Craneware (CRW) AI Stock Analysis

• Market Cap: £640.83M
• Dividend Yield: 1.57%
• Average Volume (3M): 97.81K
• Price to Earnings (P/E): 68.8
• Beta (1Y): -0.31
• Revenue Growth: 3.99%
• EPS Growth: 22.16%
• Country: UK
• Employees: 747
• Sector: Healthcare
• Sector Strength: 74
• Industry: Healthcare Providers & Services
• EPS (TTM): 0.27
• Shares Outstanding: 35,408,684
• 10 Day Avg. Volume: 72,751
• 30 Day Avg. Volume: 97,811
• PEG Ratio: 3.11
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.53
• Price to Cash Flow (P/CF): 13.80
• P/FCF Ratio: 17.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 2,800.00p
• Price Target Upside: 50.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Craneware's strong financial performance is a key strength, demonstrating robust revenue and profit growth. However, the stock is currently facing bearish technical signals, with prices below major moving averages and low momentum indicators. Additionally, the high P/E ratio suggests potential overvaluation. These factors combined result in a moderate overall stock score.

Craneware Business Overview & Revenue Model

Company Description

Craneware (CRW) is a leading provider of financial performance optimization solutions within the healthcare sector. The company specializes in revenue integrity and data analytics software that helps hospitals and healthcare organizations enhance their financial outcomes. By leveraging its suite of products, Craneware enables healthcare institutions to manage their billing, compliance, and revenue cycles more effectively.

How the Company Makes Money

Craneware makes money primarily through the sale and licensing of its software solutions to healthcare providers. The company's revenue model is based on subscription fees, where clients pay recurring fees for access to its cloud-based software platforms. Craneware also offers various consulting and professional services to support the implementation and optimization of its solutions, which constitute another revenue stream. Additionally, Craneware collaborates with key industry partners to expand its market reach and enhance the functionality of its products, further contributing to its earnings.

Craneware Financial Statement Overview

Summary

Craneware exhibits strong financial performance with robust revenue and profit growth, efficient operations, and a stable balance sheet. The company maintains strong cash flow generation, although there is room for improvement in net profit margins and free cash flow growth.

Income Statement

Craneware demonstrated strong revenue growth of 8.77% from 2023 to 2024, with a solid gross profit margin of 85.7% and a net profit margin of 6.2% in 2024. The EBIT margin was 10.4%, indicating efficient operations, while the EBITDA margin of 28.7% reflects healthy cash generation from operations. Overall, the company shows robust profitability and growth, although net profit margins could be improved.

Balance Sheet

The debt-to-equity ratio improved significantly, reflecting a strong balance sheet with a lower debt burden. Return on equity is moderate at 3.6%, indicating room for improvement in asset utilization. The equity ratio is a healthy 60.4%, suggesting financial stability. The balance sheet shows prudent financial management with a focus on maintaining low leverage.

Cash Flow

Free cash flow decreased from 2023 to 2024, but the company maintains a solid operating cash flow to net income ratio of 3.6, highlighting efficient cash generation relative to earnings. The free cash flow to net income ratio is favorable, showing a strong conversion of earnings into cash. The company should focus on improving free cash flow growth to enhance financial flexibility.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
189.27M	174.02M	165.54M	75.58M	71.49M
	Gross Profit
162.20M	148.44M	142.37M	70.20M	66.97M
	EBIT
19.73M	19.23M	18.13M	13.24M	19.21M
	EBITDA
54.26M	51.60M	47.54M	18.48M	24.06M
	Net Income Common Stockholders
11.70M	9.23M	9.41M	12.90M	16.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.59M	78.54M	47.16M	235.62M	47.85M
	Total Assets
543.65M	576.98M	568.79M	311.60M	115.76M
	Total Debt
40.15M	86.69M	113.08M	1.15M	2.02M
	Net Debt
5.56M	8.15M	65.93M	-234.47M	-45.83M
	Total Liabilities
215.06M	249.13M	235.77M	51.32M	47.36M
	Stockholders Equity
328.59M	327.84M	333.02M	260.28M	68.39M
Cash Flow		Free Cash Flow
24.91M	83.20M	12.93M	13.21M	10.96M
	Operating Cash Flow
41.86M	98.75M	26.96M	23.54M	20.67M
	Investing Cash Flow
-15.81M	-15.34M	-307.32M	-10.32M	-9.71M
	Financing Cash Flow
-70.00M	-53.28M	91.90M	174.55M	-10.72M

Craneware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1860.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRW, the sentiment is Negative. The current price of 1860 is below the 20-day moving average (MA) of 1932.00, below the 50-day MA of 2015.90, and below the 200-day MA of 2170.97, indicating a bearish trend. The MACD of -40.99 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 9.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRW.

Craneware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRCS	61 Neutral	£107.90M	219.14	0.72%	0.68%	-1.22%	-92.99%
CRW	61 Neutral	£640.83M	68.82	3.56%	1.57%	3.99%	22.16%
FDP	52 Neutral	£348.64M	―	-27.75%	―	-22.83%	-350.82%
Sector *	49 Neutral	$7.05B	0.34	-55.09%	2.46%	25.27%	-3.43%
SYN	40 Underperform	£4.52M	―	-28.11%	―	-54.20%	75.00%

Craneware Corporate Events

Craneware Announces Change in Major Shareholder Holdings

Craneware plc has announced a change in its major holdings as Aegon Ltd has acquired voting rights totaling 5.168% of Craneware’s shares. This acquisition indicates a strategic move by Aegon, potentially impacting Craneware’s shareholder dynamics and signaling confidence in the company’s market positioning.

Craneware Reports Strong H1 FY25 Growth and Announces New Director

Craneware plc announced a positive trading update for the first half of the fiscal year 2025, with revenues surpassing $100 million and adjusted EBITDA reaching approximately $30.3 million, driven by the success of its Trisus platform and strategic partnerships. The company also appointed Susan Nelson as a Non-Executive Director, bringing extensive experience in healthcare finance, and anticipates a stable demand environment in the US healthcare market, supported by strong cash reserves and reduced debt.