Clearwater Analytics Holdings Inc. Class A Common Stock (CWAN)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor first, so I begin with the business and the price. Clearwater sells cloud software that helps investment firms aggregate data, reconcile portfolios, account for investments, and report. That can be a sticky, recurring-revenue business, though the figures here do not let me call the moat wide. In the latest reported quarter, fiscal Q1 2026, revenue was $221.2 million, but net income was -$2.8 million, a -1.25% net margin. So the company is still not profitable on that line. Trailing twelve-month free cash flow was $142.3 million, positive, but against a $7.2 billion market cap that is only a 2.0% FCF yield (FairStock calculation). At the 2026-07-02 close of $24.56, the FairStock-calculated P/E is -136.44, P/B is 3.56, EV/EBITDA is 74.16, ROE is -3.13%, and ROCE is -0.08%. Those are not bargain metrics; they price in substantial future improvement. The balance sheet looks reasonable, with D/E of 0.42 and an Altman Z-score of 4.71 (FairStock calculation). Piotroski is 5/9, and the FairStock Score is 43/100. A beta of 0.60 suggests the shares have not been especially volatile, but low volatility is not the same as low risk when earnings are negative. Revenue is growing quickly in the provided data, but profit growth is negative, so I want evidence that scale turns into owner earnings. Until then, this is a promising software business at a demanding price, not a Graham-style value stock.

In plain English: Clearwater Analytics sells cloud software that helps investment firms track, reconcile, and report on their portfolios. The business is growing sales quickly, but it lost a small amount of money in its latest reported quarter, and its cash flow is small compared with its stock market value. At the recent $24.56 close, the shares look expensive relative to the profits and cash the company is producing today.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-07-02 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer