(CWAN) Clearwater Analytics - Overview
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 7.265m USD | Total Return: 3% in 12m
Avg Turnover: 61.8M
EPS Trend: 62.9%
Qual. Beats: 0
Rev. Trend: 96.7%
Qual. Beats: 1
Warnings
Share dilution 19.8% YoY
High Debt/EBITDA (7.8) with thin interest coverage (-0.1)
Interest Coverage Ratio -0.1 is critical
Tailwinds
No distinct edge detected
Clearwater Analytics Holdings Inc. (CWAN) operates a cloud-native SaaS platform designed to automate the lifecycle of investment data. The company provides a unified system for data aggregation, reconciliation, accounting, and regulatory reporting, serving institutional clients including insurers, asset managers, and government entities.
The business model utilizes a single-instance, multi-tenant architecture, which allows for real-time updates and consistent data standards across its entire global user base. In the financial technology sector, this approach reduces the high operational risks and costs typically associated with legacy on-premise accounting software.
For a deeper look into the companys valuation metrics, consider reviewing the detailed analysis on ValueRay. Founded in 2004 and headquartered in Boise, Idaho, the firm maintains a significant presence in the Application Software industry by integrating front, middle, and back-office investment functions into a single platform.
- Expansion into international markets drives long-term subscription revenue growth
- Insurance industry adoption of automated reporting increases market share
- Investment in generative AI features enhances premium tier pricing power
- Transition of legacy asset managers to cloud platforms boosts onboarding
- Macroeconomic volatility increases demand for real-time risk analytics software
| Net Income: -48.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -1.46 > 1.0 |
| NWC/Revenue: 19.83% < 20% (prev 71.25%; Δ -51.42% < -1%) |
| CFO/TA 0.06 > 3% & CFO 169.1m > Net Income -48.1m |
| Net Debt (833.8m) to EBITDA (107.6m): 7.75 < 3 |
| Current Ratio: 2.26 > 1.5 & < 3 |
| Outstanding Shares: last quarter (295.0m) vs 12m ago 19.81% < -2% |
| Gross Margin: 65.97% > 18% (prev 72.95%; Δ -6.98% > 0.5%) |
| Asset Turnover: 38.30% > 50% (prev 37.03%; Δ 1.27% > 0%) |
| Interest Coverage Ratio: -0.08 > 6 (EBIT TTM -4.37m / Interest Expense TTM 57.4m) |
| A: 0.05 (Total Current Assets 294.2m - Total Current Liabilities 130.5m) / Total Assets 3.03b |
| B: 0.09 (Retained Earnings 261.6m / Total Assets 3.03b) |
| C: -0.00 (EBIT TTM -4.37m / Avg Total Assets 2.16b) |
| D: 2.11 (Book Value of Equity 2.05b / Total Liabilities 972.3m) |
| Altman-Z'' = 2.84 = A |
| DSRI: 0.85 (Receivables 169.6m/114.5m, Revenue 825.7m/475.9m) |
| GMI: 1.11 (GM 72.95% / 65.97%) |
| AQI: 1.36 (AQ_t 0.88 / AQ_t-1 0.64) |
| SGI: 1.73 (Revenue 825.7m / 475.9m) |
| TATA: -0.07 (NI -48.1m - CFO 169.1m) / TA 3.03b) |
| Beneish M = -2.32 (Cap -4..+1) = BBB |
As of June 07, 2026, the stock is trading at USD 24.37 with a total of 1,866,860 shares traded.
Over the past week, the price has changed by +0.12%,
over one month by +0.74%,
over three months by +3.53% and
over the past year by +3.00%.
Clearwater Analytics has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy CWAN.
- StrongBuy: 7
- Buy: 4
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 24.5 | 0.4% |
P/E Forward = 34.7222
P/S = 8.7985
P/B = 3.5316
P/EG = 10.2269
Revenue TTM = 825.7m USD
EBIT TTM = -4.37m USD
EBITDA TTM = 107.6m USD
Long Term Debt = 798.4m USD (from longTermDebt, last quarter)
Short Term Debt = 22.2m USD (from shortTermDebt, last quarter)
Debt = 915.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 54.4m
Net Debt = 833.8m USD (calculated: Debt 915.3m - CCE 81.5m)
Enterprise Value = 8.10b USD (7.27b + Debt 915.3m - CCE 81.5m)
Interest Coverage Ratio = -0.08 (Ebit TTM -4.37m / Interest Expense TTM 57.4m)
EV/FCF = 53.11x (Enterprise Value 8.10b / FCF TTM 152.5m)
FCF Yield = 1.88% (FCF TTM 152.5m / Enterprise Value 8.10b)
FCF Margin = 18.47% (FCF TTM 152.5m / Revenue TTM 825.7m)
Net Margin = -5.82% (Net Income TTM -48.1m / Revenue TTM 825.7m)
Gross Margin = 65.97% ((Revenue TTM 825.7m - Cost of Revenue TTM 281.0m) / Revenue TTM)
Gross Margin QoQ = 65.79% (prev 67.24%)
Tobins Q-Ratio = 2.68 (Enterprise Value 8.10b / Total Assets 3.03b)
Interest Expense / Debt = 6.27% (Interest Expense 57.4m / Debt 915.3m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -3.45m (EBIT -4.37m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.26 (Total Current Assets 294.2m / Total Current Liabilities 130.5m)
Debt / Equity = 0.45 (Debt 915.3m / totalStockholderEquity, last quarter 2.05b)
Debt / EBITDA = 7.75 (Net Debt 833.8m / EBITDA 107.6m)
Debt / FCF = 5.47 (Net Debt 833.8m / FCF TTM 152.5m)
Total Stockholder Equity = 2.01b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.23% (Net Income -48.1m / Total Assets 3.03b)
RoE = -2.40% (Net Income TTM -48.1m / Total Stockholder Equity 2.01b)
RoCE = -0.16% (EBIT -4.37m / Capital Employed (Equity 2.01b + L.T.Debt 798.4m))
RoIC = -0.12% (negative operating profit) (NOPAT -3.45m / Invested Capital 2.88b)
WACC = 6.75% (E(7.27b)/V(8.18b) * Re(6.98%) + D(915.3m)/V(8.18b) * Rd(6.27%) * (1-Tc(0.21)))
Discount Rate = 6.98% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 17.25%
[DCF] Terminal Value 77.97% ; FCFF base≈124.9m ; Y1≈143.2m ; Y5≈210.7m
[DCF] Fair Price = 7.86 (EV 3.17b - Net Debt 833.8m = Equity 2.34b / Shares 297.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 62.87 | EPS CAGR: 14.41% | SUE: 0.0 | # QB: 0
Revenue Correlation: 96.75 | Revenue CAGR: 37.49% | SUE: 1.67 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.16 | Chg30d=-5.14% | Revisions=+0% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.17 | Chg30d=-9.48% | Revisions=-20% | Analysts=7
EPS current Year (2026-12-31): EPS=0.68 | Chg30d=-2.68% | Revisions=+33% | GrowthEPS=+25.2% | GrowthRev=+29.8%
EPS next Year (2027-12-31): EPS=0.26 | Chg30d=+0.00% | Revisions=-20% | GrowthEPS=+271.4% | GrowthRev=+17.2%
[Analyst] Revisions Ratio: +33%