CWAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. Both the profitability and the financial health of CWAN get a neutral evaluation. Nothing too spectacular is happening here. CWAN shows excellent growth, but is valued quite expensive already.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years CWAN reported 4 times negative net income.
CWAN had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

CWAN's Return On Assets of 13.12% is amongst the best of the industry. CWAN outperforms 91.01% of its industry peers.
Looking at the Return On Equity, with a value of 19.79%, CWAN belongs to the top of the industry, outperforming 87.41% of the companies in the same industry.
CWAN's Return On Invested Capital of 0.01% is in line compared to the rest of the industry. CWAN outperforms 56.47% of 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 94.24% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
The Operating Margin of CWAN (0.04%) is comparable to the rest of the industry.
CWAN's Operating Margin has declined in the last couple of years.
CWAN has a Gross Margin of 68.53%. This is comparable to the rest of the industry: CWAN outperforms 49.64% of its industry peers.
In the last couple of years the Gross Margin of CWAN has remained more or less at the same level.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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.
The Altman-Z score of CWAN (4.59) is better than 70.50% 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.
CWAN's Debt to FCF ratio of 10.26 is in line compared to the rest of the industry. CWAN outperforms 50.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.42, CWAN is doing worse than 62.59% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.42
Debt/FCF	10.26
Altman-Z	4.59

ROIC/WACC0

WACC11.1%

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 line with its industry, outperforming 57.91% of the companies in the same industry.
A Quick Ratio of 1.97 indicates that CWAN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.97, CWAN is in line with its industry, outperforming 58.63% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.97
Quick Ratio	1.97

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WACC

Debt/Equity

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Altman-Z score

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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

CWAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.07% yearly.
Based on estimates for the next years, CWAN will show a very strong growth in Revenue. The Revenue will grow by 27.52% on average per year.

EPS Next Y25.23%

EPS Next 2Y25.51%

EPS Next 3Y26.56%

EPS Next 5Y28.07%

Revenue Next Year63.93%

Revenue Next 2Y45.65%

Revenue Next 3Y35.86%

Revenue Next 5Y27.52%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 46.40, CWAN can be considered very expensive at the moment.
CWAN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CWAN to the average of the S&P500 Index (28.82), we can say CWAN is valued expensively.
With a Price/Forward Earnings ratio of 34.04, CWAN can be considered very expensive at the moment.
CWAN's Price/Forward Earnings is on the same level as the industry average.
CWAN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	46.4
Fwd PE	34.04

4.2 Price Multiples

CWAN's Enterprise Value to EBITDA ratio is in line with the industry average.
CWAN's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	86.34
EV/EBITDA	131.04

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 26.56% in the coming years.