SolarWinds Stock Analysis

Valuation

As of March 12, the company trades at 11.21 USD per share. That’s below book value. The company has an equity ratio of nearly 48% and the revenue for 2021 fell nearly 30% from 2020 and is now at 2017 levels.

SolarWinds Business

At it’s core, SolarWinds offers IT monitoring solutions. IT professionals may know competitors like PRTG from Paessler AG or Nagios.

The Hack

Because SolarWinds monitors so many systems of its customers, this hack has gained so much media attention. To prevent outages, you really have to know a lot of details of your infrastructure, and the attackers could get deep inside this information about SolarWinds customers.

Future

SolarWinds customers are deeply integrated into a system which is not easy to replace. So it’s hard to know how many of these companies spend the money for switching to a different solution because of this hack.

Disclaimer

This is not investment advice or a buy/sell recommendation. This is my personal opinion and is for information and entertainment purposes only.

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Christoph Miksche

Christoph Miksche

Software Developer and Investor from Germany. Writing about Software, Tech and Investments.