CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
21.73 USD
-0.4 (-1.81%)
21.69 USD
-0.04 (-0.18%)
CWAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. CWAN has only an average score on both its financial health and profitability. CWAN shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year CWAN was profitable.
CWAN had a positive operating cash flow in the past year.
CWAN had negative earnings in 4 of the past 5 years.
Of the past 5 years CWAN 4 years had a positive operating cash flow.
1.2 Ratios
CWAN's Return On Assets of 13.12% is amongst the best of the industry. CWAN outperforms 90.00% of its industry peers.
CWAN has a better Return On Equity (19.79%) than 87.14% of its industry peers.
CWAN has a Return On Invested Capital of 0.01%. This is comparable to the rest of the industry: CWAN outperforms 58.57% 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 better Profit Margin (61.25%) than 95.36% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
CWAN has a Operating Margin (0.04%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CWAN has declined.
With a Gross Margin value of 68.53%, CWAN perfoms like the industry average, outperforming 49.29% of the companies in the same 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
CWAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CWAN has more shares outstanding
Compared to 5 years ago, CWAN has more shares outstanding
The debt/assets ratio for CWAN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.17 indicates that CWAN is not in any danger for bankruptcy at the moment.
CWAN has a Altman-Z score of 4.17. This is in the better half of the industry: CWAN outperforms 67.86% 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 has a Debt to FCF ratio (10.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.42 indicates that CWAN is not too dependend on debt financing.
The Debt to Equity ratio of CWAN (0.42) is worse than 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.17 |
ROIC/WACC0
WACC10.99%
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.
CWAN has a Current ratio of 1.97. This is comparable to the rest of the industry: CWAN outperforms 59.64% of its industry peers.
A Quick Ratio of 1.97 indicates that CWAN should not have too much problems paying 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.
The Earnings Per Share has been growing by 110.89% on average over the past years. This is a very strong growth
The Revenue has grown by 50.91% in the past year. This is a very strong growth!
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
Based on estimates for the next years, CWAN will show a very strong growth in Revenue. The Revenue will grow by 27.93% on average per year.
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 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
The Price/Earnings ratio is 41.79, which means the current valuation is very expensive for CWAN.
The rest of the industry has a similar Price/Earnings ratio as CWAN.
The average S&P500 Price/Earnings ratio is at 26.15. CWAN is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 29.66 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 (36.12), we can say CWAN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.79 | ||
| Fwd PE | 29.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CWAN.
CWAN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.75 | ||
| EV/EBITDA | 119.29 |
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 26.62% in the coming years.
PEG (NY)1.64
PEG (5Y)0.38
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 |
21.73
-0.4 (-1.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change1.86%
Ins Owners0.84%
Ins Owner Change2.14%
Market Cap6.36B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target29.25 (34.61%)
Short Float %7.09%
Short Ratio3.75
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)-9.44%
PT rev (3m)-13.68%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.79 | ||
| Fwd PE | 29.66 | ||
| P/S | 9.93 | ||
| P/FCF | 77.75 | ||
| P/OCF | 69.6 | ||
| P/B | 3.21 | ||
| P/tB | 19628.03 | ||
| EV/EBITDA | 119.29 |
EPS(TTM)0.52
EY2.39%
EPS(NY)0.73
Fwd EY3.37%
FCF(TTM)0.28
FCFY1.29%
OCF(TTM)0.31
OCFY1.44%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.64
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 | 4.17 |
F-Score4
WACC10.99%
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)50.91%
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 5Y27.93%
EBIT growth 1Y-97.99%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year71.55%
EBIT Next 3Y43.29%
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 41.79 and the Price/Book (PB) ratio is 3.21.
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.