CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - NYSE:CWAN - US1851231068 - Common Stock
16.595 USD
-0.71 (-4.13%)
Taking everything into account, CWAN scores 5 out of 10 in our fundamental rating. CWAN was compared to 284 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 is valued quite expensively, but it does show have an excellent growth rating. 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.
In the past year CWAN had a positive cash flow from operations.
In the past 5 years CWAN reported 4 times negative net income.
Of the past 5 years CWAN 4 years had a positive operating cash flow.
1.2 Ratios
CWAN has a Return On Assets of 13.44%. This is amongst the best in the industry. CWAN outperforms 89.79% of its industry peers.
CWAN has a better Return On Equity (20.64%) than 86.62% of its industry peers.
The Return On Invested Capital of CWAN (0.03%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 20.64% | ||
| ROIC | 0.03% |
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 73.71%. This is amongst the best in the industry. CWAN outperforms 95.77% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
CWAN's Operating Margin of 0.19% is in line compared to the rest of the industry. CWAN outperforms 59.86% of its industry peers.
In the last couple of years the Operating Margin of CWAN has declined.
CWAN has a Gross Margin (70.56%) which is in line with 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 | 0.19% | ||
| PM (TTM) | 73.71% | ||
| GM | 70.56% |
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.
CWAN has more shares outstanding than it did 1 year ago.
CWAN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWAN has been reduced compared to a year ago.
2.2 Solvency
CWAN has an Altman-Z score of 3.24. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
CWAN has a better Altman-Z score (3.24) than 60.56% of its industry peers.
The Debt to FCF ratio of CWAN is 10.33, which is on the high side as it means it would take CWAN, 10.33 years of fcf income to pay off all of its debts.
CWAN has a Debt to FCF ratio of 10.33. This is comparable to the rest of the industry: CWAN outperforms 51.06% of its industry peers.
CWAN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
CWAN has a Debt to Equity ratio of 0.44. This is in the lower half of the industry: CWAN underperforms 62.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 3.24 |
ROIC/WACC0
WACC11.01%
2.3 Liquidity
A Current Ratio of 2.02 indicates that CWAN has no problem at all paying its short term obligations.
CWAN has a better Current ratio (2.02) than 61.27% of its industry peers.
A Quick Ratio of 2.02 indicates that CWAN has no problem at all paying its short term obligations.
CWAN's Quick ratio of 2.02 is fine compared to the rest of the industry. CWAN outperforms 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.81% over the past year.
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 22.72%.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.81%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%16.67%
Revenue 1Y (TTM)22.72%
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.
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
Based on the Price/Earnings ratio of 31.91, the valuation of CWAN can be described as expensive.
Based on the Price/Earnings ratio, CWAN is valued a bit cheaper than 62.68% of the companies in the same industry.
CWAN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.13.
Based on the Price/Forward Earnings ratio of 22.65, the valuation of CWAN can be described as rather expensive.
CWAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWAN is cheaper than 69.72% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CWAN to the average of the S&P500 Index (22.35), we can say CWAN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.91 | ||
| Fwd PE | 22.65 |
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 | 57.1 | ||
| EV/EBITDA | 170 |
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)1.25
PEG (5Y)0.29
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 |
NYSE:CWAN (11/6/2025, 10:04:08 AM)
16.595
-0.71 (-4.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change0.08%
Ins Owners0.84%
Ins Owner Change3.08%
Market Cap4.85B
Revenue(TTM)451.80M
Net Income(TTM)406.20M
Analysts84.44
Price Target31.56 (90.18%)
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)1
Avg EPS beat(2)0.3%
Min EPS beat(2)-1.96%
Max EPS beat(2)2.56%
EPS beat(4)3
Avg EPS beat(4)5.31%
Min EPS beat(4)-1.96%
Max EPS beat(4)13.33%
EPS beat(8)6
Avg EPS beat(8)8.22%
EPS beat(12)10
Avg EPS beat(12)10.38%
EPS beat(16)13
Avg EPS beat(16)12.81%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)2.43%
Revenue beat(4)3
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)3.06%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)8
Avg Revenue beat(12)0.42%
Revenue beat(16)10
Avg Revenue beat(16)0.46%
PT rev (1m)-2.28%
PT rev (3m)-6.79%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-2.38%
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)0.03%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.91 | ||
| Fwd PE | 22.65 | ||
| P/S | 8.81 | ||
| P/FCF | 57.1 | ||
| P/OCF | 52.79 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 170 |
EPS(TTM)0.52
EY3.13%
EPS(NY)0.73
Fwd EY4.41%
FCF(TTM)0.29
FCFY1.75%
OCF(TTM)0.31
OCFY1.89%
SpS1.88
BVpS6.73
TBVpS-0.14
PEG (NY)1.25
PEG (5Y)0.29
Graham Number8.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 20.64% | ||
| ROCE | 0.04% | ||
| ROIC | 0.03% | ||
| ROICexc | 0.03% | ||
| ROICexgc | 0.1% | ||
| OM | 0.19% | ||
| PM (TTM) | 73.71% | ||
| GM | 70.56% | ||
| FCFM | 15.42% |
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-Score3
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 10.33 | ||
| Debt/EBITDA | 25.28 | ||
| Cap/Depr | 20.79% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | 266.49% | ||
| Profit Quality | 20.92% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 3.24 |
F-Score3
WACC11.01%
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)22.72%
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 1Y179.89%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year71.55%
EBIT Next 3Y43.29%
EBIT Next 5Y34.58%
FCF growth 1Y55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.5%
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 31.91 and the Price/Book (PB) ratio is 2.47.
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.