CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - NYSE:CWAN - US1851231068 - Common Stock
18.41 USD
+0.22 (+1.21%)
18.16 USD
-0.25 (-1.36%)
CWAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. CWAN has an average financial health and profitability rating. CWAN shows excellent growth, but is valued quite expensive already. This makes CWAN very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year CWAN was profitable.
CWAN had a positive operating cash flow in the past year.
CWAN had negative earnings in 4 of the past 5 years.
Of the past 5 years CWAN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CWAN (13.44%) is better than 90.18% of its industry peers.
Looking at the Return On Equity, with a value of 20.64%, CWAN belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.03%, CWAN is in line with its industry, outperforming 59.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 20.64% | ||
| ROIC | 0.03% |
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
The Profit Margin of CWAN (73.71%) is better than 95.79% of its industry peers.
CWAN's Profit Margin has improved in the last couple of years.
The Operating Margin of CWAN (0.19%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CWAN has declined.
CWAN has a Gross Margin (70.56%) which is in line with its industry peers.
CWAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.19% | ||
| PM (TTM) | 73.71% | ||
| GM | 70.56% |
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.
Compared to 1 year ago, CWAN has more shares outstanding
CWAN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWAN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.43 indicates that CWAN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.43, CWAN is in the better half of the industry, outperforming 61.40% of the companies in the same industry.
The Debt to FCF ratio of CWAN is 10.33, which is on the high side as it means it would take CWAN, 10.33 years of fcf income to pay off all of its debts.
CWAN has a Debt to FCF ratio (10.33) which is in line with its industry peers.
A Debt/Equity ratio of 0.44 indicates that CWAN is not too dependend on debt financing.
CWAN has a worse Debt to Equity ratio (0.44) than 62.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 3.43 |
ROIC/WACC0
WACC11.03%
2.3 Liquidity
CWAN has a Current Ratio of 2.02. This indicates that CWAN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.02, CWAN is doing good in the industry, outperforming 61.40% of the companies in the same industry.
CWAN has a Quick Ratio of 2.02. This indicates that CWAN is financially healthy and has no problem in meeting its short term obligations.
CWAN has a Quick ratio of 2.02. This is in the better half of the industry: CWAN outperforms 62.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
CWAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.21%, which is quite impressive.
CWAN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 110.89% yearly.
CWAN shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.68%.
Measured over the past years, CWAN shows a very strong growth in Revenue. The Revenue has been growing by 21.88% on average per year.
EPS 1Y (TTM)28.21%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%20%
Revenue 1Y (TTM)36.68%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%70.37%
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
Based on estimates for the next years, CWAN will show a very strong growth in Revenue. The Revenue will grow by 27.93% on average per year.
EPS Next Y25.49%
EPS Next 2Y27.59%
EPS Next 3Y26.62%
EPS Next 5Y28.57%
Revenue Next Year63.68%
Revenue Next 2Y45.94%
Revenue Next 3Y36.14%
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
The Price/Earnings ratio is 36.82, which means the current valuation is very expensive for CWAN.
Compared to the rest of the industry, the Price/Earnings ratio of CWAN indicates a somewhat cheap valuation: CWAN is cheaper than 61.40% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. CWAN is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 25.13, the valuation of CWAN can be described as expensive.
Based on the Price/Forward Earnings ratio, CWAN is valued a bit cheaper than 68.07% of the companies in the same industry.
CWAN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.82 | ||
| Fwd PE | 25.13 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CWAN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.35 | ||
| EV/EBITDA | 179.32 |
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's earnings are expected to grow with 26.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)0.33
EPS Next 2Y27.59%
EPS Next 3Y26.62%
5. Dividend
5.1 Amount
No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.41
+0.22 (+1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change0.08%
Ins Owners0.84%
Ins Owner Change3.08%
Market Cap5.38B
Revenue(TTM)551.09M
Net Income(TTM)406.20M
Analysts83.53
Price Target31.56 (71.43%)
Short Float %5.04%
Short Ratio3.4
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)1
Avg EPS beat(2)0.3%
Min EPS beat(2)-1.96%
Max EPS beat(2)2.56%
EPS beat(4)3
Avg EPS beat(4)5.31%
Min EPS beat(4)-1.96%
Max EPS beat(4)13.33%
EPS beat(8)6
Avg EPS beat(8)8.22%
EPS beat(12)10
Avg EPS beat(12)10.38%
EPS beat(16)13
Avg EPS beat(16)12.81%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)2.43%
Revenue beat(4)3
Avg Revenue beat(4)1.26%
Min Revenue beat(4)-0.56%
Max Revenue beat(4)3.06%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)8
Avg Revenue beat(12)0.42%
Revenue beat(16)10
Avg Revenue beat(16)0.46%
PT rev (1m)-2.28%
PT rev (3m)-6.79%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-2.38%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.82 | ||
| Fwd PE | 25.13 | ||
| P/S | 9.77 | ||
| P/FCF | 63.35 | ||
| P/OCF | 58.56 | ||
| P/B | 2.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 179.32 |
EPS(TTM)0.5
EY2.72%
EPS(NY)0.73
Fwd EY3.98%
FCF(TTM)0.29
FCFY1.58%
OCF(TTM)0.31
OCFY1.71%
SpS1.88
BVpS6.73
TBVpS-0.14
PEG (NY)1.44
PEG (5Y)0.33
Graham Number8.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 20.64% | ||
| ROCE | 0.04% | ||
| ROIC | 0.03% | ||
| ROICexc | 0.03% | ||
| ROICexgc | 0.1% | ||
| OM | 0.19% | ||
| PM (TTM) | 73.71% | ||
| GM | 70.56% | ||
| FCFM | 15.42% |
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-Score3
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 10.33 | ||
| Debt/EBITDA | 25.28 | ||
| Cap/Depr | 20.79% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | 266.49% | ||
| Profit Quality | 20.92% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 3.43 |
F-Score3
WACC11.03%
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)28.21%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%20%
EPS Next Y25.49%
EPS Next 2Y27.59%
EPS Next 3Y26.62%
EPS Next 5Y28.57%
Revenue 1Y (TTM)36.68%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%70.37%
Revenue Next Year63.68%
Revenue Next 2Y45.94%
Revenue Next 3Y36.14%
Revenue Next 5Y27.93%
EBIT growth 1Y179.89%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year71.55%
EBIT Next 3Y43.29%
EBIT Next 5Y36.03%
FCF growth 1Y55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.5%
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 3 / 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 36.82 and the Price/Book (PB) ratio is 2.74.
What is the financial health of CLEARWATER ANALYTICS HDS-A (CWAN) stock?
The financial health rating of CLEARWATER ANALYTICS HDS-A (CWAN) is 5 / 10.