Clearwater Analytics Holdings, Inc.
Clearwater Analytics Holdings, Inc. Fundamental Analysis
Clearwater Analytics Holdings, Inc. (CWAN) shows moderate financial fundamentals with a PE ratio of -172.20, profit margin of -5.31%, and ROE of -2.19%. The company generates $0.7B in annual revenue with strong year-over-year growth of 22.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CWAN's fundamental strength across five key dimensions:
Efficiency Score
WeakCWAN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCWAN trades at attractive valuation levels.
Growth Score
ExcellentCWAN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCWAN maintains a strong and stable balance sheet.
Profitability Score
WeakCWAN struggles to sustain strong margins.
Key Financial Metrics
Is CWAN Expensive or Cheap?
P/E Ratio
CWAN trades at -172.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CWAN's PEG of 1.60 indicates fair valuation.
Price to Book
The market values Clearwater Analytics Holdings, Inc. at 3.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 61.07 times EBITDA. This signals the market has high growth expectations.
How Well Does CWAN Make Money?
Net Profit Margin
For every $100 in sales, Clearwater Analytics Holdings, Inc. keeps $-5.31 as profit after all expenses.
Operating Margin
Core operations generate 1.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.19 in profit for every $100 of shareholder equity.
ROA
Clearwater Analytics Holdings, Inc. generates $-1.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Clearwater Analytics Holdings, Inc. produces operating cash flow of $175.91M, showing steady but balanced cash generation.
Free Cash Flow
Clearwater Analytics Holdings, Inc. generates strong free cash flow of $164.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.57 in free cash annually.
FCF Yield
CWAN converts 2.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-172.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.003
vs 25 benchmark
How CWAN Stacks Against Its Sector Peers
| Metric | CWAN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -172.20 | 34.79 | Better (Cheaper) |
| ROE | -2.19% | 1185.00% | Weak |
| Net Margin | -5.31% | -133093.00% (disorted) | Weak |
| Debt/Equity | 0.44 | 0.43 | Neutral |
| Current Ratio | 1.83 | 4.90 | Neutral |
| ROA | -1.28% | -324805.00% (disorted) | Weak |
CWAN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Clearwater Analytics Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
189.36%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
5805.57%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
134.76%
Industry Style: Growth, Innovation, High Beta
High Growth