CommVault Systems, Inc. (NASDAQ:CVLT)

This stock is incredibly undervalued, here's why. A study done last week through TheInfoPro’s (TIP) independent Wave 10 Storage Study said CVLT has been gaining market share away from bigger players in the sector such as Symantec, IBM, and HP. CVLT is a growing to become a commanding player in the data management software sector. Their management projects a record year for FY 2008 (they report on/around May 13th) and I plan on getting in today, because I truly believe the stock will bounce back big time once they do release earnings. Here are the numbers which I find particularly interesting:

Trading at 51% of its 52 week high
S&P Price Target of $20.75
ROE = 97.2%
Gross Margin = 86.2%
P/E = 7.5 vs. Avg. P/E = 10.6
PEG = 0.5
P/B = 4.3 vs. Avg. P/B = 6.0
EV/EBITDA = 16.5 vs. Avg. EV/EBITDA = 24.8
ROIC = 58.0%
ZERO DEBT!

Source: Capital IQ

I'm adding to my real portfolio today, the numbers are amazing and they're backed up by CVLT's growing position in the market. I don't know where this stock will be in a year from now but I would be truly surprised if it wasn't back in the 20's.

Watched this stock take a drive in the middle of march. I want my money back.

Has had a gap down in the last 3 months.

My company uses this product - far supieror to other players in this space. Once they get a good foothold in large enterprise shops they will take off. BTW, to say Double-Take is a competitor isn't really accurate. CA, IBM-Tivoli, Veritas Netbackup, Syncsort are directly competing with function/feature.

Their numbers look outstanding. What am I missing? No reall bad news other than lowering their earnings guidance by .01 a while ago.

No debt. Continuely adding to their war chest. Plenty of free cash for stock buyback. Growing market share.

This stock was hit too hard. Chart shows path to 18.61 without issues. Going down to broke all support lines in one day.

Highest rated with most money lost in 30 day period

This stock is the baby that was thrown out with the bathwater!! Not a safe bet, but we should see a 20-30% correction back to their average soon.

Competitor to Double Take (DBTK) with twice the earnings.
Sitting on $95M in cash.
2007 Storage.com Software of the Year winner.

Good ratings everywhere I looked... higher than DBTK in some places.

book 2.64

Excellent product without the debt or overhead of EMC, CA, HPQ.
Up and coming industry of backup and message retention. These people are poised to elbow the others out of the way. Currently gaining a position in the international arena.

macd bullish Stochastics bearish. this one will run downward for a little while longer.

Their product with regards to storage is highly needed.

solid

best of breed; patents;product recognition/ awards;large addressable market;will beat analysts estimates

Selloff of restricted stock from IPO should taper off over next few weeks (which started around March 21). Expect good end of quarter numbers to boost stock price.

The New Jersey based CommVault Systems, is primarily a niche player involved in the business of providing data management software applications and related services under the QiNetix brand. The applications and services offer customers with backup and recovery; disaster recovery of data; data migration and archiving; and global availability of data. The backup market generates about 82% of the revenues for the company, while Dell and Hitachi are its largest clients, together contributing over 25% to the over all revenue tally.

Data resource management has seen a great upsurge in the recent past, moreover with the Basel II norms and other regulatory compliance laying additional stress on data preservation and protection, the current swift rise in the market can be viewed as just a beginning. What’s more the storage management software market itself is expected to cross the $9 billion mark by 2009, from the 2004 levels of around $5.6 billion, as the worldwide disk storage systems is estimated to be over 10 million terabytes in 2009.

CommVault Systems have registered a mixed performance in 2006, though revenues were up by 41%, due to improved inflows from services and software segments, the company closed the tally in the red, as a result of reduced margins and a rise in depreciation and amortization. Looking ahead in 2007, the latest channel partnerships and distribution agreements with Middle East division of Getronics and the Israeli distributor, BenefIT Technologies, will have a positive impact on company’s course. Moreover, with Hitachi Data Systems providing CommVault Systems Remote Office Replication applications to its customers from 2007, the share of Hitachi in the revenue generation is likely to improve. Adding to it, considering the improved company guidance for 2007-08, its cost competitive back up systems, and the attractive industry outlook; being a part of CommVault Systems can prove a right decision in the long run.