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CLEARWATER ANALYTICS HDS-A (CWAN) Stock Fundamental Analysis

NYSE:CWAN - New York Stock Exchange, Inc. - US1851231068 - Common Stock - Currency: USD

19.68  +0.44 (+2.29%)

After market: 19.79 +0.11 (+0.56%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to CWAN. CWAN was compared to 283 industry peers in the Software industry. CWAN has only an average score on both its financial health and profitability. CWAN is growing strongly while it is still valued neutral. This is a good combination! 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

CWAN had positive earnings in the past year.
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.
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

With an excellent Return On Assets value of 13.44%, CWAN belongs to the best of the industry, outperforming 90.46% of the companies in the same industry.
CWAN has a better Return On Equity (20.64%) than 86.93% of its industry peers.
With a decent Return On Invested Capital value of 0.03%, CWAN is doing good in the industry, outperforming 61.13% of the companies in the same industry.
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

The Profit Margin of CWAN (73.71%) is better than 96.47% of its industry peers.
CWAN's Profit Margin has improved in the last couple of years.
CWAN's Operating Margin of 0.19% is fine compared to the rest of the industry. CWAN outperforms 61.13% of its industry peers.
CWAN's Operating Margin has declined in the last couple of years.
CWAN has a Gross Margin (70.56%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CWAN has remained more or less at the same level.
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
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.
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

CWAN has an Altman-Z score of 3.64. This indicates that CWAN is financially healthy and has little risk of bankruptcy at the moment.
CWAN has a better Altman-Z score (3.64) than 64.31% 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 has a Debt to FCF ratio (10.33) which is comparable to the rest of the industry.
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 63.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 10.33
Altman-Z 3.64
ROIC/WACC0
WACC11.36%
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.
CWAN has a Current ratio of 2.02. This is in the better half of the industry: CWAN outperforms 61.48% of its industry peers.
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.
With a decent Quick ratio value of 2.02, CWAN is doing good in the industry, outperforming 62.19% of the companies in the same industry.
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.
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 36.68% 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)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

CWAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.57% yearly.
The Revenue is expected to grow by 27.93% on average over the next years. This is a very strong growth
EPS Next Y27.96%
EPS Next 2Y26.78%
EPS Next 3Y21.07%
EPS Next 5Y28.57%
Revenue Next Year62.61%
Revenue Next 2Y45.03%
Revenue Next 3Y35.38%
Revenue Next 5Y27.93%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 39.36, which means the current valuation is very expensive for CWAN.
Based on the Price/Earnings ratio, CWAN is valued a bit cheaper than 61.13% of the companies in the same industry.
CWAN is valuated rather expensively when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 27.21 indicates a quite expensive valuation of CWAN.
Based on the Price/Forward Earnings ratio, CWAN is valued a bit cheaper than 67.49% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.24, CWAN is valued a bit cheaper.
Industry RankSector Rank
PE 39.36
Fwd PE 27.21
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 67.72
EV/EBITDA 190.09
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 21.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)0.35
EPS Next 2Y26.78%
EPS Next 3Y21.07%

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0

5. Dividend

5.1 Amount

No dividends for CWAN!.
Industry RankSector Rank
Dividend Yield N/A

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CLEARWATER ANALYTICS HDS-A

NYSE:CWAN (8/18/2025, 7:29:53 PM)

After market: 19.79 +0.11 (+0.56%)

19.68

+0.44 (+2.29%)

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 Change15.74%
Ins Owners0.91%
Ins Owner Change24.21%
Market Cap5.76B
Analysts82.35
Price Target33.89 (72.21%)
Short Float %3.83%
Short Ratio2.3
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)-1.97%
PT rev (3m)-3.86%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)5.27%
EPS NY rev (1m)0%
EPS NY rev (3m)5.36%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)47.58%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 39.36
Fwd PE 27.21
P/S 10.44
P/FCF 67.72
P/OCF 62.6
P/B 2.93
P/tB N/A
EV/EBITDA 190.09
EPS(TTM)0.5
EY2.54%
EPS(NY)0.72
Fwd EY3.68%
FCF(TTM)0.29
FCFY1.48%
OCF(TTM)0.31
OCFY1.6%
SpS1.88
BVpS6.73
TBVpS-0.14
PEG (NY)1.41
PEG (5Y)0.35
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 3.64
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 Y27.96%
EPS Next 2Y26.78%
EPS Next 3Y21.07%
EPS Next 5Y28.57%
Revenue 1Y (TTM)36.68%
Revenue growth 3Y21.48%
Revenue growth 5Y21.88%
Sales Q2Q%70.37%
Revenue Next Year62.61%
Revenue Next 2Y45.03%
Revenue Next 3Y35.38%
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