AIM:CRW

Stock Analysis Report

Executive Summary

Craneware plc, together with its subsidiaries, develops, licenses, and supports computer software for the healthcare industry in the United States.

Rewards

Earnings are forecast to grow 9.85% per year

Risk Analysis

No risks detected for CRW from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Craneware's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CRW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

CRW

-0.3%

GB Healthcare Services

1.4%

GB Market


1 Year Return

-9.8%

CRW

7.1%

GB Healthcare Services

12.4%

GB Market

Return vs Industry: CRW underperformed the UK Healthcare Services industry which returned 5.7% over the past year.

Return vs Market: CRW underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

CRWIndustryMarket
7 Day-1.5%-0.3%1.4%
30 Day4.0%1.5%2.0%
90 Day10.6%8.6%8.8%
1 Year-8.9%-9.8%8.7%7.1%18.3%12.4%
3 Year83.2%76.9%46.9%38.5%23.8%8.0%
5 Year406.4%370.4%91.1%74.3%41.8%8.9%

Price Volatility Vs. Market

How volatile is Craneware's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Craneware undervalued compared to its fair value and its price relative to the market?

54.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CRW (£23.75) is trading above our estimate of fair value (£9.89)

Significantly Below Fair Value: CRW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CRW is poor value based on its PE Ratio (55x) compared to the Healthcare Services industry average (34x).

PE vs Market: CRW is poor value based on its PE Ratio (55x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CRW is poor value based on its PEG Ratio (5.6x)


Price to Book Ratio

PB vs Industry: CRW is overvalued based on its PB Ratio (13.6x) compared to the GB Healthcare Services industry average (4x).


Next Steps

Future Growth

How is Craneware forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRW's forecast earnings growth (9.9% per year) is above the savings rate (0.5%).

Earnings vs Market: CRW's earnings (9.9% per year) are forecast to grow slower than the UK market (11.7% per year).

High Growth Earnings: CRW's earnings are forecast to grow, but not significantly.

Revenue vs Market: CRW's revenue (8.1% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: CRW's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRW's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has Craneware performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRW has high quality earnings.

Growing Profit Margin: CRW's current net profit margins (21%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: CRW's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: CRW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CRW had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Healthcare Services industry average (8%).


Return on Equity

High ROE: CRW's Return on Equity (25%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Craneware's financial position?


Financial Position Analysis

Short Term Liabilities: CRW's short term assets ($66.4M) exceed its short term liabilities ($46.5M).

Long Term Liabilities: CRW has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: CRW is debt free.

Reducing Debt: CRW has not had any debt for past 5 years.

Debt Coverage: CRW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CRW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CRW has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CRW's debt is covered by short term assets.


Next Steps

Dividend

What is Craneware's current dividend yield, its reliability and sustainability?

1.08%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.8%markettop25%5.0%industryaverage1.5%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: CRW's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: CRW's dividend (1.07%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: CRW's dividend payments have been volatile in the past 10 years.

Growing Dividend: CRW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), CRW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRW's dividends in 3 years are forecast to be covered by earnings (52.6% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Healthcare industry.

Management

What is the CEO of Craneware's salary, the management and board of directors tenure and is there insider trading?

9.0yrs

Average management tenure


CEO

Keith Neilson (50yo)

21yrs

Tenure

US$443,272

Compensation

Mr. Keith Neilson co-founded Craneware PLC in 1999 and has served as its Chief Executive Officer ever since. Keith’s direction has helped Craneware to win multiple prestigious awards in such areas as inter ...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD443.27K) is below average for companies of similar size in the UK market ($USD1.13M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.0yrs

Average Tenure

50yo

Average Age

Experienced Management: CRW's management team is seasoned and experienced (9 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

59yo

Average Age

Experienced Board: CRW's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£99,59418 Sep 19
Keith Neilson
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares4,527
Max PriceUK£22.00
BuyUK£12,03418 Sep 19
Colleen Blye
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares547
Max PriceUK£22.00
BuyUK£24,09018 Sep 19
Russ Rudish
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,095
Max PriceUK£22.00
BuyUK£33,00018 Sep 19
George Elliott
EntityIndividual
Shares1,500
Max PriceUK£22.00
BuyUK£24,09018 Sep 19
Ronald Verni
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares1,095
Max PriceUK£22.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Craig Preston (48yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 11.3yrs
    • Compensation: US$336.69k
  • Keith Neilson (50yo)

    Co-Founder

    • Tenure: 21yrs
    • Compensation: US$443.27k
  • Derek Paterson (51yo)

    Chief Information Officer

    • Tenure: 19.3yrs
  • Issy Urquhart

    Chief People Officer

    • Tenure: 4.1yrs
  • Karen Bowden

    Executive Vice President of Customer Management

    • Tenure: 19yrs
  • Mark Montgomery

    Chief Marketing Officer

    • Tenure: 6.3yrs
  • Seth Droe

    Executive Vice President of Sales

    • Tenure: 6.7yrs
  • Marty Smith

    Chief Technology Officer

    • Eric Carter

      Chief Legal Officer

      • Tenure: 2.3yrs

    Board Members

    • Ron Verni (71yo)

      Senior Independent Non-Executive Director

      • Compensation: US$60.41k
    • Russ Rudish (66yo)

      Independent Non-Executive Director

      • Tenure: 5.4yrs
      • Compensation: US$52.64k
    • Will Whitehorn (59yo)

      Chairman of the Board

      • Craig Preston (48yo)

        CFO, Company Secretary & Executive Director

        • Tenure: 11.3yrs
        • Compensation: US$336.69k
      • Colleen Blye (59yo)

        Independent Non-Executive Director

        • Tenure: 6.2yrs
        • Compensation: US$54.47k
      • Keith Neilson (50yo)

        Co-Founder

        • Tenure: 21yrs
        • Compensation: US$443.27k

      Company Information

      Craneware plc's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Craneware plc
      • Ticker: CRW
      • Exchange: AIM
      • Founded: 1999
      • Industry: Health Care Technology
      • Sector: Healthcare
      • Market Cap: UK£619.478m
      • Shares outstanding: 26.47m
      • Website: https://public.craneware.com

      Number of Employees


      Location

      • Craneware plc
      • 1 Tanfield
      • Edinburgh
      • EH3 5DA
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CRWAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 2007
      CRWR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2007

      Biography

      Craneware plc, together with its subsidiaries, develops, licenses, and supports computer software for the healthcare industry in the United States. The company offers patient engagement solutions, such as InSight Medical Necessity, a software-as-a-service (SaaS) solution that provides medical necessity validation for United States payers and advance beneficiary notice creation; and Trisus Patient Payment, which provides hospitals and health systems to modernize patient payment. It also provides charge capture and pricing solutions, such as Chargemaster Toolkit, Chargemaster Toolkit Discovery Viewer, and Chargemaster Toolkit Corporate Discovery Viewer for capturing optimal legitimate reimbursement for providers; Physician Revenue Toolkit, a SaaS solution for managing physician group KPIs, charges, codes, RVUs, fee schedules, and related information; Pricing Analyzer, a SaaS solution that simplifies the price modelling process; Reference Plus, a SaaS solution to perform Chargemaster analysis; Pharmacy ChargeLink, a solution to enhance charge capture, pricing, and cost management; Trisus Supply, a solution that utilizes data to identify data gaps between the systems; and supporting modules, including Online Reference Toolkit, interface scripting module, and supplies assistant. In addition, the company provides Trisus Claims Informatics, a software that automates claim and coding reviews; InSight Audit, a Web-based audit management tool for healthcare organizations to manage government and commercial audits; and InSight Denials to analyze, track, trend, and report on denial data. Further, it provides Trisus Healthcare Intelligence, a cost analytics and resource efficiency platform; consulting and professional services; and sales and marketing, product development, and software development services. Craneware plc was founded in 1999 and is headquartered in Edinburgh, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/17 20:57
      End of Day Share Price2020/01/17 00:00
      Earnings2019/06/30
      Annual Earnings2019/06/30


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.