CommVault Systems (CVLT) AI Stock Analysis

• Market Cap: $7.43B
• Dividend Yield: N/A
• Average Volume (3M): 456.32K
• Price to Earnings (P/E): 98.9
• Beta (1Y): 1.29
• Revenue Growth: 18.63%
• EPS Growth: -55.09%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 1.03
• Shares Outstanding: 44,524,933
• 10 Day Avg. Volume: 396,706
• 30 Day Avg. Volume: 456,323
• PEG Ratio: -1.75
• Price to Book (P/B): 22.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.82
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 8.73
• Enterprise Value/Ebitda: 20.06
• 1Y Price Target: $189.71
• Price Target Upside: 13.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $189.00 ▲(13.08%Upside)

CommVault Systems receives a solid score due to strong financial performance and positive earnings call highlights, including significant revenue growth and strategic wins. However, the high P/E ratio suggests potential overvaluation, and technical indicators indicate caution in the short term.

Positive Factors

Financial Performance

Commvault reported healthy top- and bottom-line beats in its fiscal fourth quarter and provided guidance above consensus across all key metrics.

Market Position

Commvault is taking market share from legacy vendors in the $9 billion on-premises backup market, benefiting from their lack of hybrid cloud support.

Product and Market Strategy

Commvault's unified hybrid-cloud platform with embedded cyber-resilience capabilities differentiates the company.

Negative Factors

Analyst Concerns

Analyst is cautious due to consensus estimates not aligning with expectations.

Consensus Estimates

Consensus estimates may be skewed by not accounting for constant currency, leading to inflated expectations.

Financial Metrics

Free cash flow margins were guided below consensus due to higher expected cash taxes.

CommVault Systems Business Overview & Revenue Model

Company Description

Commvault Systems, Inc. provides data protection and information management software applications and related services in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; and Commvault Complete Data Protection, a data protection solution. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; Commvault Distributed Storage Platform that offers software-defined storage built on a hyperscale architecture; Metallic Cloud Storage service, which is the easy button to adopt secure and scalable cloud storage; and Metallic Software-as-a-Service. In addition, the company provides technology and business consulting, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers professional and customer support services that include data management-as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small and medium sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.

How the Company Makes Money

CommVault Systems makes money primarily through the sale of software licenses, subscriptions, and associated services. The company's revenue model includes perpetual software licenses, which provide customers with the right to use the software indefinitely, and subscription-based licenses, which offer customers access to the software for a specified period. In addition to software sales, CommVault generates revenue from maintenance and support services, which provide ongoing updates and customer support, and professional services, which include consulting, design, and implementation services tailored to clients' specific needs. Key revenue streams include direct sales to enterprises, channel partnerships with resellers and system integrators, and strategic alliances with cloud service providers to integrate CommVault's solutions into broader cloud offerings. These partnerships and integrated solutions are significant contributors to the company's earnings, as they expand market reach and enhance the value proposition of CommVault's product suite.

CommVault Systems Financial Statement Overview

Summary

CommVault Systems exhibits strong financial performance with significant revenue growth, high profitability margins, and effective cash flow management. The balance sheet shows low leverage, though there is room for improvement in ROE and EBIT margin. Overall, the company is financially robust.

Income Statement

CommVault Systems has demonstrated consistent revenue growth, with a notable increase of 18.63% from 2024 to 2025. The gross profit margin remains strong at 82%, indicating effective cost management. Despite a dip in EBIT margin from 8.98% in 2024 to 7.41% in 2025, the company maintains a solid net profit margin of 7.64%. Overall, the income statement reflects strong revenue growth and profitability, though EBIT margin could be improved.

Balance Sheet

The balance sheet shows a healthy equity ratio of 29.07%, indicating a strong capital structure. The debt-to-equity ratio is low at 0.03, reflecting minimal leverage and financial risk. However, return on equity (ROE) has decreased from 60.73% in 2024 to 23.41% in 2025, suggesting reduced efficiency in generating profits from equity. Despite this, the low leverage and solid equity base provide financial stability.

Cash Flow

CommVault's cash flow is robust, with operating cash flow exceeding net income, resulting in a strong operating cash flow to net income ratio of 2.73. Free cash flow has grown by 2% from 2024 to 2025, indicating sustainable cash generation. The free cash flow to net income ratio is high at 2.68, underscoring the company's ability to generate cash relative to its earnings. Overall, the cash flow statement reflects strong cash generation and prudent cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	995.62M	839.25M	784.59M	769.59M	723.47M
Gross Profit	816.58M	687.64M	649.19M	655.73M	614.10M
EBITDA	89.71M	90.44M	-4.68M	54.44M	-5.36M
Net Income	76.11M	168.91M	-35.77M	33.62M	-30.95M
Balance Sheet
Total Assets	1.12B	943.91M	782.57M	816.08M	904.17M
Cash, Cash Equivalents and Short-Term Investments	302.10M	312.75M	287.78M	267.51M	397.24M
Total Debt	10.95M	12.09M	12.78M	16.05M	22.89M
Total Liabilities	793.14M	665.83M	596.48M	560.25M	510.14M
Stockholders Equity	325.12M	278.08M	186.10M	255.83M	394.03M
Cash Flow
Free Cash Flow	203.63M	199.71M	167.05M	173.27M	115.78M
Operating Cash Flow	207.38M	203.80M	170.29M	177.18M	123.95M
Investing Cash Flow	-70.40M	-5.52M	-5.29M	-24.44M	35.47M
Financing Cash Flow	-147.82M	-170.58M	-135.58M	-276.09M	-74.74M

CommVault Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 167.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVLT, the sentiment is Negative. The current price of 167.14 is below the 20-day moving average (MA) of 171.13, below the 50-day MA of 177.03, and above the 200-day MA of 165.89, indicating a neutral trend. The MACD of -2.45 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 39.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVLT.

CommVault Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWAN	78 Outperform	$6.00B	12.72	58.14%	―	23.21%	―
PEGA	77 Outperform	$8.72B	49.52	41.55%	0.21%	12.47%	65.19%
BILL	77 Outperform	$4.75B	482.28	0.97%	―	14.52%	―
CVLT	74 Outperform	$7.43B	98.90	25.23%	―	18.63%	-55.09%
GTM	71 Outperform	$3.54B	87.69	2.23%	―	-3.12%	-37.59%
U	68 Neutral	$14.23B	―	-14.15%	―	-16.74%	49.75%
Sector *	50 Neutral	C$3.03B	2.29	-63.12%	2.26%	4.49%	-6.07%

CommVault Systems Corporate Events

CommVault Systems Expands Credit Facility to $300 Million

On April 15, 2025, Commvault Systems, Inc. refinanced its existing $100 million senior secured revolving credit facility and established a new five-year senior secured revolving credit facility, increasing its total borrowing capacity to $300 million. This strategic financial maneuver, facilitated by JPMorgan Chase Bank, N.A., aims to enhance the company’s financial flexibility and operational capacity, potentially impacting its market positioning and stakeholder interests.