CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - NYSE:CWAN - US1851231068 - Common Stock
18.15 USD
+0.09 (+0.5%)
18.29 USD
+0.14 (+0.77%)
Overall CWAN gets a fundamental rating of 5 out of 10. We evaluated CWAN against 282 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. This makes CWAN very considerable for growth investing!
1. Profitability
1.1 Basic Checks
CWAN had positive earnings in the past year.
CWAN had a positive operating cash flow in the past year.
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
CWAN has a Return On Assets of 13.44%. This is amongst the best in the industry. CWAN outperforms 90.07% of its industry peers.
CWAN's Return On Equity of 20.64% is amongst the best of the industry. CWAN outperforms 86.52% of its industry peers.
CWAN has a Return On Invested Capital of 0.03%. This is comparable to the rest of the industry: CWAN outperforms 59.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 20.64% | ||
| ROIC | 0.03% |
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 73.71%, CWAN belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
CWAN's Profit Margin has improved in the last couple of years.
CWAN's Operating Margin of 0.19% is in line compared to the rest of the industry. CWAN outperforms 59.57% of its industry peers.
In the last couple of years the Operating Margin of CWAN has declined.
The Gross Margin of CWAN (70.56%) 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 | 0.19% | ||
| PM (TTM) | 73.71% | ||
| GM | 70.56% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWAN is destroying value.
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.
Compared to 1 year ago, CWAN has an improved debt to assets ratio.
2.2 Solvency
CWAN has an Altman-Z score of 3.38. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.38, CWAN perfoms like the industry average, outperforming 59.93% of the companies in the same industry.
CWAN has a debt to FCF ratio of 10.33. This is a negative value and a sign of low solvency as CWAN would need 10.33 years to pay back of all of its debts.
The Debt to FCF ratio of CWAN (10.33) is comparable to the rest of the industry.
CWAN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, CWAN is not doing good in the industry: 63.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 3.38 |
ROIC/WACC0
WACC11.28%
2.3 Liquidity
A Current Ratio of 2.02 indicates that CWAN has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.02, CWAN is doing good in the industry, outperforming 61.70% of the companies in the same industry.
CWAN has a Quick Ratio of 2.02. This indicates that CWAN is financially healthy and has no problem in meeting its short term obligations.
CWAN has a better Quick ratio (2.02) than 62.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
CWAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.21%, 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.
CWAN shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.68%.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)28.21%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%20%
Revenue 1Y (TTM)36.68%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%70.37%
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 Y26.31%
EPS Next 2Y28.39%
EPS Next 3Y27.23%
EPS Next 5Y28.57%
Revenue Next Year63.63%
Revenue Next 2Y45.87%
Revenue Next 3Y36.14%
Revenue Next 5Y27.93%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 36.30, the valuation of CWAN can be described as expensive.
CWAN's Price/Earnings ratio is a bit cheaper when compared to the industry. CWAN is cheaper than 62.06% of the companies in the same industry.
CWAN is valuated rather expensively when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.47, which indicates a rather expensive current valuation of CWAN.
CWAN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CWAN is cheaper than 67.73% of the companies in the same industry.
CWAN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 24.47 |
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 | 62.46 | ||
| EV/EBITDA | 177.12 |
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 27.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)0.33
EPS Next 2Y28.39%
EPS Next 3Y27.23%
5. Dividend
5.1 Amount
No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.15
+0.09 (+0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change-0.01%
Ins Owners0.84%
Ins Owner Change3.07%
Market Cap5.31B
Analysts83.53
Price Target32.3 (77.96%)
Short Float %4.82%
Short Ratio2.97
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)0.3%
Min EPS beat(2)-1.96%
Max EPS beat(2)2.56%
EPS beat(4)3
Avg EPS beat(4)5.31%
Min EPS beat(4)-1.96%
Max EPS beat(4)13.33%
EPS beat(8)6
Avg EPS beat(8)8.22%
EPS beat(12)10
Avg EPS beat(12)10.38%
EPS beat(16)13
Avg EPS beat(16)12.81%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)2.43%
Revenue beat(4)3
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)3.06%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)8
Avg Revenue beat(12)0.42%
Revenue beat(16)10
Avg Revenue beat(16)0.46%
PT rev (1m)0%
PT rev (3m)-6.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 24.47 | ||
| P/S | 9.63 | ||
| P/FCF | 62.46 | ||
| P/OCF | 57.73 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 177.12 |
EPS(TTM)0.5
EY2.75%
EPS(NY)0.74
Fwd EY4.09%
FCF(TTM)0.29
FCFY1.6%
OCF(TTM)0.31
OCFY1.73%
SpS1.88
BVpS6.73
TBVpS-0.14
PEG (NY)1.38
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 20.64% | ||
| ROCE | 0.04% | ||
| ROIC | 0.03% | ||
| ROICexc | 0.03% | ||
| ROICexgc | 0.1% | ||
| OM | 0.19% | ||
| PM (TTM) | 73.71% | ||
| GM | 70.56% | ||
| FCFM | 15.42% |
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-Score3
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 10.33 | ||
| Debt/EBITDA | 25.28 | ||
| Cap/Depr | 20.79% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | 266.49% | ||
| Profit Quality | 20.92% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 3.38 |
F-Score3
WACC11.28%
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)28.21%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%20%
EPS Next Y26.31%
EPS Next 2Y28.39%
EPS Next 3Y27.23%
EPS Next 5Y28.57%
Revenue 1Y (TTM)36.68%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%70.37%
Revenue Next Year63.63%
Revenue Next 2Y45.87%
Revenue Next 3Y36.14%
Revenue Next 5Y27.93%
EBIT growth 1Y179.89%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year71.55%
EBIT Next 3Y43.29%
EBIT Next 5Y36.03%
FCF growth 1Y55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.5%
OCF growth 3Y180.71%
OCF growth 5YN/A