CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
NYSE:CWAN - New York Stock Exchange, Inc. - US1851231068 - Common Stock - Currency: USD
CWAN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. While CWAN has a great health rating, its profitability is only average at the moment. CWAN is valued quite expensive, but it does show an excellent growth. With these ratings, CWAN could be worth investigating further for growth investing!.
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.
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 36.28%, CWAN belongs to the best of the industry, outperforming 99.30% of the companies in the same industry.
With an excellent Return On Equity value of 42.09%, CWAN belongs to the best of the industry, outperforming 93.68% of the companies in the same industry.
CWAN's Return On Invested Capital of 0.88% is fine compared to the rest of the industry. CWAN outperforms 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.28% | ||
| ROE | 42.09% | ||
| ROIC | 0.88% |
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 93.93%, CWAN belongs to the best of the industry, outperforming 97.19% of the companies in the same industry.
In the last couple of years the Profit Margin of CWAN has grown nicely.
CWAN has a Operating Margin of 2.71%. This is in the better half of the industry: CWAN outperforms 68.07% of its industry peers.
CWAN's Operating Margin has declined in the last couple of years.
CWAN has a Gross Margin of 72.78%. This is in the better half of the industry: CWAN outperforms 62.46% of its industry peers.
CWAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.71% | ||
| PM (TTM) | 93.93% | ||
| GM | 72.78% |
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
An Altman-Z score of 22.95 indicates that CWAN is not in any danger for bankruptcy at the moment.
CWAN has a better Altman-Z score (22.95) than 95.79% of its industry peers.
CWAN has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
CWAN has a better Debt to FCF ratio (0.66) than 75.79% of its industry peers.
CWAN has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
CWAN has a Debt to Equity ratio (0.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 22.95 |
ROIC/WACC0.08
WACC10.9%
2.3 Liquidity
CWAN has a Current Ratio of 4.99. This indicates that CWAN is financially healthy and has no problem in meeting its short term obligations.
CWAN's Current ratio of 4.99 is amongst the best of the industry. CWAN outperforms 84.56% of its industry peers.
CWAN has a Quick Ratio of 4.99. This indicates that CWAN is financially healthy and has no problem in meeting its short term obligations.
CWAN has a Quick ratio of 4.99. This is amongst the best in the industry. CWAN outperforms 84.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.99 | ||
| Quick Ratio | 4.99 |
3. Growth
3.1 Past
CWAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.35%, which is quite impressive.
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 22.72% in the past year. This is a very strong growth!
CWAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.88% yearly.
EPS 1Y (TTM)32.35%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%30%
Revenue 1Y (TTM)22.72%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%27.72%
3.2 Future
The Earnings Per Share is expected to grow by 17.81% on average over the next years. This is quite good.
The Revenue is expected to grow by 19.31% on average over the next years. This is quite good.
EPS Next Y21.45%
EPS Next 2Y22.09%
EPS Next 3Y17.81%
EPS Next 5YN/A
Revenue Next Year21.17%
Revenue Next 2Y20.13%
Revenue Next 3Y19.31%
Revenue Next 5YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 51.27 indicates a quite expensive valuation of CWAN.
CWAN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. CWAN is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 42.21, the valuation of CWAN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWAN is on the same level as its industry peers.
CWAN is valuated expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.27 | ||
| Fwd PE | 42.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CWAN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CWAN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.17 | ||
| EV/EBITDA | 229.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CWAN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CWAN may justify a higher PE ratio.
CWAN's earnings are expected to grow with 17.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.39
PEG (5Y)0.46
EPS Next 2Y22.09%
EPS Next 3Y17.81%
5. Dividend
5.1 Amount
CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.07
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.59%
Inst Owner Change0.05%
Ins Owners0.89%
Ins Owner Change40.92%
Market Cap5.88B
Analysts85
Price Target36.49 (58.17%)
Short Float %3.36%
Short Ratio2.75
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)2
Avg EPS beat(2)10.32%
Min EPS beat(2)7.3%
Max EPS beat(2)13.33%
EPS beat(4)3
Avg EPS beat(4)7.36%
Min EPS beat(4)-0.14%
Max EPS beat(4)13.33%
EPS beat(8)7
Avg EPS beat(8)12.67%
EPS beat(12)10
Avg EPS beat(12)9.77%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.59%
Min Revenue beat(2)0.11%
Max Revenue beat(2)3.06%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)3.06%
Revenue beat(8)5
Avg Revenue beat(8)0.25%
Revenue beat(12)7
Avg Revenue beat(12)0.05%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.53%
PT rev (3m)8.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)1.29%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.27 | ||
| Fwd PE | 42.21 | ||
| P/S | 13.02 | ||
| P/FCF | 85.17 | ||
| P/OCF | 79.15 | ||
| P/B | 5.83 | ||
| P/tB | 6.49 | ||
| EV/EBITDA | 229.14 |
EPS(TTM)0.45
EY1.95%
EPS(NY)0.55
Fwd EY2.37%
FCF(TTM)0.27
FCFY1.17%
OCF(TTM)0.29
OCFY1.26%
SpS1.77
BVpS3.95
TBVpS3.55
PEG (NY)2.39
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.28% | ||
| ROE | 42.09% | ||
| ROCE | 1.12% | ||
| ROIC | 0.88% | ||
| ROICexc | 1.15% | ||
| ROICexgc | 1.31% | ||
| OM | 2.71% | ||
| PM (TTM) | 93.93% | ||
| GM | 72.78% | ||
| FCFM | 15.29% |
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
ROICexcg growth 3Y-67.54%
ROICexcg 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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.66 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 43.17% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 3.53 | ||
| Cash Conversion | 304.41% | ||
| Profit Quality | 16.27% | ||
| Current Ratio | 4.99 | ||
| Quick Ratio | 4.99 | ||
| Altman-Z | 22.95 |
F-Score5
WACC10.9%
ROIC/WACC0.08
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)32.35%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%30%
EPS Next Y21.45%
EPS Next 2Y22.09%
EPS Next 3Y17.81%
EPS Next 5YN/A
Revenue 1Y (TTM)22.72%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%27.72%
Revenue Next Year21.17%
Revenue Next 2Y20.13%
Revenue Next 3Y19.31%
Revenue Next 5YN/A
EBIT growth 1Y173.04%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year34.39%
EBIT Next 3Y28.15%
EBIT Next 5YN/A
FCF growth 1Y-12.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.15%
OCF growth 3Y180.71%
OCF growth 5YN/A