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CVLT Stock Analysis - COMMVAULT SYSTEMS INC AI Rating

CVLT Nasdaq Services-Prepackaged Software DE CIK: 0001169561
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 CVLT Key Takeaways

Revenue: $872.0M
Net Margin: 6.4%
Free Cash Flow: $105.3M
Current Ratio: 2.34x
Debt/Equity: 0.00x
EPS: $1.24
AI Rating: HOLD with 62% confidence

Investment Thesis

Commvault demonstrates solid operational fundamentals with strong profitability margins (81.1% gross margin, 6.4% net margin) and excellent liquidity position (2.34x current ratio, $1.0B cash). However, stagnant revenue growth (0.0% YoY) combined with a significant 54.9% decline in net income raises concerns about earnings sustainability and operational challenges that warrant cautious monitoring.

CVLT Strengths

  • + Exceptional gross margin of 81.1% indicates strong pricing power and efficient cost of goods sold
  • + Robust free cash flow generation of $105.3M (12.1% FCF margin) provides financial flexibility
  • + Strong balance sheet with $1.0B in cash, minimal debt (0.00x debt/equity), and 2.34x current ratio
  • + Excellent return on equity of 25.8% demonstrates efficient capital deployment
  • + Very high interest coverage ratio of 138.2x indicates zero financial distress risk

CVLT Risks

  • ! Complete revenue stagnation (0.0% YoY growth) suggests market maturity or competitive pressures in core business
  • ! Sharp 54.9% decline in net income despite flat revenue indicates margin compression or significant non-recurring charges
  • ! Operating margin of only 6.6% is thin relative to gross margin, suggesting high operating expenses or R&D spending
  • ! Return on assets of 2.7% is weak relative to total assets of $2.0B, indicating capital inefficiency
  • ! Only 4 Form 4 insider filings in 90 days provides limited visibility into insider confidence

Key Metrics to Watch

CVLT Financial Metrics

Revenue
$872.0M
Net Income
$56.0M
EPS (Diluted)
$1.24
Free Cash Flow
$105.3M
Total Assets
$2.0B
Cash Position
$1.0B

💡 AI Analyst Insight

Strong liquidity with a 2.34x current ratio provides a solid financial cushion.

CVLT Profitability Ratios

Gross Margin 81.1%
Operating Margin 6.6%
Net Margin 6.4%
ROE 25.8%
ROA 2.7%
FCF Margin 12.1%

CVLT vs Technology Sector

How COMMVAULT SYSTEMS INC compares to Technology sector averages

Net Margin
CVLT 6.4%
vs
Sector Avg 18.0%
CVLT Sector
ROE
CVLT 25.8%
vs
Sector Avg 22.0%
CVLT Sector
Current Ratio
CVLT 2.3x
vs
Sector Avg 2.5x
CVLT Sector
Debt/Equity
CVLT 0.0x
vs
Sector Avg 0.5x
CVLT Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CVLT Balance Sheet & Liquidity

Current Ratio
2.34x
Quick Ratio
2.34x
Debt/Equity
0.00x
Debt/Assets
0.0%
Interest Coverage
138.20x
Long-term Debt
N/A

CVLT 5-Year Financial Trend

CVLT 5-year financial data: Year 2021: Revenue $723.5M, Net Income $3.6M, EPS $0.07. Year 2022: Revenue $769.6M, Net Income -$5.6M, EPS $-0.12. Year 2023: Revenue $784.6M, Net Income -$31.0M, EPS $-0.66. Year 2024: Revenue $839.2M, Net Income $33.6M, EPS $0.71. Year 2025: Revenue $995.6M, Net Income -$35.8M, EPS $-0.80.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: COMMVAULT SYSTEMS INC's revenue has grown significantly by 38% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.80 indicates the company is currently unprofitable.

CVLT Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
12.1%
Free cash flow / Revenue

CVLT Quarterly Performance

Quarterly financial performance data for COMMVAULT SYSTEMS INC including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $262.6M $11.0M $0.24
Q2 2026 $233.3M $14.7M $0.33
Q1 2026 $224.7M $18.5M $0.41
Q3 2025 $216.8M $11.0M $0.24
Q2 2025 $201.0M $13.0M $0.29
Q1 2025 $198.2M $12.6M $0.28
Q3 2024 $195.1M -$310.0K $-0.01
Q2 2024 $188.1M $4.5M $0.10

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CVLT Capital Allocation

Operating Cash Flow
$112.5M
Cash generated from operations
Stock Buybacks
$186.8M
Shares repurchased (TTM)
Capital Expenditures
$7.2M
Investment in assets
Dividends
None
No dividend program

CVLT SEC Filings

Access official SEC EDGAR filings for COMMVAULT SYSTEMS INC (CIK: 0001169561)

📋 Recent SEC Filings

Date Form Document Action
Mar 18, 2026 4 xslF345X06/wk-form4_1773864627.xml View →
Feb 20, 2026 4 xslF345X05/wk-form4_1771623646.xml View →
Feb 20, 2026 4 xslF345X05/wk-form4_1771623623.xml View →
Feb 19, 2026 4 xslF345X05/wk-form4_1771534914.xml View →
Jan 28, 2026 10-Q cvlt-20251231.htm View →

Frequently Asked Questions about CVLT

What is the AI rating for CVLT?

COMMVAULT SYSTEMS INC (CVLT) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CVLT's key strengths?

Exceptional gross margin of 81.1% indicates strong pricing power and efficient cost of goods sold. Robust free cash flow generation of $105.3M (12.1% FCF margin) provides financial flexibility.

What are the risks of investing in CVLT?

Complete revenue stagnation (0.0% YoY growth) suggests market maturity or competitive pressures in core business. Sharp 54.9% decline in net income despite flat revenue indicates margin compression or significant non-recurring charges.

What is CVLT's revenue and growth?

COMMVAULT SYSTEMS INC reported revenue of $872.0M.

Does CVLT pay dividends?

COMMVAULT SYSTEMS INC does not currently pay dividends.

Where can I find CVLT SEC filings?

Official SEC filings for COMMVAULT SYSTEMS INC (CIK: 0001169561) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CVLT's EPS?

COMMVAULT SYSTEMS INC has a diluted EPS of $1.24.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI