Clearwater Analytics Holdings stock: key recent metrics

Clearwater Analytics Holdings (CWAN) has drawn attention after recent trading left the stock near its latest close of US$24.37, with returns around flat over the past month but higher over the past 3 months.

See our latest analysis for Clearwater Analytics Holdings.

While the latest share price of US$24.37 leaves the 7 day and 30 day share price returns close to flat, the 90 day share price return of 4.19% sits alongside a 3 year total shareholder return of 47.88%. This points to momentum that has played out more over the longer term than in recent weeks.

If Clearwater Analytics has you looking at the wider software space, you may want to widen the lens and check out 48 AI infrastructure stocks

With Clearwater Analytics reporting US$825.732 million in revenue alongside a loss of US$48.093 million, plus only a small discount to analyst targets and intrinsic estimates, investors may need to consider whether there is meaningful upside remaining or whether potential future growth is already reflected in the price.

Most Popular Narrative: 0.4% Undervalued

Clearwater Analytics' most followed narrative pegs fair value at about $24.47, almost in line with the last close at $24.37. This puts the focus firmly on the underlying story rather than a big pricing gap.

The company's successful integration of Enfusion and Beacon, combined with rapid realization of $20 million in expense synergies and higher-than-projected gross margins (77.4% versus blended analyst expectations of 76.5%), indicates ongoing operational efficiencies that are expected to further expand margins as generative AI and platform automation are scaled, positively impacting future net margins and EBITDA.

Read the complete narrative.

Want to see what kind of revenue build, margin lift and earnings profile need to line up to support that valuation target? The narrative leans on a specific growth path, a clear margin reset and a punchy future earnings multiple that is usually reserved for higher growth software leaders.

Result: Fair Value of $24.47 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that story could change quickly if the merger integration stumbles or if expected revenue acceleration and cross sell traction fall short of analyst assumptions.

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Next Steps

If this mix of data points leaves you undecided, it is worth moving quickly, reviewing the details yourself, and pressure testing the bullish angles. To see which potential upsides others are focusing on, take a closer look at the 2 key rewards

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.