CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
24.33 USD
0 (0%)
24.33 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CWAN. CWAN was compared to 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 is valued quite expensive, but it does show an excellent growth.
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.
- 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
- With an excellent Return On Assets value of 13.12%, CWAN belongs to the best of the industry, outperforming 90.97% of the companies in the same industry.
- The Return On Equity of CWAN (19.79%) is better than 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.
- With a Operating Margin value of 0.04%, CWAN perfoms like the industry average, outperforming 56.68% of the companies in the same industry.
- In the last couple of years the Operating Margin of CWAN has declined.
- The Gross Margin of CWAN (68.53%) is comparable to the rest of the industry.
- 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%
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.
- 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
- CWAN has an Altman-Z score of 4.62. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
- CWAN has a better Altman-Z score (4.62) than 71.48% of its industry peers.
- 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 50.54% 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.
- CWAN has a worse Debt to Equity ratio (0.42) than 62.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.62 |
ROIC/WACC0
WACC11.18%
2.3 Liquidity
- A Current Ratio of 1.97 indicates that CWAN should not have too much problems paying its short term obligations.
- CWAN's Current ratio of 1.97 is in line compared to the rest of the industry. CWAN outperforms 57.76% of its industry peers.
- 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 (1.97) which 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
- The Earnings Per Share has grown by an impressive 23.81% over the past year.
- CWAN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 110.89% yearly.
- Looking at the last year, CWAN shows a very strong growth in Revenue. The Revenue has grown by 50.91%.
- Measured over the past years, CWAN shows a very strong growth in Revenue. The Revenue has been growing by 21.88% on average per year.
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
- Based on estimates for the next years, CWAN will show a very strong growth in Earnings Per Share. The EPS will grow by 28.07% on average per year.
- CWAN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.52% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 46.79, CWAN can be considered very expensive at the moment.
- CWAN's Price/Earnings is on the same level as the industry average.
- CWAN is valuated expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 34.32 indicates a quite expensive valuation of CWAN.
- CWAN's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, CWAN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.79 | ||
| Fwd PE | 34.32 |
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 | 87.05 | ||
| EV/EBITDA | 132.02 |
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.
PEG (NY)1.85
PEG (5Y)0.42
EPS Next 2Y25.51%
EPS Next 3Y26.56%
5. Dividend
5.1 Amount
- CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.33
0 (0%)
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 Change0.07%
Ins Owners0.84%
Ins Owner Change15.05%
Market Cap7.12B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts78.75
Price Target28.28 (16.24%)
Short Float %8.62%
Short Ratio2.05
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)-3.31%
PT rev (3m)-12.44%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0.45%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.79 | ||
| Fwd PE | 34.32 | ||
| P/S | 11.12 | ||
| P/FCF | 87.05 | ||
| P/OCF | 77.93 | ||
| P/B | 3.59 | ||
| P/tB | 21976.53 | ||
| EV/EBITDA | 132.02 |
EPS(TTM)0.52
EY2.14%
EPS(NY)0.71
Fwd EY2.91%
FCF(TTM)0.28
FCFY1.15%
OCF(TTM)0.31
OCFY1.28%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.85
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 | 4.62 |
F-Score4
WACC11.18%
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 Y25.23%
EPS Next 2Y25.51%
EPS Next 3Y26.56%
EPS Next 5Y28.07%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
Revenue Next Year63.93%
Revenue Next 2Y45.65%
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.