Clarivate (CLVT) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: N/A
• Average Volume (3M): 4.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -3.92%
• EPS Growth: 67.52%
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 0.18
• Shares Outstanding: 672,219,060
• 10 Day Avg. Volume: 4,249,453
• 30 Day Avg. Volume: 4,640,896
• 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: 2.50
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: 10.44
• 1Y Price Target: $5.13
• Price Target Upside: 16.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 57 Neutral
• Price Target: $4.50 ▲(2.27% Upside)

Clarivate's overall stock score reflects significant financial challenges, particularly in profitability and leverage, despite positive cash flow. Technical indicators and valuation present mixed signals, while recent corporate events and earnings call insights provide a more optimistic outlook.

Positive Factors

Business Model Restructuring

CLVT has restructured its business model to focus on recurring revenue streams, which is expected to provide more stability in revenue.

Financial Performance

Clarivate’s second-quarter revenue was above both the estimate and consensus, with upside in academia & government, life sciences & healthcare, and IP.

Product Innovation

The company is investing in product innovation, focusing on AI implementations to drive organic growth.

Negative Factors

Growth Risks

The largest risks to CLVT's growth prospect include AI disintermediation, high leverage, and execution on its value creation plan.

Market Pressure

A&G end-markets continue to face pressure from a reduction in U.S. federal government spending and increased constraints on higher education and research funding.

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: Positive
• Last Price: 4.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4.4 is above the 20-day moving average (MA) of 4.30, above the 50-day MA of 4.25, and below the 200-day MA of 4.49, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 35.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLVT.

Clarivate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	78 Outperform	$4.71B	87.10	11.59%	―	49.35%	72.05%
WNS	76 Outperform	$3.23B	20.11	21.23%	―	1.94%	26.15%
ASGN	71 Outperform	$2.30B	16.65	7.71%	―	-6.31%	-23.56%
DXC	71 Outperform	$2.60B	7.07	12.60%	―	-4.93%	497.03%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
CLVT	57 Neutral	$2.86B	―	-8.18%	―	-3.92%	67.52%
AI	43 Neutral	$2.08B	―	-40.94%	―	14.34%	-13.27%

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.

Clarivate Announces Leadership Change in IP Segment

Clarivate Plc announced significant leadership changes within its Intellectual Property segment, with Gordon Samson set to depart from his role as President, effective September 7, 2025, and remain in a non-executive role until the end of the year. In a strategic move to drive long-term growth, Maroun S. Mourad will assume the role of President, Intellectual Property, effective September 8, 2025. Mourad brings extensive experience in data analytics and technology-enabled services, having previously led the Claims Solutions division at Verisk Analytics. The transition is part of Clarivate’s commitment to accelerating innovation and growth within its IP business, and Mourad’s appointment is expected to enhance the company’s focus on delivering quality results and customer-centric solutions.

Clarivate Reports Q2 2025 Results with Revenue Decline

On July 30, 2025, Clarivate reported its second-quarter results, highlighting a decrease in total revenues to $621.4 million from $650.3 million in the same period of 2024, attributed to inorganic divestitures and disposals. Despite this, the company saw a 0.5% increase in organic revenues, driven by a rise in organic recurring revenues. Clarivate also repurchased 11.5 million ordinary shares and reaffirmed its 2025 outlook. The net loss for the quarter was significantly reduced to $72.0 million from $304.3 million in 2024, indicating improved financial performance. The company is optimistic about future profitability, supported by enhancements in its sales operating model and AI advancements in its IP business.

Clarivate Elects Kenneth Cornick to Board of Directors

On July 22, 2025, Clarivate Plc announced the election of Kenneth Cornick to its Board of Directors, increasing the board size from 10 to 11 members. Cornick, who co-founded Clear Secure, Inc. and has extensive experience in financial and board roles, will join the Audit Committee, potentially strengthening Clarivate’s governance and strategic oversight.