POWERSCHOOL HOLDINGS INC-A (PWSC) Fundamental Analysis & Valuation

NYSE:PWSC • US73939C1062

Current stock price

22.81 USD
-0.04 (-0.18%)
At close:
22.82 USD
+0.01 (+0.04%)
After Hours:

This PWSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. PWSC Profitability Analysis

1.1 Basic Checks

  • PWSC had positive earnings in the past year.
  • PWSC had a positive operating cash flow in the past year.
  • PWSC had negative earnings in each of the past 5 years.
  • PWSC had a positive operating cash flow in each of the past 5 years.
PWSC Yearly Net Income VS EBIT VS OCF VS FCFPWSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M 150M

1.2 Ratios

  • PWSC has a Return On Assets (-1.48%) which is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of -4.32%, PWSC is in line with its industry, 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.
  • PWSC had an Average Return On Invested Capital over the past 3 years of 0.41%. This is significantly below the industry average of 10.91%.
Industry RankSector 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
PWSC Yearly ROA, ROE, ROICPWSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 -1 -2 -3 -4 -5

1.3 Margins

  • With a decent Operating Margin value of 2.05%, PWSC is doing good in the industry, outperforming 65.96% of the companies in the same industry.
  • In the last couple of years the Operating Margin of PWSC has declined.
  • PWSC has a Gross Margin of 58.82%. This is in the lower half of the industry: PWSC underperforms 62.06% of its industry peers.
  • In the last couple of years the Gross Margin of PWSC has grown nicely.
Industry RankSector 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
PWSC Yearly Profit, Operating, Gross MarginsPWSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 -20 40

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1

2. PWSC Health Analysis

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.
  • The debt/assets ratio for PWSC is higher compared to a year ago.
PWSC Yearly Shares OutstandingPWSC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 50M 100M 150M 200M
PWSC Yearly Total Debt VS Total AssetsPWSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 1B 2B 3B

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.
  • The Altman-Z score of PWSC (1.12) is worse than 62.06% of its industry peers.
  • PWSC has a debt to FCF ratio of 12.08. This is a negative value and a sign of low solvency as PWSC would need 12.08 years to pay back of all of its debts.
  • The Debt to FCF ratio of PWSC (12.08) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.77 indicates that PWSC is somewhat dependend on debt financing.
  • The Debt to Equity ratio of PWSC (0.77) is worse than 71.99% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 12.08
Altman-Z 1.12
ROIC/WACC0.03
WACC10.25%
PWSC Yearly LT Debt VS Equity VS FCFPWSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.28 indicates that PWSC may have some problems paying its short term obligations.
  • PWSC has a worse Current ratio (0.28) than 96.81% of its industry peers.
  • A Quick Ratio of 0.28 indicates that PWSC may have some problems paying 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 RankSector Rank
Current Ratio 0.28
Quick Ratio 0.28
PWSC Yearly Current Assets VS Current LiabilitesPWSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PWSC Growth Analysis

3.1 Past

  • PWSC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.99%.
  • PWSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.79%.
  • 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

  • Based on estimates for the next years, PWSC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.06% on average per year.
  • 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

  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
PWSC Yearly Revenue VS EstimatesPWSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
PWSC Yearly EPS VS EstimatesPWSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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3

4. PWSC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 28.16, which means the current valuation is very expensive for PWSC.
  • 73.05% of the companies in the same industry are more expensive than PWSC, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.79. PWSC is around the same levels.
  • A Price/Forward Earnings ratio of 19.89 indicates a rather expensive valuation of PWSC.
  • 79.08% of the companies in the same industry are more expensive than PWSC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 38.88. PWSC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 28.16
Fwd PE 19.89
PWSC Price Earnings VS Forward Price EarningsPWSC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • PWSC's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 56.03
EV/EBITDA 35.29
PWSC Per share dataPWSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 -10

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. PWSC Dividend Analysis

5.1 Amount

  • No dividends for PWSC!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

PWSC Fundamentals: All Metrics, Ratios and Statistics

POWERSCHOOL HOLDINGS INC-A

NYSE:PWSC (9/30/2024, 8:04:01 PM)

After market: 22.82 +0.01 (+0.04%)

22.81

-0.04 (-0.18%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-09
Earnings (Next)11-01
Inst Owners61.59%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change0%
Market Cap4.66B
Revenue(TTM)740.89M
Net Income(TTM)-55.69M
Analysts72.86
Price Target25.32 (11%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis FAQ

What is the fundamental rating for PWSC stock?

ChartMill assigns a fundamental rating of 3 / 10 to PWSC.


What is the valuation status of POWERSCHOOL HOLDINGS INC-A (PWSC) stock?

ChartMill assigns a valuation rating of 3 / 10 to POWERSCHOOL HOLDINGS INC-A (PWSC). This can be considered as Overvalued.


How profitable is POWERSCHOOL HOLDINGS INC-A (PWSC) stock?

POWERSCHOOL HOLDINGS INC-A (PWSC) has a profitability rating of 3 / 10.


Can you provide the PE and PB ratios for PWSC stock?

The Price/Earnings (PE) ratio for POWERSCHOOL HOLDINGS INC-A (PWSC) is 28.16 and the Price/Book (PB) ratio is 3.61.