Craneware (CRW) AI Stock Analysis

• Market Cap: £766.92M
• Dividend Yield: 2.46%
• Average Volume (3M): 59.17K
• Price to Earnings (P/E): 65.7
• Beta (1Y): 0.34
• Revenue Growth: 6.74%
• EPS Growth: 54.83%
• Country: UK
• Employees: 747
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.37
• Shares Outstanding: 35,409,800
• 10 Day Avg. Volume: 60,911
• 30 Day Avg. Volume: 59,169
• PEG Ratio: -17.81
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.32
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 3.87
• 1Y Price Target: £2,800.00
• Price Target Upside: 27.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: 2,409.00p ▲(9.50%Upside)

Craneware's strong financial performance and positive technical indicators contribute significantly to its overall stock score. However, the high P/E ratio suggests potential overvaluation, which tempers the score. The recent corporate event is a positive but minor influence on the stock's perception.

Craneware Business Overview & Revenue Model

Company Description

Craneware (CRW) is a leading provider of software solutions in the healthcare sector, specializing in revenue cycle management and value cycle solutions. The company offers a suite of products designed to optimize financial performance in healthcare organizations by improving operational efficiency, compliance, and profitability. Craneware's core products and services are aimed at helping hospitals and other healthcare providers enhance their revenue integrity and financial outcomes.

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 robust revenue and profit growth, efficient operations, and a stable balance sheet. The company maintains strong cash flow generation, although there is room for improvement in net profit margins and free cash flow growth. Overall, the financial health of Craneware is solid, positioning it well within the healthcare providers & services industry.

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
EBITDA	36.65M	54.26M	51.60M	47.54M	18.48M	24.06M
Net Income	14.88M	11.70M	9.23M	9.41M	12.90M	16.84M
Balance Sheet
Total Assets	565.96M	543.65M	576.98M	568.79M	311.60M	115.76M
Cash, Cash Equivalents and Short-Term Investments	72.16M	34.59M	78.54M	47.16M	235.62M	47.85M
Total Debt	35.89M	40.15M	86.69M	113.08M	1.15M	2.02M
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: Positive
• Last Price: 2200.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRW, the sentiment is Positive. The current price of 2200 is above the 20-day moving average (MA) of 2082.75, above the 50-day MA of 2001.60, and above the 200-day MA of 1988.00, indicating a bullish trend. The MACD of 46.80 indicates Negative momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CRW.

Craneware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPI	72 Outperform	£913.38M	36.03	3.41%	1.01%	11.20%	-6.80%
CRW	71 Outperform	£766.92M	65.73	4.50%	2.46%	6.74%	54.83%
AMS	66 Neutral	£440.12M	61.63	2.93%	1.04%	40.66%	-55.09%
ONT	64 Neutral	£1.34B	―	-23.77%	―	7.97%	12.94%
Sector *	59 Neutral	£5.93B	9.05	-57.69%	4.70%	15.15%	-8.16%
PRTC	55 Neutral	£304.64M	7.90	11.74%	―	38.80%	―

Craneware Corporate Events

Craneware Rejects Bain Capital’s Acquisition Proposal, Citing Undervaluation

Craneware plc announced that Bain Capital Private Equity is no longer pursuing a potential acquisition of the company, following a rejected proposal valuing Craneware at £26.50 per share. The board believes this offer undervalues the company and remains confident in its strategic direction, citing strong trading performance and growth in revenue and earnings. The board attributes recent share price fluctuations to broader market factors rather than company performance, reinforcing its commitment to creating shareholder value.

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 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.