CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
USA - NYSE:CWAN - US1851231068 - Common Stock
17.76 USD
-0.26 (-1.44%)
17.76 USD
0 (0%)
CWAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. Both the profitability and the financial health of CWAN get a neutral evaluation. Nothing too spectacular is happening here. CWAN is valued quite expensively, but it does show have an excellent growth rating. 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.
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
The Return On Assets of CWAN (13.44%) is better than 90.39% of its industry peers.
CWAN has a better Return On Equity (20.64%) than 86.83% of its industry peers.
CWAN's Return On Invested Capital of 0.03% is in line compared to the rest of the industry. CWAN outperforms 59.79% of its industry peers.
| 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
CWAN has a Profit Margin of 73.71%. This is amongst the best in the industry. CWAN outperforms 95.73% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
CWAN has a Operating Margin (0.19%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CWAN has declined.
The Gross Margin of CWAN (70.56%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CWAN has remained more or less at the same level.
| 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.
CWAN has more shares outstanding than it did 1 year ago.
CWAN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CWAN has an improved debt to assets ratio.
2.2 Solvency
CWAN has an Altman-Z score of 3.32. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.32, CWAN is doing good in the industry, outperforming 60.14% 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 Debt to Equity ratio of 0.44. This is in the lower half of the industry: CWAN underperforms 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 10.33 | ||
| Altman-Z | 3.32 |
ROIC/WACC0
WACC11.36%
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.
Looking at the Current ratio, with a value of 2.02, CWAN is in the better half of the industry, outperforming 62.63% 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.
Looking at the Quick ratio, with a value of 2.02, CWAN is in the better half of the industry, outperforming 63.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.21% over the past year.
The Earnings Per Share has been growing by 110.89% on average over the past years. This is a very strong growth
Looking at the last year, CWAN shows a very strong growth in Revenue. 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
Based on estimates for the next years, CWAN will show a very strong growth in Earnings Per Share. The EPS will grow by 28.57% on average per year.
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 Y26.31%
EPS Next 2Y28.39%
EPS Next 3Y27.23%
EPS Next 5Y28.57%
Revenue Next Year63.63%
Revenue Next 2Y45.87%
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
Based on the Price/Earnings ratio of 35.52, the valuation of CWAN can be described as expensive.
Based on the Price/Earnings ratio, CWAN is valued a bit cheaper than the industry average as 62.28% of the companies are valued more expensively.
CWAN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.79.
Based on the Price/Forward Earnings ratio of 23.94, the valuation of CWAN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWAN indicates a somewhat cheap valuation: CWAN is cheaper than 69.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.21, CWAN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.52 | ||
| Fwd PE | 23.94 |
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 | 61.11 | ||
| EV/EBITDA | 173.81 |
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 27.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)0.32
EPS Next 2Y28.39%
EPS Next 3Y27.23%
5. Dividend
5.1 Amount
No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.76
-0.26 (-1.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change15.81%
Ins Owners0.84%
Ins Owner Change3.26%
Market Cap5.19B
Analysts83.53
Price Target32.3 (81.87%)
Short Float %4.82%
Short Ratio2.97
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)0%
PT rev (3m)-6.56%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.52 | ||
| Fwd PE | 23.94 | ||
| P/S | 9.42 | ||
| P/FCF | 61.11 | ||
| P/OCF | 56.49 | ||
| P/B | 2.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 173.81 |
EPS(TTM)0.5
EY2.82%
EPS(NY)0.74
Fwd EY4.18%
FCF(TTM)0.29
FCFY1.64%
OCF(TTM)0.31
OCFY1.77%
SpS1.88
BVpS6.73
TBVpS-0.14
PEG (NY)1.35
PEG (5Y)0.32
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
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-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 | 3.32 |
F-Score3
WACC11.36%
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 Y26.31%
EPS Next 2Y28.39%
EPS Next 3Y27.23%
EPS Next 5Y28.57%
Revenue 1Y (TTM)36.68%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%70.37%
Revenue Next Year63.63%
Revenue Next 2Y45.87%
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