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%)
We assign a fundamental rating of 3 out of 10 to PWSC. PWSC was compared to 276 industry peers in the Software industry. PWSC may be in some trouble as it scores bad on both profitability and health. PWSC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PWSC was profitable.
In the past year PWSC had a positive cash flow from operations.
In the past 5 years PWSC always reported negative net income.
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.
PWSC has a Return On Equity (-4.32%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 0.35%, PWSC is doing good in the industry, outperforming 64.54% of the companies in the same industry.
PWSC had an Average Return On Invested Capital over the past 3 years of 0.41%. This is significantly below the industry average of 10.78%.
| 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
Looking at the Operating Margin, with a value of 2.05%, PWSC is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
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.
In the last couple of years the Gross Margin of PWSC has grown nicely.
| 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
PWSC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The Altman-Z score of PWSC (1.12) is worse than 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.
A Debt/Equity ratio of 0.77 indicates that PWSC is somewhat dependend on debt financing.
PWSC has a Debt to Equity ratio of 0.77. This is in the lower half of the industry: PWSC underperforms 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
A Current Ratio of 0.28 indicates that PWSC may have some problems paying its short term obligations.
The Current ratio of PWSC (0.28) is worse than 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.
PWSC has a Quick ratio of 0.28. This is amonst the worse of the industry: PWSC underperforms 96.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
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%.
PWSC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.79%.
Measured over the past years, PWSC shows a quite strong growth in Revenue. The Revenue has been growing by 17.06% on average per year.
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.
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
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.
PWSC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.89 indicates a rather expensive valuation of PWSC.
79.08% of the companies in the same industry are more expensive than PWSC, based on the Price/Forward Earnings ratio.
PWSC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 19.89 |
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 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.
A more expensive valuation may be justified as PWSC's earnings are expected to grow with 16.06% in the coming years.
PEG (NY)1.99
PEG (5Y)N/A
EPS Next 2Y18.27%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
PWSC does not give a dividend.
| 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.