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 283 industry peers in the Software industry. CWAN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CWAN is valued quite expensively, but it does show have an excellent growth rating. These ratings would make CWAN suitable for growth investing!
1. Profitability
1.1 Basic Checks
CWAN had positive earnings in the past year.
In the past year CWAN had a positive cash flow from operations.
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 36.28%, CWAN belongs to the best of the industry, outperforming 99.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 42.09%, CWAN belongs to the top of the industry, outperforming 93.29% of the companies in the same industry.
CWAN has a Return On Invested Capital of 0.88%. This is in the better half of the industry: CWAN outperforms 65.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.28% | ||
| ROE | 42.09% | ||
| ROIC | 0.88% |
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
With an excellent Profit Margin value of 93.93%, CWAN belongs to the best of the industry, outperforming 98.23% of the companies in the same industry.
CWAN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 2.71%, CWAN is in the better half of the industry, outperforming 67.84% of the companies in the same industry.
CWAN's Operating Margin has declined in the last couple of years.
The Gross Margin of CWAN (72.78%) is better than 62.90% of its industry peers.
CWAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.71% | ||
| PM (TTM) | 93.93% | ||
| GM | 72.78% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWAN is destroying value.
CWAN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CWAN has more shares outstanding
The debt/assets ratio for CWAN has been reduced compared to a year ago.
2.2 Solvency
CWAN has an Altman-Z score of 26.01. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 26.01, CWAN belongs to the top of the industry, outperforming 96.47% of the companies in the same industry.
The Debt to FCF ratio of CWAN is 0.66, which is an excellent value as it means it would take CWAN, only 0.66 years of fcf income to pay off all of its debts.
CWAN's Debt to FCF ratio of 0.66 is fine compared to the rest of the industry. CWAN outperforms 76.68% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that CWAN is not too dependend on debt financing.
CWAN's Debt to Equity ratio of 0.04 is in line compared to the rest of the industry. CWAN outperforms 59.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 26.01 |
ROIC/WACC0.08
WACC10.93%
2.3 Liquidity
A Current Ratio of 4.99 indicates that CWAN has no problem at all paying its short term obligations.
The Current ratio of CWAN (4.99) is better than 87.28% of its industry peers.
A Quick Ratio of 4.99 indicates that CWAN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.99, CWAN belongs to the top of the industry, outperforming 87.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.99 | ||
| Quick Ratio | 4.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.73% over the past year.
Measured over the past years, CWAN shows a very strong growth in Earnings Per Share. The EPS has been growing by 110.89% on average per year.
Looking at the last year, CWAN shows a very strong growth in Revenue. The Revenue has grown by 22.72%.
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)22.72%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%23.51%
3.2 Future
CWAN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.77% yearly.
Based on estimates for the next years, CWAN will show a very strong growth in Revenue. The Revenue will grow by 35.58% on average per year.
EPS Next Y31.18%
EPS Next 2Y27.75%
EPS Next 3Y16.77%
EPS Next 5YN/A
Revenue Next Year62.48%
Revenue Next 2Y44.97%
Revenue Next 3Y35.58%
Revenue Next 5YN/A
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
CWAN is valuated quite expensively with a Price/Earnings ratio of 48.56.
CWAN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. CWAN is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 31.74, the valuation of CWAN can be described as expensive.
62.54% of the companies in the same industry are more expensive than CWAN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, CWAN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.56 | ||
| Fwd PE | 31.74 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA ratio is in line with the industry average.
CWAN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.61 | ||
| EV/EBITDA | 262.74 |
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.
CWAN's earnings are expected to grow with 16.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)0.44
EPS Next 2Y27.75%
EPS Next 3Y16.77%
5. Dividend
5.1 Amount
CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:CWAN (5/21/2025, 11:02:59 AM)
23.31
-0.35 (-1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.59%
Inst Owner Change5.87%
Ins Owners0.89%
Ins Owner Change41.02%
Market Cap6.60B
Analysts84.71
Price Target35.25 (51.22%)
Short Float %4.07%
Short Ratio3.32
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)10.32%
Min EPS beat(2)7.3%
Max EPS beat(2)13.33%
EPS beat(4)3
Avg EPS beat(4)7.36%
Min EPS beat(4)-0.14%
Max EPS beat(4)13.33%
EPS beat(8)7
Avg EPS beat(8)12.67%
EPS beat(12)10
Avg EPS beat(12)9.77%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.59%
Min Revenue beat(2)0.11%
Max Revenue beat(2)3.06%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)3.06%
Revenue beat(8)5
Avg Revenue beat(8)0.25%
Revenue beat(12)7
Avg Revenue beat(12)0.05%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-3.42%
PT rev (3m)2.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)8.01%
EPS NY rev (3m)9.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)34.09%
Revenue NY rev (3m)35.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.56 | ||
| Fwd PE | 31.74 | ||
| P/S | 14.62 | ||
| P/FCF | 95.61 | ||
| P/OCF | 88.85 | ||
| P/B | 6.55 | ||
| P/tB | 7.29 | ||
| EV/EBITDA | 262.74 |
EPS(TTM)0.48
EY2.06%
EPS(NY)0.73
Fwd EY3.15%
FCF(TTM)0.24
FCFY1.05%
OCF(TTM)0.26
OCFY1.13%
SpS1.59
BVpS3.56
TBVpS3.2
PEG (NY)1.56
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 36.28% | ||
| ROE | 42.09% | ||
| ROCE | 1.12% | ||
| ROIC | 0.88% | ||
| ROICexc | 1.15% | ||
| ROICexgc | 1.31% | ||
| OM | 2.71% | ||
| PM (TTM) | 93.93% | ||
| GM | 72.78% | ||
| FCFM | 15.29% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.66 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 43.17% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 3.53 | ||
| Cash Conversion | 304.41% | ||
| Profit Quality | 16.27% | ||
| Current Ratio | 4.99 | ||
| Quick Ratio | 4.99 | ||
| Altman-Z | 26.01 |
F-Score5
WACC10.93%
ROIC/WACC0.08
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 Y31.18%
EPS Next 2Y27.75%
EPS Next 3Y16.77%
EPS Next 5YN/A
Revenue 1Y (TTM)22.72%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%23.51%
Revenue Next Year62.48%
Revenue Next 2Y44.97%
Revenue Next 3Y35.58%
Revenue Next 5YN/A
EBIT growth 1Y173.04%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year34.39%
EBIT Next 3Y28.15%
EBIT Next 5YN/A
FCF growth 1Y-12.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.15%
OCF growth 3Y180.71%
OCF growth 5YN/A