CommVault Systems (CVLT) AI Stock Analysis

• Market Cap: $8.56B
• Dividend Yield: N/A
• Average Volume (3M): 488.26K
• Price to Earnings (P/E): 107.4
• Beta (1Y): 1.17
• Revenue Growth: 21.62%
• EPS Growth: -53.99%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): 1.01
• Shares Outstanding: 44,459,660
• 10 Day Avg. Volume: 562,405
• 30 Day Avg. Volume: 488,257
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 7.18
• Enterprise Value/Gross Profit: 8.76
• Enterprise Value/Ebitda: 78.20
• 1Y Price Target: $208.67
• Price Target Upside: 9.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 75 Outperform
• Price Target: $217.00 ▲(13.35% Upside)

CommVault Systems demonstrates strong financial performance and positive earnings call sentiment, both contributing significantly to its score. Technical analysis indicates bullish momentum, though high valuation metrics and potential overbought conditions pose risks. The company's strategic initiatives and growth in subscription revenue are promising, but investors should be cautious of valuation concerns.

Positive Factors

Earnings Performance

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

Market Position

The stock is up over 18.5% following the healthy first-quarter results as investors see the fruits of Commvault’s labor in the numbers and clear evidence of the company’s formidable position in the crowded data protection landscape.

Product Demand

Commvault's growth is driven by strong demand for cyber-resilience solutions as ransomware threats rise.

Negative Factors

Analyst Concerns

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

Currency Effects

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

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 generates revenue primarily through software licensing, subscription services, and professional services. The company offers its products on a perpetual license basis as well as a subscription model, allowing customers to choose the payment structure that best suits their needs. Key revenue streams include sales from its software solutions, maintenance and support services, and cloud services that facilitate data storage and management. Additionally, Commvault has established significant partnerships with leading cloud service providers and technology companies, enhancing its market reach and contributing to its earnings through joint marketing and integrated solutions.

CommVault Systems Financial Statement Overview

Summary

CommVault Systems demonstrates strong financial health with consistent revenue growth and high profitability margins. The balance sheet is stable with low leverage, although there is room for improvement in ROE and EBIT margin. Cash flow management is effective, highlighting robust cash generation.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 191.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVLT, the sentiment is Positive. The current price of 191.44 is above the 20-day moving average (MA) of 179.50, above the 50-day MA of 178.28, and above the 200-day MA of 168.38, indicating a bullish trend. The MACD of 4.25 indicates Negative momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 61.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVLT.

CommVault Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	79 Outperform	$8.72B	44.08	41.55%	0.14%	12.47%	65.19%
CVLT	75 Outperform	$8.56B	107.37	25.08%	―	21.62%	-53.99%
BILL	74 Outperform	$4.02B	482.28	0.97%	―	14.52%	―
GTM	70 Outperform	$3.06B	36.68	5.22%	―	-0.54%	626.94%
CWAN	68 Neutral	$5.54B	11.98	34.61%	―	36.68%	―
U	63 Neutral	$15.76B	―	-13.62%	―	-13.74%	48.10%
Sector *	61 Neutral	$36.32B	7.12	-9.36%	1.97%	7.79%	-9.36%

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.