GUIDEWIRE SOFTWARE INC (GWRE) Fundamental Analysis & Valuation

NYSE:GWRE • US40171V1008

160.84 USD
+7.05 (+4.58%)
At close: Mar 5, 2026
168.9 USD
+8.06 (+5.01%)
After Hours: 3/5/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This GWRE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, GWRE scores 5 out of 10 in our fundamental rating. GWRE was compared to 276 industry peers in the Software industry. While GWRE has a great health rating, its profitability is only average at the moment. GWRE is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

4

1. GWRE Profitability Analysis

1.1 Basic Checks

  • GWRE had positive earnings in the past year.
  • In the past year GWRE had a positive cash flow from operations.
  • GWRE had negative earnings in 4 of the past 5 years.
  • GWRE had a positive operating cash flow in 4 of the past 5 years.
GWRE Yearly Net Income VS EBIT VS OCF VS FCFGWRE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M

1.2 Ratios

  • GWRE has a Return On Assets of 3.48%. This is in the better half of the industry: GWRE outperforms 67.75% of its industry peers.
  • GWRE has a Return On Equity of 6.00%. This is in the better half of the industry: GWRE outperforms 68.12% of its industry peers.
  • GWRE has a Return On Invested Capital of 2.26%. This is in the better half of the industry: GWRE outperforms 68.48% of its industry peers.
Industry RankSector Rank
ROA 3.48%
ROE 6%
ROIC 2.26%
ROA(3y)-1.07%
ROA(5y)-2.81%
ROE(3y)-1.66%
ROE(5y)-4.34%
ROIC(3y)N/A
ROIC(5y)N/A
GWRE Yearly ROA, ROE, ROICGWRE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5 -10

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.23%, GWRE is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
  • Looking at the Operating Margin, with a value of 5.05%, GWRE is in the better half of the industry, outperforming 68.48% of the companies in the same industry.
  • GWRE has a Gross Margin of 63.13%. This is comparable to the rest of the industry: GWRE outperforms 40.58% of its industry peers.
  • In the last couple of years the Gross Margin of GWRE has grown nicely.
Industry RankSector Rank
OM 5.05%
PM (TTM) 7.23%
GM 63.13%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.45%
GM growth 5Y2.8%
GWRE Yearly Profit, Operating, Gross MarginsGWRE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. GWRE Health Analysis

2.1 Basic Checks

  • GWRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, GWRE has more shares outstanding
  • Compared to 5 years ago, GWRE has more shares outstanding
  • Compared to 1 year ago, GWRE has a worse debt to assets ratio.
GWRE Yearly Shares OutstandingGWRE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
GWRE Yearly Total Debt VS Total AssetsGWRE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • GWRE has an Altman-Z score of 7.82. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of GWRE (7.82) is better than 86.96% of its industry peers.
  • The Debt to FCF ratio of GWRE is 2.50, which is a good value as it means it would take GWRE, 2.50 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.50, GWRE is in the better half of the industry, outperforming 64.13% of the companies in the same industry.
  • A Debt/Equity ratio of 0.44 indicates that GWRE is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.44, GWRE is not doing good in the industry: 64.49% of the companies in the same industry are doing better.
  • Although GWRE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 2.5
Altman-Z 7.82
ROIC/WACC0.21
WACC10.85%
GWRE Yearly LT Debt VS Equity VS FCFGWRE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • GWRE has a Current Ratio of 3.48. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of GWRE (3.48) is better than 76.81% of its industry peers.
  • A Quick Ratio of 3.48 indicates that GWRE has no problem at all paying its short term obligations.
  • GWRE's Quick ratio of 3.48 is fine compared to the rest of the industry. GWRE outperforms 77.17% of its industry peers.
Industry RankSector Rank
Current Ratio 3.48
Quick Ratio 3.48
GWRE Yearly Current Assets VS Current LiabilitesGWRE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. GWRE Growth Analysis

3.1 Past

  • GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.28%, which is quite impressive.
  • The Earnings Per Share has been growing by 16.12% on average over the past years. This is quite good.
  • GWRE shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.80%.
  • The Revenue has been growing by 10.13% on average over the past years. This is quite good.
EPS 1Y (TTM)63.28%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%53.49%
Revenue 1Y (TTM)22.8%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%26.53%

3.2 Future

  • The Earnings Per Share is expected to grow by 21.41% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, GWRE will show a quite strong growth in Revenue. The Revenue will grow by 15.55% on average per year.
EPS Next Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue Next Year19.37%
Revenue Next 2Y17.4%
Revenue Next 3Y16.48%
Revenue Next 5Y15.55%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
GWRE Yearly Revenue VS EstimatesGWRE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1B 2B 3B
GWRE Yearly EPS VS EstimatesGWRE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 2 4 6 8 10

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Find the best growth stocksShow best growing peers

2

4. GWRE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 55.65, GWRE can be considered very expensive at the moment.
  • GWRE's Price/Earnings is on the same level as the industry average.
  • GWRE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.74.
  • Based on the Price/Forward Earnings ratio of 40.84, the valuation of GWRE can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as GWRE.
  • The average S&P500 Price/Forward Earnings ratio is at 24.82. GWRE is valued rather expensively when compared to this.
Industry RankSector Rank
PE 55.65
Fwd PE 40.84
GWRE Price Earnings VS Forward Price EarningsGWRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • GWRE's Enterprise Value to EBITDA ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as GWRE.
Industry RankSector Rank
P/FCF 50.57
EV/EBITDA 138
GWRE Per share dataGWRE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • GWRE's earnings are expected to grow with 21.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.21
PEG (5Y)3.45
EPS Next 2Y21.67%
EPS Next 3Y21.49%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. GWRE Dividend Analysis

5.1 Amount

  • GWRE does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

GWRE Fundamentals: All Metrics, Ratios and Statistics

GUIDEWIRE SOFTWARE INC

NYSE:GWRE (3/5/2026, 8:04:00 PM)

After market: 168.9 +8.06 (+5.01%)

160.84

+7.05 (+4.58%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-05
Earnings (Next)N/A
Inst Owners100.44%
Inst Owner Change-37.69%
Ins Owners0.4%
Ins Owner Change-1.56%
Market Cap13.67B
Revenue(TTM)1.27B
Net Income(TTM)91.97M
Analysts81.82
Price Target258.71 (60.85%)
Short Float %4.7%
Short Ratio2.52
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.66%
Min EPS beat(2)5.59%
Max EPS beat(2)29.72%
EPS beat(4)3
Avg EPS beat(4)29.65%
Min EPS beat(4)-3.3%
Max EPS beat(4)86.6%
EPS beat(8)7
Avg EPS beat(8)44.81%
EPS beat(12)10
Avg EPS beat(12)-9.61%
EPS beat(16)14
Avg EPS beat(16)19.7%
Revenue beat(2)2
Avg Revenue beat(2)3.23%
Min Revenue beat(2)3%
Max Revenue beat(2)3.47%
Revenue beat(4)3
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)3.47%
Revenue beat(8)6
Avg Revenue beat(8)1.21%
Revenue beat(12)9
Avg Revenue beat(12)0.77%
Revenue beat(16)12
Avg Revenue beat(16)1.14%
PT rev (1m)-3.51%
PT rev (3m)-4.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 55.65
Fwd PE 40.84
P/S 10.75
P/FCF 50.57
P/OCF 46.23
P/B 8.92
P/tB 12.12
EV/EBITDA 138
EPS(TTM)2.89
EY1.8%
EPS(NY)3.94
Fwd EY2.45%
FCF(TTM)3.18
FCFY1.98%
OCF(TTM)3.48
OCFY2.16%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)4.21
PEG (5Y)3.45
Graham Number34.25
Profitability
Industry RankSector Rank
ROA 3.48%
ROE 6%
ROCE 2.86%
ROIC 2.26%
ROICexc 4.1%
ROICexgc 6.1%
OM 5.05%
PM (TTM) 7.23%
GM 63.13%
FCFM 21.26%
ROA(3y)-1.07%
ROA(5y)-2.81%
ROE(3y)-1.66%
ROE(5y)-4.34%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.45%
GM growth 5Y2.8%
F-Score8
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 2.5
Debt/EBITDA 7.63
Cap/Depr 104.41%
Cap/Sales 1.99%
Interest Coverage 6.89
Cash Conversion 334.05%
Profit Quality 294.03%
Current Ratio 3.48
Quick Ratio 3.48
Altman-Z 7.82
F-Score8
WACC10.85%
ROIC/WACC0.21
Cap/Depr(3y)79.77%
Cap/Depr(5y)76.46%
Cap/Sales(3y)1.84%
Cap/Sales(5y)2.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)63.28%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%53.49%
EPS Next Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue 1Y (TTM)22.8%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%26.53%
Revenue Next Year19.37%
Revenue Next 2Y17.4%
Revenue Next 3Y16.48%
Revenue Next 5Y15.55%
EBIT growth 1Y417.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year61.24%
EBIT Next 3Y39.8%
EBIT Next 5Y21.54%
FCF growth 1Y652.63%
FCF growth 3YN/A
FCF growth 5Y26.26%
OCF growth 1Y450.31%
OCF growth 3YN/A
OCF growth 5Y21.62%

GUIDEWIRE SOFTWARE INC / GWRE FAQ

Can you provide the ChartMill fundamental rating for GUIDEWIRE SOFTWARE INC?

ChartMill assigns a fundamental rating of 5 / 10 to GWRE.


Can you provide the valuation status for GUIDEWIRE SOFTWARE INC?

ChartMill assigns a valuation rating of 2 / 10 to GUIDEWIRE SOFTWARE INC (GWRE). This can be considered as Overvalued.


What is the profitability of GWRE stock?

GUIDEWIRE SOFTWARE INC (GWRE) has a profitability rating of 4 / 10.


What is the valuation of GUIDEWIRE SOFTWARE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for GUIDEWIRE SOFTWARE INC (GWRE) is 55.65 and the Price/Book (PB) ratio is 8.92.


Can you provide the financial health for GWRE stock?

The financial health rating of GUIDEWIRE SOFTWARE INC (GWRE) is 7 / 10.