CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWAN - US1851231068 - Common Stock
24.1 USD
-0.03 (-0.12%)
24.08 USD
-0.02 (-0.08%)
CWAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. CWAN has only an average score on both its financial health and profitability. CWAN is valued quite expensive, but it does show an excellent growth.
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 13.12%, CWAN belongs to the best of the industry, outperforming 90.94% of the companies in the same industry.
CWAN has a better Return On Equity (19.79%) than 87.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.01%, CWAN is in line with its industry, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.12% | ||
| ROE | 19.79% | ||
| ROIC | 0.01% |
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's Profit Margin of 61.25% is amongst the best of the industry. CWAN outperforms 94.57% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
With a Operating Margin value of 0.04%, CWAN perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
In the last couple of years the Operating Margin of CWAN has declined.
CWAN's Gross Margin of 68.53% is in line compared to the rest of the industry. CWAN outperforms 49.64% of its industry peers.
CWAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.04% | ||
| PM (TTM) | 61.25% | ||
| GM | 68.53% |
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.
The number of shares outstanding for CWAN has been increased compared to 1 year ago.
Compared to 5 years ago, CWAN has more shares outstanding
CWAN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.58 indicates that CWAN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.58, CWAN is doing good in the industry, outperforming 68.48% of the companies in the same industry.
CWAN has a debt to FCF ratio of 10.26. This is a negative value and a sign of low solvency as CWAN would need 10.26 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.26, CWAN perfoms like the industry average, outperforming 50.36% of the companies in the same industry.
CWAN has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
CWAN has a Debt to Equity ratio of 0.42. This is in the lower half of the industry: CWAN underperforms 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Altman-Z | 4.58 |
ROIC/WACC0
WACC11%
2.3 Liquidity
CWAN has a Current Ratio of 1.97. This is a normal value and indicates that CWAN is financially healthy and should not expect problems in meeting its short term obligations.
CWAN has a Current ratio (1.97) which is comparable to the rest of the industry.
CWAN has a Quick Ratio of 1.97. This is a normal value and indicates that CWAN is financially healthy and should not expect problems in meeting its short term obligations.
CWAN has a Quick ratio (1.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.81% 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.
The Revenue has grown by 50.91% in the past year. This is a very strong growth!
CWAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.88% yearly.
EPS 1Y (TTM)23.81%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%16.67%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
3.2 Future
The Earnings Per Share is expected to grow by 28.57% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.93% on average over the next years. This is a very strong growth
EPS Next Y24.67%
EPS Next 2Y24.98%
EPS Next 3Y26.14%
EPS Next 5Y28.57%
Revenue Next Year63.92%
Revenue Next 2Y45.64%
Revenue Next 3Y35.82%
Revenue Next 5Y27.93%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 46.35, CWAN can be considered very expensive at the moment.
CWAN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.84, CWAN is valued quite expensively.
The Price/Forward Earnings ratio is 34.28, which means the current valuation is very expensive for CWAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWAN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CWAN to the average of the S&P500 Index (23.40), we can say CWAN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.35 | ||
| Fwd PE | 34.28 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CWAN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.23 | ||
| EV/EBITDA | 130.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CWAN does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as CWAN's earnings are expected to grow with 26.14% in the coming years.
PEG (NY)1.88
PEG (5Y)0.42
EPS Next 2Y24.98%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
CWAN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.1
-0.03 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners98.96%
Inst Owner Change1.87%
Ins Owners0.85%
Ins Owner Change-0.04%
Market Cap7.05B
Revenue(TTM)640.38M
Net Income(TTM)392.23M
Analysts84.44
Price Target29.25 (21.37%)
Short Float %9.94%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-4.09%
Min EPS beat(2)-6.22%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)1.93%
Min EPS beat(4)-6.22%
Max EPS beat(4)13.33%
EPS beat(8)5
Avg EPS beat(8)5.62%
EPS beat(12)9
Avg EPS beat(12)8.6%
EPS beat(16)12
Avg EPS beat(16)8.35%
Revenue beat(2)1
Avg Revenue beat(2)0.59%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)2.43%
Revenue beat(4)2
Avg Revenue beat(4)0.92%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)3.06%
Revenue beat(8)4
Avg Revenue beat(8)0.21%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)0.28%
PT rev (1m)0%
PT rev (3m)-9.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.35 | ||
| Fwd PE | 34.28 | ||
| P/S | 11.01 | ||
| P/FCF | 86.23 | ||
| P/OCF | 77.2 | ||
| P/B | 3.56 | ||
| P/tB | 21768.78 | ||
| EV/EBITDA | 130.89 |
EPS(TTM)0.52
EY2.16%
EPS(NY)0.7
Fwd EY2.92%
FCF(TTM)0.28
FCFY1.16%
OCF(TTM)0.31
OCFY1.3%
SpS2.19
BVpS6.77
TBVpS0
PEG (NY)1.88
PEG (5Y)0.42
Graham Number8.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.12% | ||
| ROE | 19.79% | ||
| ROCE | 0.01% | ||
| ROIC | 0.01% | ||
| ROICexc | 0.01% | ||
| ROICexgc | 0.03% | ||
| OM | 0.04% | ||
| PM (TTM) | 61.25% | ||
| GM | 68.53% | ||
| FCFM | 12.77% |
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
ROICexgc growth 3Y-67.54%
ROICexgc 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-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 10.26 | ||
| Debt/EBITDA | 13.9 | ||
| Cap/Depr | 16.09% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 0.02 | ||
| Cash Conversion | 152.85% | ||
| Profit Quality | 20.85% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 4.58 |
F-Score4
WACC11%
ROIC/WACC0
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)23.81%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%16.67%
EPS Next Y24.67%
EPS Next 2Y24.98%
EPS Next 3Y26.14%
EPS Next 5Y28.57%
Revenue 1Y (TTM)50.91%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%77.08%
Revenue Next Year63.92%
Revenue Next 2Y45.64%
Revenue Next 3Y35.82%
Revenue Next 5Y27.93%
EBIT growth 1Y-97.99%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year80.92%
EBIT Next 3Y43.74%
EBIT Next 5Y36.03%
FCF growth 1Y12.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.14%
OCF growth 3Y180.71%
OCF growth 5YN/A
CLEARWATER ANALYTICS HDS-A / CWAN FAQ
What is the ChartMill fundamental rating of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CWAN.
What is the valuation status of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
ChartMill assigns a valuation rating of 2 / 10 to CLEARWATER ANALYTICS HDS-A (CWAN). This can be considered as Overvalued.
What is the profitability of CWAN stock?
CLEARWATER ANALYTICS HDS-A (CWAN) has a profitability rating of 5 / 10.
What are the PE and PB ratios of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
The Price/Earnings (PE) ratio for CLEARWATER ANALYTICS HDS-A (CWAN) is 46.35 and the Price/Book (PB) ratio is 3.56.
What is the financial health of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
The financial health rating of CLEARWATER ANALYTICS HDS-A (CWAN) is 4 / 10.