Commvault Systems, Inc. (CVLT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

DLocal Ltd.

nCino, Inc.

Freshworks, Inc.

StoneCo Ltd.

Commvault Systems, Inc.

Altair Engineering, Inc.

BlackLine, Inc.

Playtika Holding Corp.

PowerSchool Holdings, Inc.

Instructure Holdings, Inc.

Engagesmart, Inc.

Why is Commvault Systems, Inc. ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Operating profit has grown by an annual rate 29.43%
The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 684.82% signifying high profitability per unit of total capital (equity and debt)

Flat results in Mar 26

INTEREST(HY) At USD 2.88 MM has Grown at 1,291.3%
DEBT-EQUITY RATIO (HY) Highest at 233.71 %

With ROE of 44.45%, it has a expensive valuation with a 16.24 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -33.05%, its profits have fallen by -48.9%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 28.21% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -33.05% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Commvault Systems, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Commvault Systems, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Commvault Systems, Inc.

-33.05%

0.06

57.10%

S&P 500

28.21%

2.23

12.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.48%

EBIT Growth (5y)

29.43%

EBIT to Interest (avg)

63.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.92

Sales to Capital Employed (avg)

2.91

Tax Ratio

6.10%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

684.82%

ROE (avg)

25.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

16.24

EV to EBIT

34.60

EV to EBITDA

30.85

EV to Capital Employed

43.78

EV to Sales

2.95

PEG Ratio

Dividend Yield

ROCE (Latest)

126.53%

ROE (Latest)

44.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 244.68 MM

RAW MATERIAL COST(Y)

Fallen by 1.47% (YoY

CASH AND EQV(HY)

Highest at USD 1,926.33 MM

OPERATING PROFIT(Q)

Highest at USD 38.11 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.23 %

PRE-TAX PROFIT(Q)

Highest at USD 41.72 MM

-10What is not working for the Company

INTEREST(HY)

At USD 2.88 MM has Grown at 1,291.3%

DEBT-EQUITY RATIO (HY)

Highest at 233.71 %

Here's what is working for Commvault Systems, Inc.

Operating Cash Flow

Highest at USD 244.68 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit

Highest at USD 38.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 12.23 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 41.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Cash and Eqv

Highest at USD 1,926.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Commvault Systems, Inc.

Interest

At USD 2.88 MM has Grown at 1,291.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 233.71 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at USD 0.33 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income