- Splunk is a leader in data monitoring and security. They turn "data into doing" for enterprises through dashboard visualizations and machine learning.
- They are poised to benefit from three industry tailwinds; the abundance of Big data, growing software spending from enterprises, and the expanding cybersecurity industry.
- Splunk’s share price is down 54% from its highs in October 2020, while revenue has jumped by 13% over the two-year period.
- Free cash flow has also jumped from -$242 million by the end of 2020 to $100 million in FY2021, which is a positive sign for the company's new subscription-focused business model.
- The stock is trading at the lowest price to sales multiple relative to history and is fairly valued intrinsically.
For further details see:
Splunk: Poised To Rebound With Big Data Tailwinds Ahead