Buy or Sell CommVault Systems Stock?

CommVault Systems (CVLT) stock has fallen 31% during the past day, and is currently trading at $89.13. We believe there is not much to fear in CVLT stock given its overall Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced.

Below is our assessment:

You can’t predict what happens to individual stocks, but you can prepare. See how High Quality Portfolio helps you.

Let’s get into details of each of the assessed factors but before that, for quick background: With $4.0 Bil in market cap, CommVault Systems provides data protection and information management software, integrated hardware appliances, and related services through strategic partnerships with major technology companies worldwide.

[1] Valuation Looks High

This table highlights how CVLT is valued vs broader market. For more details see: CVLT Valuation Ratios

[2] Growth Is Very Strong

• CommVault Systems has seen its top line grow at an average rate of 11.7% over the last 3 years
• Its revenues have grown 22% from $898 Mil to $1.1 Bil in the last 12 months
• Also, its quarterly revenues grew 18.4% to $276 Mil in the most recent quarter from $233 Mil a year ago.

This table highlights how CVLT is growing vs broader market. For more details see: CVLT Revenue Comparison

[3] Profitability Appears Weak

• CVLT last 12 month operating income was $86 Mil representing operating margin of 7.8%
• With cash flow margin of 19.7%, it generated nearly $216 Mil in operating cash flow over this period
• For the same period, CVLT generated nearly $80 Mil in net income, suggesting net margin of about 7.3%

This table highlights how CVLT profitability vs broader market. For more details see: CVLT Operating Income Comparison

[4] Financial Stability Looks Very Strong

• CVLT Debt was $908 Mil at the end of the most recent quarter, while its current Market Cap is $4.0 Bil. This implies Debt-to-Equity Ratio of 22.9%
• CVLT Cash (including cash equivalents) makes up $1.1 Bil of $1.9 Bil in total Assets. This yields a Cash-to-Assets Ratio of 55.5%

[5] Downturn Resilience Is Weak

CVLT has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• CVLT stock fell 39.1% from a high of $83.87 on 3 September 2021 to $51.08 on 15 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 30 January 2024
• Since then, the stock increased to a high of $195.41 on 18 September 2025 , and currently trades at $89.13

 
2020 Covid Pandemic

• CVLT stock fell 46.0% from a high of $51.55 on 12 February 2020 to $27.83 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 10 December 2020

 
2008 Global Financial Crisis

• CVLT stock fell 65.3% from a high of $22.87 on 6 November 2007 to $7.94 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 18 December 2009

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read CVLT Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.