Fundamental analysis: Clearwater Analytics Holdings, Inc. (CWAN)

Awarener score: 4.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Lacking), the business stability (unknown) and growth (unknown), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: a result could not be reached

Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with peer companies.
Clearwater Analytics Holdings, Inc. business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 5.5

CWAN profit margins -on goods and services sold- are usually excellent. They stand somewhat better than rival companies.
Business profit on sales tends to be good. It's more than average in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain a slight improvement compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still well ranked against similar companies.
Profits -before income taxes- are usually meagre considering total sales, and remain encouraging in relation to rivals.
Total net profit tends to be meagre when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 1.0

Clearwater Analytics Holdings, Inc. has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
There is not sufficient data to estimate the operating income margin trend, which has been therefore unknown against comparable firms.
EBITDA growth is unknown due to insufficient inputs, which compares unknown against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.3

CWAN had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
Research and development expenses consume quite a bit of revenues. It's weak when measured against competitors.
The company grows sparsely in relation to research and development efforts. It stands lacking compared to rival companies.

Profitability score: 5.5

Clearwater Analytics Holdings, Inc. usually gets sufficient returns on the resources it controls. It proves more than average in relation to peer firms.
The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
Profitability -in relation to owned resources- is usually modest. It ranks encouraging in relation to competitors.
In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 5.0

CWAN usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands more than average in relation to rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is more than average in relation to industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.5

Clearwater Analytics Holdings, Inc. intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be similar to peer companies.
The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be excellent in relation to similar firms.
Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains slightly worse than rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks more than average in relation to rivals.
For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has more than enough dollars in cash and equivalents, which is better than most similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks weak when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes higher than three months from the purchase to charging customers. It happens to be somewhat worse than peers.
On average pays suppliers before a month from the purchase. It ranks weak when measured against industry peers.
The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's in a very weak position compared to similar companies.
Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands mediocre against rival firms.
Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 3.2

Clearwater Analytics Holdings, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands somewhat better than similar companies.
In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still encouraging in relation to industry firms.
In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up lacking compared to peer ventures.
The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a huge relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks a disappointment compared to rival firms.
The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
In the past twelve months, the operating business lost some money. It happens to be encouraging in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 4.1

Company at a glance: Clearwater Analytics Holdings, Inc. (CWAN)

Sector, industry: Technology, Software—Application

Market Cap: 4.56 billions

Revenues TTM: 0.30 billions

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities. The company offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. Its Clearwater Prism solution enables self-service access to data feeds from accounting, compliance, performance, and risk systems, including those offered by the company and other third-party software vendors, as well as provides flexible reporting to various users. The company was incorporated in 2021 and is headquartered in Boise, Idaho.