CrowdStrike Holdings, Inc. (CRWD) on Decifer

Why it ranks here

• Its returns on invested money are modest, around -4% and those returns have been improving.
• Revenue is expected to grow about 23% a year, profits are expected to grow 28%, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• We do not have a clean read on how it is run yet.
• Our durability check found pressure on this name, which costs it a few points.
• CRWD is one of 1 credible suppliers of endpoint, identity security for the thesis: Enterprises move AI out of pilots into production agents that act on core data and workflows, forcing a paired buildout of identity, network and data security around every agent. Pricing of this thesis has not been assessed.

The current read

The evidence on CRWD lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Cybersecurity & Identity: Cloud adoption, remote work and escalating breach costs are structurally increasing the share of IT budgets dedicated to security and identity.

Read the full CRWD research brief · See all quality rankings

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