0.00%
0.00%
1.02%
31.70%
17.09%
-4.60%
26.72%

Company Description

PowerSchool Holdings, Inc.provides cloud-based software to the K-12 education market.Its solution is embedded in school workflows and is used on daily basis by educators, students, administrators, and parents in schools and districts representing approximately 45 million students worldwide.


Its cloud-based technology platform helps schools and districts manage state reporting and related compliance, special education, finance, human resource, talent, registration, attendance, funding, learning, instruction, grading, college and career readiness, assessments, and analytics.The company serves state departments of education, public school districts, charter schools, independent schools, virtual schools, and others.PowerSchool Holdings, Inc.


was founded in 1997 and is headquartered in Folsom, California.PowerSchool Holdings, Inc.was a former subsidiary of Pearson Education Limited.

Market Data

Last Price 22.81
Change Percentage -0.18%
Open 22.81
Previous Close 22.85
Market Cap ( Millions) 3802
Volume 25712301
Year High 25.16
Year Low 16.15
M A 50 22.67
M A 200 21.91

Financial Ratios

FCF Yield 2.19%
Dividend Yield 0.00%
ROE -4.29%
Debt / Equity 77.94%
Net Debt / EBIDTA 715.87%
Price To Book 2.94
Price Earnings Ratio -68.05
Price To FCF 45.69
Price To sales 5.13
EV / EBITDA 34.36

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Software-as-a-Service

Expected Growth : 12 %

What the company do ?

Unified Classroom is a Software-as-a-Service from PowerSchool Holdings, Inc. that integrates learning management, student information, and assessment systems.

Why we expect these perspectives ?

PowerSchool Holdings, Inc.'s 12% growth in Software-as-a-Service is driven by increasing adoption of cloud-based education technology, rising demand for data-driven instruction, and growing need for efficient student information systems. Additionally, the company's expanding customer base, strategic acquisitions, and continuous product innovation also contribute to its rapid growth.

Segment nΒ°2 -> Software Maintenance

Expected Growth : 10 %

What the company do ?

Software Maintenance from PowerSchool Holdings, Inc. provides technical support, updates, and fixes for educational software, ensuring seamless operations and optimal performance.

Why we expect these perspectives ?

PowerSchool Holdings, Inc.'s 10% growth in Software Maintenance is driven by increasing adoption of cloud-based education technology, rising demand for digital learning platforms, and strategic partnerships with educational institutions. Additionally, the company's focus on innovation, customer satisfaction, and retention has led to a loyal customer base, resulting in consistent revenue growth.

Segment nΒ°3 -> Professional Services

Expected Growth : 9 %

What the company do ?

Professional Services from PowerSchool Holdings, Inc. offers implementation, consulting, and training services to help educational institutions effectively utilize PowerSchool's products and solutions.

Why we expect these perspectives ?

PowerSchool Holdings, Inc.'s 9% growth in Professional Services is driven by increasing demand for education technology, strategic partnerships, and expansion into new markets. The company's focus on providing comprehensive solutions for K-12 education, including student information systems, learning management, and assessment analytics, has led to increased adoption and retention rates among educators and administrators.

Segment nΒ°4 -> License and Other

Expected Growth : 8 %

What the company do ?

PowerSchool Holdings, Inc. provides a license to use its software and services, and 'Other' includes fees for implementation, training, and support.

Why we expect these perspectives ?

PowerSchool Holdings, Inc.'s 8% growth in License and Other segment is driven by increasing adoption of its unified platform, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, customer satisfaction, and retention has led to higher renewal rates and upselling opportunities, contributing to the segment's growth.

Powerschool Holdings, Inc. Products

Product Range What is it ?
Unified Classroom A comprehensive platform that integrates the functionality of a learning management system, student information system, and special education management system.
PowerTeacher A gradebook and lesson planning tool that helps teachers manage their instructional workflow.
PowerSchool SIS A student information system that helps schools manage student data, including demographics, attendance, and grades.
Schoology A learning management system that helps teachers create and manage assignments, discussions, and assessments.
Naviance A college and career readiness platform that helps students explore career options and plan for college.
Unified Talent A talent management system that helps schools manage teacher recruitment, hiring, and professional development.
Ecollect A fee management system that helps schools manage student fees and payments.

PowerSchool Holdings, Inc.'s Porter Forces

PowerSchool Holdings, Inc. operates in a niche market, providing K-12 education technology solutions. While there are some substitutes available, they are not highly attractive, and the company's strong brand recognition and customer loyalty mitigate the threat of substitutes.

PowerSchool Holdings, Inc.'s customers are primarily school districts and educational institutions, which have limited bargaining power due to the company's dominant market position and the complexity of its products.

PowerSchool Holdings, Inc. has a diversified supplier base, and its suppliers have limited bargaining power due to the company's large scale and negotiating power.

The education technology market has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise, making it difficult for new entrants to compete with PowerSchool Holdings, Inc.

The education technology market is moderately competitive, with a few established players, including PowerSchool Holdings, Inc. While there is some rivalry, the company's strong market position and brand recognition help to mitigate the intensity of rivalry.

Capital Structure

Value
Debt Weight 38.82%
Debt Cost 8.06%
Equity Weight 61.18%
Equity Cost 8.81%
WACC 8.52%
Leverage 63.44%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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NCNO nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System, a tenant cloud platform, which digitizes, automates, …
DAY Dayforce Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
22.81$
Current Price
22.81$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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