Despite recent market conditions, Crowdstrike (CRWD 0.99%) has continued to perform reasonably well. In this video clip from "Ask Us Anything" on Motley Fool Live, recorded on May 5, Fool.com contributors Jose Najarro, Connor Allen, and Nick Rossolillo discuss some of the cybersecurity company's revenue and cash flow numbers that are quite impressive.
10 stocks we like better than CrowdStrike Holdings, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and CrowdStrike Holdings, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of April 27, 2022
Jose Najarro: Trading under the ticker CRWD, current market cap right now is about $46 billion. Trailing 12 months' revenue is about $1.45 [billion]. Most recent quarter revenue growth was 62.7%. That is insane. I think this has been the lowest revenue growth for the past four or five quarters. So that's insane that it's still 62.7%. Trailing 12 months' cash flow from operations is $574 million. They do have some amount of long-term debt, nearly $740 million.
But, they do have a nice amount of cash and short-term investments of about $2 billion dollars. Current price right now, sitting at $200. I think pre-market, right now, it's down about 0.25%. I think it's just the overall market. And here we can see the 52-week high/low. The high, almost $300. The low, almost $150. So it seems they're closer to that low than that high. Current price-to-sales ratio is about 31.36. The peak 52-week price-to-sales ratio is about 59, and their next earnings will be in a month from now.
So before I go to the next slide, Nick or Connor, anything here that like really stood out to you? If not, it's fine.
Connor Allen: I want to point out their free cash flow margins of around 30%, which is really, really incredible for a company growing this fast. They've got quite a bit of operating expenses, which is why they're not fully profitable yet but seeing that positive free cash flow and that free cash flow growth is something that really excites me about Crowdstrike.
Nick Rossolillo: Yeah, same here. I was going to say exactly the same thing, Connor. For a company growing this fast, to have it profitable, at least on one metric. The net income, unadjusted net income will converge with the free cash flow over time. This company's a beast.
Allen: Not to mention they've got 74% gross margins as well. I mean, you look at a lot of these numbers for this company, and it just continues to wow me, so.
Najarro: And this is one that has kind of done really well with the current market right now. Even though the stock price is down about 30%, you would expect most kinds of growth stocks like this to be down over 50%. I mean, we've seen a lot of popular names in the market right now, down 50%, 60%, some even 70% from kind of all-time highs. So we can see this one's down roughly 30%.