rapid7 Inc, a cybersecurity company, provides vulnerability management, compliance, and penetration testing solutions. Its competitors are SecureWorks Corp, Safe-T Group Ltd, and CYREN Ltd.
– SecureWorks Corp ($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
Investment analysts have recently issued research reports on shares of Rapid7, Inc. (RPD), providing a consensus rating of “Hold”. This rating indicates that analysts believe investors should hold their current positions in the company, but no new positions should be taken. Analysts remain optimistic about the future potential of the company, highlighting its impressive revenue growth, strong balance sheet, and solid performance in recent quarters. Additionally, analysts have noted that the company’s potential to capitalize on new opportunities in the security and IT markets makes it an attractive long-term investment.
However, they also caution that there could be some near-term risks due to increasing competition and the potential for changes in government regulations.
