CWAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 277 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 90.97% of its industry peers.
CWAN's Return On Equity of 19.79% is amongst the best of the industry. CWAN outperforms 87.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.01%, CWAN is in line with its industry, outperforming 56.68% of the companies in the same industry.

		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 94.22% of its industry peers.
CWAN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 0.04%, CWAN is in line with its industry, outperforming 56.68% 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 49.46% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWAN is destroying value.
The number of shares outstanding for CWAN has been increased compared to 1 year ago.
The number of shares outstanding for CWAN has been increased compared to 5 years ago.
Compared to 1 year ago, CWAN has an improved debt to assets ratio.

2.2 Solvency

CWAN has an Altman-Z score of 4.61. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.61, CWAN is doing good in the industry, outperforming 70.76% 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.
CWAN has a Debt to FCF ratio (10.26) which is in line with 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.
With a Debt to Equity ratio value of 0.42, CWAN is not doing good in the industry: 62.45% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.42
Debt/FCF	10.26
Altman-Z	4.61

ROIC/WACC0

WACC11.12%

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 57.76% 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.
CWAN has a Quick ratio of 1.97. This is comparable to the rest of the industry: CWAN outperforms 58.48% of its industry peers.

		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.
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

The Earnings Per Share is expected to grow by 28.07% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.52% on average over the next years. This is a very strong growth

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 3Y35.82%

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

The Price/Earnings ratio is 46.50, which means the current valuation is very expensive for CWAN.
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 (27.21), we can say CWAN is valued expensively.
A Price/Forward Earnings ratio of 34.11 indicates a quite expensive valuation of CWAN.
CWAN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CWAN to the average of the S&P500 Index (24.26), we can say CWAN is valued slightly more expensively.

		Industry Rank	Sector Rank
PE	46.5
Fwd PE	34.11

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	86.52
EV/EBITDA	131.82

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CWAN does not grow enough to justify the current Price/Earnings ratio.
CWAN's earnings are expected to grow with 26.56% in the coming years. This may justify a more expensive valuation.