CrowdStrike Holdings (CRWD) AI Stock Analysis

• Market Cap: $102.63B
• Dividend Yield: N/A
• Average Volume (3M): 4.16M
• Price to Earnings (P/E): 721.6
• Beta (1Y): 2.00
• Revenue Growth: 29.39%
• EPS Growth: -119.62%
• Country: US
• Employees: 10,118
• Sector: Technology
• Sector Strength: 45
• Industry: Software - Infrastructure
• EPS (TTM): -0.08
• Shares Outstanding: 247,873,410
• 10 Day Avg. Volume: 3,919,320
• 30 Day Avg. Volume: 4,156,557
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 22.71
• Price to Cash Flow (P/CF): 64.90
• P/FCF Ratio: 64.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $420.68
• Price Target Upside: 1.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 37

CrowdStrike Holdings demonstrates strong revenue growth and cash flow generation, critical for its high-growth strategy. While profitability remains a challenge, the company's effective cost management and liquidity position it well for future growth. The technical analysis indicates positive momentum, though volatility is a factor. Despite a challenging valuation, the strong earnings call performance and outlook support a positive overall score.

Positive Factors

Market Positioning

CRWD is best positioned of any vendor to win the Security Information and Event Management (SIEM) market.

Platform Adoption

Falcon Flex is increasingly becoming a tool for CRWD to accelerate platform adoption with faster procurement and easier platform consumption.

Revenue Growth Potential

CRWD can grow total revenue to $9.5B+ in CY28/FY29, representing a 25%+ CAGR the next four years.

Negative Factors

Growth Deceleration

Reported ARR growth decelerated to 23% y/y from 27% y/y last quarter, and billings decelerated to 17% y/y from 36% y/y last quarter.

Market Competition

CRWD added 'legacy SIEM vendors' as a category of competitors, indicating increased market competition.

Subscription Utilization

If customers are unable to fully utilize their subscriptions, CRWD may face increased contraction.

CrowdStrike Holdings Business Overview & Revenue Model

Company Description

CrowdStrike Holdings, Inc. is a leading cybersecurity technology company that specializes in endpoint protection, threat intelligence, and cyberattack detection and response solutions. Founded in 2011 and headquartered in Sunnyvale, California, CrowdStrike operates in the cybersecurity sector and is known for its cloud-native Falcon platform. This platform provides comprehensive real-time protection and visibility across all endpoints, enabling organizations to prevent, detect, and respond to cyber threats effectively. The company's products and services cater to a wide range of industries, including financial services, healthcare, retail, and government.

How the Company Makes Money

CrowdStrike makes money primarily through the sale of its subscription-based cybersecurity products and services. The company's key revenue stream is its cloud-native Falcon platform, which offers various modules for endpoint protection, threat intelligence, and IT security operations. Customers subscribe to these modules on a recurring basis, providing CrowdStrike with a steady stream of subscription revenue. Additionally, the company generates income from professional services, including incident response and proactive services, which help organizations manage and mitigate cyber threats. Significant partnerships with technology providers and system integrators also contribute to its earnings by expanding its market reach and enhancing its product offerings.

CrowdStrike Holdings Financial Statement Overview

Summary

CrowdStrike Holdings exhibits strong revenue growth and cash flow generation, key for a high-growth software company. Despite negative profitability metrics, the company is on a path towards profitability with effective cost management and liquidity. The balance sheet is healthy, with manageable leverage and strong equity, positioning the company well for future growth.

Income Statement

CrowdStrike Holdings shows a strong revenue growth trend with a TTM revenue of $3.95 billion, up significantly from $3.06 billion last year. The gross profit margin remains robust at 74.9%, indicating effective cost management despite a negative net profit margin of -0.5%. The company is close to breakeven, showcasing potential for future profitability. However, EBIT and EBITDA margins are low due to negative EBIT, which suggests ongoing operational challenges.

Balance Sheet

The balance sheet reflects strong liquidity, with cash and short-term investments exceeding total debt, leading to a negative net debt position. The equity ratio stands at 37.7%, indicating a solid equity foundation. However, the debt-to-equity ratio is 24.1%, suggesting moderate leverage. The return on equity is negative due to a net loss, highlighting the need for improved profitability to enhance shareholder value.

Cash Flow

Cash flow performance is robust, with a strong operating cash flow of $1.38 billion in TTM. Free cash flow has grown significantly from the previous year, indicating effective cash management. The operating cash flow to net income ratio shows efficient conversion of earnings into cash. The company maintains a healthy free cash flow to net income ratio, underscoring its ability to generate cash despite net losses.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.95B	3.06B	2.24B	1.45B	874.44M
	Gross Profit
2.96B	2.30B	1.64B	1.07B	644.89M
	EBIT
-120.43M	-2.00M	-190.11M	-142.55M	-92.53M
	EBITDA
294.80M	293.83M	-40.75M	-65.98M	-46.17M
	Net Income Common Stockholders
-19.27M	89.33M	-182.28M	-232.38M	-92.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.32B	3.47B	2.71B	2.00B	1.92B
	Total Assets
8.70B	6.65B	5.03B	3.62B	2.73B
	Total Debt
788.90M	792.87M	783.62M	774.72M	778.99M
	Net Debt
-3.53B	-2.58B	-1.67B	-1.22B	-1.14B
	Total Liabilities
5.38B	4.31B	3.54B	2.58B	1.86B
	Stockholders Equity
3.28B	2.30B	1.46B	1.03B	870.57M
Cash Flow		Free Cash Flow
1.13B	929.10M	674.57M	441.10M	292.72M
	Operating Cash Flow
1.38B	1.17B	941.01M	574.78M	356.57M
	Investing Cash Flow
-536.59M	-340.65M	-556.66M	-564.52M	495.43M
	Financing Cash Flow
107.21M	93.16M	66.48M	72.53M	800.13M

CrowdStrike Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 414.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWD, the sentiment is Positive. The current price of 414.05 is above the 20-day moving average (MA) of 368.46, above the 50-day MA of 375.60, and above the 200-day MA of 333.27, indicating a bullish trend. The MACD of 9.34 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 88.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRWD.

CrowdStrike Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRWD	76 Outperform	$102.63B	721.64	-0.69%	―	29.39%	-119.62%
FTNT	76 Outperform	$77.45B	44.57	338.74%	―	12.27%	54.69%
PANW	74 Outperform	$116.56B	99.45	23.38%	―	13.86%	-46.44%
ZS	74 Outperform	$30.41B	―	-1.21%	―	27.77%	89.39%
CYBR	66 Neutral	$17.28B	1,777.39	-5.91%	―	33.10%	-20.31%
NET	60 Neutral	$41.26B	―	-8.71%	―	28.76%	58.13%
Sector *	59 Neutral	$10.59B	10.09	-6.37%	3.05%	7.44%	-10.67%

CrowdStrike Holdings Corporate Events

CrowdStrike Approves 2026 Compensation for President

On April 9 and April 16, 2025, CrowdStrike Holdings‘ Board of Directors approved the compensation package for fiscal year 2026 for President Michael Sentonas. Effective February 1, 2025, his annual base salary is set at $875,000 with a target incentive compensation award of 100%, under the terms of the company’s Corporate Incentive Plan.

Spark’s Take on CRWD Stock

According to Spark, TipRanks’ AI Analyst, CRWD is a Outperform.

CrowdStrike Holdings is positioned strongly due to robust revenue growth, cash flow generation, and a healthy balance sheet. Despite negative profitability and valuation concerns, the company’s strong earnings call and positive growth outlook contribute positively to the score. Technical indicators point to some near-term volatility, but the overall growth trajectory remains favorable.

To see Spark’s full report on CRWD stock, click here.

CrowdStrike Announces Retirement of Chief Security Officer

On February 14, 2025, CrowdStrike Holdings announced that Shawn Henry, the current Chief Security Officer, will retire from his role and as an executive officer effective March 31, 2025. He will transition to an Executive Advisor to the CEO, focusing on cybersecurity advocacy, which signals a strategic shift in leadership and could impact the company’s operational focus and stakeholder relations.