CLEARWATER ANALYTICS HDS-A(NYSE:CWAN) stock Fundamental Analysis

Fundamental Rating

CWAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. CWAN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CWAN is valied quite expensively at the moment, while it does show a decent growth rate.

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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 each of the past 5 years.

In multiple years CWAN reported negative operating cash flow during the last 5 years.

1.2 Ratios

The Return On Assets of CWAN (0.11%) is better than 60.87% of its industry peers.

CWAN's Return On Equity of 0.16% is fine compared to the rest of the industry. CWAN outperforms 62.32% of its industry peers.

CWAN has a better Return On Invested Capital (2.02%) than 67.03% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.11%
ROE	0.16%
ROIC	2.02%

ROA(3y)-2.64%

ROA(5y)-6.82%

ROE(3y)-4.41%

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 0.16%, CWAN is in the better half of the industry, outperforming 61.59% of the companies in the same industry.

CWAN has a Operating Margin of 3.21%. This is in the better half of the industry: CWAN outperforms 67.39% of its industry peers.

CWAN's Gross Margin of 72.25% is in line compared to the rest of the industry. CWAN outperforms 59.42% of its industry peers.

CWAN's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	3.21%
PM (TTM)	0.16%
GM	72.25%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.33%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWAN is destroying value.

There is no outstanding debt for CWAN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 21.30 indicates that CWAN is not in any danger for bankruptcy at the moment.

CWAN's Altman-Z score of 21.30 is amongst the best of the industry. CWAN outperforms 93.12% of its industry peers.

CWAN has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.

With a decent Debt to FCF ratio value of 0.38, CWAN is doing good in the industry, outperforming 76.81% of the companies in the same industry.

A Debt/Equity ratio of 0.11 indicates that CWAN is not too dependend on debt financing.

CWAN's Debt to Equity ratio of 0.11 is in line compared to the rest of the industry. CWAN outperforms 50.36% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	0.38
Altman-Z	21.3

ROIC/WACC0.14

WACC14.06%

2.3 Liquidity

A Current Ratio of 4.66 indicates that CWAN has no problem at all paying its short term obligations.

CWAN's Current ratio of 4.66 is amongst the best of the industry. CWAN outperforms 86.23% of its industry peers.

A Quick Ratio of 4.66 indicates that CWAN has no problem at all paying its short term obligations.

CWAN has a Quick ratio of 4.66. This is amongst the best in the industry. CWAN outperforms 86.23% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.66
Quick Ratio	4.66

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.35% over the past year.

EPS 1Y (TTM)32.35%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%30%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%27.72%

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 24.92% on average per year.

CWAN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.99% yearly.

EPS Next Y19.91%

EPS Next 2Y22.3%

EPS Next 3Y24.92%

EPS Next 5YN/A

Revenue Next Year19.67%

Revenue Next 2Y19.57%

Revenue Next 3Y18.99%

Revenue Next 5YN/A

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

CWAN is valuated quite expensively with a Price/Earnings ratio of 69.47.

CWAN's Price/Earnings ratio is in line with the industry average.

CWAN is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.

With a Price/Forward Earnings ratio of 57.93, 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.

When comparing the Price/Forward Earnings ratio of CWAN to the average of the S&P500 Index (22.68), we can say CWAN is valued expensively.

		Industry Rank	Sector Rank
PE	69.47
Fwd PE	57.93

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 ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	63.87
EV/EBITDA	284.99

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 24.92% in the coming years. This may justify a more expensive valuation.

PEG (NY)3.49

PEG (5Y)N/A

EPS Next 2Y22.3%

EPS Next 3Y24.92%

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5. Dividend

5.1 Amount

No dividends for CWAN!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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CLEARWATER ANALYTICS HDS-A

NYSE:CWAN (2/21/2025, 8:11:27 PM)

After market: 32 +0.74 (+2.37%)

31.26

+1.32 (+4.41%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)02-19 2025-02-19/amc

Earnings (Next)N/A N/A

Inst Owners107.84%

Inst Owner Change14.06%

Ins Owners0.56%

Ins Owner Change24.84%

Market Cap7.77B

Analysts83.75

Price Target34.34 (9.85%)

Short Float %4.33%

Short Ratio3.63

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)1

Avg EPS beat(2)3.58%

Min EPS beat(2)-0.14%

Max EPS beat(2)7.3%

EPS beat(4)3

Avg EPS beat(4)9.32%

Min EPS beat(4)-0.14%

Max EPS beat(4)21.17%

EPS beat(8)7

Avg EPS beat(8)11.94%

EPS beat(12)10

Avg EPS beat(12)10.49%

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)1

Avg Revenue beat(2)-0.33%

Min Revenue beat(2)-0.78%

Max Revenue beat(2)0.11%

Revenue beat(4)2

Avg Revenue beat(4)-0.49%

Min Revenue beat(4)-1.47%

Max Revenue beat(4)0.16%

Revenue beat(8)5

Avg Revenue beat(8)-0.03%

Revenue beat(12)7

Avg Revenue beat(12)0.07%

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)2.02%

PT rev (3m)27.31%

EPS NQ rev (1m)-1.19%

EPS NQ rev (3m)-1.98%

EPS NY rev (1m)-0.31%

EPS NY rev (3m)0.1%

Revenue NQ rev (1m)-0.07%

Revenue NQ rev (3m)-0.03%

Revenue NY rev (1m)0%

Revenue NY rev (3m)0.05%

Valuation

		Industry Rank	Sector Rank
PE	69.47
Fwd PE	57.93
P/S	18.3
P/FCF	63.87
P/OCF	60.87
P/B	19.26
P/tB	26.33
EV/EBITDA	284.99

EPS(TTM)0.45

EY1.44%

EPS(NY)0.54

Fwd EY1.73%

FCF(TTM)0.49

FCFY1.57%

OCF(TTM)0.51

OCFY1.64%

SpS1.71

BVpS1.62

TBVpS1.19

PEG (NY)3.49

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	0.11%
ROE	0.16%
ROCE	2.56%
ROIC	2.02%
ROICexc	4.77%
ROICexgc	9.18%
OM	3.21%
PM (TTM)	0.16%
GM	72.25%
FCFM	28.66%

ROA(3y)-2.64%

ROA(5y)-6.82%

ROE(3y)-4.41%

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 3YN/A

ROICexcg 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-1.33%

GM growth 5YN/A

F-Score7

Asset Turnover0.68

Health

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	0.38
Debt/EBITDA	1.76
Cap/Depr	53.02%
Cap/Sales	1.41%
Interest Coverage	3.83
Cash Conversion	511.98%
Profit Quality	18314.9%
Current Ratio	4.66
Quick Ratio	4.66
Altman-Z	21.3

F-Score7

WACC14.06%

ROIC/WACC0.14

Cap/Depr(3y)117.25%

Cap/Depr(5y)137.28%

Cap/Sales(3y)2.03%

Cap/Sales(5y)1.99%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)32.35%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%30%

EPS Next Y19.91%

EPS Next 2Y22.3%

EPS Next 3Y24.92%

EPS Next 5YN/A

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%27.72%

Revenue Next Year19.67%

Revenue Next 2Y19.57%

Revenue Next 3Y18.99%

Revenue Next 5YN/A

EBIT growth 1Y188.01%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year39.84%

EBIT Next 3Y31.13%

EBIT Next 5Y29.02%

FCF growth 1Y171.09%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y144.14%

OCF growth 3YN/A

OCF growth 5YN/A

CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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