GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
NYSE:GWRE - New York Stock Exchange, Inc. - US40171V1008 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GWRE. GWRE was compared to 282 industry peers in the Software industry. Both the profitability and the financial health of GWRE get a neutral evaluation. Nothing too spectacular is happening here. GWRE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GWRE was profitable.
GWRE had a positive operating cash flow in the past year.
In the past 5 years GWRE always reported negative net income.
GWRE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GWRE has a better Return On Assets (-0.66%) than 61.70% of its industry peers.
GWRE has a better Return On Equity (-1.33%) than 63.12% of its industry peers.
The Return On Invested Capital of GWRE (0.02%) is better than 63.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -1.33% | ||
| ROIC | 0.02% |
ROA(3y)-4.58%
ROA(5y)-3.55%
ROE(3y)-7.4%
ROE(5y)-5.63%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of GWRE (0.06%) is better than 63.48% of its industry peers.
GWRE has a Gross Margin (61.43%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GWRE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.06% | ||
| PM (TTM) | N/A | ||
| GM | 61.43% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.51%
GM growth 5Y1.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GWRE is destroying value.
GWRE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GWRE has more shares outstanding
The debt/assets ratio for GWRE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.85 indicates that GWRE is not in any danger for bankruptcy at the moment.
GWRE has a Altman-Z score of 8.85. This is amongst the best in the industry. GWRE outperforms 82.27% of its industry peers.
The Debt to FCF ratio of GWRE is 4.16, which is a neutral value as it means it would take GWRE, 4.16 years of fcf income to pay off all of its debts.
GWRE's Debt to FCF ratio of 4.16 is in line compared to the rest of the industry. GWRE outperforms 59.93% of its industry peers.
GWRE has a Debt/Equity ratio of 0.53. This is a neutral value indicating GWRE is somewhat dependend on debt financing.
GWRE has a worse Debt to Equity ratio (0.53) than 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 8.85 |
ROIC/WACC0
WACC10.92%
2.3 Liquidity
GWRE has a Current Ratio of 2.65. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.65, GWRE is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
A Quick Ratio of 2.65 indicates that GWRE has no problem at all paying its short term obligations.
GWRE has a Quick ratio of 2.65. This is in the better half of the industry: GWRE outperforms 72.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.50% over the past year.
The Earnings Per Share has been decreasing by -1.43% on average over the past years.
Looking at the last year, GWRE shows a quite strong growth in Revenue. The Revenue has grown by 17.15% in the last year.
GWRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.39% yearly.
EPS 1Y (TTM)62.5%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%10.87%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%20.17%
3.2 Future
The Earnings Per Share is expected to grow by 35.00% 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 15.81% on average per year.
EPS Next Y53.53%
EPS Next 2Y42.79%
EPS Next 3Y39.61%
EPS Next 5Y35%
Revenue Next Year20.63%
Revenue Next 2Y17.29%
Revenue Next 3Y16.57%
Revenue Next 5Y15.81%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 117.01, which means the current valuation is very expensive for GWRE.
The rest of the industry has a similar Price/Earnings ratio as GWRE.
The average S&P500 Price/Earnings ratio is at 26.19. GWRE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 77.94 indicates a quite expensive valuation of GWRE.
GWRE's Price/Forward Earnings is on the same level as the industry average.
GWRE is valuated expensively when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.01 | ||
| Fwd PE | 77.94 |
4.2 Price Multiples
GWRE's Enterprise Value to EBITDA ratio is in line with the industry average.
GWRE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.14 | ||
| EV/EBITDA | 718.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GWRE's earnings are expected to grow with 39.61% in the coming years.
PEG (NY)2.19
PEG (5Y)N/A
EPS Next 2Y42.79%
EPS Next 3Y39.61%
5. Dividend
5.1 Amount
GWRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:GWRE (5/30/2025, 11:48:42 AM)
212.96
+1.64 (+0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.74%
Inst Owner Change32.12%
Ins Owners0.41%
Ins Owner Change-3.8%
Market Cap17.86B
Analysts80.95
Price Target217.59 (2.17%)
Short Float %3.95%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)18.66%
Min EPS beat(2)-3.3%
Max EPS beat(2)40.63%
EPS beat(4)3
Avg EPS beat(4)35.3%
Min EPS beat(4)-3.3%
Max EPS beat(4)92.05%
EPS beat(8)7
Avg EPS beat(8)58.77%
EPS beat(12)10
Avg EPS beat(12)12.01%
EPS beat(16)14
Avg EPS beat(16)17.99%
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)1.9%
Revenue beat(4)3
Avg Revenue beat(4)1%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)2.03%
Revenue beat(8)5
Avg Revenue beat(8)-0.08%
Revenue beat(12)8
Avg Revenue beat(12)0.75%
Revenue beat(16)11
Avg Revenue beat(16)0.77%
PT rev (1m)-0.12%
PT rev (3m)-2.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.01 | ||
| Fwd PE | 77.94 | ||
| P/S | 16.47 | ||
| P/FCF | 87.14 | ||
| P/OCF | 80.37 | ||
| P/B | 14.08 | ||
| P/tB | 20.07 | ||
| EV/EBITDA | 718.61 |
EPS(TTM)1.82
EY0.85%
EPS(NY)2.73
Fwd EY1.28%
FCF(TTM)2.44
FCFY1.15%
OCF(TTM)2.65
OCFY1.24%
SpS12.93
BVpS15.13
TBVpS10.61
PEG (NY)2.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -1.33% | ||
| ROCE | 0.03% | ||
| ROIC | 0.02% | ||
| ROICexc | 0.06% | ||
| ROICexgc | 0.11% | ||
| OM | 0.06% | ||
| PM (TTM) | N/A | ||
| GM | 61.43% | ||
| FCFM | 18.9% |
ROA(3y)-4.58%
ROA(5y)-3.55%
ROE(3y)-7.4%
ROE(5y)-5.63%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y4.51%
GM growth 5Y1.73%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.16 | ||
| Debt/EBITDA | 28.55 | ||
| Cap/Depr | 75.25% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 0.11 | ||
| Cash Conversion | 943.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.65 | ||
| Altman-Z | 8.85 |
F-Score4
WACC10.92%
ROIC/WACC0
Cap/Depr(3y)72.76%
Cap/Depr(5y)71.34%
Cap/Sales(3y)2.16%
Cap/Sales(5y)2.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)62.5%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%10.87%
EPS Next Y53.53%
EPS Next 2Y42.79%
EPS Next 3Y39.61%
EPS Next 5Y35%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%20.17%
Revenue Next Year20.63%
Revenue Next 2Y17.29%
Revenue Next 3Y16.57%
Revenue Next 5Y15.81%
EBIT growth 1Y100.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year106.38%
EBIT Next 3Y56.42%
EBIT Next 5Y31.2%
FCF growth 1Y767.75%
FCF growth 3Y28.92%
FCF growth 5Y21.4%
OCF growth 1Y1687.61%
OCF growth 3Y20.6%
OCF growth 5Y11.01%