How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in CyberArk (CYBR) ten years ago? It may not have been easy to hold on to CYBR for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at CyberArk's main business drivers.
Headquartered in Petah Tikva, Israel, CyberArk Software Ltd. was founded in 1999. Together with its subsidiaries, the company provides information technology security solutions. The company is a vital security partner to more than 5,400 global businesses, which include over 50% of the Fortune 500 and more than 35% of the Global 2000 companies.
CyberArk offers services, which protect organizational privileged accounts from cyber-attacks. Its products include CyberArk Shared Technology Platform, Privileged Account Security Solution and Sensitive Information Management Solution.
The company’s privileged account security solution consists of enterprise password vault, which provides a tool to manage and protect physical, virtual, or cloud-based assets in an organization; privileged session manager that protects IT assets; and application identity manager, which addresses the challenges of hard-coded, embedded credentials, and cryptographic keys being hijacked and exploited by malicious insiders or external cyber attackers.
The company offers its products to energy and utilities, financial services, healthcare, manufacturing, retail, technology, and telecommunications industries, as well as government agencies through resellers and distributors.
CyberArk operates under three broad categories — Subscription, Perpetual License, and Maintenance and Professional Services. In 2023, Subscription revenues made up 63% of total revenue, while Perpetual License and Maintenance and Professional Services accounted for 3% and 34%, respectively.
In 2023, the company generated approximately 52% of revenues from the United States, 30% from the EMEA region and the remaining 18% from the Rest of the World.
In the access and identity management market CA, Dell, IBM, Microsoft and Oracle are CyberArk’s main competitors. In the advanced threat protection solutions space, its competitors include HP Inc., IBM, FireEye, Splunk, Check Point Software and Palo Alto Networks.
CyberArk has offices in the U.S., Israel, Singapore, Australia, the U.K., Italy, France, Germany, Spain, Japan, Netherlands and Turkey.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For CyberArk, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in February 2015 would be worth $9,136.40, or a gain of 813.64%, as of February 12, 2025, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 193.37% and gold's return of 127.88% over the same time frame.
Going forward, analysts are expecting more upside for CYBR.
CyberArk is benefiting from the rising demand for cyber security and privileged access security solutions due to the long list of data breaches and increasing digital transformation strategies. A strong presence across verticals, such as banking, healthcare, government and utilities, is safeguarding CyberArk from the adverse effects of softening IT spending. The company’s strategic mix shift toward software-as-a-service and subscription-based solutions is driving top-line growth. Shares of the company have outperformed the industry over the past year. However, aggressive sales and marketing initiatives and sustained investments in research and development to boost product offerings and capabilities might dampen its margins. Additionally, disruptions caused by macroeconomic headwinds remain major concerns.
The stock is up 11.80% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024. The consensus estimate has moved up as well.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report
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