CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
22.25 USD
+0.29 (+1.32%)
22.3999 USD
+0.15 (+0.67%)
CWAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 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.
CWAN had negative earnings in 4 of the past 5 years.
CWAN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CWAN has a better Return On Assets (13.12%) than 91.10% of its industry peers.
CWAN has a Return On Equity of 19.79%. This is amongst the best in the industry. CWAN outperforms 87.90% of its industry peers.
The Return On Invested Capital of CWAN (0.01%) is comparable to the rest of the industry.
| 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
Looking at the Profit Margin, with a value of 61.25%, CWAN belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
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 56.94% of the companies in the same industry.
CWAN's Operating Margin has declined in the last couple of years.
CWAN has a Gross Margin (68.53%) which is comparable to the rest of the industry.
CWAN's Gross Margin has been stable in the last couple of years.
| 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.
CWAN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.26 indicates that CWAN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.26, CWAN is in the better half of the industry, outperforming 66.55% of the companies in the same industry.
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 50.53% of its industry peers.
CWAN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CWAN (0.42) is worse than 61.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.26 |
ROIC/WACC0
WACC11.01%
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's Current ratio of 1.97 is in line compared to the rest of the industry. CWAN outperforms 58.72% 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 (1.97) which 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.
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%.
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.
CWAN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.93% yearly.
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.
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
CWAN is valuated quite expensively with a Price/Earnings ratio of 42.79.
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 26.39. CWAN is valued rather expensively when compared to this.
CWAN is valuated quite expensively with a Price/Forward Earnings ratio of 31.65.
CWAN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.84. CWAN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.79 | ||
| Fwd PE | 31.65 |
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 | 79.61 | ||
| EV/EBITDA | 121.84 |
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 26.14% in the coming years.
PEG (NY)1.73
PEG (5Y)0.39
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% |
22.25
+0.29 (+1.32%)
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 Cap6.51B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target29.25 (31.46%)
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 | 42.79 | ||
| Fwd PE | 31.65 | ||
| P/S | 10.17 | ||
| P/FCF | 79.61 | ||
| P/OCF | 71.27 | ||
| P/B | 3.29 | ||
| P/tB | 20097.73 | ||
| EV/EBITDA | 121.84 |
EPS(TTM)0.52
EY2.34%
EPS(NY)0.7
Fwd EY3.16%
FCF(TTM)0.28
FCFY1.26%
OCF(TTM)0.31
OCFY1.4%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.73
PEG (5Y)0.39
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 | 4.26 |
F-Score4
WACC11.01%
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 42.79 and the Price/Book (PB) ratio is 3.29.
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.