CommVault Systems (CVLT) AI Stock Analysis

• Market Cap: $8.46B
• Dividend Yield: N/A
• Average Volume (3M): 696.65K
• Price to Earnings (P/E): 106.1
• Beta (1Y): 1.22
• Revenue Growth: 21.62%
• EPS Growth: -53.99%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.01
• Shares Outstanding: 44,459,660
• 10 Day Avg. Volume: 863,636
• 30 Day Avg. Volume: 696,649
• 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: 0.89
• Enterprise Value/Revenue: 7.18
• Enterprise Value/Gross Profit: 8.76
• Enterprise Value/Ebitda: 77.50
• 1Y Price Target: $206.83
• Price Target Upside: 8.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: $216.00 ▲(13.50% Upside)

CommVault Systems' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The technical indicators support a bullish outlook, although the high P/E ratio suggests potential overvaluation. The absence of corporate events and dividend yield slightly dampens the overall score.

Positive Factors

Strong Revenue Growth

CommVault's robust revenue growth, particularly in subscription services, indicates strong market demand and effective business strategy, supporting long-term financial health.

Strategic Partnerships

These partnerships enhance Commvault's competitive edge and market reach, potentially leading to increased customer acquisition and retention over time.

Industry Recognition

Consistent industry recognition strengthens brand reputation and trust, likely driving customer loyalty and attracting new clients, supporting sustained growth.

Negative Factors

Margin Dilution

While strategic, the acquisition could pressure margins in the short term, potentially impacting profitability until integration benefits materialize.

EPS Decline

A significant decline in EPS growth suggests challenges in profitability, which could affect investor confidence and the company's ability to reinvest in growth.

Flat Share Count

Flat share count despite buybacks indicates limited impact on EPS improvement, potentially affecting shareholder value and market perception.

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 has shown strong financial performance with impressive revenue growth and improved profitability. The balance sheet is robust with low leverage, and cash flow generation is healthy, supporting operational and strategic initiatives. The company is well-positioned for future growth, though it should continue to focus on maintaining its competitive edge and managing operational efficiencies.

Income Statement

CommVault Systems has demonstrated robust revenue growth with a Revenue Growth Rate of 6% for TTM (Trailing-Twelve-Months). The Gross Profit Margin is strong at 81.94%, and the Net Profit Margin has improved significantly to 7.7%, indicating enhanced profitability. The EBIT and EBITDA margins also reflect operational efficiency improvements. However, the company should keep an eye on sustaining these margins amid competitive pressures.

Balance Sheet

The company maintains a healthy balance sheet with a low Debt-to-Equity Ratio of 0.08, suggesting minimal leverage risk. The Equity Ratio of 31% indicates a solid equity foundation. Return on Equity stands at 22.2%, reflecting strong shareholder returns. Overall, the balance sheet depicts financial stability, but the company should monitor equity growth relative to asset growth.

Cash Flow

CommVault's cash flow generation is strong, with a Free Cash Flow of $189.6 million for TTM, reflecting a positive Free Cash Flow Growth Rate. The Operating Cash Flow to Net Income Ratio of 2.4 indicates efficient cash conversion from net income. The company maintains strong liquidity, but should continue to focus on optimizing capital expenditures to enhance cash flow further.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.05B	995.62M	839.25M	784.59M	769.59M	723.47M
Gross Profit	862.90M	816.58M	687.64M	649.19M	655.73M	614.10M
EBITDA	97.56M	90.66M	90.44M	-4.68M	54.44M	-5.36M
Net Income	81.08M	76.11M	168.91M	-35.77M	33.62M	-30.95M
Balance Sheet
Total Assets	1.18B	1.12B	943.91M	782.57M	816.08M	904.17M
Cash, Cash Equivalents and Short-Term Investments	363.23M	302.10M	312.75M	287.78M	267.51M	397.24M
Total Debt	29.62M	10.95M	12.09M	12.78M	16.05M	22.89M
Total Liabilities	811.70M	793.14M	665.83M	596.48M	560.25M	510.14M
Stockholders Equity	364.74M	325.12M	278.08M	186.10M	255.83M	394.03M
Cash Flow
Free Cash Flow	189.60M	203.63M	199.71M	167.05M	173.27M	115.78M
Operating Cash Flow	194.37M	207.38M	203.80M	170.29M	177.18M	123.95M
Investing Cash Flow	-21.24M	-70.40M	-5.52M	-5.29M	-24.44M	35.47M
Financing Cash Flow	-118.67M	-147.82M	-170.58M	-135.58M	-276.09M	-74.74M

CommVault Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.30
• 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 190.3 is above the 20-day moving average (MA) of 185.23, above the 50-day MA of 181.74, and above the 200-day MA of 170.99, indicating a bullish trend. The MACD of 2.35 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 51.40 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
CVLT	78 Outperform	$8.46B	106.07	25.08%	―	21.62%	-53.99%
SRAD	77 Outperform	9.01B	71.94	3.69%	―	20.14%	335.82%
PEGA	71 Outperform	10.04B	50.42	35.26%	0.13%	12.47%	65.19%
MNDY	68 Neutral	10.49B	278.72	3.35%	―	30.24%	-6.69%
ESTC	65 Neutral	9.13B	-107.64	-8.60%	―	17.42%	-228.98%
GTLB	61 Neutral	7.92B	-1,412.80	-0.82%	―	28.97%	98.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CommVault Systems Corporate Events

CommVault Systems Issues $900M Convertible Notes

CommVault Systems, Inc. issued $900 million of 0% Convertible Senior Notes due 2030, with an additional $115 million option exercised by initial purchasers. These notes, issued on September 5, 2025, are senior unsecured obligations and are convertible under specific conditions, with a maturity date of September 15, 2030. The company also engaged in capped call transactions to mitigate potential dilution of common stock upon conversion of the notes, with a cap price set at $357.56 per share.

The most recent analyst rating on (CVLT) stock is a Buy with a $198.00 price target. To see the full list of analyst forecasts on CommVault Systems stock, see the CVLT Stock Forecast page.

CommVault Systems Announces $750M Convertible Notes Offering

On September 2, 2025, Commvault Systems announced its plan to initiate a private offering of $750 million in convertible senior notes due 2030, subject to market conditions. The proceeds from this offering are intended to enhance strategic flexibility, with a portion allocated for capped call transactions to offset share dilution, and up to $125 million for share repurchases, potentially impacting the market price of Commvault’s common stock.

The most recent analyst rating on (CVLT) stock is a Buy with a $198.00 price target. To see the full list of analyst forecasts on CommVault Systems stock, see the CVLT Stock Forecast page.

CommVault Systems Holds Annual Stockholders Meeting

CommVault Systems held its Annual Meeting of Stockholders on August 7, 2025, where stockholders voted on several key issues, including the election of nine directors, executive compensation, the appointment of Ernst & Young LLP as independent auditors, and the approval of additional shares under the 2016 Omnibus Incentive Plan. These decisions are crucial for the company’s governance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (CVLT) stock is a Hold with a $164.00 price target. To see the full list of analyst forecasts on CommVault Systems stock, see the CVLT Stock Forecast page.