Commvault Systems, Inc.
Commvault Systems, Inc. Fundamental Analysis
Commvault Systems, Inc. (CVLT) shows moderate financial fundamentals with a PE ratio of 43.40, profit margin of 7.58%, and ROE of 31.15%. The company generates $1.1B in annual revenue with strong year-over-year growth of 18.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CVLT's fundamental strength across five key dimensions:
Efficiency Score
WeakCVLT struggles to generate sufficient returns from assets.
Valuation Score
WeakCVLT trades at a premium to fair value.
Growth Score
ModerateCVLT shows steady but slowing expansion.
Financial Health Score
ModerateCVLT shows balanced financial health with some risks.
Profitability Score
ModerateCVLT maintains healthy but balanced margins.
Key Financial Metrics
Is CVLT Expensive or Cheap?
P/E Ratio
CVLT trades at 43.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CVLT's PEG of 5.24 indicates potential overvaluation.
Price to Book
The market values Commvault Systems, Inc. at 17.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.87 times EBITDA. This signals the market has high growth expectations.
How Well Does CVLT Make Money?
Net Profit Margin
For every $100 in sales, Commvault Systems, Inc. keeps $7.58 as profit after all expenses.
Operating Margin
Core operations generate 7.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.15 in profit for every $100 of shareholder equity.
ROA
Commvault Systems, Inc. generates $4.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Commvault Systems, Inc. produces operating cash flow of $189.38M, showing steady but balanced cash generation.
Free Cash Flow
Commvault Systems, Inc. generates strong free cash flow of $181.41M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.11 in free cash annually.
FCF Yield
CVLT converts 4.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How CVLT Stacks Against Its Sector Peers
| Metric | CVLT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.40 | 34.79 | Worse (Expensive) |
| ROE | 31.15% | 1185.00% | Weak |
| Net Margin | 7.58% | -131296.00% (disorted) | Weak |
| Debt/Equity | 4.39 | 0.43 | Weak (High Leverage) |
| Current Ratio | 2.34 | 4.90 | Strong Liquidity |
| ROA | 4.27% | -325472.00% (disorted) | Weak |
CVLT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Commvault Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.98%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1507.94%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
144.81%
Industry Style: Growth, Innovation, High Beta
High Growth