Commvault Systems Profitability Analysis

CVLT
 Stock
  

USD 56.27  0.25  0.45%   

For Commvault Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Commvault Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Commvault Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Commvault Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Commvault Systems over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
Is Commvault Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Commvault Systems. If investors know Commvault will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Commvault Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Commvault Systems is measured differently than its book value, which is the value of Commvault that is recorded on the company's balance sheet. Investors also form their own opinion of Commvault Systems' value that differs from its market value or its book value, called intrinsic value, which is Commvault Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Commvault Systems' market value can be influenced by many factors that don't directly affect Commvault Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Commvault Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine Commvault Systems value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Commvault Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Commvault Systems Current Ratio vs. Shares Owned by Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Commvault Systems's current stock value. Our valuation model uses many indicators to compare Commvault Systems value to that of its competitors to determine the firm's financial worth.
Commvault Systems is number one stock in shares owned by institutions category among related companies. It is number one stock in current ratio category among related companies fabricating about  0.01  of Current Ratio per Shares Owned by Institutions. The ratio of Shares Owned by Institutions to Current Ratio for Commvault Systems is roughly  73.11 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Commvault Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Commvault Systems' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Commvault Systems' earnings, one of the primary drivers of an investment's value.

Commvault Current Ratio vs. Shares Owned by Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Commvault Systems 
Shares Held by Institutions 
 = 
Funds and Banks 
Firms 
95.77 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Commvault Systems 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
1.31 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

Commvault Current Ratio Comparison

Commvault Systems is currently under evaluation in current ratio category among related companies.

Commvault Systems Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Commvault Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Commvault Systems will eventually generate negative long term returns. The profitability progress is the general direction of Commvault Systems' change in net profit over the period of time. It can combine multiple indicators of Commvault Systems, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Commvault Systems, Inc. provides data protection and information management software applications and related services in the United States and internationally. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey. Commvault Systems operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 2800 people.

Commvault Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Commvault Systems. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Commvault Systems position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Commvault Systems' important profitability drivers and their relationship over time.

Use Commvault Systems in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Commvault Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Commvault Systems will appreciate offsetting losses from the drop in the long position's value.

Commvault Systems Pair Trading

Commvault Systems Pair Trading Analysis

The ability to find closely correlated positions to Commvault Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Commvault Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Commvault Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Commvault Systems to buy it.
The correlation of Commvault Systems is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Commvault Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Commvault Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Commvault Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Commvault Systems position

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Continue to Trending Equities. You can also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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To fully project Commvault Systems' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Commvault Systems at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Commvault Systems' income statement, its balance sheet, and the statement of cash flows.
Potential Commvault Systems investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Commvault Systems investors may work on each financial statement separately, they are all related. The changes in Commvault Systems's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Commvault Systems's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.