CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
24.13 USD
-0.06 (-0.25%)
24.07 USD
-0.06 (-0.25%)
Taking everything into account, CWAN scores 5 out of 10 in our fundamental rating. CWAN was compared to 278 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.
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 91.01% of the companies in the same industry.
The Return On Equity of CWAN (19.79%) is better than 87.77% 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 56.47% 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 95.32% of its industry peers.
CWAN's Profit Margin has improved in the last couple of years.
CWAN's Operating Margin of 0.04% is in line compared to the rest of the industry. CWAN outperforms 56.47% of its industry peers.
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
CWAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CWAN has been increased compared to 1 year ago.
The number of shares outstanding for CWAN has been increased compared to 5 years ago.
CWAN has a better debt/assets ratio than last year.
2.2 Solvency
CWAN has an Altman-Z score of 4.60. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
CWAN's Altman-Z score of 4.60 is fine compared to the rest of the industry. CWAN outperforms 67.63% 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.
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.
Looking at the Debt to Equity ratio, with a value of 0.42, CWAN is doing worse than 62.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.6 |
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.
Looking at the Current ratio, with a value of 1.97, CWAN is in line with its industry, outperforming 58.63% of the companies in the same 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.
Looking at the Quick ratio, with a value of 1.97, CWAN is in line with its industry, outperforming 59.35% of the companies in the same 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.
CWAN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 110.89% yearly.
CWAN shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.91%.
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
The Revenue is expected to grow by 27.93% on average over the next years. This is a very strong growth
EPS Next Y24.67%
EPS Next 2Y24.98%
EPS Next 3Y26.14%
EPS Next 5Y28.57%
Revenue Next Year63.92%
Revenue Next 2Y45.64%
Revenue Next 3Y35.82%
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
Based on the Price/Earnings ratio of 46.40, the valuation of CWAN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CWAN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.57, CWAN is valued quite expensively.
With a Price/Forward Earnings ratio of 34.33, CWAN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWAN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, CWAN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.4 | ||
| Fwd PE | 34.33 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CWAN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.34 | ||
| EV/EBITDA | 131.33 |
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 26.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)0.42
EPS Next 2Y24.98%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.13
-0.06 (-0.25%)
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 Change1.66%
Market Cap7.06B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target29.25 (21.22%)
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)0%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.4 | ||
| Fwd PE | 34.33 | ||
| P/S | 11.03 | ||
| P/FCF | 86.34 | ||
| P/OCF | 77.29 | ||
| P/B | 3.56 | ||
| P/tB | 21795.88 | ||
| EV/EBITDA | 131.33 |
EPS(TTM)0.52
EY2.15%
EPS(NY)0.7
Fwd EY2.91%
FCF(TTM)0.28
FCFY1.16%
OCF(TTM)0.31
OCFY1.29%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.88
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 | 4.6 |
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 Y24.67%
EPS Next 2Y24.98%
EPS Next 3Y26.14%
EPS Next 5Y28.57%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
Revenue Next Year63.92%
Revenue Next 2Y45.64%
Revenue Next 3Y35.82%
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 46.4 and the Price/Book (PB) ratio is 3.56.
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.