Deep Value: cash covers more than 100% of the stock price

This company holds roughly $33M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

CLPS Incorporation

CLPS

Information Technology Services · Technology

Price

$0.87

-0.01 (-0.81%)

Market Cap

$25.9M

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 13, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Mixed

Valuation

Data not available

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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)

Winston Score History

The full picture

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.

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

Insider ownership roughly steady over the past year

Cash Runway

~2 years

$33M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$33M cash & investments at current burn rate

Growth context

CLPS Incorporation is growing revenue at 15% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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.

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Quality

Gross Margin

23.0%

Thin — 23.0% gross margin

Operating Margin

0.6%

Thin — 0.6% operating margin

ROCE

0.6%

Weak — 0.6% 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

+8.4%

Steady sales growth (+8.4% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-2.3%

Burning cash (-2.3%)

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

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Stability

Debt / Equity

0.49

Conservative — low debt load (0.49)

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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