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CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis

NYSE:CWAN - US1851231068 - Common Stock

20.27 USD
-0.13 (-0.64%)
Last: 9/9/2025, 8:04:00 PM
20.076 USD
-0.19 (-0.96%)
After Hours: 9/9/2025, 8:04:00 PM
Fundamental Rating

6

Taking everything into account, CWAN scores 6 out of 10 in our fundamental rating. CWAN was compared to 280 industry peers in the Software industry. CWAN has only an average score on both its financial health and profitability. CWAN is valued quite expensively, but it does show have an excellent growth rating. With these ratings, CWAN could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

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6

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.
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.
CWAN Yearly Net Income VS EBIT VS OCF VS FCFCWAN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

The Return On Assets of CWAN (13.44%) is better than 90.36% of its industry peers.
The Return On Equity of CWAN (20.64%) is better than 86.43% of its industry peers.
CWAN has a Return On Invested Capital of 0.03%. This is in the better half of the industry: CWAN outperforms 60.36% of its industry peers.
Industry RankSector 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
CWAN Yearly ROA, ROE, ROICCWAN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

1.3 Margins

CWAN has a Profit Margin of 73.71%. This is amongst the best in the industry. CWAN outperforms 95.71% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
The Operating Margin of CWAN (0.19%) is better than 60.36% of its industry peers.
In the last couple of years the Operating Margin of CWAN has declined.
Looking at the Gross Margin, with a value of 70.56%, CWAN is in line with its industry, outperforming 55.36% of the companies in the same industry.
CWAN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
CWAN Yearly Profit, Operating, Gross MarginsCWAN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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5

2. Health

2.1 Basic Checks

CWAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CWAN has more shares outstanding
The number of shares outstanding for CWAN has been increased compared to 5 years ago.
CWAN has a better debt/assets ratio than last year.
CWAN Yearly Shares OutstandingCWAN Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
CWAN Yearly Total Debt VS Total AssetsCWAN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 3.76 indicates that CWAN is not in any danger for bankruptcy at the moment.
CWAN's Altman-Z score of 3.76 is fine compared to the rest of the industry. CWAN outperforms 63.21% of its industry peers.
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's Debt to FCF ratio of 10.33 is in line compared to the rest of the industry. CWAN outperforms 50.71% of its industry peers.
CWAN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
CWAN has a Debt to Equity ratio of 0.44. This is in the lower half of the industry: CWAN underperforms 63.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 10.33
Altman-Z 3.76
ROIC/WACC0
WACC11.16%
CWAN Yearly LT Debt VS Equity VS FCFCWAN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M 1B

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.
The Current ratio of CWAN (2.02) is better than 62.50% of its industry peers.
A Quick Ratio of 2.02 indicates that CWAN has no problem at all paying its short term obligations.
CWAN's Quick ratio of 2.02 is fine compared to the rest of the industry. CWAN outperforms 63.57% of its industry peers.
Industry RankSector Rank
Current Ratio 2.02
Quick Ratio 2.02
CWAN Yearly Current Assets VS Current LiabilitesCWAN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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10

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.
The Revenue has grown by 36.68% in the past year. This is a very strong growth!
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
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.
The Revenue is expected to grow by 27.93% on average over the next years. This is a very strong growth
EPS Next Y26.25%
EPS Next 2Y28.46%
EPS Next 3Y25.64%
EPS Next 5Y28.57%
Revenue Next Year63.81%
Revenue Next 2Y46.13%
Revenue Next 3Y36.41%
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.
CWAN Yearly Revenue VS EstimatesCWAN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B 1.5B
CWAN Yearly EPS VS EstimatesCWAN Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 40.54 indicates a quite expensive valuation of CWAN.
Compared to the rest of the industry, the Price/Earnings ratio of CWAN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.07, CWAN is valued a bit more expensive.
With a Price/Forward Earnings ratio of 27.30, CWAN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CWAN is valued a bit cheaper than 65.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CWAN to the average of the S&P500 Index (22.59), we can say CWAN is valued slightly more expensively.
Industry RankSector Rank
PE 40.54
Fwd PE 27.3
CWAN Price Earnings VS Forward Price EarningsCWAN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWAN is on the same level as its industry peers.
CWAN's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 69.75
EV/EBITDA 196.19
CWAN Per share dataCWAN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CWAN may justify a higher PE ratio.
CWAN's earnings are expected to grow with 25.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)0.37
EPS Next 2Y28.46%
EPS Next 3Y25.64%

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0

5. Dividend

5.1 Amount

CWAN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CLEARWATER ANALYTICS HDS-A

NYSE:CWAN (9/9/2025, 8:04:00 PM)

After market: 20.076 -0.19 (-0.96%)

20.27

-0.13 (-0.64%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-06 2025-08-06/amc
Earnings (Next)11-04 2025-11-04/amc
Inst Owners86.72%
Inst Owner Change15.81%
Ins Owners0.91%
Ins Owner Change3.36%
Market Cap5.93B
Analysts83.53
Price Target32.3 (59.35%)
Short Float %4.4%
Short Ratio2.73
Dividend
Industry RankSector 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)-4.68%
PT rev (3m)-8.36%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)6.77%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-3.76%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)47.6%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)0.82%
Valuation
Industry RankSector Rank
PE 40.54
Fwd PE 27.3
P/S 10.76
P/FCF 69.75
P/OCF 64.48
P/B 3.01
P/tB N/A
EV/EBITDA 196.19
EPS(TTM)0.5
EY2.47%
EPS(NY)0.74
Fwd EY3.66%
FCF(TTM)0.29
FCFY1.43%
OCF(TTM)0.31
OCFY1.55%
SpS1.88
BVpS6.73
TBVpS-0.14
PEG (NY)1.54
PEG (5Y)0.37
Profitability
Industry RankSector 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 RankSector 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 3.76
F-Score3
WACC11.16%
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 Y26.25%
EPS Next 2Y28.46%
EPS Next 3Y25.64%
EPS Next 5Y28.57%
Revenue 1Y (TTM)36.68%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%70.37%
Revenue Next Year63.81%
Revenue Next 2Y46.13%
Revenue Next 3Y36.41%
Revenue Next 5Y27.93%
EBIT growth 1Y179.89%
EBIT growth 3Y-24.56%
EBIT growth 5Y-21.29%
EBIT Next Year70.5%
EBIT Next 3Y42.85%
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