CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
NYSE:CWAN - New York Stock Exchange, Inc. - US1851231068 - Common Stock - Currency: USD
CWAN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. While CWAN has a great health rating, its profitability is only average at the moment. CWAN is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make CWAN a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year CWAN was profitable.
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
Looking at the Return On Assets, with a value of 33.38%, CWAN belongs to the top of the industry, outperforming 98.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 38.45%, CWAN belongs to the top of the industry, outperforming 93.26% of the companies in the same industry.
CWAN has a better Return On Invested Capital (1.28%) than 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.38% | ||
| ROE | 38.45% | ||
| ROIC | 1.28% |
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
Looking at the Profit Margin, with a value of 90.13%, CWAN belongs to the top of the industry, outperforming 98.94% of the companies in the same industry.
CWAN's Profit Margin has improved in the last couple of years.
CWAN's Operating Margin of 4.09% is fine compared to the rest of the industry. CWAN outperforms 70.57% of its industry peers.
CWAN's Operating Margin has declined in the last couple of years.
CWAN has a better Gross Margin (72.95%) than 60.99% of its industry peers.
CWAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.09% | ||
| PM (TTM) | 90.13% | ||
| GM | 72.95% |
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.
CWAN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 22.24 indicates that CWAN is not in any danger for bankruptcy at the moment.
CWAN's Altman-Z score of 22.24 is amongst the best of the industry. CWAN outperforms 93.62% of its industry peers.
CWAN has a debt to FCF ratio of 0.54. This is a very positive value and a sign of high solvency as it would only need 0.54 years to pay back of all of its debts.
CWAN has a Debt to FCF ratio of 0.54. This is in the better half of the industry: CWAN outperforms 78.01% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that CWAN is not too dependend on debt financing.
CWAN has a Debt to Equity ratio (0.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 22.24 |
ROIC/WACC0.12
WACC11.06%
2.3 Liquidity
CWAN has a Current Ratio of 5.09. This indicates that CWAN is financially healthy and has no problem in meeting its short term obligations.
CWAN has a better Current ratio (5.09) than 88.65% of its industry peers.
A Quick Ratio of 5.09 indicates that CWAN has no problem at all paying its short term obligations.
The Quick ratio of CWAN (5.09) is better than 88.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.09 | ||
| Quick Ratio | 5.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.73% 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
The Revenue has grown by 23.21% in the past year. This is a very strong growth!
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)29.73%
EPS 3YN/A
EPS 5Y110.89%
EPS Q2Q%30%
Revenue 1Y (TTM)23.21%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%23.51%
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 Y27.96%
EPS Next 2Y26.78%
EPS Next 3Y21.07%
EPS Next 5Y28.57%
Revenue Next Year62.45%
Revenue Next 2Y44.99%
Revenue Next 3Y35.46%
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
CWAN is valuated quite expensively with a Price/Earnings ratio of 44.42.
CWAN's Price/Earnings ratio is a bit cheaper when compared to the industry. CWAN is cheaper than 62.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of CWAN to the average of the S&P500 Index (28.04), we can say CWAN is valued expensively.
With a Price/Forward Earnings ratio of 29.48, CWAN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CWAN is valued a bit cheaper than the industry average as 65.96% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, CWAN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.42 | ||
| Fwd PE | 29.48 |
4.2 Price Multiples
CWAN's Enterprise Value to EBITDA is on the same level as the industry average.
CWAN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.33 | ||
| EV/EBITDA | 177.95 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as CWAN's earnings are expected to grow with 21.07% in the coming years.
PEG (NY)1.59
PEG (5Y)0.4
EPS Next 2Y26.78%
EPS Next 3Y21.07%
5. Dividend
5.1 Amount
No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.32
+0.19 (+0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.27%
Inst Owner Change0.02%
Ins Owners1.17%
Ins Owner Change24.21%
Market Cap6.04B
Analysts83.33
Price Target33.86 (58.82%)
Short Float %5.04%
Short Ratio3.39
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)7.94%
Min EPS beat(2)2.56%
Max EPS beat(2)13.33%
EPS beat(4)3
Avg EPS beat(4)5.76%
Min EPS beat(4)-0.14%
Max EPS beat(4)13.33%
EPS beat(8)7
Avg EPS beat(8)10.35%
EPS beat(12)10
Avg EPS beat(12)9.92%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.25%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)3.06%
Revenue beat(4)2
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-0.78%
Max Revenue beat(4)3.06%
Revenue beat(8)5
Avg Revenue beat(8)0.24%
Revenue beat(12)7
Avg Revenue beat(12)0.08%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.48%
PT rev (3m)-7.21%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)35.13%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)34.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.42 | ||
| Fwd PE | 29.48 | ||
| P/S | 12.69 | ||
| P/FCF | 72.33 | ||
| P/OCF | 68.03 | ||
| P/B | 5.41 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 177.95 |
EPS(TTM)0.48
EY2.25%
EPS(NY)0.72
Fwd EY3.39%
FCF(TTM)0.29
FCFY1.38%
OCF(TTM)0.31
OCFY1.47%
SpS1.68
BVpS3.94
TBVpS3.18
PEG (NY)1.59
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.38% | ||
| ROE | 38.45% | ||
| ROCE | 1.62% | ||
| ROIC | 1.28% | ||
| ROICexc | 1.67% | ||
| ROICexgc | 2.19% | ||
| OM | 4.09% | ||
| PM (TTM) | 90.13% | ||
| GM | 72.95% | ||
| FCFM | 17.54% |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.54 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 41.39% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | 275.22% | ||
| Profit Quality | 19.46% | ||
| Current Ratio | 5.09 | ||
| Quick Ratio | 5.09 | ||
| Altman-Z | 22.24 |
F-Score5
WACC11.06%
ROIC/WACC0.12
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 Y27.96%
EPS Next 2Y26.78%
EPS Next 3Y21.07%
EPS Next 5Y28.57%
Revenue 1Y (TTM)23.21%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%23.51%
Revenue Next Year62.45%
Revenue Next 2Y44.99%
Revenue Next 3Y35.46%
Revenue Next 5Y27.93%
EBIT growth 1Y283.86%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year70.47%
EBIT Next 3Y42.13%
EBIT Next 5Y36.03%
FCF growth 1Y61.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.4%
OCF growth 3Y180.71%
OCF growth 5YN/A