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Clarivate (CLVT)
NYSE:CLVT

Clarivate (CLVT) AI Stock Analysis

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Clarivate

(NYSE:CLVT)

Rating:55Neutral
Price Target:
$4.50
▲(4.17%Upside)
Clarivate's overall stock score reflects its financial challenges, including negative profitability and declining revenues. Positive aspects include strategic corporate events and improved performance metrics in the latest earnings call. Technical analysis indicates mild upward momentum, but valuation remains a concern due to negative P/E and lack of dividend yield.
Positive Factors
Financial Performance
Clarivate's first-quarter revenue was significantly above analyst estimates and consensus, leading to higher adjusted EBITDA, margin, and EPS.
Revenue Growth
Improvement in patent and trademark renewal volumes largely drove strength in recurring revenue.
Negative Factors
Management Challenges
CLVT is now under its third CEO in as many years, who will have a significant lift on his hands in order to turn around the business.
Organic Growth
CLVT's business lines saw further deterioration in organic growth with all segments missing expectations.
Strategic Changes
Value Creation Plan likely to mean significant changes to the asset mix going forward, though do not expect asset sales to create value.

Clarivate (CLVT) vs. SPDR S&P 500 ETF (SPY)

Clarivate Business Overview & Revenue Model

Company DescriptionClarivate (CLVT) is a global leader in providing trusted insights and analytics to accelerate the pace of innovation. Operating primarily in the information services sector, the company offers a comprehensive suite of software and data solutions. Its core products and services include intellectual property and scientific information platforms, such as Web of Science, Derwent, and Cortellis, which serve clients in academia, government, corporations, and professional services sectors worldwide.
How the Company Makes MoneyClarivate makes money through subscription-based models and licensing fees for its information and analytics platforms. The company's key revenue streams include recurring revenue from multi-year subscription contracts for its data solutions in intellectual property, academia, and life sciences. Additionally, Clarivate generates income through transactional sales, consulting services, and custom analytics projects. Strategic partnerships and acquisitions also play a significant role in enhancing its offerings and expanding its market reach, further driving revenue growth.

Clarivate Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 20.33%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlights Clarivate's strong Q1 performance with improved revenue growth, increased renewal rates, and successful multiyear deals, alongside ongoing product innovation. However, challenges include a net loss due to restructuring expenses, declines in transactional revenue, and potential risks from US government funding changes. Despite these challenges, the company remains optimistic about its strategic direction.
Q1-2025 Updates
Positive Updates
Improved Q1 Performance
Clarivate reported an improved Q1 performance, with total organic revenue growing for the first time in more than a year and recurring organic revenue increasing nearly 1%.
Renewal Rates and Revenue Mix
Subscription renewal rates improved by a percentage point over last year's first quarter, and the mix of recurring revenue to total revenue increased to 83%, an improvement of 200 basis points compared to the previous year.
Strong Free Cash Flow
Free cash flow was strong at $110 million, and the company reaffirmed its full-year 2025 outlook.
Successful Multiyear Deals
Clarivate secured significant multiyear deals, including a strategic SaaS deal with the British Library and a large contract with CAPES in Brazil, demonstrating success in the subscription-first strategy.
AI Features and Product Innovation
Clarivate launched AI-powered features in their products, leading to increased customer engagement and a double-digit increase in search volume for certain products.
Negative Updates
Net Loss and Restructuring Expenses
The first quarter net loss was $104 million, largely attributed to higher restructuring expenses associated with the implementation of the value creation plan.
Inorganic Revenue Decline
Revenue for Q1 was impacted by the divestiture of ScholarOne and ValleyPat, disposal of the Books business, and a stronger U.S. Dollar, although the business returned to organic growth.
Transactional Revenue Decline
Transactional revenue is expected to remain down for the full year, and the company is focusing on recurring revenue growth.
US Government Funding Concerns
Less than 3% of total revenue is directly from the US federal government, with potential risks from indirect funding through universities, though the company believes this is contained within guidance.
Company Guidance
In the Clarivate Q1 2025 earnings call, the company provided guidance indicating a reaffirmation of their full-year 2025 outlook, with several key metrics highlighted. Organic Annual Contract Value (ACV) grew sequentially, driven by improved subscription renewal rates and new business wins. Total organic revenue increased for the first time in over a year, with recurring organic revenue growing nearly 1%. The mix of recurring revenue improved to 83%, a 200 basis point increase from the previous year. Adjusted EBITDA margin increased by more than a percentage point, while free cash flow was strong at $110 million. The company also noted a significant expansion in multiyear deals, totaling over $80 million, in their AMG segment. Despite potential risks from US government funding, only less than 3% of revenue is directly impacted, and risk assessments suggest containment within the guidance range. The company maintained its guidance ranges for all financial metrics, anticipating annual revenue to approximate $2.34 billion and adjusted EBITDA in the range of $940 million to $1 billion, with a free cash flow midpoint of $340 million.

Clarivate Financial Statement Overview

Summary
Clarivate faces financial challenges, with negative net income and declining revenues. However, the company shows resilience in cash flow management, maintaining positive free cash flow despite net losses. The balance sheet is relatively stable but carries potential risks with significant liabilities and decreasing equity.
Income Statement
42
Neutral
The income statement shows a challenging financial performance. The company experienced a significant decline in revenue over the TTM period, with a negative net income and EBIT, indicating profitability issues. Gross profit margin for TTM is approximately 58.8%, suggesting some operational efficiency, but this is overshadowed by the persistent net losses. The revenue growth rate is negative, reflecting a contraction compared to the previous year.
Balance Sheet
50
Neutral
The balance sheet reveals a moderate financial position. The debt-to-equity ratio is about 0.91, indicating a balanced leverage position, although the ratio has been fluctuating. The equity ratio is approximately 43.7%, showing a reasonable proportion of equity financing. However, the company's equity has been decreasing, and its liabilities are significant, suggesting potential financial risks.
Cash Flow
60
Neutral
Cash flow analysis indicates a stable cash flow generation capacity. The operating cash flow to net income ratio is negative due to net losses, but the free cash flow remains positive, highlighting effective capital expenditure management. Free cash flow has slightly decreased, but overall, the company maintains a positive cash flow, which is a positive sign in light of net income losses.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.53B2.56B2.63B2.66B2.66B1.88B
Gross Profit
1.67B1.69B1.72B1.71B1.71B1.25B
EBIT
-301.40M-275.60M-734.70M-3.93B590.20M42.48M
EBITDA
431.60M456.60M-10.50M-3.01B532.15M52.38M
Net Income Common Stockholders
-665.60M-636.70M-911.20M-3.96B-3.96B-270.45M
Balance SheetCash, Cash Equivalents and Short-Term Investments
364.20M295.20M370.70M348.80M348.80M430.88M
Total Assets
13.94B11.49B12.71B13.94B13.94B20.18B
Total Debt
4.98B4.59B4.81B5.10B5.10B5.61B
Net Debt
4.62B4.30B4.44B4.76B4.76B5.18B
Total Liabilities
6.98B6.35B6.71B7.13B7.13B8.26B
Stockholders Equity
6.96B5.14B5.99B6.81B6.81B11.93B
Cash FlowFree Cash Flow
355.80M357.50M501.70M306.40M306.40M205.22M
Operating Cash Flow
641.40M646.60M744.20M509.30M509.30M323.77M
Investing Cash Flow
-233.20M-236.70M-237.40M57.30M57.30M-4.04B
Financing Cash Flow
-431.30M-470.10M-496.50M-759.20M-759.20M4.03B

Clarivate Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.32
Price Trends
50DMA
3.96
Positive
100DMA
4.34
Negative
200DMA
5.16
Negative
Market Momentum
MACD
0.07
Positive
RSI
56.26
Neutral
STOCH
74.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLVT, the sentiment is Positive. The current price of 4.32 is above the 20-day moving average (MA) of 4.28, above the 50-day MA of 3.96, and below the 200-day MA of 5.16, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 74.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLVT.

Clarivate Risk Analysis

Clarivate disclosed 20 risk factors in its most recent earnings report. Clarivate reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Our Value Creation Plan may not be successful and may not lead to increased shareholder value. Q4, 2024
2.
We face risks associated with having operations and employees located in Israel. Q4, 2024

Clarivate Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WNWNS
75
Outperform
$2.77B15.3921.21%-0.64%30.96%
PAPAY
73
Outperform
$4.57B92.0510.80%47.78%74.61%
66
Neutral
$2.33B15.198.65%-8.05%-18.60%
62
Neutral
$11.81B10.34-7.44%2.91%7.41%-7.93%
AIAI
60
Neutral
$3.44B-33.73%25.27%4.68%
55
Neutral
$2.95B-12.20%-3.50%41.08%
DXDXC
46
Neutral
$2.86B7.4812.88%-5.65%78.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLVT
Clarivate
4.32
-1.36
-23.94%
ASGN
ASGN
53.26
-39.11
-42.34%
WNS
WNS
59.76
9.19
18.17%
DXC
DXC Technology
15.76
-2.69
-14.58%
AI
C3ai
25.95
-5.41
-17.25%
PAY
Paymentus Holdings
36.46
16.82
85.64%

Clarivate Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Clarivate Secures $500M Term Loans in May 2025
Positive
Jun 2, 2025

On May 30, 2025, Clarivate Plc’s subsidiaries, including Camelot Finance S.A., amended their existing credit agreement to secure a new $500 million tranche of incremental term loans maturing in 2031. These loans were used to redeem $500 million of outstanding senior secured notes due in 2026, leaving $200 million still outstanding. This strategic financial move allows Clarivate to extend the majority of its 2026 debt maturity, taking advantage of improved credit market conditions and maintaining flexibility in capital allocation.

The most recent analyst rating on (CLVT) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.

Private Placements and Financing
Clarivate Announces Partial Redemption of Senior Notes
Neutral
May 19, 2025

On May 19, 2025, Camelot Finance S.A., a subsidiary of Clarivate Plc, announced a conditional partial redemption of $500 million of its 4.50% Senior Secured Notes due 2026. This redemption is contingent upon successful debt financing transactions to fund the redemption price, leaving $200 million of the notes outstanding after completion.

The most recent analyst rating on (CLVT) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.

Executive/Board ChangesShareholder MeetingsStock Buyback
Clarivate Shareholders Approve Key Proposals at AGM
Positive
May 12, 2025

On May 7, 2025, Clarivate Plc held its Annual General Meeting of Shareholders, where all proposals on the agenda were approved. These included the election of directors, advisory approval of executive compensation, ratification of auditors, approval of an amended incentive award plan, and authorization for the company to repurchase its ordinary shares. The decisions made at this meeting reflect a strong shareholder support for the company’s strategic initiatives and governance practices, potentially impacting its market operations and stakeholder relations.

The most recent analyst rating on (CLVT) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Clarivate Reports Q1 2025 Results with Revenue Decline
Neutral
Apr 29, 2025

On April 29, 2025, Clarivate reported its first quarter 2025 results, showing a decrease in total revenues to $593.7 million from $621.2 million in the same quarter of 2024. Despite a net loss of $103.9 million, the company experienced a 0.3% increase in organic revenues, driven by higher renewals and new business wins. Clarivate repurchased $50 million in ordinary shares and generated $171.2 million in operating cash flow. The company reaffirmed its 2025 outlook, emphasizing its Value Creation Plan’s effectiveness in a volatile macro environment.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.