J Capital Research says CCC Intelligent Solutions ‘generating excess enthusiasm’

In a recently published report, J Capital Research says CCC Intelligent Solutions (CCCS) is “a low-growth software business from which executives are raking as much value as possible before they depart… The reality is a slow-growth company whose aggressive practices in low-balling insurance assessments are straining customer relationships with their insurers. The company is also ratcheting up prices, prompting insurers to slow-roll planned purchases from CCC or drop it and use a competing product. Meanwhile, the auto-insurance business that is CCC’s main customer is in decline under pressure of rising premiums and declining claims.” Further, it stated that, “CCCS is generating excess enthusiasm, as management paints it with the AI brush. In no way does CCCS merit its current P/E ratio of 4,457.”