N-able (NABL) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 95.3
• Beta (1Y): 0.81
• Revenue Growth: 7.98%
• EPS Growth: -40.59%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 80
• Industry: Information Technology Services
• EPS (TTM): 0.08
• Shares Outstanding: 189,059,540
• 10 Day Avg. Volume: 1,495,674
• 30 Day Avg. Volume: 1,270,877
• PEG Ratio: -3.02
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.97
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 3.89
• 1Y Price Target: $8.96
• Price Target Upside: 7.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

N-able's overall stock score of 67.85 reflects its strong financial performance and positive earnings call highlights, tempered by concerns over its high valuation and mixed technical indicators. The company's robust revenue growth and strategic initiatives indicate potential for future growth, though profitability and market uncertainties require attention.

Positive Factors

Financial Performance

N-able reported headline first-quarter results ahead of consensus across all major metrics, with a boost from FX.

Product Expansion

N-able has expanded its product portfolio to include cybersecurity solutions, which are expected to enhance its cyber-resilience platform and attract new customers.

Share Repurchase

N-able announced a $75 million share repurchase authorization.

Negative Factors

Execution Risks

Achieving FY28 targets will require solid and consistent execution given ongoing macro headwinds.

Profitability Concerns

The EPS estimates have been lowered due to adjusted interest expense assumptions, which may impact perceived profitability.

N-able Business Overview & Revenue Model

Company Description

N-able, Inc. (NABL) is a leading provider of cloud-based software solutions designed to empower managed service providers (MSPs) in delivering IT services to small and medium-sized enterprises. The company's comprehensive suite of tools includes remote monitoring and management, network and device management, and security solutions, which are essential for MSPs to efficiently manage IT infrastructures and provide high-quality service to their clients. By focusing on innovation and customer-centric solutions, N-able aims to enhance the capabilities of MSPs and help them drive business growth.

How the Company Makes Money

N-able generates revenue primarily through a subscription-based model for its software solutions. The company's key revenue streams include selling licenses for its cloud-based IT management and security software platforms, which are typically sold on a recurring subscription basis. This model provides a steady and predictable revenue stream as clients pay for ongoing access to N-able's services. Additionally, N-able may offer professional services and training to complement its software offerings, which can also contribute to its revenue. Strategic partnerships with technology vendors and service providers can further enhance its market reach and customer base, thus supporting its financial performance.

N-able Financial Statement Overview

Summary

N-able presents a strong financial position with significant revenue growth and robust profitability margins. The company's low leverage and solid equity base provide financial stability. Efficient cash flow generation enhances the firm's operational flexibility and potential for future investments.

Income Statement

N-able shows strong revenue growth with a 10.01% increase in TTM (Trailing-Twelve-Months) revenue compared to the previous year. The Gross Profit Margin for the TTM is 83.07%, indicating efficient cost management. The Net Profit Margin improved to 6.67%, reflecting increased profitability. EBIT and EBITDA margins are healthy at 16.48% and 22.38% respectively, showcasing robust operational performance.

Balance Sheet

The Debt-to-Equity Ratio in TTM stands at 0.05, indicating low leverage, which is positive for financial stability. The Return on Equity (ROE) is 4.08%, showing a modest return to shareholders. The Equity Ratio is solid at 56.69%, suggesting a well-capitalized company with a strong equity base.

Cash Flow

Free Cash Flow for TTM grew by 6.52% compared to the previous year, demonstrating strong cash generation capability. The Operating Cash Flow to Net Income Ratio is 2.57, highlighting efficient cash conversion. The Free Cash Flow to Net Income Ratio is 2.00, indicating solid free cash flow generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
466.15M	421.88M	371.77M	346.46M	302.87M
	Gross Profit
385.47M	353.67M	313.16M	294.02M	239.70M
	EBIT
82.37M	70.32M	47.40M	33.33M	33.77M
	EBITDA
110.46M	94.65M	72.55M	65.09M	89.44M
	Net Income Common Stockholders
30.96M	23.41M	16.71M	113.00K	-7.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.20M	153.05M	98.85M	66.74M	99.79M
	Total Assets
1.34B	1.16B	1.08B	1.06B	1.08B
	Total Debt
369.19M	374.52M	375.87M	381.53M	390.15M
	Net Debt
284.00M	221.47M	277.02M	314.80M	290.36M
	Total Liabilities
579.56M	451.43M	436.79M	437.34M	448.54M
	Stockholders Equity
759.29M	711.36M	642.07M	618.36M	631.20M
Cash Flow		Free Cash Flow
61.87M	67.75M	50.40M	10.51M	69.53M
	Operating Cash Flow
79.44M	90.09M	71.41M	45.34M	85.67M
	Investing Cash Flow
-122.42M	-22.34M	-30.21M	-34.83M	-16.14M
	Financing Cash Flow
-22.59M	-15.17M	-10.40M	-50.62M	-10.56M

N-able Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABL, the sentiment is Neutral. The current price of 8.3 is above the 20-day moving average (MA) of 7.17, above the 50-day MA of 7.17, and below the 200-day MA of 10.22, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 68.94 is Neutral, neither overbought nor oversold. The STOCH value of 88.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NABL.

N-able Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORTY	71 Outperform	$1.57B	19.86	12.21%	1.09%	3.51%	18.34%
GDYN	71 Outperform	$1.18B	106.80	2.42%	―	18.72%	347.70%
NABL	68 Neutral	$1.57B	95.29	2.20%	―	7.98%	-40.59%
TASK	67 Neutral	$1.47B	27.87	11.35%	―	14.05%	17.90%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
PSFE	57 Neutral	$776.67M	39.11	-0.04%	―	3.50%	95.90%
VYX	54 Neutral	$1.50B	―	-19.49%	―	-50.48%	-15.75%

N-able Corporate Events

N-able Announces 2025 Investor Day in New York

N-able, Inc. announced that it will host its 2025 Investor Day on March 13, 2025, in New York City. The event will feature presentations from the company’s leadership team and a live Q&A session, with a webcast available on their Investor Relations website. This event is part of N-able’s efforts to engage with financial analysts and stakeholders, providing insights into the company’s operations and future prospects. The announcement highlights the company’s transparency and commitment to maintaining investor relations, which could impact its market positioning and stakeholder confidence.