CrowdStrike Holdings, Inc. (CRWD) Stock Analysis
CrowdStrike Holdings, Inc. (CRWD) Stock Analysis
Analysis from 10-Q filed 2025-12-03. Data as of Q1 2026.
Overall Grade: F (Concerning)
CrowdStrike Holdings, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | -7.3% | Below expectations |
| FCF Margin | 27.2% | Strong cash generation |
| Debt/Equity | 0.2x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 27.2% provides financial flexibility for growth and shareholder returns.
Explore CrowdStrike Holdings, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: CrowdStrike Holdings, Inc. earns -7.3% ROIC, Bottom 50% in Technology
CrowdStrike Holdings, Inc.'s trailing-twelve-month ROIC of -7.3% ranks Bottom 50% in Technology companies (sector median: 5.0%), driven by NOPAT margin of -7.7% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-12-03. Gross margin of 74.7% with operating margin at -6.1% reflects strong pricing power.
| Metric | CRWD | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -7.3% | Red flag | Below sector median of 5.0% |
| Return on Equity (ROE) | -4.3% | Red flag | Moderate equity returns |
| Gross Margin | 74.7% | Excellent | Strong pricing power |
| Operating Margin | -6.1% | Warning | Moderate operational efficiency |
Cash Flow: CrowdStrike Holdings, Inc. generates $1.3B FCF at 27.2% margin, positive NaN/8 quarters
CrowdStrike Holdings, Inc. generated $1.3B in free cash flow (TTM), a 27.2% FCF margin, a margin that ranks Top 25% in Technology. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-12-03.
| Metric | CRWD | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 27.2% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.3B | Good | Positive cash generation |
| OCF/Net Income | -9.9x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: CrowdStrike Holdings, Inc. at 0.2x leverage
CrowdStrike Holdings, Inc.'s debt-to-equity ratio of 0.2x reflects conservative leverage. Net cash position of $4.6B provides financial flexibility. Source: 10-Q filed 2025-12-03.
| Metric | CRWD | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.2x | Excellent | Conservative capital structure |
| Net Cash Position | $4.6B | Excellent | Net cash positive |
Valuation: CrowdStrike Holdings, Inc. trades at -679.1x earnings
CrowdStrike Holdings, Inc. trades at a P/E of -679.1x. Free cash flow yield of 1.2% reflects market expectations for growth.
| Metric | CRWD | Rating | Context |
|---|---|---|---|
| P/E Ratio | -679.1x | Red flag | Reasonable valuation |
| EV/Sales | 22.1x | Warning | Growth premium priced in |
| FCF Yield | 1.2% | Warning | Lower cash yield |
Capital Allocation: CrowdStrike Holdings, Inc. returns 0.0% shareholder yield
CrowdStrike Holdings, Inc.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-12-03.
| Metric | CRWD | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -7.3% | Bottom 50% | -1.5x below |
| Free Cash Flow Margin | 27.2% | Top 25% | 3.2x above |
| Gross Margin | 74.7% | Top 25% | 1.5x above |
| Operating Margin | -6.1% | Bottom 50% | -1.3x below |
| Return on Equity (ROE) | -4.3% | Bottom 50% | -0.8x below |
Financial Scorecard
| Metric | CRWD | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -7.3% | Red flag | Bottom 50% of sector (median: 5.0%) |
| Free Cash Flow Margin | 27.2% | Excellent | Top 25% of sector (median: 8.6%) |
| Gross Margin | 74.7% | Excellent | Top 25% of sector (median: 51.1%) |
| Debt to Equity Ratio | 16.8% | Excellent | Conservative capital structure |
| Free Cash Flow Yield | 1.2% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is CrowdStrike Holdings, Inc.'s Return on Invested Capital (ROIC)?
CrowdStrike Holdings, Inc. (CRWD) has a trailing twelve-month Return on Invested Capital (ROIC) of -7.3%. This compares below the sector median of 5.0%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is CrowdStrike Holdings, Inc.'s Free Cash Flow Margin?
CrowdStrike Holdings, Inc. (CRWD) has a free cash flow margin of 27.2%, generating $1.3 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is CrowdStrike Holdings, Inc. stock overvalued or undervalued?
CrowdStrike Holdings, Inc. (CRWD) trades at a P/E ratio of -679.1x, which is above the sector median of N/A. The EV/Sales multiple is 22.1x. Free cash flow yield is 1.2%, reflecting growth expectations priced into the stock.
Q: What is CrowdStrike Holdings, Inc.'s revenue and earnings growth?
CrowdStrike Holdings, Inc. (CRWD) grew revenue by 21.7% year-over-year. Earnings per share decreased by 983.3% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does CrowdStrike Holdings, Inc. compare to competitors in Technology?
Compared to other companies in Technology, CrowdStrike Holdings, Inc. (CRWD) shows: ROIC of -7.3% is below the sector median of 5.0% (Bottom 27%). FCF margin of 27.2% exceeds the sector median of 8.6% (Top 15% of sector). Gross margin at 74.7% is 23.5 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with CrowdStrike Holdings, Inc.?
Investors in CrowdStrike Holdings, Inc. (CRWD) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-12-03. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.