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Avg. Quality

75

Success Rate

17.22

Analysis

546
Correct
94
Fail
281
Pending
169
Ineffective
0
Total Quality
Score
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Pending
CRWD
Short Entry 515.0300 2025-12-08 21:45 UTC
Target 366.2400 Fail 570.0000
Risk/Reward 1 : 3
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CRWD
Pending
Stocks
Fundamental
1H
Analysis Predict Bear Market
The analysis evaluates CrowdStrike (CRWD), a cybersecurity firm, for a buying opportunity in 2026. The company has demonstrated exceptional historical revenue growth with a 68% compound annual rate over the past decade, expanding revenues from $100 million in 2018 to $4 billion currently. However, recent quarterly earnings indicated a slowdown in revenue growth to 22%. Profitability metrics reveal a mixed picture; Return on Invested Capital (ROIC) has improved from -85.7% in 2019 to 0.8% in the most recent period, although this figure remains notably low and below its weighted average cost of capital. Conversely, the cash flow to sales ratio shows robust improvement, rising from -49.5% to 34.9%, after reaching a peak of 42%. Current valuation ratios, including a forward Price-to-Earnings (P/E) of 121 and a forward Price-to-Operating Cash Flow (P/OCF) of 57.99, position CRWD as significantly overvalued compared to the broader S&P 500 average. Based on a proprietary discounted cash flow (DCF) model, the intrinsic value per share is calculated at $366.24. Given the current market price of $513.12, which is near its 52-week high of $566.90, the stock is not considered a buying opportunity. A substantial price decrease would be necessary for reconsideration.
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