Craneware (CRW) AI Stock Analysis

• Market Cap: £623.89M
• Dividend Yield: 1.66%
• Average Volume (3M): 71.71K
• Price to Earnings (P/E): 41.5
• Beta (1Y): 0.79
• Revenue Growth: 5.74%
• EPS Growth: 63.23%
• Country: US
• 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: 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 1,944.00p ▼(-12.83% 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

Recurring SaaS Revenue Model

A predominantly recurring SaaS and term-license revenue model provides predictable, contract-driven cash flows and higher customer lifetime value. Over 2–6 months this supports stable revenue retention, easier forecasting, and scalable margins as incremental cloud delivery costs are low relative to subscription fees.

Conservative Leverage

Very low leverage gives the company financial flexibility to invest in product development, M&A, or weather sector cycles without straining interest coverage. A conservative balance sheet supports durable operations and lowers refinancing risk, improving long-term resilience through changing healthcare budgets.

Very High Gross Margins

Sustained gross margins above 85% imply strong unit economics and pricing power in software and services. High gross margins create a durable buffer to absorb SG&A or R&D investment, enabling profitable scaling and reinvestment into product enhancements that sustain competitive advantage.

Negative Factors

Declining Free Cash Flow Growth

A recent 13.4% decline in free cash flow growth, if persistent, weakens the company’s ability to self-fund investments, dividends, or buybacks. Over months this could constrain strategic flexibility, increase reliance on external capital, and reduce the margin for error during healthcare provider budget cycles.

Modest Net Profit Margins

Despite strong gross margins, modest net margins indicate pressures from operating costs or reinvestment that compress bottom-line returns. Persistently constrained net profitability reduces ROE and limits internal capital for growth initiatives, making long-term return enhancement more challenging.

Need to Improve Shareholder Returns and Cash Stability

Management-level emphasis on improving shareholder returns and cash stability signals current shortcomings in cash deployment or return generation. Over the medium term, failure to materially improve free cash flow conversion or distribution policies could erode investor confidence and hinder capital allocation effectiveness.

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

Craneware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2230.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1899.50, above the 50-day MA of 1971.36, and above the 200-day MA of 2098.24, indicating a bearish trend. The MACD of -48.38 indicates Positive momentum. The RSI at 29.65 is Positive, neither overbought nor oversold. The STOCH value of 29.44 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	72 Outperform	£41.98M	14.99	10.86%	―	―	―
CRW	69 Neutral	£623.89M	41.47	6.00%	1.66%	5.74%	63.23%
IXI	58 Neutral	£10.43M	-6.05	-15.57%	―	13.32%	55.07%
DXRX	57 Neutral	£142.54M	-93.61	-3.95%	―	31.83%	46.59%
OPT	53 Neutral	£191.76M	54.41	―	―	―	―
COG	52 Neutral	£14.43M	-7.77	-68.57%	―	-30.77%	-6.97%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Craneware Corporate Events

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.

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.

The most recent analyst rating on (GB:CRW) stock is a Hold with a £2122.00 price target. To see the full list of analyst forecasts on Craneware stock, see the GB:CRW Stock Forecast page.

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.

The most recent analyst rating on (GB:CRW) stock is a Hold with a £2122.00 price target. To see the full list of analyst forecasts on Craneware stock, see the GB:CRW Stock Forecast page.

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.

The most recent analyst rating on (GB:CRW) stock is a Hold with a £2122.00 price target. To see the full list of analyst forecasts on Craneware stock, see the GB:CRW Stock Forecast page.

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.

The most recent analyst rating on (GB:CRW) stock is a Hold with a £2408.00 price target. To see the full list of analyst forecasts on Craneware stock, see the GB:CRW Stock Forecast page.

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.

The most recent analyst rating on (GB:CRW) stock is a Hold with a £2408.00 price target. To see the full list of analyst forecasts on Craneware stock, see the GB:CRW Stock Forecast page.