CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - NYSE:CWAN - US1851231068 - Common Stock
20.72 USD
-0.11 (-0.53%)
Overall CWAN gets a fundamental rating of 5 out of 10. We evaluated CWAN against 281 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.
CWAN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CWAN has a better Return On Assets (13.12%) than 90.39% of its industry peers.
CWAN has a better Return On Equity (19.79%) than 87.54% of its industry peers.
CWAN has a Return On Invested Capital of 0.01%. This is comparable to the rest of the industry: CWAN outperforms 58.72% of its industry peers.
| 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 has a better Profit Margin (61.25%) than 95.37% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
With a Operating Margin value of 0.04%, CWAN perfoms like the industry average, outperforming 58.72% of the companies in the same industry.
CWAN's Operating Margin has declined in the last couple of years.
CWAN has a Gross Margin of 68.53%. This is comparable to the rest of the industry: CWAN outperforms 50.18% of its industry peers.
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 | 0.04% | ||
| 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
CWAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 4.01 indicates that CWAN is not in any danger for bankruptcy at the moment.
CWAN has a better Altman-Z score (4.01) than 67.62% of its industry peers.
CWAN has a debt to FCF ratio of 10.26. This is a negative value and a sign of low solvency as CWAN would need 10.26 years to pay back of all of its debts.
CWAN has a Debt to FCF ratio (10.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.42 indicates that CWAN is not too dependend on debt financing.
CWAN has a worse Debt to Equity ratio (0.42) than 60.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.01 |
ROIC/WACC0
WACC11.06%
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.
With a Quick ratio value of 1.97, CWAN perfoms like the industry average, outperforming 59.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.81% over the past year.
CWAN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 110.89% yearly.
The Revenue has grown by 50.91% 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)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
CWAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.57% yearly.
The Revenue is expected to grow by 28.05% on average over the next years. This is a very strong growth
EPS Next Y25.49%
EPS Next 2Y27.59%
EPS Next 3Y26.62%
EPS Next 5Y28.57%
Revenue Next Year63.59%
Revenue Next 2Y45.94%
Revenue Next 3Y36.14%
Revenue Next 5Y28.05%
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
With a Price/Earnings ratio of 39.85, CWAN can be considered very expensive at the moment.
CWAN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.51. CWAN is valued rather expensively when compared to this.
CWAN is valuated quite expensively with a Price/Forward Earnings ratio of 28.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWAN indicates a somewhat cheap valuation: CWAN is cheaper than 60.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, CWAN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.85 | ||
| Fwd PE | 28.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CWAN.
CWAN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.08 | ||
| EV/EBITDA | 114.81 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CWAN's earnings are expected to grow with 26.62% in the coming years.
PEG (NY)1.56
PEG (5Y)0.36
EPS Next 2Y27.59%
EPS Next 3Y26.62%
5. Dividend
5.1 Amount
No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:CWAN (11/19/2025, 2:58:31 PM)
20.72
-0.11 (-0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change1.95%
Ins Owners0.84%
Ins Owner Change2.38%
Market Cap6.06B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target31.56 (52.32%)
Short Float %7.09%
Short Ratio3.75
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)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)-2.28%
PT rev (3m)-6.85%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.85 | ||
| Fwd PE | 28.29 | ||
| P/S | 9.46 | ||
| P/FCF | 74.08 | ||
| P/OCF | 66.32 | ||
| P/B | 3.06 | ||
| P/tB | 18702.39 | ||
| EV/EBITDA | 114.81 |
EPS(TTM)0.52
EY2.51%
EPS(NY)0.73
Fwd EY3.54%
FCF(TTM)0.28
FCFY1.35%
OCF(TTM)0.31
OCFY1.51%
SpS2.19
BVpS6.78
TBVpS0
PEG (NY)1.56
PEG (5Y)0.36
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 | 4.01 |
F-Score4
WACC11.06%
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 Y25.49%
EPS Next 2Y27.59%
EPS Next 3Y26.62%
EPS Next 5Y28.57%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
Revenue Next Year63.59%
Revenue Next 2Y45.94%
Revenue Next 3Y36.14%
Revenue Next 5Y28.05%
EBIT growth 1Y-97.99%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year71.55%
EBIT Next 3Y43.29%
EBIT Next 5Y34.58%
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 of CLEARWATER ANALYTICS HDS-A (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 5 / 10.
What are the PE and PB ratios of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
The Price/Earnings (PE) ratio for CLEARWATER ANALYTICS HDS-A (CWAN) is 39.85 and the Price/Book (PB) ratio is 3.06.
What is the financial health of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
The financial health rating of CLEARWATER ANALYTICS HDS-A (CWAN) is 4 / 10.