CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
21.81 USD
-0.03 (-0.14%)
21.79 USD
-0.02 (-0.09%)
Overall CWAN gets a fundamental rating of 5 out of 10. We evaluated CWAN against 280 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.
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
The Return On Assets of CWAN (13.12%) is better than 90.36% of its industry peers.
The Return On Equity of CWAN (19.79%) is better than 87.50% 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
The Profit Margin of CWAN (61.25%) is better than 95.36% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
With a Operating Margin value of 0.04%, CWAN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of CWAN has declined.
CWAN has a Gross Margin (68.53%) which is comparable to the rest of the 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.
CWAN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CWAN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.19 indicates that CWAN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.19, CWAN is doing good in the industry, outperforming 65.71% of the companies in the same industry.
CWAN has a debt to FCF ratio of 10.26. This is a negative value and a sign of low solvency as CWAN would need 10.26 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.26, CWAN perfoms like the industry average, outperforming 50.36% of the companies in the same industry.
CWAN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.42, CWAN is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.19 |
ROIC/WACC0
WACC10.94%
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.
Looking at the Current ratio, with a value of 1.97, CWAN is in line with its industry, outperforming 59.29% 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.
The Quick ratio of CWAN (1.97) is comparable to the rest of the 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.
Measured over the past years, CWAN shows a very strong growth in Earnings Per Share. The EPS has been growing by 110.89% on average per year.
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
The Earnings Per Share is expected to grow by 28.57% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.93% on average over the next years. This is a very strong growth
EPS Next Y23.64%
EPS Next 2Y24.65%
EPS Next 3Y25.64%
EPS Next 5Y28.57%
Revenue Next Year63.91%
Revenue Next 2Y45.6%
Revenue Next 3Y35.9%
Revenue Next 5Y27.93%
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 41.94, the valuation of CWAN can be described as expensive.
CWAN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CWAN to the average of the S&P500 Index (26.54), we can say CWAN is valued expensively.
CWAN is valuated quite expensively with a Price/Forward Earnings ratio of 31.19.
CWAN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.78. CWAN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.94 | ||
| Fwd PE | 31.19 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CWAN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.04 | ||
| EV/EBITDA | 119.83 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CWAN's earnings are expected to grow with 25.64% in the coming years.
PEG (NY)1.77
PEG (5Y)0.38
EPS Next 2Y24.65%
EPS Next 3Y25.64%
5. Dividend
5.1 Amount
CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.81
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change1.87%
Ins Owners0.85%
Ins Owner Change2.14%
Market Cap6.38B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target29.25 (34.11%)
Short Float %8.6%
Short Ratio4.19
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)-7.33%
PT rev (3m)-9.44%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-1.48%
EPS NY rev (3m)-2.07%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.94 | ||
| Fwd PE | 31.19 | ||
| P/S | 9.97 | ||
| P/FCF | 78.04 | ||
| P/OCF | 69.86 | ||
| P/B | 3.22 | ||
| P/tB | 19700.3 | ||
| EV/EBITDA | 119.83 |
EPS(TTM)0.52
EY2.38%
EPS(NY)0.7
Fwd EY3.21%
FCF(TTM)0.28
FCFY1.28%
OCF(TTM)0.31
OCFY1.43%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.77
PEG (5Y)0.38
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 | 4.19 |
F-Score4
WACC10.94%
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 Y23.64%
EPS Next 2Y24.65%
EPS Next 3Y25.64%
EPS Next 5Y28.57%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
Revenue Next Year63.91%
Revenue Next 2Y45.6%
Revenue Next 3Y35.9%
Revenue Next 5Y27.93%
EBIT growth 1Y-97.99%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year80.74%
EBIT Next 3Y43.48%
EBIT Next 5Y36.03%
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 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.
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 41.94 and the Price/Book (PB) ratio is 3.22.
What is the financial health of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
The financial health rating of CLEARWATER ANALYTICS HDS-A (CWAN) is 4 / 10.