10 Best Debt Free Mid Cap Stocks to Buy Now

7. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)

Number of Hedge Fund Holders: 48

Enterprise Value: $6.33 billion

Market Capitalization: $6.51 billion

​Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a leading provider of SaaS-based investment management, accounting, reporting, and analytics solutions. Its cloud-native platform automates data aggregation, reconciliation, compliance, risk assessment, and order management, serving institutional clients such as insurers, asset managers, corporations, and public sector entities. Additionally, the company introduced Clearwater-GPT, leveraging generative AI to offer interactive client features.​ CWAN ranked fifth on our recent list of 10 Best Performing Fintech Stocks to Buy According to Analysts.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides investment accounting services for asset managers and asset owners, offering accounting, compliance, risk, and performance solutions through a single-instance multi-tenant platform. The company has demonstrated strong financial performance with a consistent growth of 20-25% annually and has maintained high profitability since its inception. The company achieved notable success in Q4 with a Net Revenue Retention (NRR) of 116%, surpassing their original target of 115% a year ahead of schedule. The company’s growth strategy is driven by multiple components, including minimal churn (98-99% gross revenue retention), successful pricing initiatives (4-5% contribution), strong upsell performance (7%), and cross-sell opportunities (3-3.5%).

A significant development is the pending acquisition of Enfusion, which is expected to close in mid-April, strengthening its market position, particularly in hedge funds and international markets. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) maintains its long-term targets of 20% top-line growth, 80% gross margin, and 40% EBITDA margins, even after incorporating Enfusion. The company has made significant progress in leveraging AI technology to drive efficiency, particularly in client service operations, contributing to improved gross margins. Looking ahead, the company’s strategic priorities focus on successfully integrating Enfusion, maintaining 20% growth, and delivering on their promise as a single instance, multiproduct solution with a global security master. With close to no debt on the balance sheet and 48 hedge funds owning the stock, CWAN is one of the best debt free stocks to buy.