GUIDEWIRE SOFTWARE INC (GWRE)
US40171V1008 - Common Stock
Taking everything into account, GWRE scores 4 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, there are worries on its profitability. GWRE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GWRE had positive earnings in the past year.
GWRE had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of GWRE (-2.52%) is better than 63.14% of its industry peers.
With a decent Return On Equity value of -4.04%, GWRE is doing good in the industry, outperforming 66.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.52% | ||
| ROE | -4.04% | ||
| ROIC | N/A |
ROA(3y)-5.45%
ROA(5y)-3.31%
ROE(3y)-8.69%
ROE(5y)-5.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 55.88%, GWRE is doing worse than 62.04% of the companies in the same industry.
GWRE's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for GWRE so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 55.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.42%
GM growth 5Y-1.49%
2. Health
2.1 Basic Checks
GWRE does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, GWRE has less 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.
2.2 Solvency
GWRE has an Altman-Z score of 7.80. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.80, GWRE belongs to the top of the industry, outperforming 81.02% of the companies in the same industry.
GWRE has a debt to FCF ratio of 3.89. This is a good value and a sign of high solvency as GWRE would need 3.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.89, GWRE is in the better half of the industry, outperforming 64.60% of the companies in the same industry.
GWRE has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
GWRE's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. GWRE outperforms 44.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 7.8 |
ROIC/WACCN/A
WACC9.77%
2.3 Liquidity
GWRE has a Current Ratio of 3.45. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
GWRE's Current ratio of 3.45 is fine compared to the rest of the industry. GWRE outperforms 78.47% of its industry peers.
A Quick Ratio of 3.45 indicates that GWRE has no problem at all paying its short term obligations.
GWRE's Quick ratio of 3.45 is fine compared to the rest of the industry. GWRE outperforms 78.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.45 | ||
| Quick Ratio | 3.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 300.00% over the past year.
The earnings per share for GWRE have been decreasing by -21.82% on average. This is quite bad
GWRE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.43%.
Measured over the past years, GWRE shows a small growth in Revenue. The Revenue has been growing by 6.76% on average per year.
EPS 1Y (TTM)300%
EPS 3Y-36.02%
EPS 5Y-21.82%
EPS growth Q2Q319.05%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y6.84%
Revenue growth 5Y6.76%
Revenue growth Q2Q3.57%
3.2 Future
Based on estimates for the next years, GWRE will show a very strong growth in Earnings Per Share. The EPS will grow by 64.19% on average per year.
Based on estimates for the next years, GWRE will show a quite strong growth in Revenue. The Revenue will grow by 12.31% on average per year.
EPS Next Y249.27%
EPS Next 2Y130.55%
EPS Next 3Y91.81%
EPS Next 5Y64.19%
Revenue Next Year7.3%
Revenue Next 2Y9.94%
Revenue Next 3Y11.36%
Revenue Next 5Y12.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 101.35, which means the current valuation is very expensive for GWRE.
GWRE's Price/Earnings ratio is in line with the industry average.
GWRE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.25.
Based on the Price/Forward Earnings ratio of 64.71, the valuation of GWRE can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWRE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, GWRE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.35 | ||
| Fwd PE | 64.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GWRE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
GWRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GWRE's earnings are expected to grow with 91.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y130.55%
EPS Next 3Y91.81%
5. Dividend
5.1 Amount
No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GUIDEWIRE SOFTWARE INC
NYSE:GWRE (4/24/2024, 7:06:57 PM)
After market: 113.51 0 (0%)113.51
-0.27 (-0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.35 | ||
| Fwd PE | 64.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.52% | ||
| ROE | -4.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 55.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.45 | ||
| Quick Ratio | 3.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)300%
EPS 3Y-36.02%
EPS 5Y
EPS growth Q2Q
EPS Next Y249.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.43%
Revenue growth 3Y6.84%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y