POWERSCHOOL HOLDINGS INC-A (PWSC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PWSC - US73939C1062 - Common Stock
22.81 USD
-0.04 (-0.18%)
22.82 USD
+0.01 (+0.04%)
Taking everything into account, PWSC scores 3 out of 10 in our fundamental rating. PWSC was compared to 280 industry peers in the Software industry. PWSC has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PWSC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PWSC was profitable.
PWSC had a positive operating cash flow in the past year.
PWSC had negative earnings in each of the past 5 years.
PWSC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PWSC has a Return On Assets (-1.48%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -4.32%, PWSC is in line with its industry, outperforming 57.45% of the companies in the same industry.
PWSC has a better Return On Invested Capital (0.35%) than 64.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PWSC is significantly below the industry average of 12.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.48% | ||
| ROE | -4.32% | ||
| ROIC | 0.35% |
ROA(3y)-0.79%
ROA(5y)-1.33%
ROE(3y)-2.27%
ROE(5y)-2.97%
ROIC(3y)0.41%
ROIC(5y)N/A
1.3 Margins
PWSC's Operating Margin of 2.05% is fine compared to the rest of the industry. PWSC outperforms 65.96% of its industry peers.
PWSC's Operating Margin has declined in the last couple of years.
The Gross Margin of PWSC (58.82%) is worse than 62.06% of its industry peers.
PWSC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.05% | ||
| PM (TTM) | N/A | ||
| GM | 58.82% |
OM growth 3Y-10.66%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.99%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PWSC is destroying value.
PWSC has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, PWSC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that PWSC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.12, PWSC is not doing good in the industry: 62.06% of the companies in the same industry are doing better.
PWSC has a debt to FCF ratio of 12.08. This is a negative value and a sign of low solvency as PWSC would need 12.08 years to pay back of all of its debts.
PWSC has a Debt to FCF ratio (12.08) which is in line with its industry peers.
PWSC has a Debt/Equity ratio of 0.77. This is a neutral value indicating PWSC is somewhat dependend on debt financing.
PWSC has a worse Debt to Equity ratio (0.77) than 71.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.08 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.03
WACC10.25%
2.3 Liquidity
PWSC has a Current Ratio of 0.28. This is a bad value and indicates that PWSC is not financially healthy enough and could expect problems in meeting its short term obligations.
PWSC has a worse Current ratio (0.28) than 96.81% of its industry peers.
A Quick Ratio of 0.28 indicates that PWSC may have some problems paying its short term obligations.
PWSC's Quick ratio of 0.28 is on the low side compared to the rest of the industry. PWSC is outperformed by 96.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for PWSC have decreased by -8.99% in the last year.
PWSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.79%.
The Revenue has been growing by 17.06% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y17.06%
Revenue growth 5YN/A
Sales Q2Q%10.18%
3.2 Future
PWSC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.06% yearly.
The Revenue is expected to grow by 11.40% on average over the next years. This is quite good.
EPS Next Y14.16%
EPS Next 2Y18.27%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue Next Year12.84%
Revenue Next 2Y11.67%
Revenue Next 3Y11.4%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.16, PWSC can be considered very expensive at the moment.
PWSC's Price/Earnings ratio is a bit cheaper when compared to the industry. PWSC is cheaper than 73.05% of the companies in the same industry.
PWSC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 19.89 indicates a rather expensive valuation of PWSC.
Based on the Price/Forward Earnings ratio, PWSC is valued a bit cheaper than the industry average as 79.08% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.59. PWSC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PWSC is valued a bit cheaper than the industry average as 71.63% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as PWSC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.03 | ||
| EV/EBITDA | 35.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PWSC's earnings are expected to grow with 16.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)N/A
EPS Next 2Y18.27%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
No dividends for PWSC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.81
-0.04 (-0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners61.59%
Inst Owner Change-100%
Ins Owners0.19%
Ins Owner Change0%
Market Cap4.66B
Revenue(TTM)740.89M
Net Income(TTM)-55.69M
Analysts72.86
Price Target25.32 (11%)
Short Float %N/A
Short RatioN/A
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)0
Avg EPS beat(2)-13.21%
Min EPS beat(2)-19.52%
Max EPS beat(2)-6.91%
EPS beat(4)1
Avg EPS beat(4)-7.62%
Min EPS beat(4)-19.91%
Max EPS beat(4)15.86%
EPS beat(8)3
Avg EPS beat(8)-0.79%
EPS beat(12)6
Avg EPS beat(12)8.5%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-3.8%
Max Revenue beat(2)-1.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.8%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-2.14%
Revenue beat(12)2
Avg Revenue beat(12)-1.17%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.86%
PT rev (3m)3.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 19.89 | ||
| P/S | 6.29 | ||
| P/FCF | 56.03 | ||
| P/OCF | 36.91 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.29 |
EPS(TTM)0.81
EY3.55%
EPS(NY)1.15
Fwd EY5.03%
FCF(TTM)0.41
FCFY1.78%
OCF(TTM)0.62
OCFY2.71%
SpS3.63
BVpS6.31
TBVpS-11.06
PEG (NY)1.99
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.48% | ||
| ROE | -4.32% | ||
| ROCE | 0.47% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.36% | ||
| ROICexgc | N/A | ||
| OM | 2.05% | ||
| PM (TTM) | N/A | ||
| GM | 58.82% | ||
| FCFM | 11.23% |
ROA(3y)-0.79%
ROA(5y)-1.33%
ROE(3y)-2.27%
ROE(5y)-2.97%
ROIC(3y)0.41%
ROIC(5y)N/A
ROICexc(3y)0.42%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)0.52%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y0.35%
ROICexc growth 5YN/A
OM growth 3Y-10.66%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.99%
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 12.08 | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 30.89% | ||
| Cap/Sales | 5.81% | ||
| Interest Coverage | 0.21 | ||
| Cash Conversion | 81.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 1.12 |
F-Score4
WACC10.25%
ROIC/WACC0.03
Cap/Depr(3y)34.47%
Cap/Depr(5y)35.58%
Cap/Sales(3y)6.72%
Cap/Sales(5y)7.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y14.16%
EPS Next 2Y18.27%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue 1Y (TTM)12.79%
Revenue growth 3Y17.06%
Revenue growth 5YN/A
Sales Q2Q%10.18%
Revenue Next Year12.84%
Revenue Next 2Y11.67%
Revenue Next 3Y11.4%
Revenue Next 5YN/A
EBIT growth 1Y-19.97%
EBIT growth 3Y4.59%
EBIT growth 5YN/A
EBIT Next Year44.79%
EBIT Next 3Y23.92%
EBIT Next 5YN/A
FCF growth 1Y15.54%
FCF growth 3Y30.83%
FCF growth 5YN/A
OCF growth 1Y11.04%
OCF growth 3Y23.99%
OCF growth 5YN/A
POWERSCHOOL HOLDINGS INC-A / PWSC FAQ
What is the fundamental rating for PWSC stock?
ChartMill assigns a fundamental rating of 3 / 10 to PWSC.
Can you provide the valuation status for POWERSCHOOL HOLDINGS INC-A?
ChartMill assigns a valuation rating of 3 / 10 to POWERSCHOOL HOLDINGS INC-A (PWSC). This can be considered as Overvalued.
What is the profitability of PWSC stock?
POWERSCHOOL HOLDINGS INC-A (PWSC) has a profitability rating of 3 / 10.
Can you provide the financial health for PWSC stock?
The financial health rating of POWERSCHOOL HOLDINGS INC-A (PWSC) is 1 / 10.