Craneware (CRW) AI Stock Analysis

• Market Cap: £721.40M
• Dividend Yield: 1.43%
• Average Volume (3M): 57.56K
• Price to Earnings (P/E): 61.8
• Beta (1Y): 0.31
• Revenue Growth: 6.74%
• EPS Growth: 54.83%
• Country: UK
• Employees: 747
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.38
• Shares Outstanding: 35,409,800
• 10 Day Avg. Volume: 29,794
• 30 Day Avg. Volume: 57,558
• PEG Ratio: 2.16
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,800.00
• Price Target Upside: 37.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: 2,420.00p ▲(18.63%Upside)

Craneware's overall stock score reflects strong financial performance and positive corporate events. However, the high valuation and bearish technical indicators weigh on the score. The company's robust profitability and strategic advancements are significant strengths, while the technical downtrend and high P/E ratio present short-term challenges.

Craneware Business Overview & Revenue Model

Company Description

Craneware plc, together with its subsidiaries, develops, licenses, and supports computer software for the healthcare industry in the United States. The company provides solutions, such as Chargemaster Toolkit, an automated software-as-a-service (SaaS) chargemaster management solution for capturing optimal legitimate reimbursement for providers; Trisus Supply, a solution that utilizes data to identify data gaps between the systems; Physician Revenue Toolkit, a SaaS solution for managing physician group KPIs, charges, codes, RVUs, fee schedules, and related information; Reference Plus, a SaaS solution to perform chargemaster analysis; Pharmacy ChargeLink, a solution to enhance charge capture, pricing, and cost management; integration for chargemaster management, a software that automatically uploads chargemaster changes to the patient billing system for accurate billing; Trisus Pricing Analyzer, a SaaS solution that simplifies the price modelling process; and Online Reference Toolkit and supplies assistant solutions. It also offers InSight Medical Necessity, a SaaS solution that provides medical necessity validation for the United States payors and advance beneficiary notice creation; Trisus Claims Informatics, a software that automates claim and coding reviews; and InSight Audit, a web-based audit management application for healthcare organizations to manage government and commercial audits. In addition, the company provides Trisus Healthcare Intelligence, a cost analytics and resource efficiency platform; trisus pricing transparency; InSight Denials to analyze, track, trend, and report on denial data; and appeals services. Further, it offers customer success management and consulting services; professional services; and sales and marketing, and product and software development services. Craneware plc was incorporated in 1999 and is headquartered in Edinburgh, the United Kingdom.

How the Company Makes Money

Craneware makes money primarily through the sale of its software solutions, which are provided on a subscription basis. The company's revenue model is largely based on recurring revenue from its software-as-a-service (SaaS) offerings, which provide healthcare organizations with tools for revenue cycle and value cycle management. Key revenue streams include subscription fees, software licenses, and professional services such as implementation and consulting. Significant partnerships with healthcare providers and institutions further contribute to its earnings, as these collaborations help expand its customer base and drive adoption of its solutions.

Craneware Financial Statement Overview

Summary

Craneware exhibits strong financial performance with solid revenue growth, efficient operations, and a stable balance sheet. The company maintains strong cash flow generation, though net profit margins and free cash flow growth could be improved. Overall, Craneware's financial health is solid.

Income Statement

Craneware demonstrated strong revenue growth of 8.77% from 2023 to 2024, with a solid gross profit margin of 85.7% and a net profit margin of 6.2% in 2024. The EBIT margin was 10.4%, indicating efficient operations, while the EBITDA margin of 28.7% reflects healthy cash generation from operations. Overall, the company shows robust profitability and growth, although net profit margins could be improved.

Balance Sheet

The debt-to-equity ratio improved significantly, reflecting a strong balance sheet with a lower debt burden. Return on equity is moderate at 3.6%, indicating room for improvement in asset utilization. The equity ratio is a healthy 60.4%, suggesting financial stability. The balance sheet shows prudent financial management with a focus on maintaining low leverage.

Cash Flow

Free cash flow decreased from 2023 to 2024, but the company maintains a solid operating cash flow to net income ratio of 3.6, highlighting efficient cash generation relative to earnings. The free cash flow to net income ratio is favorable, showing a strong conversion of earnings into cash. The company should focus on improving free cash flow growth to enhance financial flexibility.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
198.10M	189.27M	174.02M	165.54M	75.58M	71.49M
	Gross Profit
171.02M	162.20M	148.44M	142.37M	70.20M	66.97M
	EBIT
22.31M	19.73M	19.23M	18.13M	13.24M	19.21M
	EBITDA
36.65M	54.26M	51.60M	47.54M	18.48M	24.06M
	Net Income Common Stockholders
14.88M	11.70M	9.23M	9.41M	12.90M	16.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.16M	34.59M	78.54M	47.16M	235.62M	47.85M
	Total Assets
565.96M	543.65M	576.98M	568.79M	311.60M	115.76M
	Total Debt
35.89M	40.15M	86.69M	113.08M	1.15M	2.02M
	Net Debt
-36.27M	5.56M	8.15M	65.93M	-234.47M	-45.83M
	Total Liabilities
236.84M	215.06M	249.13M	235.77M	51.32M	47.36M
	Stockholders Equity
329.12M	328.59M	327.84M	333.02M	260.28M	68.39M
Cash Flow		Free Cash Flow
68.61M	24.91M	83.20M	12.93M	13.21M	10.96M
	Operating Cash Flow
69.53M	41.86M	98.75M	26.96M	23.54M	20.67M
	Investing Cash Flow
-14.27M	-15.81M	-15.34M	-307.32M	-10.32M	-9.71M
	Financing Cash Flow
-46.99M	-70.00M	-53.28M	91.90M	174.55M	-10.72M

Craneware Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2040.00
• 50DMA: Positive
• 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 GB:CRW, the sentiment is Neutral. The current price of 2040 is below the 20-day moving average (MA) of 2076.25, above the 50-day MA of 1842.40, and above the 200-day MA of 1997.99, indicating a neutral trend. The MACD of 50.50 indicates Positive momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 21.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CRW.

Craneware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPI	74 Outperform	£840.96M	33.17	3.41%	1.10%	11.20%	-6.80%
AMS	72 Outperform	£461.60M	64.65	2.93%	1.14%	40.66%	-55.09%
CRW	69 Neutral	£721.40M	61.82	4.50%	1.43%	6.74%	54.83%
PRTC	65 Neutral	£333.86M	8.54	11.74%	―	38.80%	―
ONT	61 Neutral	£1.15B	―	-23.77%	―	7.97%	12.94%
APH	59 Neutral	$355.92M	―	-5.04%	―	-1.02%	67.70%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%

Craneware Corporate Events

Craneware plc Faces Potential Acquisition by Bain Capital

Craneware plc has announced that Bain Capital Private Equity is assessing a possible offer for the company. While no formal proposal has been received, Bain Capital has until June 13, 2025, to announce its intentions. This potential offer could significantly impact Craneware’s market positioning and stakeholder interests, pending further developments.

The most recent analyst rating on (GB:CRW) stock is a Buy with a £28.00 price target. To see the full list of analyst forecasts on Craneware stock, see the GB:CRW Stock Forecast page.

Craneware Sees Shift in Major Shareholder Voting Rights

Craneware plc has announced a change in its major holdings, with Liontrust Investment Partners LLP adjusting its voting rights in the company. The adjustment reflects a decrease in Liontrust’s total voting rights from 10.977% to 10.1601%, indicating a strategic shift in their investment stance. This change may impact the company’s shareholder dynamics and influence future corporate decisions.

Craneware Chair Increases Stake Amid Voting Rights Adjustment

Craneware plc announced that its Chair, Will Whitehorn, purchased 1,911 Ordinary Shares, reflecting a minor increase in his stake in the company. This transaction highlights confidence in Craneware’s market position and could positively influence stakeholder perception. Additionally, the company adjusted its total voting rights following the transfer of shares to satisfy employee share options, which now stands at 35,409,802 shares with voting rights.

Craneware Announces Interim Dividend Details and Currency Election

Craneware plc, a prominent provider of healthcare financial performance solutions, announced details regarding its interim dividend payment. Shareholders who opted for the US dollar payment will receive their dividends at an exchange rate of $1.30. This announcement reflects Craneware’s commitment to providing flexible financial options to its shareholders, potentially impacting its market positioning by enhancing shareholder satisfaction.

Craneware Achieves Record Interim Results with Double-Digit Growth

Craneware plc has reported record interim financial results for the first half of FY25, with a notable return to double-digit growth rates. The company’s revenue exceeded $100 million, driven by expansion with existing customers and new customer acquisitions. The strong financial performance is underpinned by high levels of annual recurring revenue and customer retention. Craneware’s strategic partnership with Microsoft has led to significant advancements in AI-enhanced offerings, including the launch of Trisus® Assist, an AI-powered personal assistant. The company continues to invest in R&D and innovation, strengthening its market position and supporting its ambitious growth strategy. The outlook remains positive, with expectations of sustained demand from US hospitals focusing on strategic growth post-election.