CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis
NYSE:CWAN - New York Stock Exchange, Inc. - US1851231068 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CWAN. CWAN was compared to 282 industry peers in the Software industry. While CWAN has a great health rating, its profitability is only average at the moment. CWAN is valued quite expensive, but it does show an excellent growth. This makes CWAN very considerable 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
With an excellent Return On Assets value of 33.38%, CWAN belongs to the best of the industry, outperforming 98.23% of the companies in the same industry.
CWAN has a better Return On Equity (38.45%) than 93.26% of its industry peers.
CWAN's Return On Invested Capital of 1.28% is fine compared to the rest of the industry. CWAN outperforms 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
CWAN has a better Profit Margin (90.13%) than 98.94% of its industry peers.
In the last couple of years the Profit Margin of CWAN has grown nicely.
With a decent Operating Margin value of 4.09%, CWAN is doing good in the industry, outperforming 70.57% of the companies in the same industry.
CWAN's Operating Margin has declined in the last couple of years.
CWAN's Gross Margin of 72.95% is fine compared to the rest of the industry. CWAN outperforms 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
CWAN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CWAN has been increased compared to 1 year ago.
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
CWAN has an Altman-Z score of 23.25. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
CWAN has a better Altman-Z score (23.25) than 94.68% 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.
With a Debt to Equity ratio value of 0.04, CWAN perfoms like the industry average, outperforming 58.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 23.25 |
ROIC/WACC0.12
WACC10.97%
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.
With an excellent Current ratio value of 5.09, CWAN belongs to the best of the industry, outperforming 88.65% of the companies in the same industry.
A Quick Ratio of 5.09 indicates that CWAN has no problem at all paying its short term obligations.
CWAN's Quick ratio of 5.09 is amongst the best of the industry. CWAN outperforms 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
Looking at the last year, CWAN shows a very strong growth in Revenue. The Revenue has grown by 23.21%.
The Revenue has been growing by 21.88% on average over the past years. This is a very strong growth!
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 Y29.2%
EPS Next 2Y27.24%
EPS Next 3Y16.22%
EPS Next 5Y28.57%
Revenue Next Year62.42%
Revenue Next 2Y45.28%
Revenue Next 3Y35.34%
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
A Price/Earnings ratio of 46.13 indicates a quite expensive valuation of CWAN.
Compared to the rest of the industry, the Price/Earnings ratio of CWAN indicates a somewhat cheap valuation: CWAN is cheaper than 62.06% of the companies listed in the same industry.
CWAN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
CWAN is valuated quite expensively with a Price/Forward Earnings ratio of 30.39.
64.89% of the companies in the same industry are more expensive than CWAN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CWAN to the average of the S&P500 Index (21.90), we can say CWAN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.13 | ||
| Fwd PE | 30.39 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CWAN.
CWAN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.12 | ||
| EV/EBITDA | 186.82 |
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 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 16.22% in the coming years.
PEG (NY)1.58
PEG (5Y)0.42
EPS Next 2Y27.24%
EPS Next 3Y16.22%
5. Dividend
5.1 Amount
No dividends for CWAN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.14
+0.37 (+1.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.27%
Inst Owner Change5.9%
Ins Owners1.17%
Ins Owner Change42.84%
Market Cap6.27B
Analysts83.33
Price Target34.57 (56.14%)
Short Float %4.43%
Short Ratio2.72
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)-1.93%
PT rev (3m)-6.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.57%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)7.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)35.16%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)34.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.13 | ||
| Fwd PE | 30.39 | ||
| P/S | 13.18 | ||
| P/FCF | 75.12 | ||
| P/OCF | 70.64 | ||
| P/B | 5.62 | ||
| P/tB | 6.97 | ||
| EV/EBITDA | 186.82 |
EPS(TTM)0.48
EY2.17%
EPS(NY)0.73
Fwd EY3.29%
FCF(TTM)0.29
FCFY1.33%
OCF(TTM)0.31
OCFY1.42%
SpS1.68
BVpS3.94
TBVpS3.18
PEG (NY)1.58
PEG (5Y)0.42
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 | 23.25 |
F-Score5
WACC10.97%
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 Y29.2%
EPS Next 2Y27.24%
EPS Next 3Y16.22%
EPS Next 5Y28.57%
Revenue 1Y (TTM)23.21%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%23.51%
Revenue Next Year62.42%
Revenue Next 2Y45.28%
Revenue Next 3Y35.34%
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