Tenable Holdings, Inc. Fundamental Analysis (NASDAQ: TENB)
Tenable Holdings, Inc. Fundamental Analysis (NASDAQ: TENB)
Tenable Holdings, Inc. (NASDAQ: TENB) shows weak financial fundamentals with a PE ratio of 577.48, profit margin of 0.65%, and ROE of 2.41%. The company generates $1.0B in annual revenue with strong year-over-year growth of 11.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TENB's fundamental strength across five key dimensions:
Efficiency Score
WeakTENB struggles to generate sufficient returns from assets.
Valuation Score
ModerateTENB shows balanced valuation metrics.
Growth Score
ModerateTENB shows steady but slowing expansion.
Financial Health Score
WeakTENB carries high financial risk with limited liquidity.
Profitability Score
ModerateTENB maintains healthy but balanced margins.
Key Financial Metrics
Is TENB Expensive or Cheap?
P/E Ratio
TENB trades at 577.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TENB's PEG of 1.39 indicates fair valuation.
Price to Book
The market values Tenable Holdings, Inc. at 20.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 30.69 times EBITDA. This signals the market has high growth expectations.
How Well Does TENB Make Money?
Net Profit Margin
For every $100 in sales, Tenable Holdings, Inc. keeps $0.65 as profit after all expenses.
Operating Margin
Core operations generate 4.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.41 in profit for every $100 of shareholder equity.
ROA
Tenable Holdings, Inc. generates $0.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tenable Holdings, Inc. generates strong operating cash flow of $263.64M, reflecting robust business health.
Free Cash Flow
Tenable Holdings, Inc. generates strong free cash flow of $261.23M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.37 in free cash annually.
FCF Yield
TENB converts 6.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
577.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TENB Stacks Against Its Sector Peers
| Metric | TENB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 577.48 | 36.46 | Worse (Expensive) |
| ROE | 2.41% | 679.00% | Weak |
| Net Margin | 0.65% | -129239.00% (disorted) | Weak |
| Debt/Equity | 2.11 | 0.43 | Weak (High Leverage) |
| Current Ratio | 0.79 | 5.89 | Weak Liquidity |
| ROA | 0.43% | 237.00% | Weak |
TENB outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tenable Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.90%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
28.93%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
249.21%
Industry Style: Growth, Innovation, High Beta
High Growth