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Clearwater Analytics Holdings (Clearwater Analytics Holdings) Piotroski F-Score

: 3 (As of Today)
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Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Clearwater Analytics Holdings has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Clearwater Analytics Holdings's Piotroski F-Score or its related term are showing as below:

CWAN' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 4   Max: 4
Current: 3

During the past 5 years, the highest Piotroski F-Score of Clearwater Analytics Holdings was 4. The lowest was 3. And the median was 4.


Clearwater Analytics Holdings Piotroski F-Score Historical Data

The historical data trend for Clearwater Analytics Holdings's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Clearwater Analytics Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
N/A N/A N/A 4.00 3.00

Clearwater Analytics Holdings Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 N/A 4.00 4.00 3.00

Competitive Comparison

For the Software - Application subindustry, Clearwater Analytics Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Clearwater Analytics Holdings Piotroski F-Score Distribution

For the Software industry and Technology sector, Clearwater Analytics Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Clearwater Analytics Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was -4.384 + -10.921 + -1.889 + -4.433 = $-21.6 Mil.
Cash Flow from Operations was 7.935 + 21.137 + 31.433 + 24.097 = $84.6 Mil.
Revenue was 84.606 + 89.879 + 94.664 + 99.019 = $368.2 Mil.
Gross Profit was 59.781 + 62.925 + 67.651 + 70.684 = $261.0 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(481.942 + 491.39 + 511.666 + 535.507 + 558.743) / 5 = $515.8496 Mil.
Total Assets at the begining of this year (Dec22) was $481.9 Mil.
Long-Term Debt & Capital Lease Obligation was $62.8 Mil.
Total Current Assets was $416.0 Mil.
Total Current Liabilities was $80.8 Mil.
Net Income was 0.398 + -2.428 + -2.974 + -2.962 = $-8.0 Mil.

Revenue was 70.778 + 73.409 + 76.552 + 82.687 = $303.4 Mil.
Gross Profit was 49.606 + 52.49 + 53.832 + 59.714 = $215.6 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(344.355 + 381.608 + 400.645 + 419.728 + 481.942) / 5 = $405.6556 Mil.
Total Assets at the begining of last year (Dec21) was $344.4 Mil.
Long-Term Debt & Capital Lease Obligation was $68.0 Mil.
Total Current Assets was $356.3 Mil.
Total Current Liabilities was $66.0 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Clearwater Analytics Holdings's current Net Income (TTM) was -21.6. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Clearwater Analytics Holdings's current Cash Flow from Operations (TTM) was 84.6. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=-21.627/481.942
=-0.04487469

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-7.966/344.355
=-0.0231331

Clearwater Analytics Holdings's return on assets of this year was -0.04487469. Clearwater Analytics Holdings's return on assets of last year was -0.0231331. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Clearwater Analytics Holdings's current Net Income (TTM) was -21.6. Clearwater Analytics Holdings's current Cash Flow from Operations (TTM) was 84.6. ==> 84.6 > -21.6 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=62.776/515.8496
=0.12169439

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=67.997/405.6556
=0.16762249

Clearwater Analytics Holdings's gearing of this year was 0.12169439. Clearwater Analytics Holdings's gearing of last year was 0.16762249. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=415.996/80.792
=5.14897515

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=356.346/66.012
=5.39820033

Clearwater Analytics Holdings's current ratio of this year was 5.14897515. Clearwater Analytics Holdings's current ratio of last year was 5.39820033. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Clearwater Analytics Holdings's number of shares in issue this year was 205.057. Clearwater Analytics Holdings's number of shares in issue last year was 190.164. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=261.041/368.168
=0.70902686

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=215.642/303.426
=0.71069058

Clearwater Analytics Holdings's gross margin of this year was 0.70902686. Clearwater Analytics Holdings's gross margin of last year was 0.71069058. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=368.168/481.942
=0.76392595

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=303.426/344.355
=0.88114301

Clearwater Analytics Holdings's asset turnover of this year was 0.76392595. Clearwater Analytics Holdings's asset turnover of last year was 0.88114301. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+0+0+0
=3

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Clearwater Analytics Holdings has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

Clearwater Analytics Holdings  (NYSE:CWAN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Clearwater Analytics Holdings Piotroski F-Score Related Terms

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Clearwater Analytics Holdings (Clearwater Analytics Holdings) Business Description

Traded in Other Exchanges
N/A
Address
777 W. Main Street, Suite 900, Boise, ID, USA, 83702
Clearwater Analytics Holdings Inc provides a SaaS solution for automated investment data aggregation, reconciliation, accounting and reporting services to insurers, investment managers, corporations, institutional investors and government entities. The majority of the revenue is earned in the United States.
Executives
Sandeep Sahai director, officer: Chief Executive Officer C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702
James S Cox officer: Chief Financial Officer 600 TOWNSEND, SAN FRANCISCO CA 94103
Souvik Das officer: Chief Technology Officer C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702
Wcas Xii Carbon Analytics Acquisition, L.p. 10 percent owner C/O WELSH, CARSON, ANDERSON & STOWE, 599 LEXINGTON AVENUE, 18TH FLOOR, NEW YORK NY 10022
Warburg Pincus Llc director, 10 percent owner 450 LEXINGTON AVENUE, NEW YORK NY 10017
Galibier Purchaser, Llc director, 10 percent owner C/O PERMIRA ADVISERS LLC, 320 PARK AVENUE, 28TH FLOOR, NEW YORK NY 10022
Subi Sethi officer: Chief Client Officer C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702
Scott Stanley Erickson officer: See Remarks C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702
Durable Capital Partners Lp 10 percent owner 4747 BETHESDA AVENUE, SUITE #1002, BETHESDA MD 20814
James Douglas Price officer: Chief Quality Officer C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702
Gayatri Raman officer: President, Europe and Asia C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702
Joseph Morris Kochansky officer: See Remarks C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702
D Scott Mackesy director 320 PARK AVENUE STE 2500, NEW YORK NY 10022
Cynthia Ann Blendu officer: See Remarks C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702
Alphonse Valbrune officer: Chief Legal Officer C/O CLEARWATER ANALYTICS HOLDINGS, INC., 777 W. MAIN STREET, SUITE 900, BOISE ID 83702