Skip to Content

Splunk Inc SPLK

Morningstar Rating
$156.16 −0.06 (0.04%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Splunk Earnings: Solid Result as Acquisition by Cisco Is Set to Close Soon

We raise our fair value estimate for narrow-moat Splunk to $155 per share from $148, which equates to the value of $157 in cash that will be paid to shareholders when Cisco’s acquisition of the company closes in 2024. Splunk did not host an earnings call or provide guidance due to its pending acquisition, which we now expect to close in the first half of calendar 2024, earlier than we previously thought. We reiterate our view that by acquiring Splunk, Cisco aims to expand its cybersecurity portfolio by integrating Splunk’s security information and event management solution into its broader security solution set.

Price vs Fair Value

SPLK is trading at a 1% premium.
Price
$156.16
Fair Value
$741.00
Uncertainty
High
1-Star Price
$763.51
5-Star Price
$46.00
Economic Moat
Vpnjyt
Capital Allocation
Fpfdqnbn

Bulls Say, Bears Say

Bulls

Splunk has secular tailwinds as the security and FSMA markets are expected to grow rapidly.

Bears

Due to its cloud transition, there is uncertainty around Splunk’s execution as an SaaS provider.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if SPLK is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$156.22
Day Range
$155.91156.21
52-Week Range
$82.19156.30
Bid/Ask
$155.15 / $156.57
Market Cap
$26.32 Bil
Volume/Avg
2.9 Mil / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
34.83
Price/Sales
6.50
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Splunk is a cloud-first software company that focuses on analyzing machine data. The company is a major player in two markets: security, and full-stack monitoring and analysis. The San Francisco-based firm focuses on enterprise clients, with more than 90% of the Fortune 100 using its solutions. The firm’s top line consists of the sale of software licenses, cloud subscriptions, and maintenance and support.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
8,000

Competitors

Valuation

Metric
SPLK
ESTC
DDOG
Price/Earnings (Normalized)
34.83115.9179.42
Price/Book Value
35.5416.6621.29
Price/Sales
6.509.8121.43
Price/Cash Flow
20.9569.5174.13
Price/Earnings
SPLK
ESTC
DDOG

Financial Strength

Metric
SPLK
ESTC
DDOG
Quick Ratio
1.551.743.08
Current Ratio
1.691.893.17
Interest Coverage
1.65−5.54−5.86
Quick Ratio
SPLK
ESTC
DDOG

Profitability

Metric
SPLK
ESTC
DDOG
Return on Assets (Normalized)
14.35%6.08%13.70%
Return on Equity (Normalized)
25.06%27.61%
Return on Invested Capital (Normalized)
20.95%12.07%15.11%
Return on Assets
SPLK
ESTC
DDOG
See how this stock stacks up to its competitors with Morningstar Investor

Software - Infrastructure Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
MSFT
Microsoft CorpPpwz$3.1 Tril
ORCL
Oracle CorpKvywtp$312.8 Bil
ADBE
Adobe IncSvxxm$258.1 Bil
PANW
Palo Alto Networks IncXyb$97.7 Bil
SNPS
Synopsys IncJdhtzh$90.2 Bil
CRWD
CrowdStrike Holdings Inc Class ADlvcvc$75.5 Bil
PLTR
Palantir Technologies Inc Ordinary Shares - Class ALrdxvnq$55.2 Bil
FTNT
Fortinet IncRmyt$53.7 Bil
SQ
Block Inc Class AZklkxt$48.8 Bil
NET
Cloudflare IncDqktg$33.7 Bil

Sponsor Center