Cellebrite DI Ltd. Ordinary Shares (CLBT)

FairStock Score: 49/100 — MIXED

Key Financials

Strengths

• Generates $141 million in annual free cash flow (4.5% yield on market cap)
• Solid return on equity of 19.1% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.05, providing financial flexibility
• Altman Z-Score of 4.5 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 18.1% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($4) with negative 243% margin of safety—limited downside protection

AI Analysis

Cellebrite DI Ltd. Ordinary Shares is a small-cap technology company valued at $3.2 billion. The business generates $476 million in annual revenue with a 4.5% net margin and $141 million in free cash flow. From a quality standpoint, Cellebrite shows healthy Altman Z-Score of 4.5 and adequate 19% ROE. On valuation, the stock is commanding a steep 41.1x multiple, with trades far above its Graham Number ($4) with no margin of safety. Growth dynamics show revenue growing at 18.1% and profit growth of 10.3%. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Cellebrite's 18% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $141 million in annual free cash flow (4.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 41x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer