Clarivate (CLVT) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: N/A
• Average Volume (3M): 5.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -2.96%
• EPS Growth: 71.30%
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.18
• Shares Outstanding: 661,435,060
• 10 Day Avg. Volume: 5,639,251
• 30 Day Avg. Volume: 5,102,889
• PEG Ratio: 0.16
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 9.86
• Enterprise Value/Market Cap: 2.96
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 4.09
• Enterprise Value/Ebitda: 9.31
• 1Y Price Target: $4.55
• Price Target Upside: 28.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): $2.44B

• Rating: 56 Neutral
• Price Target: $4.00 ▲(12.99% Upside)

Clarivate's overall stock score reflects a company facing financial challenges but showing potential for future growth. The most significant factor is the financial performance, which is currently weak due to ongoing losses and cash flow issues. However, positive corporate events and strategic initiatives in AI and product innovation provide a promising outlook. Technical analysis and valuation present a mixed picture, with short-term momentum but long-term challenges.

Positive Factors

AI and Product Innovation

The launch of new AI capabilities enhances product offerings, potentially driving higher organic growth and improving renewal rates, which can strengthen long-term market position.

Debt Reduction and Share Repurchase

Debt reduction and share repurchases demonstrate strong financial management, improving financial stability and shareholder value over the long term.

Cortellis Regulatory Intelligence AI Assistant

The introduction of the AI assistant enhances Clarivate's product suite, potentially increasing customer engagement and providing a competitive edge in regulatory intelligence.

Negative Factors

Ongoing Profitability Challenges

Persistent negative profit margins indicate ongoing struggles in converting revenue into profit, which may hinder long-term financial health and growth potential.

Flat Organic Revenue

Flat organic revenue growth and declining margins suggest difficulties in expanding market share and achieving operational efficiency, impacting future growth prospects.

Challenges in Intellectual Property Segment

Flat revenue in the intellectual property segment indicates challenges in achieving sustainable growth, potentially affecting long-term competitiveness in this key area.

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 diverse model that includes subscription fees for access to its proprietary databases and analytical tools, transactional sales for specific reports and services, and licensing agreements. The company has key revenue streams from its subscription-based offerings that provide recurring revenue, primarily from academic institutions, government agencies, and corporations seeking to enhance their research capabilities. Additionally, Clarivate benefits from partnerships with universities, research organizations, and corporations that rely on its insights for innovation and intellectual property management. The company's growth is also supported by its continuous investment in technology and data analytics, allowing it to expand its product offerings and improve customer engagement.

Clarivate Financial Statement Overview

Summary

Clarivate's financial performance is mixed. The income statement shows ongoing losses with a negative net profit margin, despite a strong gross profit margin. The balance sheet is stable but not strong, with a concerning negative return on equity. Cash flow management is moderate, with challenges in maintaining growth. Overall, the company needs to improve profitability and operational efficiency.

Income Statement

Clarivate's income statement shows a mixed performance. While the company has achieved a modest revenue growth of 3.6% in the TTM, it continues to face challenges with profitability. The net profit margin remains negative at -15.83%, indicating ongoing losses. The gross profit margin is relatively strong at 65.76%, but the negative EBIT margin of -1.29% highlights operational inefficiencies. Overall, the income statement reflects a company struggling to convert revenue into profit.

Balance Sheet

The balance sheet of Clarivate indicates a moderate financial position. The debt-to-equity ratio of 0.91 suggests a balanced approach to leveraging, but the negative return on equity of -7.89% is concerning, as it indicates that the company is not generating positive returns for its shareholders. The equity ratio of 43.67% shows a reasonable level of equity financing. Overall, the balance sheet reflects a stable but not particularly strong financial foundation.

Cash Flow

Clarivate's cash flow statement presents a mixed picture. The operating cash flow to net income ratio of 0.41 indicates that the company is generating cash from operations, but the free cash flow growth rate is negative at -3.12%, suggesting challenges in maintaining cash flow growth. The free cash flow to net income ratio of 0.55 shows that a portion of the losses is being offset by free cash flow. Overall, the cash flow statement suggests moderate cash management with room for improvement.

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	1.25B
Gross Profit	1.64B	1.69B	1.72B	1.71B	1.25B	815.30M
EBITDA	721.90M	456.60M	-10.50M	-3.01B	532.15M	61.80M
Net Income	-396.00M	-636.70M	-911.20M	-3.96B	-270.50M	-350.60M
Balance Sheet
Total Assets	11.23B	11.49B	12.71B	13.94B	20.18B	14.79B
Cash, Cash Equivalents and Short-Term Investments	318.70M	295.20M	370.70M	348.80M	587.61M	257.73M
Total Debt	4.48B	4.59B	4.81B	5.10B	5.61B	3.63B
Total Liabilities	6.32B	6.35B	6.71B	7.13B	8.26B	5.76B
Stockholders Equity	4.90B	5.14B	5.99B	6.81B	11.93B	9.03B
Cash Flow
Free Cash Flow	335.20M	357.50M	501.70M	306.40M	205.30M	155.80M
Operating Cash Flow	609.90M	646.60M	744.20M	509.30M	323.80M	263.50M
Investing Cash Flow	-171.10M	-236.70M	-237.40M	57.30M	-4.04B	-2.99B
Financing Cash Flow	-504.80M	-470.10M	-496.50M	-759.20M	4.03B	2.93B

Clarivate Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.54
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3.54 is below the 20-day moving average (MA) of 3.56, below the 50-day MA of 3.57, and below the 200-day MA of 3.98, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 23.01 is Neutral, 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
CTSH	79 Outperform	$40.51B	19.46	14.50%	1.48%	7.44%	-4.57%
G	78 Outperform	$8.24B	15.40	22.32%	1.44%	7.40%	-14.45%
EXLS	77 Outperform	$6.61B	28.12	25.96%	―	14.43%	29.86%
EPAM	70 Neutral	$11.58B	32.38	10.21%	―	14.26%	-15.49%
IT	67 Neutral	$16.86B	21.60	109.26%	―	5.24%	-16.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLVT	56 Neutral	$2.27B	―	-7.60%	―	-2.96%	71.30%

Clarivate Corporate Events

Clarivate Raises 2025 Revenue Outlook Amid Q3 Results

On October 29, 2025, Clarivate reported its third-quarter results, highlighting improved financial and operational performance. The company raised its 2025 revenue outlook and reported a net loss reduction compared to the previous year. Despite a slight decrease in organic revenues, Clarivate saw growth in organic ACV and an improvement in the mix of organic recurring revenue. The company repurchased 11.7 million ordinary shares and repaid $100 million of debt in the third quarter, demonstrating a commitment to shareholder value.