POWERSCHOOL HOLDINGS INC-A (PWSC) Stock Fundamental Analysis

NYSE:PWSC • US73939C1062

22.81 USD
-0.04 (-0.18%)
At close: Sep 30, 2024
22.82 USD
+0.01 (+0.04%)
After Hours: 9/30/2024, 8:04:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Overall PWSC gets a fundamental rating of 3 out of 10. We evaluated PWSC against 276 industry peers in the Software industry. PWSC has a bad profitability rating. Also its financial health evaluation is rather negative. PWSC is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • PWSC had positive earnings in the past year.
  • In the past year PWSC had a positive cash flow from operations.
  • In the past 5 years PWSC always reported negative net income.
  • Each year in the past 5 years PWSC had a positive operating cash flow.
PWSC Yearly Net Income VS EBIT VS OCF VS FCFPWSC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M 150M

1.2 Ratios

  • Looking at the Return On Assets, with a value of -1.48%, PWSC is in line with its industry, outperforming 58.16% of the companies in the same industry.
  • The Return On Equity of PWSC (-4.32%) is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 0.35%, PWSC is in the better half of the industry, outperforming 64.54% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for PWSC is significantly below the industry average of 10.64%.
Industry RankSector 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
PWSC Yearly ROA, ROE, ROICPWSC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 -1 -2 -3 -4 -5

1.3 Margins

  • The Operating Margin of PWSC (2.05%) is better than 65.96% of its industry peers.
  • PWSC's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 58.82%, PWSC is doing worse than 62.06% of the companies in the same industry.
  • PWSC's Gross Margin has improved in the last couple of years.
Industry RankSector 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
PWSC Yearly Profit, Operating, Gross MarginsPWSC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 -20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PWSC is destroying value.
  • The number of shares outstanding for PWSC has been increased compared to 1 year ago.
  • Compared to 1 year ago, PWSC has a worse debt to assets ratio.
PWSC Yearly Shares OutstandingPWSC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 50M 100M 150M 200M
PWSC Yearly Total Debt VS Total AssetsPWSC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 1B 2B 3B

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.
  • PWSC has a Altman-Z score of 1.12. This is in the lower half of the industry: PWSC underperforms 62.06% of its industry peers.
  • The Debt to FCF ratio of PWSC is 12.08, which is on the high side as it means it would take PWSC, 12.08 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 12.08, PWSC perfoms like the industry average, outperforming 48.58% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0.77
Debt/FCF 12.08
Altman-Z 1.12
ROIC/WACC0.03
WACC10.25%
PWSC Yearly LT Debt VS Equity VS FCFPWSC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.28 indicates that PWSC may have some problems paying its short term obligations.
  • PWSC's Current ratio of 0.28 is on the low side compared to the rest of the industry. PWSC is outperformed by 96.81% of its industry peers.
  • PWSC has a Quick 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.
  • Looking at the Quick ratio, with a value of 0.28, PWSC is doing worse than 96.45% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.28
Quick Ratio 0.28
PWSC Yearly Current Assets VS Current LiabilitesPWSC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • PWSC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.99%.
  • Looking at the last year, PWSC shows a quite strong growth in Revenue. The Revenue has grown by 12.79% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 16.06% on average over the next years. This is quite good.
  • PWSC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
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.
PWSC Yearly Revenue VS EstimatesPWSC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
PWSC Yearly EPS VS EstimatesPWSC Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 28.16, the valuation of PWSC can be described as expensive.
  • Based on the Price/Earnings ratio, PWSC is valued a bit cheaper than the industry average as 73.05% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.09. PWSC is around the same levels.
  • PWSC is valuated rather expensively with a Price/Forward Earnings ratio of 19.89.
  • 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.
  • PWSC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.16
Fwd PE 19.89
PWSC Price Earnings VS Forward Price EarningsPWSC 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 PWSC indicates a somewhat cheap valuation: PWSC is cheaper than 71.63% of the companies listed in the same industry.
  • PWSC's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 56.03
EV/EBITDA 35.29
PWSC Per share dataPWSC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 -10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PWSC does not grow enough to justify the current Price/Earnings ratio.
  • 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

POWERSCHOOL HOLDINGS INC-A

NYSE:PWSC (9/30/2024, 8:04:01 PM)

After market: 22.82 +0.01 (+0.04%)

22.81

-0.04 (-0.18%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-09
Earnings (Next)11-01
Inst Owners61.59%
Inst Owner Change0%
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 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)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 RankSector 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 RankSector 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 RankSector 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.


What is the valuation status of POWERSCHOOL HOLDINGS INC-A (PWSC) stock?

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.


What is the valuation of POWERSCHOOL HOLDINGS INC-A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for POWERSCHOOL HOLDINGS INC-A (PWSC) is 28.16 and the Price/Book (PB) ratio is 3.61.


What is the earnings growth outlook for POWERSCHOOL HOLDINGS INC-A?

The Earnings per Share (EPS) of POWERSCHOOL HOLDINGS INC-A (PWSC) is expected to grow by 14.16% in the next year.