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N-able (NABL)
NYSE:NABL
US Market

N-able (NABL) AI Stock Analysis

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N-able

(NYSE:NABL)

68Neutral
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 (NABL) vs. S&P 500 (SPY)

N-able Business Overview & Revenue Model

Company DescriptionN-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 MoneyN-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
85
Very Positive
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
75
Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
466.15M421.88M371.77M346.46M302.87M
Gross Profit
385.47M353.67M313.16M294.02M239.70M
EBIT
82.37M70.32M47.40M33.33M33.77M
EBITDA
110.46M94.65M72.55M65.09M89.44M
Net Income Common Stockholders
30.96M23.41M16.71M113.00K-7.16M
Balance SheetCash, Cash Equivalents and Short-Term Investments
85.20M153.05M98.85M66.74M99.79M
Total Assets
1.34B1.16B1.08B1.06B1.08B
Total Debt
369.19M374.52M375.87M381.53M390.15M
Net Debt
284.00M221.47M277.02M314.80M290.36M
Total Liabilities
579.56M451.43M436.79M437.34M448.54M
Stockholders Equity
759.29M711.36M642.07M618.36M631.20M
Cash FlowFree Cash Flow
61.87M67.75M50.40M10.51M69.53M
Operating Cash Flow
79.44M90.09M71.41M45.34M85.67M
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 Price8.30
Price Trends
50DMA
7.17
Positive
100DMA
8.35
Negative
200DMA
10.22
Negative
Market Momentum
MACD
0.24
Negative
RSI
68.94
Neutral
STOCH
88.22
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 Risk Analysis

N-able disclosed 1 risk factors in its most recent earnings report. N-able reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

N-able Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.57B19.8612.21%1.09%3.51%18.34%
71
Outperform
$1.18B106.802.42%18.72%347.70%
68
Neutral
$1.57B95.292.20%7.98%-40.59%
67
Neutral
$1.47B27.8711.35%14.05%17.90%
60
Neutral
$11.62B10.48-7.27%2.93%7.46%-10.64%
57
Neutral
$776.67M39.11-0.04%3.50%95.90%
VYVYX
54
Neutral
$1.50B-19.49%-50.48%-15.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NABL
N-able
8.30
-4.27
-33.97%
FORTY
Formula Systems
101.83
18.84
22.70%
VYX
NCR Voyix
10.89
-2.76
-20.22%
GDYN
Grid Dynamics Holdings
13.97
3.77
36.96%
PSFE
Paysafe
12.71
-5.18
-28.95%
TASK
TaskUs
16.60
1.32
8.64%

N-able Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 16.25%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, product innovation, and expansion in partnerships and channels. Despite some challenges with gross margin decline and market uncertainties, the company's achievements and strategic initiatives indicate a forward-looking growth trajectory.
Q1-2025 Updates
Positive Updates
First Quarter Financial Performance
First quarter ARR grew 11% year-over-year in constant currency. First quarter revenue was $118.2 million, and adjusted EBITDA was $31.6 million, reflecting a 27% margin. The company exceeded top- and bottom-line guidance.
Product Innovation and Launches
Launched breach prevention from Microsoft 365 and Vulnerability Management as a new feature in Unified Endpoint Management (UEM). These innovations address customer pain points and enhance N-able's security offerings.
Recognition and Awards
Cove data protection was named a Champion in Managed BDR by Canalys for the second consecutive year. Adlumin Security Operations solution was named market leader for MDR in the 2025 Cyber Defense Magazine Global InfoSec Awards.
Channel Expansion and Partnerships
Expanded go-to-market strategy by adding resellers globally and revamping the partner portal. Received a 5-Star rating in the CRN Partner Program Guide for the fourth consecutive year.
Share Repurchase Program
Announced a $75 million share repurchase authorization program, underscoring confidence in the business.
Negative Updates
Gross Margin Decline
First quarter gross margin decreased to 80.6% compared to 84.7% in the same period in 2024.
Market Uncertainties
Mentioned that evolving trade policies and macroeconomic uncertainty could impact business operations and customer decision-making.
Dollar-Based Net Revenue Retention
Dollar-based net revenue retention was approximately 101%, indicating modest retention with room for improvement.
Company Guidance
During the N-able First Quarter 2025 Earnings Call, the company provided substantial financial guidance and updates on its strategic initiatives. N-able reported a first quarter annual recurring revenue (ARR) growth of 11% year-over-year in constant currency, reaching $492.7 million, and a revenue of $118.2 million, which was $2.2 million above the high-end of their guidance. The adjusted EBITDA was reported at $31.6 million, reflecting a 27% margin. Looking ahead, N-able raised its full-year 2025 revenue guidance to a range of $492 million to $497 million, representing 6% to 7% year-over-year growth, or 6% to 8% on a constant currency basis. The company expects full-year ARR to be between $519 million and $525 million, indicating 8% to 9% growth. Additionally, the company announced a $75 million share repurchase program, highlighting its confidence in its business model. N-able also raised its expected adjusted EBITDA to unlevered free cash flow conversion percentage from 65% to approximately 68% for the full year, driven partly by a revised non-GAAP tax rate of 20% to 21%.

N-able Corporate Events

Business Operations and Strategy
N-able Announces 2025 Investor Day in New York
Neutral
Mar 13, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.