CommVault Systems (CVLT) AI Stock Analysis

• Market Cap: $7.95B
• Dividend Yield: N/A
• Average Volume (3M): 596.65K
• Price to Earnings (P/E): 99.8
• Beta (1Y): 1.17
• Revenue Growth: 21.62%
• EPS Growth: -53.99%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 1.01
• Shares Outstanding: 44,459,660
• 10 Day Avg. Volume: 662,391
• 30 Day Avg. Volume: 596,647
• 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: 0.95
• Enterprise Value/Revenue: 7.18
• Enterprise Value/Gross Profit: 8.76
• Enterprise Value/Ebitda: 77.50
• 1Y Price Target: $207.63
• Price Target Upside: 17.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $198.00 ▲(11.77% Upside)

CommVault Systems' strong financial performance and positive earnings call are major strengths, contributing significantly to the overall score. However, technical indicators suggest potential short-term weakness, and the high P/E ratio indicates overvaluation, which tempers the overall score.

Positive Factors

Earnings

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 Caution

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

Currency Impact

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 (CVLT) is a leading data protection and information management software company headquartered in Tinton Falls, New Jersey. The company specializes in providing solutions for data backup, recovery, archiving, and cloud services, catering to a wide array of industries including healthcare, finance, and education. Commvault's core products include its flagship software suite, which enables organizations to manage their data across on-premises and cloud environments efficiently, ensuring data integrity and compliance.

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: Negative
• Last Price: 177.15
• 50DMA: Negative
• 100DMA: Positive
• 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 177.15 is below the 20-day moving average (MA) of 182.04, below the 50-day MA of 177.37, and above the 200-day MA of 169.89, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 35.14 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
SRAD	77 Outperform	$9.58B	75.79	11.80%	―	20.14%	335.82%
CVLT	73 Outperform	$7.95B	99.80	25.08%	―	21.62%	-53.99%
PEGA	71 Outperform	$9.21B	46.60	41.55%	0.14%	12.47%	65.19%
ESTC	68 Neutral	$9.00B	192.75	-9.65%	―	17.42%	-228.98%
MNDY	68 Neutral	$9.26B	246.11	3.80%	―	30.24%	-6.69%
GTLB	62 Neutral	$7.18B	470.51	-0.63%	―	28.97%	98.96%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%

CommVault Systems Corporate Events

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.

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.