CCC Intelligent Solutions Holdings Inc. Priced Below Last Close with Goldman Sachs as Sole Manager, Sees Steady Revenue Growth and Strong Gross Margin.

CCC Intelligent Solutions Holdings Inc. (CCCS) has priced shares below its previous closing value of $9.97 with Goldman Sachs as the sole book-running manager. The company operates in the software industry, serving the property and casualty insurance economy with a SaaS platform that connects trading partners and facilitates commerce. CCC Intelligent Solutions has demonstrated steady revenue growth, a 74.99% gross margin, but a modest 0.19% net margin. Its high P/E ratio and Altman Z-Score indicate potential financial stress and overvaluation.

Title: CCC Intelligent Solutions Holdings Inc. Prices Shares Below Previous Close, Goldman Sachs as Book-Runner

CCC Intelligent Solutions Holdings Inc. (CCCS), a leading provider of SaaS platforms for the insurance economy, has priced its shares below their previous closing value of $9.97. Goldman Sachs has been appointed as the sole book-running manager for this offering, guiding the process for potential investors. The secondary offering involves the sale of 30 million shares by buyout firm Advent International at $9.89 apiece, resulting in gross proceeds of $296.7 million [1].

The offering is priced at a 0.8% discount to the stock's last close, which has seen the stock fall 2.5% to $9.73. As of the last close, CCCS stock was down 15% year-to-date (YTD). The company operates within the technology sector, specifically in the software industry, with a strong focus on the property and casualty insurance economy. Its SaaS platform is designed to connect trading partners, facilitate commerce, and support mission-critical, AI-enabled digital workflows [2].

Financial Health and Performance

CCC Intelligent Solutions has demonstrated a steady revenue growth trajectory, with a 4.5% increase over the past year and a more robust 7.5% growth over the past five years. The company's gross margin stands at an impressive 74.99%, indicating strong profitability in its core operations. However, the net margin is a modest 0.19%, suggesting room for improvement in overall profitability. The company's operating margin is 6.38%, and its EBITDA margin is 19.85% [2].

The Altman Z-Score of 2.58 places the company in a grey area, indicating some financial stress, though not immediate bankruptcy risk. Insider activity shows a mixed picture, with two insider buying transactions totaling 200,000 shares over the past three months, contrasted by four insider selling transactions in the same period [2].

Business Performance and Valuation

The company's revenue trends reflect a consistent growth pattern, driven by its innovative SaaS platform that caters to the evolving needs of the insurance industry. The company's operational efficiency is highlighted by its high gross margin, although the net margin suggests potential inefficiencies or high operational costs that need addressing. In the competitive landscape, CCC Intelligent Solutions holds a strong position due to its specialized focus on the insurance sector and its technological advancements [2].

The company's valuation metrics present a mixed picture. The P/E ratio is notably high at 2492.5, close to its five-year high, indicating that the stock may be overvalued relative to its earnings. The P/S ratio of 6.47 and P/B ratio of 3.03 suggest a more moderate valuation compared to historical ranges. Analysts have a target price of $12.29, with a recommendation score of 1.8 (Buy) [2].

Recent Financial Results

In the second quarter of 2025, CCC Intelligent Solutions reported total revenue of $260.5 million, an increase from $232.6 million in the same period in 2024. Gross profit was $194.0 million, up from $177.3 million in the same period in 2024. Operating income was $24.5 million, compared to $22.5 million in the same period in 2024, and net income was $13.0 million, down from $21.4 million in the same period in 2024 [3].

Future Outlook

The company is investing in new solutions to digitize the entire automotive claims lifecycle and expand into adjacent insurance lines. This strategic focus aims to leverage the company's data, network, and platform to drive future growth and innovation in the insurance economy [3].

Risk Assessment

CCC Intelligent Solutions' financial health is supported by a Beneish M-Score of -2.54, indicating it is unlikely to be a financial manipulator. However, the company's high P/E ratio and the Altman Z-Score in the grey area highlight potential risks. The technology sector's inherent volatility, combined with a beta of 0.64, suggests moderate market sensitivity. Investors should be aware of sector-specific risks, such as rapid technological changes and regulatory challenges in the insurance industry. The company's financial strength, as indicated by its current and quick ratios, provides some buffer against short-term liquidity issues [2].

Conclusion

While CCC Intelligent Solutions Holdings Inc. demonstrates strong revenue growth and operational efficiency, its valuation metrics and financial stress indicators warrant careful consideration. Investors should weigh these factors against the company's competitive positioning and growth potential within the technology sector.

References

[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3TY0IO:0-ccc-intelligent-falls-after-secondary-offering/
[2] https://www.gurufocus.com/news/3038706/cccs-priced-below-last-close-with-goldman-sachs-as-sole-manager?r=4bf001661e6fdd88d0cd7a5659ff9748
[3] https://www.tradingview.com/news/tradingview:29df210a58308:0-ccc-intelligent-solutions-holdings-inc-sec-10-q-report/