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Clarivate

CLVT
29
Information Technology Services · Technology
Price
$2.39
-0.01 (-0.42%)
Market Cap
$1.53B
Winston Score
29
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+5.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 640.8M (2021) → 673.3M (2025)

Clarivate is a data and analytics company that helps scientists, researchers, lawyers, and businesses find and use specialized information. Its main products include Web of Science (a database of academic research), Derwent (patent data), and Cortellis (life sciences intelligence). It serves universities, pharmaceutical companies, law firms, and corporations that need reliable data to make decisions about research, patents, and intellectual property.

Clarivate makes most of its money through subscriptions, where customers pay annually to access its databases and software tools. It operates globally, with significant revenue from North America, Europe, and Asia, and generates roughly $2.5 billion in annual revenue. Its moat comes from the depth and history of its proprietary datasets, which are difficult and expensive to replicate. However, the company carries a heavy debt load from past acquisitions, and its low ROIC of 1.3% signals that it has struggled to turn that scale into strong returns — managing that debt while growing revenue remains its central challenge.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+58.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

47.7%ownership

Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$232M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Clarivate's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
67.2%
Premium pricing power — 67.2% gross margin
Operating Margin
5.2%
Thin — 5.2% operating margin
ROCE
0.3%
Weak — 0.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-3.3%
Shrinking sales (-3.3% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
8.7%
Modest free cash flow (8.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.89
Moderate — manageable debt (0.89)
Interest Cover
0.47x
Dangerous — barely covers interest (0.5x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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