CLPS Incorporation

CLPS

Information Technology Services · Technology

Price

$0.83

-0.02 (-2.70%)

Market Cap

$24.8M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count rising — dilution

+56.7% over 4y

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

Diluted shares outstanding: 17.6M (2021) → 27.5M (2025)

CLPS Incorporation is a technology services company based in China that helps banks, insurance companies, and other financial firms build and maintain their software systems. It provides IT consulting, software development, and testing services, mainly to large financial institutions across Asia. The company works with well-known clients in the banking sector, including global banks operating in China.

CLPS earns money by charging clients for the hours its engineers and developers work on their projects, which is a model common in IT outsourcing. It operates primarily in China but has some presence in other parts of Asia and beyond, and it competes on cost and its specialized focus on financial services technology. The company is currently unprofitable at the operating level, and its main challenge is improving margins in a competitive outsourcing market while navigating any slowdown in technology spending by Chinese financial institutions.

Winston Score History

Growth Profile

For growth stock investors

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

Revenue Growth

+15.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-629.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$6M/ year

↓ Declining (-19% vs prior year)

3.5% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

55.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$28M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth + cash flow

CLPS Incorporation is a rare growth stock that's already generating positive cash flow while growing at 15%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

21.0%

Thin — 21.0% gross margin

Operating Margin

-7.2%

Losing money on operations — -7.2%

ROCE

-6.6%

Weak — -6.6% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+7.5%

Steady sales growth (7.5% 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

-3.8%

Burning cash (-3.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.59

Conservative — low debt load (0.59)

Interest Cover

N/A

—

Data not available

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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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