CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
24.27 USD
+0.08 (+0.33%)
24.27 USD
0 (0%)
Taking everything into account, CWAN scores 5 out of 10 in our fundamental rating. CWAN was compared to 277 industry peers in the Software industry. CWAN has only an average score on both its financial health and profitability. CWAN is valued quite expensively, but it does show have an excellent growth rating.
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.
- 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 90.97% of the companies in the same industry.
- CWAN has a Return On Equity of 19.79%. This is amongst the best in the industry. CWAN outperforms 87.36% of its industry peers.
- CWAN's Return On Invested Capital of 0.01% is in line compared to the rest of the industry. CWAN outperforms 56.68% 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 Profit Margin of 61.25%. This is amongst the best in the industry. CWAN outperforms 94.22% of its industry peers.
- In the last couple of years the Profit Margin of CWAN has grown nicely.
- With a Operating Margin value of 0.04%, CWAN perfoms like the industry average, outperforming 56.68% of the companies in the same industry.
- CWAN's Operating Margin has declined in the last couple of years.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWAN is destroying value.
- CWAN has more shares outstanding than it did 1 year ago.
- 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 4.61 indicates that CWAN is not in any danger for bankruptcy at the moment.
- CWAN has a better Altman-Z score (4.61) than 70.40% 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.
- CWAN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.42, CWAN is doing worse than 62.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.61 |
ROIC/WACC0
WACC11.07%
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 of 1.97. This is comparable to the rest of the industry: CWAN outperforms 57.76% of its industry peers.
- 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.
- CWAN has a Quick ratio of 1.97. This is comparable to the rest of the industry: CWAN outperforms 58.48% of its industry peers.
| 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.
- 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
- The Earnings Per Share is expected to grow by 28.07% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 27.52% on average over the next years. This is a very strong growth
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
- The Price/Earnings ratio is 46.67, which means the current valuation is very expensive for CWAN.
- Compared to the rest of the industry, the Price/Earnings ratio of CWAN is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.38. CWAN is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 34.24, which means the current valuation is very expensive for CWAN.
- The rest of the industry has a similar Price/Forward Earnings ratio as CWAN.
- CWAN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.67 | ||
| Fwd PE | 34.24 |
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 | 86.84 | ||
| EV/EBITDA | 131.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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
- No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.27
+0.08 (+0.33%)
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 Cap7.10B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts78.75
Price Target28.28 (16.52%)
Short Float %9.93%
Short Ratio3.02
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 | 46.67 | ||
| Fwd PE | 34.24 | ||
| P/S | 11.09 | ||
| P/FCF | 86.84 | ||
| P/OCF | 77.74 | ||
| P/B | 3.58 | ||
| P/tB | 21922.34 | ||
| EV/EBITDA | 131.73 |
EPS(TTM)0.52
EY2.14%
EPS(NY)0.71
Fwd EY2.92%
FCF(TTM)0.28
FCFY1.15%
OCF(TTM)0.31
OCFY1.29%
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 | 4.61 |
F-Score4
WACC11.07%
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.