Craneware (CRW) AI Stock Analysis

• Market Cap: £713.52M
• Dividend Yield: 1.58%
• Average Volume (3M): 77.58K
• Price to Earnings (P/E): 46.8
• Beta (1Y): 0.61
• Revenue Growth: 5.74%
• EPS Growth: 63.23%
• Country: UK
• Employees: 747
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.27
• Shares Outstanding: 35,508,820
• 10 Day Avg. Volume: 72,176
• 30 Day Avg. Volume: 77,584
• PEG Ratio: 0.76
• Price to Book (P/B): 3.07
• Price to Sales (P/S): 5.04
• P/FCF Ratio: 17.45
• 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: £2,873.67
• Price Target Upside: 28.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 90.3
• Revenue Forecast (FY): £16.94B

• Rating: 69 Neutral
• Price Target: 2,223.00p ▼(-0.31% Downside)

Craneware's overall stock score reflects strong financial performance and positive corporate events, which are offset by technical indicators suggesting bearish momentum and a high valuation. The company's strategic initiatives and solid balance sheet are significant strengths, but the high P/E ratio and current market trends present challenges.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Craneware's strong market position and demand for its healthcare revenue integrity solutions, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio indicates conservative financial management, providing Craneware with stability and flexibility to invest in growth opportunities.

Gross Profit Margins

High gross profit margins suggest effective cost management and pricing power, enhancing Craneware's ability to sustain profitability over time.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could limit Craneware's ability to fund new initiatives and return capital to shareholders, potentially impacting long-term financial health.

Net Profit Margins

Modest net profit margins may indicate cost pressures or significant investments, which could challenge Craneware's ability to enhance shareholder returns.

Return on Equity

Low return on equity suggests Craneware may not be fully utilizing shareholder capital efficiently, potentially impacting investor confidence and long-term growth.

Craneware Business Overview & Revenue Model

Company Description

Craneware (CRW) is a leading provider of revenue integrity solutions for the healthcare sector, primarily focusing on optimizing the financial performance of healthcare providers in the United States. The company specializes in software solutions that help hospitals and health systems manage their revenue cycles, ensuring accurate billing and compliance with complex regulations. Core products include Chargemaster Toolkit, Revenue Cycle Analytics, and other related services that streamline operations and enhance financial outcomes for healthcare organizations.

How the Company Makes Money

Craneware generates revenue primarily through subscription-based software licenses, professional services, and ongoing support contracts. The company's key revenue streams include the sale of its software solutions, which are typically offered on a recurring subscription model, allowing for predictable revenue generation. Additionally, Craneware earns income from consulting services that assist healthcare providers in implementing and optimizing their software solutions. Strategic partnerships with healthcare organizations and technology firms also play a crucial role in driving sales and expanding its customer base. The continuous demand for improved revenue cycle management due to regulatory changes and the increasing complexity of healthcare billing further contributes to Craneware's earnings.

Craneware Financial Statement Overview

Summary

Craneware demonstrates strong revenue growth and operational efficiency, supported by a solid balance sheet with low leverage. However, there are areas for improvement in net profitability and cash flow generation. The company is well-positioned in its industry but should focus on enhancing shareholder returns and cash flow stability.

Income Statement

Craneware has shown consistent revenue growth with a 3.8% increase in the latest year, supported by strong gross profit margins above 85%. However, net profit margins have been relatively modest, reflecting potential cost pressures or investment in growth. The EBIT and EBITDA margins indicate healthy operational efficiency, though there is room for improvement in net profitability.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.09, indicating conservative leverage. The equity ratio is solid, reflecting a stable capital structure. However, the return on equity is relatively low, suggesting that the company could enhance its profitability to better utilize shareholder equity.

Cash Flow

Operating cash flow has been robust, but free cash flow growth has declined by 13.4% recently, which could be a concern if it continues. The operating cash flow to net income ratio is healthy, indicating good cash conversion, but the free cash flow to net income ratio suggests a need for improved cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	205.66M	205.66M	174.02M	189.27M	165.54M	75.58M
Gross Profit	179.27M	179.27M	148.44M	162.20M	142.37M	70.20M
EBITDA	38.80M	38.80M	51.60M	54.26M	47.54M	18.48M
Net Income	19.66M	19.66M	9.23M	11.70M	9.41M	12.90M
Balance Sheet
Total Assets	551.06M	551.06M	576.98M	543.65M	568.79M	311.60M
Cash, Cash Equivalents and Short-Term Investments	55.92M	55.92M	78.54M	34.59M	47.16M	235.62M
Total Debt	31.65M	31.65M	86.69M	40.15M	115.52M	2.20M
Total Liabilities	213.50M	213.50M	249.13M	215.06M	235.77M	51.32M
Stockholders Equity	337.56M	337.56M	327.84M	328.59M	333.02M	260.28M
Cash Flow
Free Cash Flow	59.41M	59.41M	83.20M	24.91M	12.93M	13.21M
Operating Cash Flow	59.90M	59.90M	98.75M	41.86M	26.96M	23.54M
Investing Cash Flow	-13.98M	-13.98M	-15.34M	-15.81M	-307.32M	-10.32M
Financing Cash Flow	-24.58M	-24.58M	-53.28M	-70.00M	91.90M	174.55M

Craneware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2230.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRW, the sentiment is Negative. The current price of 2230 is above the 20-day moving average (MA) of 2092.64, above the 50-day MA of 2207.90, and above the 200-day MA of 2074.53, indicating a bearish trend. The MACD of -36.80 indicates Positive momentum. The RSI at 41.26 is Neutral, neither overbought nor oversold. The STOCH value of 13.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRW.

Craneware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRW	69 Neutral	£713.52M	46.76	6.00%	1.58%	5.74%	63.23%
AMS	69 Neutral	£488.82M	53.18	3.66%	1.19%	68.03%	-18.27%
PRTC	55 Neutral	£294.85M	8.54	15.04%	―	1231.50%	―
SPI	55 Neutral	£708.98M	38.30	2.51%	1.31%	6.95%	-34.38%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ONT	51 Neutral	£1.32B	-9.02	-26.01%	―	22.03%	20.01%

Craneware Corporate Events

Craneware Announces Final Dividend Details for Shareholders

Craneware plc announced details regarding its final dividend, specifying that shareholders registered for US dollar payments will receive their dividends at an exchange rate of $1.32. This announcement reflects Craneware’s ongoing commitment to providing value to its shareholders and maintaining transparency in its financial operations.

Craneware plc Reports Positive FY26 Momentum and Announces Board Changes

Craneware plc has announced continued positive momentum in FY26, driven by its alliance with Microsoft and ongoing R&D investments. The company has launched a new AI-enabled product to support the 340B drug rebate pilot program, enhancing its market position. Additionally, board changes include the retirement of David Kemp and new appointments for Alistair Erskine, Susan Nelson, and Jill Goldsmith. Craneware’s strong SaaS business model and recurring revenue provide a solid foundation for future growth, aligning with market expectations.

Craneware Announces Vesting of LTIP Awards and Adjustments in Voting Rights

Craneware plc announced the vesting of Long Term Incentive Plan (LTIP) awards for its executives, including the CEO, CFO, CPO, and CLO, following the satisfaction of certain performance conditions. This resulted in the issuance of ordinary shares, with a portion withheld to cover tax liabilities. The net shares received are subject to a two-year holding period. The transaction impacts the company’s total voting rights, with the issued share capital now consisting of 35,542,169 ordinary shares, of which 35,508,820 have voting rights. This adjustment in share distribution and voting rights could influence shareholder interests and company governance.

Craneware Completes Strategic Capital Reduction

Craneware plc announced the effective completion of its Reduction of Capital, which was approved by shareholders and confirmed by the Court of Session, Edinburgh. This move creates additional distributable reserves of over $284 million without affecting the company’s net assets, signaling a strategic financial maneuver to enhance its operational flexibility and stakeholder value.

Craneware Confirms Capital Reduction to Boost Financial Reserves

Craneware plc announced the confirmation of its Reduction of Capital, which includes the Share Premium Reduction and Merger Reserve Reduction, by the Court of Session in Edinburgh. This move, approved by shareholders, will create additional distributable reserves of over $284 million without affecting the company’s net assets, positioning Craneware to enhance its financial flexibility and potentially benefit stakeholders by strengthening its financial foundation.

Craneware Announces AGM and Directorate Change

Craneware plc has announced the posting of its Annual Report and Accounts for the year ending 30 June 2025, along with the Notice of Annual General Meeting (AGM) scheduled for 21 November 2025. David Kemp, the Senior Non-Executive Director and Chair of the Audit Committee, will retire from the Board on the day of the AGM, after nearly six years of service. The Board expressed gratitude for his contributions and will update on the recruitment of a new Independent Non-Executive Director.

Craneware Updates Share Capital Following Employee Share Options

Craneware plc has updated its issued share capital following recent employee share option exercises, resulting in 35,431,867 Ordinary Shares with voting rights. This change in share capital is significant for shareholders as it affects calculations related to their interests under the FCA’s Disclosure Guidance and Transparency Rules.

Craneware Grants Long-Term Incentive Awards to Key Executives

Craneware plc announced the grant of conditional share awards under its Long Term Incentive Plan (2022) to key executives, including the CEO, CFO, CPO, and CLO. These awards are contingent on performance conditions related to shareholder return and earnings growth over a five-year period, with a two-year holding period post-vesting, reflecting the company’s commitment to aligning executive incentives with long-term shareholder value.

Craneware Reports Strong FY25 Results with Revenue and Profit Growth

Craneware plc reported strong financial results for FY25, with a 9% increase in revenue to $205.7 million and a 12% rise in adjusted EBITDA to $65.3 million. The company achieved significant growth in statutory profit before tax, up 52%, and improved customer retention rates, reflecting its strategic position in the US healthcare market. Craneware’s continued investment in R&D, successful integration of customer-facing teams, and alliance with Microsoft have reinforced its market leadership. The launch of AI-powered solutions and the transition of Trisus Platform revenues to recurring revenues are expected to drive further growth. The company’s outlook remains positive, with confidence in continued growth acceleration in FY26.