CommVault Systems (CVLT) AI Stock Analysis

• Market Cap: $8.26B
• Dividend Yield: N/A
• Average Volume (3M): 463.37K
• Price to Earnings (P/E): 111.6
• Beta (1Y): 1.28
• Revenue Growth: 18.63%
• EPS Growth: -55.09%
• Country: US
• Employees: 3,300
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 1.03
• Shares Outstanding: 44,125,430
• 10 Day Avg. Volume: 534,529
• 30 Day Avg. Volume: 463,367
• PEG Ratio: 0.34
• Price to Book (P/B): 13.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.17
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 7.54
• 1Y Price Target: $185.86
• Price Target Upside: -1.29% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $211.00 ▲(12.06%Upside)

CommVault Systems holds a strong overall stock score driven by robust financial performance and a positive outlook from the latest earnings call. While the high P/E ratio suggests potential overvaluation, the company's strategic moves and solid technical indicators contribute positively to its investment appeal.

Positive Factors

Financial Performance

Commvault reported healthy top- and bottom-line beats in its fiscal fourth quarter and provided guidance above consensus across all key metrics.

Market Position

Commvault is in a strong position in the expanding cyber-resilience market, driven by rising data volumes and increasing cyber threats.

Revenue Growth

Revenue growth in the fourth quarter of 23.2% was the highest quarterly year-over-year revenue growth for Commvault since fiscal 2013.

Negative Factors

Cash Flow

Free cash flow margins were guided below consensus due to higher expected cash taxes.

Perceived Momentum

ARR growth includes some inorganic contribution, which may affect perceived momentum.

CommVault Systems Business Overview & Revenue Model

Company Description

Commvault Systems, Inc. provides data protection and information management software applications and related services in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; and Commvault Complete Data Protection, a data protection solution. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; Commvault Distributed Storage Platform that offers software-defined storage built on a hyperscale architecture; Metallic Cloud Storage service, which is the easy button to adopt secure and scalable cloud storage; and Metallic Software-as-a-Service. In addition, the company provides technology and business consulting, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers professional and customer support services that include data management-as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small and medium sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.

How the Company Makes Money

CommVault Systems makes money primarily through the sale of software licenses, subscriptions, and associated services. The company's revenue model includes perpetual software licenses, which provide customers with the right to use the software indefinitely, and subscription-based licenses, which offer customers access to the software for a specified period. In addition to software sales, CommVault generates revenue from maintenance and support services, which provide ongoing updates and customer support, and professional services, which include consulting, design, and implementation services tailored to clients' specific needs. Key revenue streams include direct sales to enterprises, channel partnerships with resellers and system integrators, and strategic alliances with cloud service providers to integrate CommVault's solutions into broader cloud offerings. These partnerships and integrated solutions are significant contributors to the company's earnings, as they expand market reach and enhance the value proposition of CommVault's product suite.

CommVault Systems Financial Statement Overview

Summary

CommVault Systems shows strong financial performance with consistent revenue growth and high profitability margins. The company has effective cash flow management, a stable balance sheet with low leverage, though there is room for improvement in ROE and EBIT margin.

Income Statement

CommVault Systems has demonstrated consistent revenue growth, with a notable increase of 18.63% from 2024 to 2025. The gross profit margin remains strong at 82%, indicating effective cost management. Despite a dip in EBIT margin from 8.98% in 2024 to 7.41% in 2025, the company maintains a solid net profit margin of 7.64%. Overall, the income statement reflects strong revenue growth and profitability, though EBIT margin could be improved.

Balance Sheet

The balance sheet shows a healthy equity ratio of 29.07%, indicating a strong capital structure. The debt-to-equity ratio is low at 0.03, reflecting minimal leverage and financial risk. However, return on equity (ROE) has decreased from 60.73% in 2024 to 23.41% in 2025, suggesting reduced efficiency in generating profits from equity. Despite this, the low leverage and solid equity base provide financial stability.

Cash Flow

CommVault's cash flow is robust, with operating cash flow exceeding net income, resulting in a strong operating cash flow to net income ratio of 2.73. Free cash flow has grown by 2% from 2024 to 2025, indicating sustainable cash generation. The free cash flow to net income ratio is high at 2.68, underscoring the company's ability to generate cash relative to its earnings. Overall, the cash flow statement reflects strong cash generation and prudent cash management.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
995.62M	839.25M	784.59M	769.59M	723.47M
	Gross Profit
816.58M	687.64M	649.19M	655.73M	614.10M
	EBIT
73.74M	75.36M	-15.88M	41.57M	-22.26M
	EBITDA
89.71M	90.44M	-4.68M	54.44M	-5.36M
	Net Income Common Stockholders
76.11M	168.91M	-35.77M	33.62M	-30.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
302.10M	312.75M	287.78M	267.51M	397.24M
	Total Assets
1.12B	943.91M	782.57M	816.08M	904.17M
	Total Debt
10.95M	12.09M	12.78M	16.05M	22.89M
	Net Debt
-291.15M	-300.66M	-275.00M	-251.46M	-374.35M
	Total Liabilities
793.14M	665.83M	596.48M	560.25M	510.14M
	Stockholders Equity
325.12M	278.08M	186.10M	255.83M	394.03M
Cash Flow		Free Cash Flow
203.63M	199.71M	167.05M	173.27M	115.78M
	Operating Cash Flow
207.38M	203.80M	170.29M	177.18M	123.95M
	Investing Cash Flow
-70.40M	-5.52M	-5.29M	-24.44M	35.47M
	Financing Cash Flow
-147.82M	-170.58M	-135.58M	-276.09M	-74.74M

CommVault Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 188.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVLT, the sentiment is Positive. The current price of 188.29 is above the 20-day moving average (MA) of 181.61, above the 50-day MA of 168.92, and above the 200-day MA of 162.57, indicating a bullish trend. The MACD of 5.05 indicates Negative momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 83.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVLT.

CommVault Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	80 Outperform	$8.67B	49.27	39.29%	0.12%	14.29%	151.38%
CWAN	78 Outperform	$7.01B	14.86	58.14%	―	23.21%	―
CVLT	75 Outperform	$8.26B	111.61	25.23%	―	18.63%	-55.09%
U	73 Outperform	$10.33B	―	-14.15%	―	-16.74%	49.75%
GTM	71 Outperform	$3.33B	82.48	2.23%	―	-3.12%	-37.59%
BILL	68 Neutral	$4.67B	482.28	0.97%	―	14.52%	―
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%

CommVault Systems Corporate Events

CommVault Systems Expands Credit Facility to $300 Million

On April 15, 2025, Commvault Systems, Inc. refinanced its existing $100 million senior secured revolving credit facility and established a new five-year senior secured revolving credit facility, increasing its total borrowing capacity to $300 million. This strategic financial maneuver, facilitated by JPMorgan Chase Bank, N.A., aims to enhance the company’s financial flexibility and operational capacity, potentially impacting its market positioning and stakeholder interests.