CCC Intelligent Solutions Holdings (CCCS) AI Stock Analysis

• Market Cap: $5.71B
• Dividend Yield: N/A
• Average Volume (3M): 10.05M
• Price to Earnings (P/E): 213.5
• Beta (1Y): 0.79
• Revenue Growth: 9.05%
• EPS Growth: N/A
• Country: US
• Employees: 2,310
• Sector: Technology
• Sector Strength: 45
• Industry: Software - Infrastructure
• EPS (TTM): 0.04
• Shares Outstanding: 658,943,800
• 10 Day Avg. Volume: 10,355,181
• 30 Day Avg. Volume: 10,050,043
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.38
• Price to Cash Flow (P/CF): 23.40
• P/FCF Ratio: 27.10
• 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: $13.22
• Price Target Upside: 52.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

CCC Intelligent Solutions Holdings has a solid financial performance, particularly in cash flow management and revenue growth. Despite this, the stock faces challenges in its technical outlook and high valuation, which may deter potential investors. The earnings call provides a positive future outlook, but recent challenges in claims volume and margin pressures temper the optimism. Overall, CCCS scores a 68, reflecting strong fundamentals but with cautious technical and valuation aspects.

Positive Factors

AI Offerings

Revenue contribution from emerging AI offerings is expected to accelerate, driven by constructive ROI and utilization trends from early adopters.

Client Relationships

The renewal of a top 20 auto insurer for a five-year extension highlights CCC's ability to maintain and grow its client relationships.

Negative Factors

Gross Margin

Efforts to accelerate growth through new solutions are modestly diluting gross margin, which declined to ~76% in 4Q24, the lowest level since early 2021.

Organic Revenue Growth

The organic revenue growth guidance for FY25E is the slowest pace seen in 4 years, reviving investor fears about growth opportunity and market penetration risks.

CCC Intelligent Solutions Holdings Business Overview & Revenue Model

Company Description

CCC Intelligent Solutions Holdings Inc. (CCCS) is a leading provider of innovative cloud-based SaaS solutions for the automotive, insurance, and collision repair industries. The company specializes in providing advanced technology to improve efficiency, enhance customer experience, and optimize business operations across its key sectors. CCC's core offerings include AI-powered claims management, telematics, and mobility services that help streamline processes and deliver data-driven insights to its clients.

How the Company Makes Money

CCC Intelligent Solutions Holdings generates revenue primarily through subscription fees for its cloud-based software solutions, which are utilized by a wide range of clients in the automotive, insurance, and collision repair sectors. The company offers its products on a subscription basis, providing ongoing support and updates, which ensures a steady stream of recurring revenue. Additionally, CCC has strategic partnerships with major industry players, enhancing its market reach and adding value to its service offerings. The company also benefits from consulting and professional services, which provide additional revenue streams by helping clients implement and maximize the use of CCC's solutions.

CCC Intelligent Solutions Holdings Financial Statement Overview

Summary

Overall, CCC Intelligent Solutions Holdings presents a strong financial position with significant improvements in profitability and cash flow generation. The company has demonstrated healthy revenue and profit growth, coupled with a strong balance sheet characterized by low leverage and substantial equity. The cash flow metrics are particularly impressive, indicating efficient cash management and robust financial health. While the return on equity remains an area for potential enhancement, the overall financial outlook is positive.

Income Statement

The company has demonstrated strong revenue growth, with a consistent increase over the past years, culminating in a revenue growth rate of 9.06% in 2024. The gross profit margin is robust at 75.55%, indicating effective cost management. The net profit margin has improved significantly from a loss to 2.77%, showing a strong turnaround in profitability. EBIT and EBITDA margins have also shown improvement, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.03, indicating low financial leverage and risk. The return on equity is modest at 1.31%, showing room for improvement in generating returns for shareholders. The equity ratio is healthy at 64.05%, suggesting a solid capital structure with substantial equity backing.

Cash Flow

The company exhibits excellent cash flow management, with a strong operating cash flow to net income ratio of 10.86, suggesting robust cash generation relative to net income. The free cash flow has grown by 45.61%, highlighting effective cash management and operational efficiency. The free cash flow to net income ratio is very high at 10.86, indicating strong cash profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
944.80M	866.38M	782.45M	688.29M	633.06M
	Gross Profit
713.80M	636.16M	568.51M	492.63M	424.35M
	EBIT
80.11M	-23.93M	51.92M	-144.68M	76.98M
	EBITDA
232.60M	114.37M	216.00M	-144.68M	171.81M
	Net Income Common Stockholders
26.14M	-92.48M	38.41M	-248.92M	-16.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
398.98M	195.57M	323.79M	182.54M	162.12M
	Total Assets
3.18B	3.05B	3.35B	3.24B	3.20B
	Total Debt
62.89M	833.09M	841.86M	852.79M	1.32B
	Net Debt
-336.09M	637.52M	518.07M	670.25M	1.16B
	Total Liabilities
1.16B	1.25B	1.29B	1.35B	1.81B
	Stockholders Equity
2.00B	1.78B	2.05B	1.87B	1.37B
Cash Flow		Free Cash Flow
283.89M	195.00M	151.96M	88.97M	73.28M
	Operating Cash Flow
283.89M	250.03M	199.91M	127.33M	103.94M
	Investing Cash Flow
-53.01M	-55.03M	-76.29M	-48.60M	-30.67M
	Financing Cash Flow
-27.29M	-323.03M	17.88M	-58.44M	-4.42M

CCC Intelligent Solutions Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCCS, the sentiment is Negative. The current price of 8.67 is below the 20-day moving average (MA) of 8.84, below the 50-day MA of 9.51, and below the 200-day MA of 10.77, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 48.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCCS.

CCC Intelligent Solutions Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACIW	75 Outperform	$5.37B	26.62	14.78%	―	9.76%	73.38%
CCCS	68 Neutral	$5.71B	213.55	1.38%	―	9.05%	―
PATH	67 Neutral	$5.76B	―	-3.82%	―	9.30%	20.59%
WEX	64 Neutral	$4.22B	16.42	18.71%	―	3.15%	21.82%
S	64 Neutral	$5.54B	―	-17.68%	―	32.25%	20.56%
INFA	61 Neutral	$6.07B	577.89	0.44%	―	2.81%	―
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%

CCC Intelligent Solutions Holdings Corporate Events

CCC Intelligent Solutions Expands with EvolutionIQ Acquisition

CCC Intelligent Solutions Inc. has completed the acquisition of EvolutionIQ, a leader in AI-powered disability and injury claims management. This acquisition expands CCC’s market reach into disability and workers’ compensation while enhancing its AI-powered SaaS platform with new capabilities such as Medical Summarization and Next Best Action, aimed at revolutionizing insurance claims resolution.