CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - NYSE:CWAN - US1851231068 - Common Stock
19.25 USD
+0.17 (+0.89%)
19.71 USD
+0.46 (+2.39%)
Overall CWAN gets a fundamental rating of 5 out of 10. We evaluated CWAN against 281 industry peers in the Software industry. CWAN has an average financial health and profitability rating. CWAN is valued quite expensive, but it does show an excellent growth. With these ratings, CWAN could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
CWAN had positive earnings in the past year.
CWAN had a positive operating cash flow in the past year.
CWAN had negative earnings in 4 of the past 5 years.
Of the past 5 years CWAN 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.12%, CWAN belongs to the top of the industry, outperforming 90.39% of the companies in the same industry.
CWAN's Return On Equity of 19.79% is amongst the best of the industry. CWAN outperforms 87.54% of its industry peers.
CWAN has a Return On Invested Capital (0.01%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.12% | ||
| ROE | 19.79% | ||
| ROIC | 0.01% |
ROA(3y)10.25%
ROA(5y)-1.97%
ROE(3y)11.01%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CWAN's Profit Margin of 61.25% is amongst the best of the industry. CWAN outperforms 95.37% of its industry peers.
CWAN's Profit Margin has improved in the last couple of years.
CWAN has a Operating Margin (0.04%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CWAN has declined.
Looking at the Gross Margin, with a value of 68.53%, CWAN is in line with its industry, outperforming 50.18% of the companies in the same industry.
CWAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.04% | ||
| PM (TTM) | 61.25% | ||
| GM | 68.53% |
OM growth 3Y-37.9%
OM growth 5Y-35.42%
PM growth 3YN/A
PM growth 5Y82.95%
GM growth 3Y-0.14%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
CWAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CWAN has more shares outstanding
Compared to 5 years ago, CWAN has more shares outstanding
Compared to 1 year ago, CWAN has an improved debt to assets ratio.
2.2 Solvency
CWAN has an Altman-Z score of 3.70. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
CWAN has a better Altman-Z score (3.70) than 65.84% of its industry peers.
The Debt to FCF ratio of CWAN is 10.26, which is on the high side as it means it would take CWAN, 10.26 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.26, CWAN perfoms like the industry average, outperforming 50.89% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that CWAN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, CWAN is doing worse than 60.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 3.7 |
ROIC/WACC0
WACC10.95%
2.3 Liquidity
A Current Ratio of 1.97 indicates that CWAN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.97, CWAN is in the better half of the industry, outperforming 60.14% of the companies in the same industry.
CWAN has a Quick Ratio of 1.97. This is a normal value and indicates that CWAN is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.97, CWAN is doing good in the industry, outperforming 60.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.81% over the past year.
CWAN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 110.89% yearly.
The Revenue has grown by 50.91% in the past year. This is a very strong growth!
Measured over the past years, CWAN shows a very strong growth in Revenue. The Revenue has been growing by 21.88% on average per year.
EPS 1Y (TTM)23.81%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%16.67%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
3.2 Future
Based on estimates for the next years, CWAN will show a very strong growth in Earnings Per Share. The EPS will grow by 28.57% on average per year.
The Revenue is expected to grow by 28.05% on average over the next years. This is a very strong growth
EPS Next Y25.49%
EPS Next 2Y27.59%
EPS Next 3Y26.62%
EPS Next 5Y28.57%
Revenue Next Year63.59%
Revenue Next 2Y45.94%
Revenue Next 3Y36.14%
Revenue Next 5Y28.05%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 37.02, the valuation of CWAN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as CWAN.
CWAN is valuated rather expensively when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.28 indicates a quite expensive valuation of CWAN.
Based on the Price/Forward Earnings ratio, CWAN is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.57. CWAN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.02 | ||
| Fwd PE | 26.28 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CWAN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.83 | ||
| EV/EBITDA | 106.25 |
4.3 Compensation for Growth
CWAN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CWAN's earnings are expected to grow with 26.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)0.33
EPS Next 2Y27.59%
EPS Next 3Y26.62%
5. Dividend
5.1 Amount
CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.25
+0.17 (+0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change2.05%
Ins Owners0.84%
Ins Owner Change3.08%
Market Cap5.63B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target31.56 (63.95%)
Short Float %5.04%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.09%
Min EPS beat(2)-6.22%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)1.93%
Min EPS beat(4)-6.22%
Max EPS beat(4)13.33%
EPS beat(8)5
Avg EPS beat(8)5.62%
EPS beat(12)9
Avg EPS beat(12)8.6%
EPS beat(16)12
Avg EPS beat(16)8.35%
Revenue beat(2)1
Avg Revenue beat(2)0.59%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)2.43%
Revenue beat(4)2
Avg Revenue beat(4)0.92%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)3.06%
Revenue beat(8)4
Avg Revenue beat(8)0.21%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)0.28%
PT rev (1m)-2.28%
PT rev (3m)-6.85%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.02 | ||
| Fwd PE | 26.28 | ||
| P/S | 8.79 | ||
| P/FCF | 68.83 | ||
| P/OCF | 61.62 | ||
| P/B | 2.84 | ||
| P/tB | 17375.53 | ||
| EV/EBITDA | 106.25 |
EPS(TTM)0.52
EY2.7%
EPS(NY)0.73
Fwd EY3.81%
FCF(TTM)0.28
FCFY1.45%
OCF(TTM)0.31
OCFY1.62%
SpS2.19
BVpS6.78
TBVpS0
PEG (NY)1.45
PEG (5Y)0.33
Graham Number8.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.12% | ||
| ROE | 19.79% | ||
| ROCE | 0.01% | ||
| ROIC | 0.01% | ||
| ROICexc | 0.01% | ||
| ROICexgc | 0.03% | ||
| OM | 0.04% | ||
| PM (TTM) | 61.25% | ||
| GM | 68.53% | ||
| FCFM | 12.77% |
ROA(3y)10.25%
ROA(5y)-1.97%
ROE(3y)11.01%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-67.54%
ROICexgc growth 5Y-60.6%
ROICexc growth 3Y-68.91%
ROICexc growth 5Y-61.61%
OM growth 3Y-37.9%
OM growth 5Y-35.42%
PM growth 3YN/A
PM growth 5Y82.95%
GM growth 3Y-0.14%
GM growth 5Y0.23%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Debt/EBITDA | 13.9 | ||
| Cap/Depr | 16.09% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 0.02 | ||
| Cash Conversion | 152.85% | ||
| Profit Quality | 20.85% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 3.7 |
F-Score4
WACC10.95%
ROIC/WACC0
Cap/Depr(3y)83.6%
Cap/Depr(5y)112.55%
Cap/Sales(3y)1.75%
Cap/Sales(5y)1.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.81%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%16.67%
EPS Next Y25.49%
EPS Next 2Y27.59%
EPS Next 3Y26.62%
EPS Next 5Y28.57%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
Revenue Next Year63.59%
Revenue Next 2Y45.94%
Revenue Next 3Y36.14%
Revenue Next 5Y28.05%
EBIT growth 1Y-97.99%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year71.55%
EBIT Next 3Y43.29%
EBIT Next 5Y34.58%
FCF growth 1Y12.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.14%
OCF growth 3Y180.71%
OCF growth 5YN/A
CLEARWATER ANALYTICS HDS-A / CWAN FAQ
What is the ChartMill fundamental rating of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CWAN.
What is the valuation status of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
ChartMill assigns a valuation rating of 3 / 10 to CLEARWATER ANALYTICS HDS-A (CWAN). This can be considered as Overvalued.
What is the profitability of CWAN stock?
CLEARWATER ANALYTICS HDS-A (CWAN) has a profitability rating of 5 / 10.
What are the PE and PB ratios of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
The Price/Earnings (PE) ratio for CLEARWATER ANALYTICS HDS-A (CWAN) is 37.02 and the Price/Book (PB) ratio is 2.84.
What is the financial health of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
The financial health rating of CLEARWATER ANALYTICS HDS-A (CWAN) is 5 / 10.