Morningstar

Rapid7 Inc RPD

Morningstar Rating
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Stock XNAS Rating as of
$39.16 +1.55 (4.12%)
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As of Delayed Price Post-Trading: $39.16 0.00

Company Report

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Rapid7’s Competitive Landscape Remains Tough as It Pursues Returns on Its Cybersecurity Solutions

Malik Ahmed Khan, Verushka Shetty

Rapid7 is a prominent vendor in security operations and threat detection, which we view as key components of the cybersecurity stack, and which stand to gain wallet share of customers' spending as firms digitize their workflows. While secular tailwinds blow in Rapid7’s favor, we are wary of the firm’s fierce competition and exposure to macro swings. We also anticipate that the firm’s investments to expand its portfolio may take time to bear fruit.

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Price vs Fair Value

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RPD is trading at a 325% premium.
Price
$37.63
Fair Value
$54.00
Uncertainty
Very High
1-Star Price
$15.31
5-Star Price
$12.10
Economic Moat
Vsdp
Capital Allocation
Wyrtzhkr

Bulls Say, Bears Say

Bulls

Rapid7 has strong secular tailwinds in endpoint security and security operations where both markets are projected to grow rapidly.

Bears

The firm will likely have poor operating leverage and cash flow for the next few years, making it difficult to invest in order to stay competitive.

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News

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Trading Information

Previous Close Price
$37.61
Day Range
$37.90–39.30
52-Week Range
$32.95–61.88
Bid/Ask
$35.07 / $39.19
Market Cap
$2.46 Bil
Volume/Avg
476,172 / 719,099

Key Statistics

Price/Earnings (Normalized)
15.99
Price/Sales
3.12
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
—

Company Profile

Founded in 2000, Rapid7 is a cybersecurity company that began providing vulnerability management solutions. It has, however, expanded its portfolio to provide extended detection and response; security information and event management; cloud security, threat intelligence, and application security; and security orchestration, automation, and response. The Boston-based company went public in 2015.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Small Growth
Total Number of Employees
2,228
Website
https://www.rapid7.com

Competitors

Valuation

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Metric
RPD
QLYS
CRWD
Price/Earnings (Normalized)
 15.9921.4075.87
Price/Book Value
 —10.8424.38
Price/Sales
 3.128.1520.04
Price/Cash Flow
 16.5519.4552.02
Price/Earnings
RPD
QLYS
CRWD

Financial Strength

Metric
RPD
QLYS
CRWD
Quick Ratio
 1.011.351.72
Current Ratio
 1.171.441.90
Interest Coverage
 0.14—2.43
Quick Ratio
RPD
QLYS
CRWD

Profitability

Metric
RPD
QLYS
CRWD
Return on Assets (Normalized)
 11.46%27.56%14.48%
Return on Equity (Normalized)
 —61.43%40.13%
Return on Invested Capital (Normalized)
 22.85%50.66%25.63%
Return on Assets
RPD
QLYS
CRWD

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