POWERSCHOOL HOLDINGS INC-A (PWSC) Fundamental Analysis & Valuation

NYSE:PWSC • US73939C1062

Current stock price

22.81 USD
-0.04 (-0.18%)
At close:
22.82 USD
+0.01 (+0.04%)
After Hours:

This PWSC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. PWSC Profitability Analysis

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.
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

  • PWSC has a Return On Assets (-1.48%) which is comparable to the rest of the industry.
  • The Return On Equity of PWSC (-4.32%) is comparable to the rest of the industry.
  • PWSC has a better Return On Invested Capital (0.35%) than 64.54% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PWSC is significantly below the industry average of 10.99%.
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

  • PWSC has a Operating Margin of 2.05%. This is in the better half of the industry: PWSC outperforms 65.96% of its industry peers.
  • In the last couple of years the Operating Margin of PWSC has declined.
  • 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 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. PWSC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PWSC is destroying value.
  • PWSC has more shares outstanding than it did 1 year ago.
  • PWSC has a worse debt/assets ratio than last year.
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

  • PWSC has an Altman-Z score of 1.12. This is a bad value and indicates that PWSC is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of PWSC (1.12) is worse than 62.06% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 12.08, PWSC is in line with its industry, 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.
  • The Debt to Equity ratio of PWSC (0.77) is worse 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.
  • Looking at the Current ratio, with a value of 0.28, PWSC is doing worse than 96.81% of the companies in the same industry.
  • A Quick Ratio of 0.28 indicates that PWSC may have some problems paying its short term obligations.
  • PWSC has a worse Quick ratio (0.28) than 96.45% of its industry peers.
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

More info and screens

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

5

3. PWSC Growth Analysis

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

  • 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.
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

More info and screens

Find the best growth stocksShow best growing peers

3

4. PWSC Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 28.16, PWSC can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of PWSC indicates a somewhat cheap valuation: PWSC is cheaper than 73.05% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of PWSC to the average of the S&P500 Index (26.78), we can say PWSC is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 19.89, the valuation of PWSC can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PWSC indicates a somewhat cheap valuation: PWSC is cheaper than 79.08% of the companies listed in the same industry.
  • PWSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.54.
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

4.2 Price Multiples

  • 71.63% of the companies in the same industry are more expensive than PWSC, based on the Enterprise Value to EBITDA ratio.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as PWSC.
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 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%

More info and screens

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

0

5. PWSC Dividend Analysis

5.1 Amount

  • PWSC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

PWSC Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis 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.


How profitable is POWERSCHOOL HOLDINGS INC-A (PWSC) stock?

POWERSCHOOL HOLDINGS INC-A (PWSC) has a profitability rating of 3 / 10.


Can you provide the PE and PB ratios for PWSC stock?

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