CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
22.06 USD
+0.33 (+1.52%)
21.9844 USD
-0.08 (-0.34%)
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 an average financial health and profitability rating. CWAN is valued quite expensive, but it does show an excellent growth.
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.
Of the past 5 years CWAN 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.12%, CWAN belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
CWAN's Return On Equity of 19.79% is amongst the best of the industry. CWAN outperforms 87.14% of its industry peers.
CWAN has a Return On Invested Capital (0.01%) which is in line with 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
With an excellent Profit Margin value of 61.25%, CWAN belongs to the best of the industry, outperforming 95.36% of the companies in the same industry.
In the last couple of years the Profit Margin of CWAN has grown nicely.
The Operating Margin of CWAN (0.04%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CWAN has declined.
CWAN has a Gross Margin of 68.53%. This is comparable to the rest of the industry: CWAN outperforms 49.29% of 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 | 0.04% | ||
| 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.
Compared to 5 years ago, CWAN has more shares outstanding
Compared to 1 year ago, CWAN has an improved debt to assets ratio.
2.2 Solvency
CWAN has an Altman-Z score of 4.17. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.17, CWAN is in the better half of the industry, outperforming 67.86% 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.
The Debt to FCF ratio of CWAN (10.26) is comparable to the rest of the industry.
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: 61.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.17 |
ROIC/WACC0
WACC11%
2.3 Liquidity
A Current Ratio of 1.97 indicates that CWAN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.97, CWAN perfoms like the industry average, outperforming 59.64% 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.
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
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.
The Revenue has grown by 50.91% in the past year. This is a very strong growth!
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)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 28.57% on average per year.
The Revenue is expected to grow by 27.93% 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 5Y27.93%
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 42.42, CWAN can be considered very expensive at the moment.
CWAN's Price/Earnings ratio is in line with the industry average.
CWAN is valuated expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.11 indicates a quite expensive valuation of CWAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWAN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.59. CWAN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.42 | ||
| Fwd PE | 30.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWAN is on the same level as its industry peers.
CWAN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.93 | ||
| 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.
CWAN's earnings are expected to grow with 26.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.66
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 |
22.06
+0.33 (+1.52%)
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 Cap6.46B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target29.25 (32.59%)
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 | 42.42 | ||
| Fwd PE | 30.11 | ||
| P/S | 10.08 | ||
| P/FCF | 78.93 | ||
| P/OCF | 70.66 | ||
| P/B | 3.26 | ||
| P/tB | 19926.11 | ||
| EV/EBITDA | 119.29 |
EPS(TTM)0.52
EY2.36%
EPS(NY)0.73
Fwd EY3.32%
FCF(TTM)0.28
FCFY1.27%
OCF(TTM)0.31
OCFY1.42%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.66
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
WACC11%
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 42.42 and the Price/Book (PB) ratio is 3.26.
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.