NasdaqGS:CVLT

Stock Analysis Report

Executive Summary

Commvault Systems, Inc. provides data protection and information management software applications and related services in the United States, Canada, Latin America, Europe, the Middle East, Africa, Australia, New Zealand, Southeast Asia, and China.

Rewards

Trading at 7.7% below its fair value

Earnings are forecast to grow 116.79% per year

Risk Analysis

No risks detected for CVLT from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.3%

CVLT

-0.9%

US Software

0.3%

US Market


1 Year Return

-14.3%

CVLT

32.9%

US Software

18.5%

US Market

Return vs Industry: CVLT underperformed the US Software industry which returned 32.9% over the past year.

Return vs Market: CVLT underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

CVLTIndustryMarket
7 Day-3.3%-0.9%0.3%
30 Day-2.7%1.9%1.5%
90 Day2.9%6.6%5.7%
1 Year-14.3%-14.3%34.9%32.9%21.1%18.5%
3 Year-10.1%-10.1%127.5%118.4%45.9%36.4%
5 Year0.4%0.4%182.5%162.4%71.4%52.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVLT ($48.21) is trading below our estimate of fair value ($52.23)

Significantly Below Fair Value: CVLT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CVLT is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: CVLT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CVLT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CVLT is overvalued based on its PB Ratio (5.9x) compared to the US Software industry average (5.6x).


Next Steps

Future Growth

How is Commvault Systems forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

116.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVLT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CVLT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CVLT's is expected to become profitable in the next 3 years.

Revenue vs Market: CVLT's revenue (4.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CVLT's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CVLT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Commvault Systems performed over the past 5 years?

-57.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVLT is currently unprofitable.

Growing Profit Margin: CVLT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CVLT is unprofitable, and losses have increased over the past 5 years at a rate of -57.1% per year.

Accelerating Growth: Unable to compare CVLT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CVLT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

High ROE: CVLT has a negative Return on Equity (-0.72%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Commvault Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CVLT's short term assets ($624.8M) exceed its short term liabilities ($320.1M).

Long Term Liabilities: CVLT's short term assets ($624.8M) exceed its long term liabilities ($109.5M).


Debt to Equity History and Analysis

Debt Level: CVLT is debt free.

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

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

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


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CVLT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CVLT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CVLT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CVLT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CVLT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Sanjay Mirchandani (55yo)

0.8yrs

Tenure

US$12,338,170

Compensation

Mr. Sanjay Mirchandani serves as President and Chief Executive Officer and member of the Board at Commvault Systems, Inc. since February 5, 2019. He served as the Chief Executive Officer of Puppet Labs, In ...


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD12.34M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Insufficient data to compare Sanjay's compensation with company performance.


Management Age and Tenure

4.8yrs

Average Tenure

46yo

Average Age

Experienced Management: CVLT's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

59yo

Average Age

Experienced Board: CVLT's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: CVLT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$6,193,18115 Nov 19
Alan Bunte
EntityIndividual
Role
Member of the Board of Directors
Director
Shares127,492
Max PriceUS$49.03
SellUS$32,45007 Nov 19
Brian Carolan
EntityIndividual
Role
Chief Financial Officer
VP & CFO
Shares646.67
Max PriceUS$50.18
SellUS$69,70105 Nov 19
James Whalen
EntityIndividual
Role
Chief Accounting Officer
Vice President of Finance & Chief Accounting Officer
Shares1,389.32
Max PriceUS$50.20
SellUS$27,480,40922 Feb 19
Elliott Management Corporation
EntityCompany
Shares402,902
Max PriceUS$68.50
SellUS$93,97915 Feb 19
Gary Merrill
EntityIndividual
Role
Senior Key Executive
Vice President of Business Operations
Shares1,384.72
Max PriceUS$67.92
SellUS$767,59707 Feb 19
Frank Fanzilli
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,295
Max PriceUS$67.99
SellUS$264,11207 Feb 19
David Walker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,888
Max PriceUS$67.93

Ownership Breakdown

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


Management Team

  • Warren Mondschein

    Chief Compliance Officer

    • Tenure: 15.9yrs
  • Brian Carolan (48yo)

    VP & CFO

    • Tenure: 7.2yrs
    • Compensation: US$2.53m
  • Sanjay Mirchandani (55yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$12.34m
  • Mike Melnyk

    Director of Investor Relations

    • Tenure: 0.4yrs
  • Brian Brockway

    CTO & VP

    • Tenure: 4.8yrs
  • Robert Brower

    Chief of Staff - Office of the COO

    • Tenure: 0yrs
  • Jesper Helt

    Chief Human Resources Officer & VP

    • Tenure: 5.9yrs
  • Gary Merrill (44yo)

    Vice President of Business Operations

    • Tenure: 7.2yrs
  • Chris Powell

    Chief Marketing Officer & VP

    • Tenure: 4.8yrs
  • Jay Whalen (38yo)

    Vice President of Finance & Chief Accounting Officer

    • Tenure: 0.7yrs

Board Members

  • Keith Geeslin (66yo)

    Independent Director

    • Tenure: 23.6yrs
    • Compensation: US$290.91k
  • Gary Smith (59yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$266.29k
  • Dan Pulver (50yo)

    Lead Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$301.67k
  • Martha Bejar (57yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$232.88k
  • Frank Fanzilli (62yo)

    Independent Director

    • Tenure: 17.4yrs
    • Compensation: US$266.00k
  • David Walker (65yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$292.15k
  • Al Bunte (65yo)

    Director

    • Tenure: 11.9yrs
    • Compensation: US$4.87m
  • Y.Y. Lee

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$262.60k
  • Nick Adamo (55yo)

    Independent Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$236.29k
  • Sanjay Mirchandani (55yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$12.34m

Company Information

Commvault Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Commvault Systems, Inc.
  • Ticker: CVLT
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$2.244b
  • Shares outstanding: 45.71m
  • Website: https://www.commvault.com

Number of Employees


Location

  • Commvault Systems, Inc.
  • 1 Commvault Way
  • Tinton Falls
  • New Jersey
  • 7724
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVLTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2006
D6IDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2006

Biography

Commvault Systems, Inc. provides data protection and information management software applications and related services in the United States, Canada, Latin America, Europe, the Middle East, Africa, Australi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:01
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.