CRWDCrowdStrike
Is the business good?
The checks split: nothing decisive, though margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CRWD?
CrowdStrike earns −11% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 20 points below what the capital costs: growth destroys value
- Operating margin
- −2.2%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2027
- Share count, year on year
- +4.5%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 29%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | −11% |
| FY2022 | −9.8% |
| FY2023 | −8.5% |
| FY2024 | −0.63% |
| FY2025 | −2.9% |
| FY2026 | −6.1% |
Details›
- Gross margin12 months to Q2 2027
- 75%
- Operating margin12 months to Q2 2027
- −2.2%
- Net margin12 months to Q2 2027
- 1.1%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 29%
- Revenue, trailing twelve months
- $5.40B
- Free cash flow, trailing twelve months
- $1.61B
- Net income, trailing twelve months
- $58M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
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