CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
24.27 USD
+0.08 (+0.33%)
24.27 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CWAN. CWAN was compared to 276 industry peers in the Software industry. Both the profitability and the financial health of CWAN get a neutral evaluation. Nothing too spectacular is happening here. CWAN shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- In the past year CWAN was profitable.
- CWAN had a positive operating cash flow in the past year.
- 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 13.12%, CWAN belongs to the best of the industry, outperforming 90.94% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 19.79%, CWAN belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 0.01%, CWAN is in line with its industry, outperforming 56.52% of the companies in the same 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
- CWAN's Profit Margin of 61.25% is amongst the best of the industry. CWAN outperforms 94.20% of its industry peers.
- CWAN's Profit Margin has improved in the last couple of years.
- The Operating Margin of CWAN (0.04%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of CWAN has declined.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWAN is destroying value.
- CWAN has more shares outstanding than it did 1 year ago.
- CWAN has more shares outstanding than it did 5 years ago.
- CWAN has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.60 indicates that CWAN is not in any danger for bankruptcy at the moment.
- CWAN has a Altman-Z score of 4.60. This is in the better half of the industry: CWAN outperforms 70.29% of its industry peers.
- 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 50.36% 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.
- With a Debt to Equity ratio value of 0.42, CWAN is not doing good in the industry: 62.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.6 |
ROIC/WACC0
WACC11.01%
2.3 Liquidity
- A Current Ratio of 1.97 indicates that CWAN should not have too much problems paying its short term obligations.
- CWAN has a Current ratio (1.97) which is comparable to the rest of the industry.
- 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.
- The Quick ratio of CWAN (1.97) 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
- CWAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.81%, 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 50.91%.
- Measured over the past years, CWAN shows a very strong growth in Revenue. The Revenue has been growing by 21.88% on average per year.
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
- The Earnings Per Share is expected to grow by 28.07% on average over the next years. This is a very strong growth
- Based on estimates for the next years, CWAN will show a very strong growth in Revenue. The Revenue will grow by 27.52% on average per year.
EPS Next Y24.67%
EPS Next 2Y24.98%
EPS Next 3Y26.14%
EPS Next 5Y28.07%
Revenue Next Year63.92%
Revenue Next 2Y45.64%
Revenue Next 3Y35.82%
Revenue Next 5Y27.52%
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
- With a Price/Earnings ratio of 46.67, CWAN can be considered very expensive at the moment.
- CWAN's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.54. CWAN is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 34.53, 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. CWAN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.67 | ||
| Fwd PE | 34.53 |
4.2 Price Multiples
- CWAN's Enterprise Value to EBITDA ratio is in line with 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 | 86.84 | ||
| EV/EBITDA | 131.33 |
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 26.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)0.42
EPS Next 2Y24.98%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
- No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.27
+0.08 (+0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-17 2026-02-17/amc
Inst Owners99.01%
Inst Owner Change0.31%
Ins Owners0.84%
Ins Owner Change15.19%
Market Cap7.10B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts78.75
Price Target29.25 (20.52%)
Short Float %9.93%
Short Ratio3.02
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)0%
PT rev (3m)-9.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)0.83%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.67 | ||
| Fwd PE | 34.53 | ||
| P/S | 11.09 | ||
| P/FCF | 86.84 | ||
| P/OCF | 77.74 | ||
| P/B | 3.58 | ||
| P/tB | 21922.34 | ||
| EV/EBITDA | 131.33 |
EPS(TTM)0.52
EY2.14%
EPS(NY)0.7
Fwd EY2.9%
FCF(TTM)0.28
FCFY1.15%
OCF(TTM)0.31
OCFY1.29%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.89
PEG (5Y)0.42
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 | 4.6 |
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 5Y28.07%
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 5Y27.52%
EBIT growth 1Y-97.99%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year80.92%
EBIT Next 3Y43.74%
EBIT Next 5Y35.59%
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 for 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.
Can you provide the financial health for CWAN stock?
The financial health rating of CLEARWATER ANALYTICS HDS-A (CWAN) is 4 / 10.