Key insights
- The post discusses Clarivate's (CLVT) potential investment opportunity, highlighting its sticky software products across academia, IP, and life sciences. While seemingly cheap based on EBITDA and FCF multiples, high leverage and product decline pose risks. The author seeks user feedback on product experience and reasons for decline, particularly regarding AI disruption, to assess turnaround potential. The U.S. market impact is slightly negative due to the uncertainty surrounding the company's future performance and high debt.
Interesting stock. Very sticky product. Three segments: 1. software for universities to do academia research, 2. Patent/IP research and 3. lifesciences. The company is looking to divest its lifescience segment.
The stock looks cheap on the surface ~8x adj. ebitda and ~16-20% adj. fcf (but it is very levered, so misleading). This is cheap for a software company in this soft of segment.
BUT: it is very levered and their products are suffering slow decline.
I think the stock looks interesting, but it is only interesting if they can stabilize their decline. Unfortunately, I don't use their products so I don't have a view.
I was wondering if anyone use their products, including: Academia: Web of Science IP/Patent: Derwent and CompuMark Lifescience - Cortellis
If you use their product, I am looking for some input: What is your experience? Why do you think it is declining (is it really AI disruption?)? Do you think it can be turned around?
Appreciate feedback from users of their products.