CommVault Systems (CVLT) AI Stock Analysis

• Market Cap: $5.43B
• Dividend Yield: N/A
• Average Volume (3M): 709.08K
• Price to Earnings (P/E): 70.5
• Beta (1Y): 1.27
• Revenue Growth: 22.02%
• EPS Growth: -55.25%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.91
• Shares Outstanding: 44,094,360
• 10 Day Avg. Volume: 779,821
• 30 Day Avg. Volume: 709,084
• PEG Ratio: -1.66
• Price to Book (P/B): 21.28
• Price to Sales (P/S): 6.95
• P/FCF Ratio: 33.97
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 7.64
• Enterprise Value/Gross Profit: 9.37
• Enterprise Value/Ebitda: 86.10
• 1Y Price Target: $191.33
• Price Target Upside: 52.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.91
• Revenue Forecast (FY): $1.16B

• Rating: 65 Neutral
• Price Target: $131.00 ▲(4.72% Upside)

CommVault Systems' overall stock score is driven by strong earnings call performance and solid financial management, despite high leverage. Technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The company's strategic initiatives in SaaS and cloud resilience are promising, but financial risks and valuation challenges need to be addressed.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

SaaS Adoption

Rapid SaaS growth reflects successful transition to cloud-based services, enhancing recurring revenue and customer retention.

Strategic Partnerships

Strategic partnerships expand product capabilities and market reach, strengthening competitive positioning in the industry.

Negative Factors

High Debt Levels

Elevated debt levels may strain financial flexibility, posing risks to long-term financial stability and operational agility.

Gross Margin Pressure

Margin pressure from SaaS transition could impact profitability, requiring cost management to sustain financial performance.

CFO Resignation

Leadership changes in finance may disrupt strategic financial planning, affecting execution of long-term financial strategies.

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 the sale of software licenses, subscriptions, and associated maintenance and support services. The company's revenue model consists of both perpetual licenses and software-as-a-service (SaaS) offerings, allowing customers to choose the deployment method that best fits their needs. Key revenue streams include recurring subscription fees from cloud-based services, one-time payments for software licenses, and ongoing support contracts. Additionally, CommVault has established strategic partnerships with major cloud service providers, such as Microsoft Azure and Amazon Web Services (AWS), which enhance its product offerings and expand its market reach. These partnerships not only generate additional revenue through joint marketing efforts and bundled services but also contribute to customer acquisition and retention by providing integrated solutions.

CommVault Systems Financial Statement Overview

Summary

CommVault Systems demonstrates solid financial performance with strong revenue growth and efficient cash flow management. However, the high debt-to-equity ratio suggests potential financial risk. The company should focus on improving net profit margins and reducing leverage to enhance financial stability.

Income Statement

CommVault Systems shows a solid revenue growth rate of 4.08% TTM, indicating a positive trajectory. The gross profit margin remains strong at 81.55%, reflecting efficient cost management. However, the net profit margin is relatively low at 7.32%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, indicating stable operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 4.32 TTM, which could pose a risk if not managed carefully. The return on equity is robust at 27.01%, demonstrating effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

CommVault Systems exhibits a healthy free cash flow growth rate of 10.47% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.40, showing adequate cash flow relative to net income. The free cash flow to net income ratio is high at 0.97, reflecting efficient conversion of income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.10B	995.62M	839.25M	784.59M	769.59M	723.47M
Gross Profit	893.63M	816.58M	687.64M	649.19M	655.73M	614.10M
EBITDA	97.30M	90.66M	90.56M	-4.57M	54.47M	-5.36M
Net Income	80.24M	76.11M	168.91M	-35.77M	33.62M	-30.95M
Balance Sheet
Total Assets	1.92B	1.12B	943.91M	792.60M	827.92M	914.20M
Cash, Cash Equivalents and Short-Term Investments	1.06B	302.10M	312.75M	287.78M	267.51M	397.24M
Total Debt	908.49M	10.95M	12.09M	12.78M	16.05M	22.89M
Total Liabilities	1.71B	793.14M	665.83M	606.50M	572.09M	520.17M
Stockholders Equity	210.46M	325.12M	278.08M	186.10M	255.83M	394.03M
Cash Flow
Free Cash Flow	209.44M	203.63M	199.71M	167.05M	173.27M	115.78M
Operating Cash Flow	215.55M	207.38M	203.80M	170.29M	177.18M	123.95M
Investing Cash Flow	-48.97M	-70.40M	-5.52M	-5.29M	-24.44M	35.47M
Financing Cash Flow	583.38M	-147.82M	-170.58M	-135.58M	-276.09M	-74.74M

CommVault Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 125.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 125.1 is above the 20-day moving average (MA) of 122.05, below the 50-day MA of 138.29, and below the 200-day MA of 164.94, indicating a neutral trend. The MACD of -3.70 indicates Negative momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 75.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVLT.

CommVault Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	69 Neutral	$9.75B	38.93	51.96%	0.16%	17.00%	120.21%
SRAD	67 Neutral	$7.03B	64.75	9.79%	―	18.99%	66.43%
MNDY	66 Neutral	$7.35B	118.69	5.81%	―	28.62%	186.67%
CVLT	65 Neutral	$5.43B	70.48	32.87%	―	22.02%	-55.25%
ESTC	65 Neutral	$7.85B	-73.73	-12.84%	―	16.98%	-265.85%
GTLB	62 Neutral	$6.38B	-146.65	-5.17%	―	27.35%	18.18%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

CommVault Systems Corporate Events

CommVault Systems CFO Resigns, CEO to Oversee Transition

On December 4, 2025, Commvault announced the resignation of its Chief Financial Officer, Jennifer DiRico, effective at the end of the calendar year. The company has begun searching for a new CFO, and in the interim, President and CEO Sanjay Mirchandani will oversee a newly established Office of the CFO. DiRico’s departure is not due to any disagreements with the company. Commvault maintains its market position in cyber resilience and reports no changes to its financial outlook.

CommVault Systems Appoints Geoff Haydon to Board

On October 17, 2025, Commvault appointed Geoff Haydon to its Board of Directors and the Audit Committee, highlighting his extensive experience in cybersecurity and enterprise technology. This strategic move is expected to bolster Commvault’s leadership in cyber resilience, as Haydon’s expertise aligns with the company’s mission to advance cyber resilience in the AI era. Concurrently, Allison Pickens resigned from the Board on October 15, 2025, to focus on her venture capital firm, with her departure not linked to any disagreements with Commvault.