Professional
Added to YB: 2024-05-27
Pitch date: 2024-05-24
SWI [bullish]
SolarWinds Corporation
+53.7%
current return
Author Info
Voss Capital is a hedge fund looking for value-oriented special situations. Sign up for the newsletter.
Company Info
SolarWinds Corporation provides monitoring and observability, database, incident response, and IT service management software.
Market Cap
$3.2B
Pitch Price
$12.03
Price Target
23.00 (+24%)
Dividend
N/A
EV/EBITDA
14.48
P/E
28.89
EV/Sales
5.23
Sector
Software
Category
value
Voss Capital Value Fund Portfolio Holding: SolarWinds Corporation
SWI: Observability software firm in subscription shift. 50% EBITDA margins, 90% gross margins, 7%+ ARR growth, yet trades at 9x FCF - cheapest $1B+ software stock. Beating expectations despite public cyber-attack 3 years ago. $23 PT for 92% upside at 14x FCF, a 50%+ discount to inferior comps. High odds of PE buyout with two large holders.
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