CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
NYSE:CWAN • US1851231068
23.39 USD
-0.07 (-0.3%)
At close: Feb 27, 2026
23.39 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
We assign a fundamental rating of 4 out of 10 to CWAN. CWAN was compared to 275 industry peers in the Software industry. While CWAN seems to be doing ok healthwise, there are quite some concerns on its 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.
- In the past 5 years CWAN always reported a positive cash flow from operatings.
1.2 Ratios
- CWAN has a Return On Assets of -1.29%. This is comparable to the rest of the industry: CWAN outperforms 51.09% of its industry peers.
- The Return On Equity of CWAN (-1.93%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.29% | ||
| ROE | -1.93% | ||
| ROIC | N/A |
ROA(3y)10.38%
ROA(5y)5.42%
ROE(3y)11.36%
ROE(5y)5.39%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Gross Margin value of 67.29%, CWAN perfoms like the industry average, outperforming 47.08% of the companies in the same industry.
- CWAN's Gross Margin has declined in the last couple of years.
- The Profit Margin and Operating Margin are not available for CWAN so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.29% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.8%
GM growth 5Y-1.83%
2. Health
2.1 Basic Checks
- CWAN does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, CWAN has more shares outstanding
- The number of shares outstanding for CWAN has been increased compared to 5 years ago.
- The debt/assets ratio for CWAN is higher compared to a year ago.
2.2 Solvency
- CWAN has an Altman-Z score of 4.49. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
- CWAN has a Altman-Z score of 4.49. This is in the better half of the industry: CWAN outperforms 74.09% of its industry peers.
- The Debt to FCF ratio of CWAN is 5.34, which is a neutral value as it means it would take CWAN, 5.34 years of fcf income to pay off all of its debts.
- CWAN's Debt to FCF ratio of 5.34 is in line compared to the rest of the industry. CWAN outperforms 56.20% of its industry peers.
- A Debt/Equity ratio of 0.40 indicates that CWAN is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.40, CWAN is doing worse than 63.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | 4.49 |
ROIC/WACCN/A
WACC10.91%
2.3 Liquidity
- A Current Ratio of 1.83 indicates that CWAN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.83, CWAN is in line with its industry, outperforming 55.11% of the companies in the same industry.
- CWAN has a Quick Ratio of 1.83. 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 1.83. This is comparable to the rest of the industry: CWAN outperforms 55.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
- CWAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.00%, 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 32.91% on average per year.
- Looking at the last year, CWAN shows a very strong growth in Revenue. The Revenue has grown by 61.88%.
- CWAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.19% yearly.
EPS 1Y (TTM)20%
EPS 3Y32.91%
EPS 5YN/A
EPS Q2Q%15.38%
Revenue 1Y (TTM)61.88%
Revenue growth 3Y34.08%
Revenue growth 5Y29.19%
Sales Q2Q%71.95%
3.2 Future
- The Earnings Per Share is expected to grow by 28.43% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 18.78% on average over the next years. This is quite good.
EPS Next Y31.28%
EPS Next 2Y29.98%
EPS Next 3Y33.51%
EPS Next 5Y28.43%
Revenue Next Year29.41%
Revenue Next 2Y23.63%
Revenue Next 3Y21.57%
Revenue Next 5Y18.78%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 43.31, which means the current valuation is very expensive for CWAN.
- CWAN's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.10. CWAN is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 32.99, the valuation of CWAN can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as CWAN.
- When comparing the Price/Forward Earnings ratio of CWAN to the average of the S&P500 Index (28.06), we can say CWAN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.31 | ||
| Fwd PE | 32.99 |
4.2 Price Multiples
- CWAN's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 44.49 | ||
| EV/EBITDA | 97.73 |
4.3 Compensation for Growth
- CWAN's 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 33.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y29.98%
EPS Next 3Y33.51%
5. Dividend
5.1 Amount
- CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
23.39
-0.07 (-0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners99.01%
Inst Owner Change10.24%
Ins Owners0.84%
Ins Owner Change31.64%
Market Cap6.86B
Revenue(TTM)731.37M
Net Income(TTM)-39.12M
Analysts73.75
Price Target25.21 (7.78%)
Short Float %4.14%
Short Ratio0.81
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)-3.79%
Min EPS beat(2)-6.22%
Max EPS beat(2)-1.36%
EPS beat(4)1
Avg EPS beat(4)-1.75%
Min EPS beat(4)-6.22%
Max EPS beat(4)2.56%
EPS beat(8)4
Avg EPS beat(8)2.8%
EPS beat(12)8
Avg EPS beat(12)7.86%
EPS beat(16)11
Avg EPS beat(16)6.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.26%
Revenue beat(4)1
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)2.43%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)-6.33%
PT rev (3m)-16.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.31 | ||
| Fwd PE | 32.99 | ||
| P/S | 9.37 | ||
| P/FCF | 44.49 | ||
| P/OCF | 38.98 | ||
| P/B | 3.39 | ||
| P/tB | 106.97 | ||
| EV/EBITDA | 97.73 |
EPS(TTM)0.54
EY2.31%
EPS(NY)0.71
Fwd EY3.03%
FCF(TTM)0.53
FCFY2.25%
OCF(TTM)0.6
OCFY2.57%
SpS2.49
BVpS6.9
TBVpS0.22
PEG (NY)1.38
PEG (5Y)N/A
Graham Number9.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.29% | ||
| ROE | -1.93% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.29% | ||
| FCFM | 21.07% |
ROA(3y)10.38%
ROA(5y)5.42%
ROE(3y)11.36%
ROE(5y)5.39%
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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.8%
GM growth 5Y-1.83%
F-Score3
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 5.34 | ||
| Debt/EBITDA | 10.46 | ||
| Cap/Depr | 25.48% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 225.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 4.49 |
F-Score3
WACC10.91%
ROIC/WACCN/A
Cap/Depr(3y)41.76%
Cap/Depr(5y)84.08%
Cap/Sales(3y)1.89%
Cap/Sales(5y)2.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20%
EPS 3Y32.91%
EPS 5YN/A
EPS Q2Q%15.38%
EPS Next Y31.28%
EPS Next 2Y29.98%
EPS Next 3Y33.51%
EPS Next 5Y28.43%
Revenue 1Y (TTM)61.88%
Revenue growth 3Y34.08%
Revenue growth 5Y29.19%
Sales Q2Q%71.95%
Revenue Next Year29.41%
Revenue Next 2Y23.63%
Revenue Next 3Y21.57%
Revenue Next 5Y18.78%
EBIT growth 1Y-162.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.58%
EBIT Next 3Y27.09%
EBIT Next 5Y24.92%
FCF growth 1Y123.14%
FCF growth 3Y45.29%
FCF growth 5YN/A
OCF growth 1Y136.67%
OCF growth 3Y44.74%
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 4 / 10 to CWAN.
What is the valuation status for CWAN stock?
ChartMill assigns a valuation rating of 3 / 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 2 / 10.
Can you provide the financial health for CWAN stock?
The financial health rating of CLEARWATER ANALYTICS HDS-A (CWAN) is 4 / 10.