CLARIVATE PLC (CLVT) Stock Fundamental Analysis
NYSE:CLVT - New York Stock Exchange, Inc. - JE00BJJN4441 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CLVT. CLVT was compared to 82 industry peers in the Professional Services industry. Both the profitability and financial health of CLVT have multiple concerns. CLVT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year CLVT was profitable.
In the past year CLVT had a positive cash flow from operations.
CLVT had negative earnings in each of the past 5 years.
Each year in the past 5 years CLVT had a positive operating cash flow.
1.2 Ratios
CLVT has a Return On Assets of -5.90%. This is in the lower half of the industry: CLVT underperforms 74.39% of its industry peers.
CLVT's Return On Equity of -13.49% is on the low side compared to the rest of the industry. CLVT is outperformed by 74.39% of its industry peers.
The Return On Invested Capital of CLVT (1.81%) is worse than 64.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLVT is significantly below the industry average of 12.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.9% | ||
| ROE | -13.49% | ||
| ROIC | 1.81% |
ROA(3y)-14.17%
ROA(5y)-9.23%
ROE(3y)-29.57%
ROE(5y)-18.95%
ROIC(3y)1.87%
ROIC(5y)1.34%
1.3 Margins
CLVT has a Operating Margin of 9.03%. This is in the better half of the industry: CLVT outperforms 69.51% of its industry peers.
CLVT's Operating Margin has improved in the last couple of years.
The Gross Margin of CLVT (66.06%) is better than 80.49% of its industry peers.
In the last couple of years the Gross Margin of CLVT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.03% | ||
| PM (TTM) | N/A | ||
| GM | 66.06% |
OM growth 3Y19.56%
OM growth 5Y51.34%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.32%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CLVT is destroying value.
Compared to 1 year ago, CLVT has more shares outstanding
The number of shares outstanding for CLVT has been increased compared to 5 years ago.
CLVT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.37, we must say that CLVT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CLVT (-0.37) is worse than 80.49% of its industry peers.
The Debt to FCF ratio of CLVT is 13.96, which is on the high side as it means it would take CLVT, 13.96 years of fcf income to pay off all of its debts.
CLVT's Debt to FCF ratio of 13.96 is on the low side compared to the rest of the industry. CLVT is outperformed by 60.98% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that CLVT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, CLVT is doing worse than 69.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 13.96 | ||
| Altman-Z | -0.37 |
ROIC/WACC0.25
WACC7.3%
2.3 Liquidity
CLVT has a Current Ratio of 0.88. This is a bad value and indicates that CLVT is not financially healthy enough and could expect problems in meeting its short term obligations.
CLVT has a worse Current ratio (0.88) than 80.49% of its industry peers.
CLVT has a Quick Ratio of 0.88. This is a bad value and indicates that CLVT is not financially healthy enough and could expect problems in meeting its short term obligations.
CLVT has a Quick ratio of 0.88. This is in the lower half of the industry: CLVT underperforms 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
CLVT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.33%.
Measured over the past 5 years, CLVT shows a small growth in Earnings Per Share. The EPS has been growing by 1.87% on average per year.
CLVT shows a decrease in Revenue. In the last year, the revenue decreased by -3.50%.
Measured over the past years, CLVT shows a very strong growth in Revenue. The Revenue has been growing by 21.28% on average per year.
EPS 1Y (TTM)-6.33%
EPS 3Y1.87%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y10.85%
Revenue growth 5Y21.28%
Sales Q2Q%-4.43%
3.2 Future
The Earnings Per Share is expected to grow by 0.12% on average over the next years.
The Revenue is expected to grow by 0.76% on average over the next years.
EPS Next Y-9.64%
EPS Next 2Y-1.62%
EPS Next 3Y2.44%
EPS Next 5Y0.12%
Revenue Next Year-7.79%
Revenue Next 2Y-3.86%
Revenue Next 3Y-1.63%
Revenue Next 5Y0.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.72, the valuation of CLVT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CLVT indicates a rather cheap valuation: CLVT is cheaper than 93.90% of the companies listed in the same industry.
CLVT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 5.91, the valuation of CLVT can be described as very cheap.
CLVT's Price/Forward Earnings ratio is rather cheap when compared to the industry. CLVT is cheaper than 95.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, CLVT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.72 | ||
| Fwd PE | 5.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CLVT is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
91.46% of the companies in the same industry are more expensive than CLVT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 7.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.62%
EPS Next 3Y2.44%
5. Dividend
5.1 Amount
CLVT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.23
-0.06 (-1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners62.29%
Inst Owner ChangeN/A
Ins Owners0.91%
Ins Owner Change13.4%
Market Cap2.89B
Analysts77.33
Price Target5.39 (27.42%)
Short Float %12.1%
Short Ratio7.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP-2.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.96%
Min EPS beat(2)1.61%
Max EPS beat(2)18.32%
EPS beat(4)4
Avg EPS beat(4)7.04%
Min EPS beat(4)0.21%
Max EPS beat(4)18.32%
EPS beat(8)7
Avg EPS beat(8)6.48%
EPS beat(12)11
Avg EPS beat(12)8.87%
EPS beat(16)14
Avg EPS beat(16)8.11%
Revenue beat(2)1
Avg Revenue beat(2)0.26%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)2.04%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-4.81%
Max Revenue beat(4)2.04%
Revenue beat(8)2
Avg Revenue beat(8)-1.38%
Revenue beat(12)3
Avg Revenue beat(12)-1.33%
Revenue beat(16)4
Avg Revenue beat(16)-1.47%
PT rev (1m)0%
PT rev (3m)-16.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)2.4%
EPS NY rev (3m)-8.95%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-7.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.72 | ||
| Fwd PE | 5.91 | ||
| P/S | 1.14 | ||
| P/FCF | 8.92 | ||
| P/OCF | 4.5 | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.4 |
EPS(TTM)0.74
EY17.49%
EPS(NY)0.72
Fwd EY16.93%
FCF(TTM)0.47
FCFY11.21%
OCF(TTM)0.94
OCFY22.2%
SpS3.7
BVpS7.36
TBVpS-7.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.9% | ||
| ROE | -13.49% | ||
| ROCE | 2.29% | ||
| ROIC | 1.81% | ||
| ROICexc | 1.88% | ||
| ROICexgc | N/A | ||
| OM | 9.03% | ||
| PM (TTM) | N/A | ||
| GM | 66.06% | ||
| FCFM | 12.81% |
ROA(3y)-14.17%
ROA(5y)-9.23%
ROE(3y)-29.57%
ROE(5y)-18.95%
ROIC(3y)1.87%
ROIC(5y)1.34%
ROICexc(3y)1.93%
ROICexc(5y)1.38%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.36%
ROCE(5y)1.69%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y62.12%
ROICexc growth 5Y45.61%
OM growth 3Y19.56%
OM growth 5Y51.34%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.32%
GM growth 5Y0.48%
F-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 13.96 | ||
| Debt/EBITDA | 4.7 | ||
| Cap/Depr | 43.33% | ||
| Cap/Sales | 12.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | -0.37 |
F-Score6
WACC7.3%
ROIC/WACC0.25
Cap/Depr(3y)37.07%
Cap/Depr(5y)34.15%
Cap/Sales(3y)10.18%
Cap/Sales(5y)9.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.33%
EPS 3Y1.87%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-9.64%
EPS Next 2Y-1.62%
EPS Next 3Y2.44%
EPS Next 5Y0.12%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y10.85%
Revenue growth 5Y21.28%
Sales Q2Q%-4.43%
Revenue Next Year-7.79%
Revenue Next 2Y-3.86%
Revenue Next 3Y-1.63%
Revenue Next 5Y0.76%
EBIT growth 1Y-13.36%
EBIT growth 3Y32.53%
EBIT growth 5Y83.55%
EBIT Next Year9373.28%
EBIT Next 3Y361.45%
EBIT Next 5Y154.38%
FCF growth 1Y-23.35%
FCF growth 3Y16.61%
FCF growth 5Y48.48%
OCF growth 1Y-4.15%
OCF growth 3Y25.93%
OCF growth 5Y40.62%