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POWERSCHOOL HOLDINGS INC-A (PWSC) Stock Fundamental Analysis

NYSE:PWSC - New York Stock Exchange, Inc. - US73939C1062 - Common Stock - Currency: USD

22.81  -0.04 (-0.18%)

After market: 22.82 +0.01 (+0.04%)

Fundamental Rating

3

Overall PWSC gets a fundamental rating of 3 out of 10. We evaluated PWSC against 281 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.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year PWSC was profitable.
PWSC had a positive operating cash flow in the past year.
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.
PWSC's Return On Equity of -4.32% is in line compared to the rest of the industry. PWSC outperforms 57.45% of its industry peers.
The Return On Invested Capital of PWSC (0.35%) is better 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 12.03%.
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 better Operating Margin (2.05%) than 65.96% of its industry peers.
In the last couple of years the Operating Margin of PWSC has declined.
PWSC's Gross Margin of 58.82% is on the low side compared to the rest of the industry. PWSC is outperformed by 62.06% of its industry peers.
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

1

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.
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.
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.
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.
With a Debt to Equity ratio value of 0.77, PWSC is not doing good in the industry: 71.99% of the companies in the same industry are doing better.
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 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 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

5

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%.
PWSC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.06% yearly.
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.
Based on estimates for the next years, PWSC will show a quite strong growth in Revenue. The Revenue will grow by 11.40% on average per year.
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

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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

3

4. Valuation

4.1 Price/Earnings Ratio

PWSC is valuated quite expensively with a Price/Earnings ratio of 28.16.
73.05% of the companies in the same industry are more expensive than PWSC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.75, PWSC is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.89, the valuation of PWSC can be described as rather expensive.
PWSC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PWSC is cheaper than 79.08% of the companies in the same industry.
PWSC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.49.
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

PWSC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PWSC is cheaper than 71.63% of the companies 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 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%

0

5. Dividend

5.1 Amount

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

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 SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-09 2024-08-09/amc
Earnings (Next)11-01 2024-11-01/amc
Inst Owners61.59%
Inst Owner Change-0.17%
Ins Owners0.19%
Ins Owner Change0%
Market Cap4.66B
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
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
ROICexcg growth 3YN/A
ROICexcg 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