Craneware (CRW) AI Stock Analysis

• Market Cap: £506.14M
• Dividend Yield: 1.66%
• Average Volume (3M): 71.71K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.62
• Revenue Growth: 5.74%
• EPS Growth: 63.23%
• Country: UK
• Employees: 747
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.43
• Shares Outstanding: 35,508,820
• 10 Day Avg. Volume: 64,377
• 30 Day Avg. Volume: 71,707
• 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: £2,875.00
• Price Target Upside: 28.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.2
• Revenue Forecast (FY): £226.01M

• Rating: 61 Neutral
• Price Target: 1,614.00 p ▼(-27.62% Downside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven primarily by solid financial performance (strong margins and a low-debt balance sheet), but it is meaningfully weighed down by weak technical momentum (price below key moving averages with negative MACD) and a relatively high P/E that limits valuation support despite the dividend yield.

Positive Factors

High gross margins

Gross margins above 85% reflect a software-centric cost structure and strong product economics. High gross margins create durable operating leverage, enabling reinvestment in R&D and sales, cushioning profitability versus pricing pressure and supporting long-term margin sustainability.

Conservative balance sheet

Very low leverage provides financial flexibility for strategic investments, M&A or weathering downturns without refinancing stress. A strong capital structure reduces default risk and supports multi-year planning, making the business resilient to cyclical swings in healthcare spending.

Recurring SaaS revenue

A subscription-based, recurring revenue model generates predictable cash flows and high customer switching costs through integration into revenue-cycle processes. This supports retention-led growth, easier forecasting and sustainable long-term margins as services scale.

Negative Factors

Declining free cash flow growth

A recent 13.4% drop in free cash flow growth signals weaker cash generation versus prior periods. If persistent, this reduces capacity to fund organic investment, acquisitions or dividends and may constrain strategic options that support longer-term growth.

Modest net profitability

Relatively modest net margins indicate that operating efficiency or non-operating costs limit conversion of high gross margins into owner returns. Lower net profitability and an implied weak ROE reduce the company’s ability to generate strong shareholder returns absent margin improvement or faster revenue growth.

Slow top-line growth

Single-digit revenue growth (~3.8% latest year) suggests a mature or niche market position with limited organic expansion. Slower top-line momentum makes long-term upside more dependent on margin expansion, cross-sell or acquisitions rather than rapid market-share gains.

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

Solid fundamentals supported by strong gross margins (>85%) and steady revenue growth (+3.8%), plus a strong balance sheet with very low leverage (debt-to-equity 0.09). Score is tempered by modest net profitability and a recent decline in free cash flow growth (-13.4%).

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	Jun 2025	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	211.84M	205.66M	174.02M	165.54M	75.58M	71.49M
Gross Profit	165.28M	179.27M	148.44M	142.37M	70.20M	66.97M
EBITDA	47.60M	38.80M	51.60M	47.54M	18.48M	23.87M
Net Income	22.52M	19.66M	9.23M	9.41M	12.90M	16.84M
Balance Sheet
Total Assets	525.76M	551.06M	576.98M	568.79M	311.60M	115.76M
Cash, Cash Equivalents and Short-Term Investments	40.96M	55.92M	78.54M	47.16M	235.62M	47.85M
Total Debt	26.91M	31.65M	86.69M	115.52M	2.20M	2.96M
Total Liabilities	186.25M	213.50M	249.13M	235.77M	51.32M	47.36M
Stockholders Equity	339.51M	337.56M	327.84M	333.02M	260.28M	68.39M
Cash Flow
Free Cash Flow	9.69M	59.41M	83.20M	12.93M	13.21M	10.96M
Operating Cash Flow	10.10M	59.90M	98.75M	26.96M	23.54M	20.67M
Investing Cash Flow	-15.94M	-13.98M	-15.34M	-307.32M	-10.32M	-9.71M
Financing Cash Flow	-25.44M	-24.58M	-53.28M	91.90M	174.55M	-10.72M

Craneware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2230.00
• 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 GB:CRW, the sentiment is Negative. The current price of 2230 is above the 20-day moving average (MA) of 1466.25, above the 50-day MA of 1667.80, and above the 200-day MA of 2053.12, indicating a neutral trend. The MACD of -42.19 indicates Negative momentum. The RSI at 38.50 is Neutral, neither overbought nor oversold. The STOCH value of 49.41 is Neutral, 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
KOO	76 Outperform	£40.98M	-13.46	10.86%	―	―	―
CRW	61 Neutral	£506.14M	22.56	6.00%	1.66%	5.74%	63.23%
DXRX	57 Neutral	£123.93M	-5.17	-3.95%	―	31.83%	46.59%
OPT	53 Neutral	£162.02M	41.48	1.70%	―	―	―
COG	52 Neutral	£18.39M	-3.33	-58.72%	―	-30.77%	-6.97%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IXI	51 Neutral	£7.23M	-7.18	-15.57%	―	13.32%	55.07%

Craneware Corporate Events

Craneware Posts Strong Interim Profit Growth and Launches $25m Buyback

Craneware reported unaudited interim results for the six months to 31 December 2025 showing solid top-line growth and stronger profitability, with revenue up 6% to $105.7m and double-digit increases in adjusted EBITDA, profit before tax and EPS. Annual recurring revenue rose 4% to $184.2m, margins remained above 30%, cash reserves stayed high while bank debt fell, and the interim dividend was raised by 11%, underscoring balance sheet strength and cash generation.

Operationally, the company accelerated innovation on its Trisus platform, including advanced AI developed with Microsoft and new functionality due to launch in the second half, and delivered the only fully integrated solution to address the evolving 340B rebate model before its pilot was postponed. Higher sales to new customers, strong net revenue retention at 103%, customer retention above 90% and an announced $25m share buyback support management’s confident outlook and signal ambitions to further strengthen its market position in U.S. healthcare finance technology.

The most recent analyst rating on (GB:CRW) stock is a Hold with a £1552.00 price target. To see the full list of analyst forecasts on Craneware stock, see the GB:CRW Stock Forecast page.

Craneware Delivers Solid H1 Growth and Cash Generation Despite US Rebate Programme Disruption

Craneware reported a solid first half for FY26, with revenue for the six months to 31 December 2025 rising 6% year-on-year to about $106m and adjusted EBITDA growing at a double-digit rate to roughly $33.4m, supported by sustained demand across its core markets and annual recurring revenue up around 4% to $184.3m. Strong cash generation enabled the group to reduce bank debt to $23.4m while maintaining cash reserves of $71.2m, and management said trading remains in line with expectations for the year to June 2026, underpinned by a robust sales pipeline and a high proportion of recurring revenue. Although the temporary halt of the US HRSA Rebate Model Pilot weighed on reported revenue and ARR in the period, Craneware’s rapid deployment of a rebate solution for affected customers highlighted the depth of its Trisus platform and reinforced its positioning as a key independent data and insights provider at the centre of the US healthcare market, supporting its ambition for near-term double-digit growth.

The most recent analyst rating on (GB:CRW) stock is a Hold with a £2223.00 price target. To see the full list of analyst forecasts on Craneware stock, see the GB:CRW Stock Forecast page.