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Stock Analysis & ValuationRubrik, Inc. (RBRK)

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$55.94
Sector Valuation Confidence Level
Low
Valuation methodValue, $Upside, %
Artificial intelligence (AI)116.02107
Intrinsic value (DCF)23.81-57
Graham-Dodd Methodn/a
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Rubrik, Inc. (NYSE: RBRK) is a leading provider of data security and cyber resilience solutions, serving enterprises across industries such as finance, healthcare, technology, and public sectors. Founded in 2013 and headquartered in Palo Alto, California, Rubrik specializes in enterprise-grade data protection, cloud security, and cyber recovery. The company’s platform integrates data security posture management, threat analytics, and SaaS protection, helping organizations safeguard critical data against ransomware and other cyber threats. Operating in the fast-growing Software - Infrastructure sector, Rubrik capitalizes on increasing demand for hybrid and multi-cloud security solutions. With a market cap of approximately $17.9 billion, Rubrik is positioned as a key player in the cybersecurity landscape, competing with legacy backup providers and modern cloud-native security firms. Its focus on zero-trust architecture and AI-driven threat detection reinforces its relevance in an era of escalating cyber risks.

Investment Summary

Rubrik presents a high-growth opportunity in the cybersecurity sector, driven by increasing enterprise demand for ransomware protection and cloud data security. However, the company remains unprofitable (net loss of $1.15B in FY2025) with negative EPS (-$7.48), reflecting heavy R&D and go-to-market investments. Its $482M operating cash flow suggests improving monetization, but competition from established players like Cohesity and Veeam poses execution risks. Rubrik’s differentiated focus on cyber recovery and hybrid-cloud scalability could justify its premium valuation if it sustains revenue growth (currently $886.5M) while narrowing losses. Investors should weigh its innovation against cash burn and sector volatility (beta: -0.03).

Competitive Analysis

Rubrik’s competitive advantage lies in its converged data security platform, combining backup, recovery, and cyber threat analytics—a critical differentiator in ransomware-prone environments. Unlike legacy backup vendors (e.g., Veritas), Rubrik’s cloud-native architecture and API-driven automation appeal to enterprises modernizing IT infrastructure. Its Zero Trust Data Access framework aligns with stringent compliance needs in regulated industries like healthcare and finance. However, Rubrik faces intense competition from pure-play cloud security firms (e.g., Zscaler) and vertically integrated rivals like Cohesity, which also offer AI-driven anomaly detection. Rubrik’s partnerships with hyperscalers (AWS, Azure) strengthen its distribution but expose it to platform dependency risks. While its $17.9B market cap reflects investor confidence in its tech leadership, gross margins and customer retention metrics (unavailable here) would better validate its moat against cheaper alternatives like Veeam.

Major Competitors

  • Cohesity (COHU): Cohesity is a private competitor specializing in hyperconverged secondary storage and ransomware recovery. Its strengths include strong AI/ML-driven data management and partnerships with Cisco, but it lacks Rubrik’s breadth in SaaS data protection. Unlike Rubrik’s public market liquidity, Cohesity’s private status limits visibility into financials.
  • Veeam Software (VEEAM): Veeam dominates the mid-market backup segment with cost-effective solutions and high channel penetration. However, its slower cloud transition and weaker cyber-recovery features compared to Rubrik’s integrated platform make it vulnerable in enterprise deals. Veeam’s private ownership also obscures direct financial comparisons.
  • Veritas Technologies (VRTS): Veritas leads in legacy enterprise backup but struggles with cloud adoption. Its NetBackup suite is entrenched in large enterprises, though Rubrik’s agility and modern APIs outperform Veritas in hybrid-cloud environments. Veritas’s debt burden (post-Carlyle acquisition) contrasts with Rubrik’s cleaner balance sheet.
  • Zscaler (ZS): Zscaler’s cloud-native security platform overlaps with Rubrik in zero-trust data access but focuses more on network security. Rubrik’s deeper backup/recovery capabilities give it an edge in cyber resilience, though Zscaler’s profitability (unlike Rubrik) appeals to risk-averse investors.
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