Clearwater Analytics HoldingsCWAN 81 Operating Margin % is 4.06% as of Mar. 2026, which is 140% above its 10-year median of 1.69. GuruFocus rates CWAN with a GF Score™ of 81/100 and a GF Value™ of $31.88 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,818 Software companies, Clearwater Analytics Holdings ranks worse than 61.6% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Clearwater Analytics Holdings Operating Margin % Related Terms
Clearwater Analytics Holdings Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CWAN vs CHYM, PCOR, TTAN: Operating Margin % Comparison
For the Software - Application subindustry, Clearwater Analytics Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Clearwater Analytics Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, Clearwater Analytics Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Clearwater Analytics Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Clearwater Analytics Holdings (CWAN) has a Operating Margin % of 4.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Clearwater Analytics Holdings and its competitors. This is 140% above median its historical median of 1.69. According to the industry distribution chart, Clearwater Analytics Holdings ranks #1736 out of 2818 companies in the Software industry, placing it in the top 61.6%.
Is Clearwater Analytics Holdings' Operating Margin % too high?
Clearwater Analytics Holdings' current Operating Margin % of 4.06% is 140% above median its 10-year median of 1.69. The Software industry median Operating Margin % is 3.87. Clearwater Analytics Holdings' value of 4.06% is 5% above this industry median. Based on the distribution chart, Clearwater Analytics Holdings ranks #1736 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Clearwater Analytics Holdings has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Clearwater Analytics Holdings' Operating Margin % compare to CHYM and PCOR?
According to the Software industry distribution chart, Clearwater Analytics Holdings ranks #1736 out of 2818 companies for Operating Margin %. This places Clearwater Analytics Holdings in the lower half of its industry. The industry median Operating Margin % is 3.87. Clearwater Analytics Holdings' value of 4.06% is 5% above this benchmark. While the company's 10-year median is 1.69 vs. the industry median of 3.87, Clearwater Analytics Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Clearwater Analytics Holdings's current Operating Margin % of 4.06% is 5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Clearwater Analytics Holdings and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clearwater Analytics Holdings's current Operating Margin % is 4.06%, which is 140% above median its own 10-year median of 1.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clearwater Analytics Holdings stock overvalued right now?
Based on GuruFocus' analysis, Clearwater Analytics Holdings (CWAN) is currently considered Modestly Undervalued. The stock's GF Value™ is $31.88, compared to a current price of $24.56 — trading 23% below its estimated fair value. The current Operating Margin % is 4.06%, which is 140% above median its 10-year median of 1.69 and 5% above the Software industry median of 3.87. Clearwater Analytics Holdings' overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Clearwater Analytics Holdings (CWAN), the current Operating Margin % is 4.06% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Clearwater Analytics Holdings (CWAN) Overvalued in 2026?
Based on GuruFocus' analysis, Clearwater Analytics Holdings stock appears to be undervalued.
The current stock price of $24.56 is trading 23% below its estimated GF Value™ of $31.88.
GuruFocus considers Clearwater Analytics Holdings to be Modestly Undervalued.
Key valuation signals for CWAN:
Operating Margin %: 4.06% (140% above median its 10-year median of 1.69)
GF Value™: $31.88 vs. price of $24.56 (23% below fair value)
Industry Position: 5% above the Software median (#1736 of 2818)
No single metric tells the full story. See the CWAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clearwater Analytics Holdings Business Description
Clearwater Analytics describes its mission as aiming to be the world's most trusted and comprehensive technology platform for the entire investment cycle. Clearwater has historically focused on back-office functions such as investment accounting, but with acquisitions such Enfusion, Beacon, and Bistro, the firm has broadened its focus with front-office and middle-office capabilities. Clearwater primarily serves insurance companies, asset managers, hedge funds, and corporate treasuries. Pro forma for Enfusion, about 76% of Clearwater's revenue is generated in the US.
81GF Score
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