CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
21.7 USD
+0.2 (+0.93%)
21.7 USD
0 (0%)
Taking everything into account, CWAN scores 5 out of 10 in our fundamental rating. CWAN was compared to 280 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.
1. Profitability
1.1 Basic Checks
In the past year CWAN was profitable.
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
With an excellent Return On Assets value of 13.12%, CWAN belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.79%, CWAN belongs to the top of the industry, outperforming 87.86% 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 56.79% 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.
Looking at the Operating Margin, with a value of 0.04%, CWAN is in line with its industry, outperforming 56.79% 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 50.36% 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.
CWAN has more shares outstanding than it did 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
An Altman-Z score of 4.13 indicates that CWAN is not in any danger for bankruptcy at the moment.
CWAN's Altman-Z score of 4.13 is fine compared to the rest of the industry. CWAN outperforms 67.50% 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 has a Debt to FCF ratio of 10.26. This is comparable to the rest of the industry: CWAN outperforms 50.36% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that CWAN is not too dependend on debt financing.
CWAN has a worse Debt to Equity ratio (0.42) than 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.13 |
ROIC/WACC0
WACC10.9%
2.3 Liquidity
A Current Ratio of 1.97 indicates that CWAN should not have too much problems paying its short term obligations.
CWAN has a Current ratio (1.97) which is comparable to the rest of the industry.
CWAN has a Quick 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.
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
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
CWAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.57% yearly.
CWAN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.93% yearly.
EPS Next Y23.64%
EPS Next 2Y24.65%
EPS Next 3Y25.64%
EPS Next 5Y28.57%
Revenue Next Year63.91%
Revenue Next 2Y45.6%
Revenue Next 3Y35.9%
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.
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 41.73, the valuation of CWAN can be described as expensive.
CWAN's Price/Earnings ratio is in line with the industry average.
CWAN is valuated expensively when we compare the Price/Earnings ratio to 26.22, which is the current average of the S&P500 Index.
CWAN is valuated quite expensively with a Price/Forward Earnings ratio of 31.04.
CWAN's Price/Forward Earnings ratio is in line with the industry average.
CWAN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.73 | ||
| Fwd PE | 31.04 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA is on the same level as the industry average.
CWAN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.64 | ||
| EV/EBITDA | 118.16 |
4.3 Compensation for Growth
The 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 25.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)0.38
EPS Next 2Y24.65%
EPS Next 3Y25.64%
5. Dividend
5.1 Amount
CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
21.7
+0.2 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change1.87%
Ins Owners0.85%
Ins Owner Change1.65%
Market Cap6.35B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target29.25 (34.79%)
Short Float %9.94%
Short Ratio4.7
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)-7.33%
PT rev (3m)-9.44%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-1.48%
EPS NY rev (3m)-2.07%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.73 | ||
| Fwd PE | 31.04 | ||
| P/S | 9.92 | ||
| P/FCF | 77.64 | ||
| P/OCF | 69.51 | ||
| P/B | 3.2 | ||
| P/tB | 19600.94 | ||
| EV/EBITDA | 118.16 |
EPS(TTM)0.52
EY2.4%
EPS(NY)0.7
Fwd EY3.22%
FCF(TTM)0.28
FCFY1.29%
OCF(TTM)0.31
OCFY1.44%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.77
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 | 4.13 |
F-Score4
WACC10.9%
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 Y23.64%
EPS Next 2Y24.65%
EPS Next 3Y25.64%
EPS Next 5Y28.57%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
Revenue Next Year63.91%
Revenue Next 2Y45.6%
Revenue Next 3Y35.9%
Revenue Next 5Y27.93%
EBIT growth 1Y-97.99%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year80.74%
EBIT Next 3Y43.48%
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 41.73 and the Price/Book (PB) ratio is 3.2.
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.