Clarivate (CLVT) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: N/A
• Average Volume (3M): 3.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -3.92%
• EPS Growth: 67.52%
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.18
• Shares Outstanding: 672,219,060
• 10 Day Avg. Volume: 3,353,236
• 30 Day Avg. Volume: 3,850,468
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.78
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: 10.44
• 1Y Price Target: $5.00
• Price Target Upside: 35.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: $4.50 ▲(21.95% Upside)

Clarivate's overall stock score is primarily influenced by its financial challenges, including declining revenue and profitability issues. However, strong cash flow and positive earnings call sentiment provide some optimism. Technical indicators and valuation concerns further moderate the score.

Positive Factors

Strong Organic Growth

The growth in organic ACV indicates a solid demand for Clarivate's offerings, suggesting resilience in its core business segments and potential for sustained revenue growth.

Improved Adjusted EBITDA Margin

The improvement in EBITDA margin reflects effective cost management and operational efficiencies, which can enhance profitability and provide a buffer against revenue fluctuations.

High Renewal Rates in A&G Segment

High renewal rates indicate strong customer loyalty and satisfaction, which can lead to stable recurring revenues and long-term client relationships.

Negative Factors

Declining Revenue

The decline in revenue suggests challenges in maintaining sales momentum, which could impact long-term growth prospects if not addressed.

Net Loss in the Second Quarter

The net loss highlights ongoing profitability challenges, which may strain financial resources and necessitate strategic adjustments to improve fiscal health.

High Leverage

High leverage can limit financial flexibility and increase vulnerability to economic downturns, potentially impacting the company's ability to invest in growth initiatives.

Clarivate Business Overview & Revenue Model

Company Description

Clarivate Plc, an information services and analytics company, provides structured information and analytics for discovery, protection, and commercialization of scientific research, innovations, and brands. It offers Web of Science products and services, such as Web of Science, InCites, Journal Citation Reports, EndNote, ScholarOne, Converis, Publons, and Kopernio to organizations that plan, fund, implement, and utilize research; and Life Sciences products, including Cortellis and Newport Integrity for pharmaceutical and biotechnology companies to support research, market intelligence, and competitive monitoring in connection with the development and commercialization of new drugs. The company also provides Derwent products, which include Derwent Innovation, Techstreet, and IP Professional Services that enables its customers to evaluate the novelty of potential new products, confirm freedom to operate with respect to their product design, help them secure patent protection, assess the competitive technology landscape, and ensure that their products comply with required industry standards; CompuMark products, such as trademark screening, searching, and watching products and services for businesses and law firms; and MarkMonitor products, which helps enterprises to establish, manage, optimize, and protect their online presence. It serves government and academic institutions, life science companies, and research and development corporations in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc is headquartered in London, the United Kingdom.

How the Company Makes Money

Clarivate generates revenue through a combination of subscription-based services, software licenses, and transactional services. Its key revenue streams include subscription fees for access to its databases and analytical tools, which are utilized by researchers and institutions. The company also earns revenue from licensing its proprietary datasets and providing consulting services to help clients optimize their research and intellectual property strategies. Significant partnerships with universities, research institutions, and corporations enhance its reach and credibility in the market, contributing to a steady flow of income. Additionally, Clarivate's investment in expanding its product offerings and entering new markets plays a crucial role in driving growth and profitability.

Clarivate Financial Statement Overview

Summary

Clarivate's financial performance is challenged by declining revenue and profitability issues, despite a strong cash flow position. High leverage and declining equity pose risks, necessitating strategic financial management.

Income Statement

Clarivate's income statement highlights significant challenges. The TTM (Trailing-Twelve-Months) revenue has decreased compared to the previous year, indicating revenue contraction. The gross profit margin remains healthy, but negative EBIT and net income margins suggest operational inefficiencies and profitability issues. Although EBITDA is positive, it is insufficient to cover operating losses, indicating potential financial instability.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. The company has a manageable debt-to-equity ratio, but the significant total liabilities suggest a high leverage position. The equity ratio is reasonable, though the declining stockholders' equity may pose risks. Overall, the balance sheet shows moderate stability with potential risks from high leverage.

Cash Flow

Cash flow analysis reveals a moderately positive outlook. Operating cash flow remains robust, and free cash flow is positive, indicating good cash generation capability. However, the free cash flow growth rate is negative, suggesting potential challenges in maintaining cash flow levels. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.50B	2.56B	2.63B	2.66B	1.88B	1.88B
Gross Profit	1.65B	1.69B	1.72B	1.71B	1.25B	1.25B
EBITDA	685.00M	456.60M	-10.50M	-3.01B	532.15M	52.38M
Net Income	-433.30M	-636.70M	-911.20M	-3.96B	-270.50M	-270.45M
Balance Sheet
Total Assets	11.42B	11.49B	12.71B	13.94B	13.94B	20.18B
Cash, Cash Equivalents and Short-Term Investments	362.60M	295.20M	370.70M	348.80M	348.80M	430.88M
Total Debt	4.59B	4.59B	4.81B	5.10B	5.10B	5.61B
Total Liabilities	6.43B	6.35B	6.71B	7.13B	7.13B	8.26B
Stockholders Equity	4.99B	5.14B	5.99B	6.81B	6.81B	11.93B
Cash Flow
Free Cash Flow	346.00M	357.50M	501.70M	306.40M	205.30M	205.22M
Operating Cash Flow	631.70M	646.60M	744.20M	509.30M	323.80M	323.77M
Investing Cash Flow	-197.00M	-236.70M	-237.40M	57.30M	-4.04B	-4.04B
Financing Cash Flow	-459.80M	-470.10M	-496.50M	-759.20M	4.03B	4.03B

Clarivate Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.69
• 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 CLVT, the sentiment is Negative. The current price of 3.69 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.17, and below the 200-day MA of 4.39, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 31.65 is Neutral, neither overbought nor oversold. The STOCH value of 3.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLVT.

Clarivate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IT	77 Outperform	20.00B	16.24	82.56%	―	5.89%	54.53%
G	76 Outperform	7.36B	13.87	20.81%	1.57%	7.37%	-14.64%
CTSH	74 Outperform	32.71B	13.54	15.93%	1.84%	6.34%	12.16%
EXLS	73 Outperform	7.07B	30.28	22.27%	―	15.15%	34.33%
EPAM	68 Neutral	8.46B	21.65	10.94%	―	9.73%	-0.29%
CLVT	56 Neutral	$2.57B	―	-8.18%	―	-3.92%	67.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Clarivate Corporate Events

Clarivate Increases Revolving Credit by $75 Million

On August 5, 2025, Clarivate Plc’s subsidiaries amended their existing Credit Agreement, originally dated October 31, 2019, to increase the total revolving credit commitments by $75 million, bringing the total to $775 million. This amendment, which maintains the same terms as the existing agreement, is expected to enhance Clarivate’s financial flexibility and support its operational and strategic initiatives.

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