CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
NYSE:CWAN - New York Stock Exchange, Inc. - US1851231068 - Common Stock - Currency: USD
Overall CWAN gets a fundamental rating of 6 out of 10. We evaluated CWAN against 282 industry peers in the Software industry. CWAN has an excellent financial health rating, but there are some minor concerns on its profitability. CWAN is valued quite expensive, but it does show an excellent growth. These ratings would make CWAN suitable 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
With an excellent Return On Assets value of 33.38%, CWAN belongs to the best of the industry, outperforming 98.23% of the companies in the same industry.
CWAN has a better Return On Equity (38.45%) than 93.26% of its industry peers.
With a decent Return On Invested Capital value of 1.28%, CWAN is doing good in the industry, outperforming 67.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.38% | ||
| ROE | 38.45% | ||
| ROIC | 1.28% |
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 Profit Margin of 90.13%. This is amongst the best in the industry. CWAN outperforms 98.94% of its industry peers.
CWAN's Profit Margin has improved in the last couple of years.
The Operating Margin of CWAN (4.09%) is better than 70.57% of its industry peers.
CWAN's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 72.95%, CWAN is doing good in the industry, outperforming 60.99% of the companies in the same industry.
CWAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.09% | ||
| PM (TTM) | 90.13% | ||
| GM | 72.95% |
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.
The number of shares outstanding for CWAN has been increased compared to 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
CWAN has an Altman-Z score of 23.00. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
CWAN has a Altman-Z score of 23.00. This is amongst the best in the industry. CWAN outperforms 95.04% of its industry peers.
The Debt to FCF ratio of CWAN is 0.54, which is an excellent value as it means it would take CWAN, only 0.54 years of fcf income to pay off all of its debts.
CWAN's Debt to FCF ratio of 0.54 is fine compared to the rest of the industry. CWAN outperforms 78.01% of its industry peers.
CWAN has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
CWAN has a Debt to Equity ratio of 0.04. This is comparable to the rest of the industry: CWAN outperforms 58.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 23 |
ROIC/WACC0.14
WACC8.91%
2.3 Liquidity
CWAN has a Current Ratio of 5.09. This indicates that CWAN is financially healthy and has no problem in meeting its short term obligations.
CWAN's Current ratio of 5.09 is amongst the best of the industry. CWAN outperforms 88.65% of its industry peers.
A Quick Ratio of 5.09 indicates that CWAN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.09, CWAN belongs to the best of the industry, outperforming 88.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.09 | ||
| Quick Ratio | 5.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.73% over the past year.
The Earnings Per Share has been growing by 110.89% on average over the past years. This is a very strong growth
Looking at the last year, CWAN shows a very strong growth in Revenue. The Revenue has grown by 23.21%.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)29.73%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%30%
Revenue 1Y (TTM)23.21%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%23.51%
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.
Based on estimates for the next years, CWAN will show a very strong growth in Revenue. The Revenue will grow by 27.93% on average per year.
EPS Next Y29.2%
EPS Next 2Y27.24%
EPS Next 3Y16.22%
EPS Next 5Y28.57%
Revenue Next Year62.42%
Revenue Next 2Y45.28%
Revenue Next 3Y35.34%
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
A Price/Earnings ratio of 45.35 indicates a quite expensive valuation of CWAN.
Based on the Price/Earnings ratio, CWAN is valued a bit cheaper than 62.06% of the companies in the same industry.
CWAN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.28.
A Price/Forward Earnings ratio of 29.88 indicates a quite expensive valuation of CWAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWAN indicates a somewhat cheap valuation: CWAN is cheaper than 64.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CWAN to the average of the S&P500 Index (21.76), we can say CWAN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.35 | ||
| Fwd PE | 29.88 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA is on the same level as the industry average.
CWAN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.86 | ||
| EV/EBITDA | 184.62 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CWAN's earnings are expected to grow with 16.22% in the coming years.
PEG (NY)1.55
PEG (5Y)0.41
EPS Next 2Y27.24%
EPS Next 3Y16.22%
5. Dividend
5.1 Amount
CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.77
-0.12 (-0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.27%
Inst Owner Change5.9%
Ins Owners1.17%
Ins Owner Change42.84%
Market Cap6.17B
Analysts83.33
Price Target34.57 (58.8%)
Short Float %4.43%
Short Ratio2.72
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)2
Avg EPS beat(2)7.94%
Min EPS beat(2)2.56%
Max EPS beat(2)13.33%
EPS beat(4)3
Avg EPS beat(4)5.76%
Min EPS beat(4)-0.14%
Max EPS beat(4)13.33%
EPS beat(8)7
Avg EPS beat(8)10.35%
EPS beat(12)10
Avg EPS beat(12)9.92%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)3.06%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)3.06%
Revenue beat(8)5
Avg Revenue beat(8)0.24%
Revenue beat(12)7
Avg Revenue beat(12)0.08%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.93%
PT rev (3m)-6.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.57%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)7.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)35.16%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)34.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.35 | ||
| Fwd PE | 29.88 | ||
| P/S | 12.96 | ||
| P/FCF | 73.86 | ||
| P/OCF | 69.46 | ||
| P/B | 5.53 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 184.62 |
EPS(TTM)0.48
EY2.2%
EPS(NY)0.73
Fwd EY3.35%
FCF(TTM)0.29
FCFY1.35%
OCF(TTM)0.31
OCFY1.44%
SpS1.68
BVpS3.94
TBVpS3.18
PEG (NY)1.55
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.38% | ||
| ROE | 38.45% | ||
| ROCE | 1.62% | ||
| ROIC | 1.28% | ||
| ROICexc | 1.67% | ||
| ROICexgc | 2.19% | ||
| OM | 4.09% | ||
| PM (TTM) | 90.13% | ||
| GM | 72.95% | ||
| FCFM | 17.54% |
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-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.54 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 41.39% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | 275.22% | ||
| Profit Quality | 19.46% | ||
| Current Ratio | 5.09 | ||
| Quick Ratio | 5.09 | ||
| Altman-Z | 23 |
F-Score5
WACC8.91%
ROIC/WACC0.14
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)29.73%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%30%
EPS Next Y29.2%
EPS Next 2Y27.24%
EPS Next 3Y16.22%
EPS Next 5Y28.57%
Revenue 1Y (TTM)23.21%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%23.51%
Revenue Next Year62.42%
Revenue Next 2Y45.28%
Revenue Next 3Y35.34%
Revenue Next 5Y27.93%
EBIT growth 1Y283.86%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year70.47%
EBIT Next 3Y42.13%
EBIT Next 5Y36.03%
FCF growth 1Y61.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.4%
OCF growth 3Y180.71%
OCF growth 5YN/A