CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
24.14 USD
+0.03 (+0.12%)
24.09 USD
-0.05 (-0.21%)
CWAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. CWAN has only an average score on both its financial health and profitability. CWAN is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
- In the past year CWAN was profitable.
- In the past year CWAN had a positive cash flow from operations.
- CWAN had negative earnings in 4 of the past 5 years.
- CWAN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- CWAN has a Return On Assets of 13.12%. This is amongst the best in the industry. CWAN outperforms 90.94% of its industry peers.
- With an excellent Return On Equity value of 19.79%, CWAN belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
- 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 has a Profit Margin of 61.25%. This is amongst the best in the industry. CWAN outperforms 94.20% of its industry peers.
- In the last couple of years the Profit Margin of CWAN has grown nicely.
- Looking at the Operating Margin, with a value of 0.04%, CWAN is in line with its industry, outperforming 56.52% of the companies in the same industry.
- CWAN's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 68.53%, CWAN is in line with its industry, outperforming 49.64% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWAN is destroying value.
- CWAN has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CWAN has more shares outstanding
- CWAN has a better debt/assets ratio than last year.
2.2 Solvency
- CWAN has an Altman-Z score of 4.59. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.59, CWAN is in the better half of the industry, outperforming 70.29% of the companies in the same industry.
- 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.
- CWAN has a Debt to FCF ratio of 10.26. This is comparable to the rest of the industry: CWAN outperforms 50.36% of its industry peers.
- CWAN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
- CWAN's Debt to Equity ratio of 0.42 is on the low side compared to the rest of the industry. CWAN is outperformed by 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.59 |
ROIC/WACC0
WACC11.02%
2.3 Liquidity
- CWAN has a Current 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 Current ratio value of 1.97, CWAN perfoms like the industry average, outperforming 57.97% 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 Quick ratio value of 1.97, CWAN perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
- CWAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.81%, which is quite impressive.
- The Earnings Per Share has been growing by 110.89% on average over the past years. This is a very strong growth
- Looking at the last year, CWAN shows a very strong growth in Revenue. The Revenue has grown by 50.91%.
- CWAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.88% yearly.
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
- CWAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.07% yearly.
- The Revenue is expected to grow by 27.52% on average over the next years. This is a very strong growth
EPS Next Y24.67%
EPS Next 2Y24.98%
EPS Next 3Y26.14%
EPS Next 5Y28.07%
Revenue Next Year63.92%
Revenue Next 2Y45.64%
Revenue Next 3Y35.82%
Revenue Next 5Y27.52%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- CWAN is valuated quite expensively with a Price/Earnings ratio of 46.42.
- CWAN's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.33. CWAN is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 34.34, CWAN can be considered very expensive at the moment.
- CWAN's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. CWAN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.42 | ||
| Fwd PE | 34.34 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWAN is on the same level as its industry peers.
- CWAN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.37 | ||
| EV/EBITDA | 131.09 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as CWAN's earnings are expected to grow with 26.14% in the coming years.
PEG (NY)1.88
PEG (5Y)0.42
EPS Next 2Y24.98%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
- No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.14
+0.03 (+0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-17 2026-02-17/amc
Inst Owners99.01%
Inst Owner Change0.31%
Ins Owners0.84%
Ins Owner Change15.19%
Market Cap7.06B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts78.75
Price Target29.25 (21.17%)
Short Float %9.93%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)-9.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)0.83%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.42 | ||
| Fwd PE | 34.34 | ||
| P/S | 11.03 | ||
| P/FCF | 86.37 | ||
| P/OCF | 77.32 | ||
| P/B | 3.57 | ||
| P/tB | 21804.91 | ||
| EV/EBITDA | 131.09 |
EPS(TTM)0.52
EY2.15%
EPS(NY)0.7
Fwd EY2.91%
FCF(TTM)0.28
FCFY1.16%
OCF(TTM)0.31
OCFY1.29%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.88
PEG (5Y)0.42
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 | 4.59 |
F-Score4
WACC11.02%
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 Y24.67%
EPS Next 2Y24.98%
EPS Next 3Y26.14%
EPS Next 5Y28.07%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
Revenue Next Year63.92%
Revenue Next 2Y45.64%
Revenue Next 3Y35.82%
Revenue Next 5Y27.52%
EBIT growth 1Y-97.99%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year80.92%
EBIT Next 3Y43.74%
EBIT Next 5Y35.59%
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 for CWAN stock?
ChartMill assigns a valuation rating of 2 / 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.
Can you provide the financial health for CWAN stock?
The financial health rating of CLEARWATER ANALYTICS HDS-A (CWAN) is 4 / 10.