POWERSCHOOL HOLDINGS INC-A (PWSC) Stock Fundamental Analysis
USA - NYSE:PWSC - US73939C1062 - Common Stock
22.81 USD
-0.04 (-0.18%)
22.82 USD
+0.01 (+0.04%)
PWSC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. PWSC may be in some trouble as it scores bad on both profitability and health. PWSC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PWSC was profitable.
In the past year PWSC had a positive cash flow from operations.
PWSC had negative earnings in each of the past 5 years.
In the past 5 years PWSC always reported a positive cash flow from operatings.
1.2 Ratios
PWSC's Return On Assets of -1.48% is in line compared to the rest of the industry. PWSC outperforms 58.16% of its industry peers.
With a Return On Equity value of -4.32%, PWSC perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
PWSC's Return On Invested Capital of 0.35% is fine compared to the rest of the industry. PWSC outperforms 64.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PWSC is significantly below the industry average of 11.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.48% | ||
| ROE | -4.32% | ||
| ROIC | 0.35% |
ROA(3y)-0.79%
ROA(5y)-1.33%
ROE(3y)-2.27%
ROE(5y)-2.97%
ROIC(3y)0.41%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 2.05%, PWSC is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
PWSC's Operating Margin has declined in the last couple of years.
The Gross Margin of PWSC (58.82%) is worse than 62.06% of its industry peers.
In the last couple of years the Gross Margin of PWSC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.05% | ||
| PM (TTM) | N/A | ||
| GM | 58.82% |
OM growth 3Y-10.66%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.99%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PWSC is destroying value.
The number of shares outstanding for PWSC has been increased compared to 1 year ago.
Compared to 1 year ago, PWSC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that PWSC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.12, PWSC is not doing good in the industry: 62.06% of the companies in the same industry are doing better.
The Debt to FCF ratio of PWSC is 12.08, which is on the high side as it means it would take PWSC, 12.08 years of fcf income to pay off all of its debts.
PWSC's Debt to FCF ratio of 12.08 is in line compared to the rest of the industry. PWSC outperforms 48.58% of its industry peers.
PWSC has a Debt/Equity ratio of 0.77. This is a neutral value indicating PWSC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, PWSC is not doing good in the industry: 71.99% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.08 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.03
WACC10.25%
2.3 Liquidity
A Current Ratio of 0.28 indicates that PWSC may have some problems paying its short term obligations.
PWSC's Current ratio of 0.28 is on the low side compared to the rest of the industry. PWSC is outperformed by 96.81% of its industry peers.
PWSC has a Quick Ratio of 0.28. This is a bad value and indicates that PWSC is not financially healthy enough and could expect problems in meeting its short term obligations.
PWSC's Quick ratio of 0.28 is on the low side compared to the rest of the industry. PWSC is outperformed by 96.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for PWSC have decreased by -8.99% in the last year.
Looking at the last year, PWSC shows a quite strong growth in Revenue. The Revenue has grown by 12.79% in the last year.
Measured over the past years, PWSC shows a quite strong growth in Revenue. The Revenue has been growing by 17.06% on average per year.
EPS 1Y (TTM)-8.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y17.06%
Revenue growth 5YN/A
Sales Q2Q%10.18%
3.2 Future
PWSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.06% yearly.
The Revenue is expected to grow by 11.40% on average over the next years. This is quite good.
EPS Next Y14.16%
EPS Next 2Y18.27%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue Next Year12.84%
Revenue Next 2Y11.67%
Revenue Next 3Y11.4%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
PWSC is valuated quite expensively with a Price/Earnings ratio of 28.16.
Compared to the rest of the industry, the Price/Earnings ratio of PWSC indicates a somewhat cheap valuation: PWSC is cheaper than 73.05% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PWSC to the average of the S&P500 Index (26.91), we can say PWSC is valued inline with the index average.
PWSC is valuated rather expensively with a Price/Forward Earnings ratio of 19.89.
79.08% of the companies in the same industry are more expensive than PWSC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PWSC to the average of the S&P500 Index (22.92), we can say PWSC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PWSC is valued a bit cheaper than the industry average as 71.63% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PWSC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.03 | ||
| EV/EBITDA | 35.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PWSC's earnings are expected to grow with 16.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)N/A
EPS Next 2Y18.27%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
PWSC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.81
-0.04 (-0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners61.59%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change0%
Market Cap4.66B
Revenue(TTM)740.89M
Net Income(TTM)-55685000
Analysts72.86
Price Target25.32 (11%)
Short Float %N/A
Short RatioN/A
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)-13.21%
Min EPS beat(2)-19.52%
Max EPS beat(2)-6.91%
EPS beat(4)1
Avg EPS beat(4)-7.62%
Min EPS beat(4)-19.91%
Max EPS beat(4)15.86%
EPS beat(8)3
Avg EPS beat(8)-0.79%
EPS beat(12)6
Avg EPS beat(12)8.5%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)-1.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-2.14%
Revenue beat(12)2
Avg Revenue beat(12)-1.17%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.86%
PT rev (3m)3.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 19.89 | ||
| P/S | 6.29 | ||
| P/FCF | 56.03 | ||
| P/OCF | 36.91 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.29 |
EPS(TTM)0.81
EY3.55%
EPS(NY)1.15
Fwd EY5.03%
FCF(TTM)0.41
FCFY1.78%
OCF(TTM)0.62
OCFY2.71%
SpS3.63
BVpS6.31
TBVpS-11.06
PEG (NY)1.99
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.48% | ||
| ROE | -4.32% | ||
| ROCE | 0.47% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.36% | ||
| ROICexgc | N/A | ||
| OM | 2.05% | ||
| PM (TTM) | N/A | ||
| GM | 58.82% | ||
| FCFM | 11.23% |
ROA(3y)-0.79%
ROA(5y)-1.33%
ROE(3y)-2.27%
ROE(5y)-2.97%
ROIC(3y)0.41%
ROIC(5y)N/A
ROICexc(3y)0.42%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)0.52%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y0.35%
ROICexc growth 5YN/A
OM growth 3Y-10.66%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.99%
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.08 | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 30.89% | ||
| Cap/Sales | 5.81% | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | 81.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 1.12 |
F-Score4
WACC10.25%
ROIC/WACC0.03
Cap/Depr(3y)34.47%
Cap/Depr(5y)35.58%
Cap/Sales(3y)6.72%
Cap/Sales(5y)7.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y14.16%
EPS Next 2Y18.27%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue 1Y (TTM)12.79%
Revenue growth 3Y17.06%
Revenue growth 5YN/A
Sales Q2Q%10.18%
Revenue Next Year12.84%
Revenue Next 2Y11.67%
Revenue Next 3Y11.4%
Revenue Next 5YN/A
EBIT growth 1Y-19.97%
EBIT growth 3Y4.59%
EBIT growth 5YN/A
EBIT Next Year44.79%
EBIT Next 3Y23.92%
EBIT Next 5YN/A
FCF growth 1Y15.54%
FCF growth 3Y30.83%
FCF growth 5YN/A
OCF growth 1Y11.04%
OCF growth 3Y23.99%
OCF growth 5YN/A
POWERSCHOOL HOLDINGS INC-A / PWSC FAQ
What is the fundamental rating for PWSC stock?
ChartMill assigns a fundamental rating of 3 / 10 to PWSC.
Can you provide the valuation status for POWERSCHOOL HOLDINGS INC-A?
ChartMill assigns a valuation rating of 3 / 10 to POWERSCHOOL HOLDINGS INC-A (PWSC). This can be considered as Overvalued.
What is the profitability of PWSC stock?
POWERSCHOOL HOLDINGS INC-A (PWSC) has a profitability rating of 3 / 10.
Can you provide the financial health for PWSC stock?
The financial health rating of POWERSCHOOL HOLDINGS INC-A (PWSC) is 1 / 10.