Commvault Systems, Inc. (CVLT) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Commvault Systems, Inc. (CVLT) Technology Profile & Competitive Position

Commvault Systems, Inc. provides comprehensive data protection and information management solutions, including backup, recovery, and cloud storage services, positioning itself as a key player in the competitive software application market, serving diverse industries globally with both direct sales and indirect channel partnerships.

What Is the Investment Thesis for CVLT?

With a market capitalization of $5.45B and a P/E ratio of 83.26, the company demonstrates a solid financial foundation. A gross margin of 80.9% indicates efficient operations and strong pricing power. Key growth catalysts include the expansion of its Metallic SaaS platform and increasing adoption of its HyperScale X solution. The company's focus on innovation and strategic partnerships positions it well to capitalize on the growing data management market. However, potential risks include competition from larger players and the need to continually adapt to evolving customer needs. Commvault's beta of 0.62 suggests lower volatility compared to the market, which may appeal to risk-averse investors.

Based on FMP financials and quantitative analysis

CVLT Key Highlights

Market Cap of $5.45B reflects substantial investor confidence in Commvault's market position.

• P/E ratio of 83.26 indicates the price investors are willing to pay for each dollar of Commvault's earnings.
• Gross Margin of 80.9% demonstrates Commvault's ability to efficiently manage its cost of goods sold.
• Profit Margin of 6.0% shows Commvault's profitability after all expenses, including taxes, have been accounted for.
• Beta of 0.62 suggests lower volatility compared to the market, potentially offering more stability for investors.

Who Are CVLT's Competitors?

CVLT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CVLT's Key Strengths?

Comprehensive data protection and information management solutions.

• Strong brand reputation and customer relationships.
• Innovative technology, including Metallic SaaS platform.
• Extensive partner network.

What Are CVLT's Weaknesses?

Relatively high P/E ratio compared to some competitors.

• Dependence on direct sales and partner network.
• Potential for disruption from emerging technologies.

What Could Drive CVLT Stock Higher?

Continued expansion and adoption of the Metallic SaaS platform.

• Increasing demand for HyperScale X integrated appliance.
• Potential strategic partnerships with cloud providers and other technology vendors.
• Growing need for data protection and compliance solutions in various industries.

What Are the Key Risks for CVLT?

Rich valuation — a P/E of 83.26 runs well above the Technology sector’s ~32.70x, leaving little room for a miss.

• Insider selling — insiders were net sellers of roughly $12.7M recently.
• Intense competition from larger players with greater resources.
• Rapid technological advancements that could disrupt the market.
• Cybersecurity threats and data breaches that could damage Commvault's reputation.
• Economic downturns that could reduce IT spending.

What Are the Growth Opportunities for CVLT?

• Expansion of Metallic SaaS Platform: Commvault's Metallic SaaS platform represents a significant growth opportunity. As more organizations adopt cloud-based solutions, the demand for SaaS-based data protection will increase. The Metallic platform offers a comprehensive suite of services, including backup and recovery, disaster recovery, and archiving. By expanding the Metallic platform and adding new features, Commvault can attract new customers and increase revenue. The global SaaS market is projected to reach $307.3 billion in 2026, providing a substantial market opportunity for Commvault.
• Adoption of HyperScale X Solution: Commvault's HyperScale X solution is another key growth driver. HyperScale X is an integrated appliance that combines Commvault's software with hardware, providing a simple and scalable solution for data protection. As organizations look to simplify their IT infrastructure, the demand for integrated solutions like HyperScale X will increase. By increasing the adoption of HyperScale X, Commvault can increase revenue and improve customer satisfaction. The integrated systems market is expected to grow at a CAGR of 6.2% from 2021 to 2026.
• Strategic Partnerships: Commvault can leverage strategic partnerships to expand its reach and offer more comprehensive solutions. By partnering with other technology vendors, Commvault can integrate its software with other products and services, providing customers with a more complete solution. Strategic partnerships can also help Commvault enter new markets and reach new customers. For example, Commvault could partner with a cloud provider to offer a joint solution for cloud-based data protection.
• Focus on Specific Verticals: Commvault can focus on specific verticals, such as healthcare, financial services, and government, to drive growth. By tailoring its solutions to the specific needs of these verticals, Commvault can attract new customers and increase revenue. For example, Commvault could develop a solution for healthcare organizations that helps them comply with HIPAA regulations. The healthcare IT market is expected to grow at a CAGR of 12.5% from 2021 to 2028.
• International Expansion: Commvault has a significant opportunity to expand its presence in international markets. By expanding its sales and marketing efforts in key regions, such as Asia-Pacific and Europe, Commvault can attract new customers and increase revenue. The global data protection market is expected to grow at a faster rate in emerging markets than in developed markets. For example, Commvault could establish a local presence in India to capitalize on the growing demand for data protection solutions.

What Are CVLT's Competitive Advantages?

• Comprehensive product portfolio covering a wide range of data protection needs.
• Strong customer relationships and a reputation for reliability.
• Innovative technology, including the Metallic SaaS platform and HyperScale X solution.
• Extensive partner network providing broad market reach.

What Does CVLT Do?

Founded in 1988 and headquartered in Tinton Falls, New Jersey, Commvault Systems, Inc. has evolved into a leading provider of data protection and information management software. The company's journey began with a vision to simplify data management, addressing the growing complexities faced by organizations in storing, protecting, and accessing their critical information. Over the years, Commvault has expanded its product portfolio to include a comprehensive suite of solutions, including Commvault Backup and Recovery, Commvault Disaster Recovery, and Commvault Complete Data Protection. These offerings cater to a wide array of business needs, from basic backup and recovery to advanced disaster recovery and data management. Commvault also provides innovative solutions like Commvault HyperScale X, a scale-out solution, and Commvault Distributed Storage Platform, which offers software-defined storage. Furthermore, Metallic Cloud Storage service and Metallic Software-as-a-Service provide secure and scalable cloud storage options. The company serves a diverse customer base, including large enterprises, small and medium-sized businesses, and government agencies, across industries such as banking, insurance, healthcare, technology, and manufacturing. Commvault distributes its products and services through a combination of direct sales and a network of partners, including distributors, value-added resellers, and systems integrators.

What Products and Services Does CVLT Offer?

• Provides data protection and information management software.
• Offers backup and recovery solutions for various environments.
• Delivers disaster recovery solutions to ensure business continuity.
• Provides complete data protection solutions for comprehensive data management.
• Offers HyperScale X, an easy-to-deploy scale-out solution.
• Provides Metallic Cloud Storage service for secure and scalable cloud storage.
• Offers professional and customer support services, including data management-as-a-service under the Metallic brand.

How Does CVLT Make Money?

• Sells software licenses for data protection and information management.
• Offers subscription-based services for cloud storage and data management.
• Provides professional services, including consulting, education, and managed services.
• Sells integrated appliances that combine software and hardware.

What Industry Does CVLT Operate In?

Commvault operates in the competitive data protection and information management software industry. The market is driven by the increasing volume and complexity of data, regulatory compliance requirements, and the growing adoption of cloud-based solutions. The industry is characterized by intense competition from established players and emerging startups. Commvault differentiates itself through its comprehensive product portfolio, strong customer relationships, and focus on innovation. The global data protection market is expected to continue to grow, driven by the increasing need for organizations to protect their data from cyber threats and ensure business continuity.

Who Are CVLT's Key Customers?

• Large enterprises seeking comprehensive data protection solutions.
• Small and medium-sized businesses requiring affordable and scalable data management.
• Government agencies needing secure and compliant data protection.
• Organizations across various industries, including banking, healthcare, and technology.

Commvault Systems, Inc. (CVLT) Valuation Context

Valued at $5.45B, CVLT is classified as a mid-cap stock. Analyst price targets span from $130.00 to $182.00, with a consensus of $153.82. At the current price of $131.55, that implies approximately 17% upside potential. Relative to its peer group, CVLT's quantitative score of 68/100 is roughly in line with the peer average of 73/100.

CVLT Revenue & Earnings Trend

In Q1 FY2027, CVLT generated $314.1M in top-line revenue, marking a sequential increase of 0.8%. The company recorded net income of $21.1M, with diluted EPS of $0.50. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Technology. Across the four most recent quarters, CVLT averaged $0.39 in diluted EPS.

Company Profile

Commvault Systems, Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in Tinton Falls, US. The company is led by CEO Sanjay Mirchandani. CVLT has traded publicly since 2006.

Return on equity for Commvault Systems, Inc. stands at 35.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.7%, showing how much profit it generates from its asset base. CVLT trades at a trailing price-to-earnings ratio of 83.26, above the Technology sector average of ~32.70x. Its free cash flow yield is 4.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.95 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.3%, the inverse of the P/E and a quick read on earnings relative to price.

Commvault Systems, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.92 places it in the grey zone, a middle ground that warrants monitoring.

Commvault Systems, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 11.0% above estimates on average.

Over the past six months, Commvault Systems, Inc. insiders filed 61 SEC Form 4 transactions — 36 sales and 25 purchases. On net that is roughly 112K shares acquired (about $12.7M) — insiders putting money in tends to read as conviction.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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