GUIDEWIRE SOFTWARE INC (GWRE) Fundamental Analysis & Valuation

NYSE:GWRE • US40171V1008

Current stock price

150.79 USD
+2.21 (+1.49%)
At close:
150.79 USD
0 (0%)
After Hours:

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

5

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.
  • In the past 5 years GWRE reported 4 times negative net income.
  • Of the past 5 years GWRE 4 years had a positive operating cash flow.
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

  • The Return On Assets of GWRE (7.03%) is better than 79.64% of its industry peers.
  • GWRE has a better Return On Equity (12.54%) than 77.82% of its industry peers.
  • GWRE has a Return On Invested Capital of 3.22%. This is in the better half of the industry: GWRE outperforms 69.82% of its industry peers.
Industry RankSector Rank
ROA 7.03%
ROE 12.54%
ROIC 3.22%
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

  • GWRE has a Profit Margin of 14.11%. This is amongst the best in the industry. GWRE outperforms 80.36% of its industry peers.
  • GWRE's Operating Margin of 6.78% is fine compared to the rest of the industry. GWRE outperforms 70.55% of its industry peers.
  • GWRE's Gross Margin of 63.76% is in line compared to the rest of the industry. GWRE outperforms 42.18% of its industry peers.
  • GWRE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.78%
PM (TTM) 14.11%
GM 63.76%
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
  • GWRE has more shares outstanding than it did 5 years ago.
  • 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 7.17. 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 7.17, GWRE belongs to the top of the industry, outperforming 84.36% of the companies in the same industry.
  • The Debt to FCF ratio of GWRE is 2.30, which is a good value as it means it would take GWRE, 2.30 years of fcf income to pay off all of its debts.
  • GWRE has a Debt to FCF ratio of 2.30. This is in the better half of the industry: GWRE outperforms 65.45% of its industry peers.
  • A Debt/Equity ratio of 0.45 indicates that GWRE is not too dependend on debt financing.
  • The Debt to Equity ratio of GWRE (0.45) is worse than 64.00% of its industry peers.
  • Although GWRE's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 0.45
Debt/FCF 2.3
Altman-Z 7.17
ROIC/WACC0.3
WACC10.87%
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

  • A Current Ratio of 2.93 indicates that GWRE has no problem at all paying its short term obligations.
  • GWRE has a better Current ratio (2.93) than 73.82% of its industry peers.
  • A Quick Ratio of 2.93 indicates that GWRE has no problem at all paying its short term obligations.
  • GWRE has a better Quick ratio (2.93) than 73.82% of its industry peers.
Industry RankSector Rank
Current Ratio 2.93
Quick Ratio 2.93
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

  • The Earnings Per Share has grown by an impressive 95.05% over the past year.
  • Measured over the past years, GWRE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.12% on average per year.
  • The Revenue has grown by 23.72% in the past year. This is a very strong growth!
  • GWRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.13% yearly.
EPS 1Y (TTM)95.05%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%129.41%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%

3.2 Future

  • GWRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.41% yearly.
  • 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 Year21.61%
Revenue Next 2Y18.66%
Revenue Next 3Y17.43%
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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2

4. GWRE Valuation Analysis

4.1 Price/Earnings Ratio

  • GWRE is valuated quite expensively with a Price/Earnings ratio of 42.48.
  • 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 25.60.
  • The Price/Forward Earnings ratio is 38.29, which means the current valuation is very expensive for GWRE.
  • GWRE's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.84. GWRE is valued rather expensively when compared to this.
Industry RankSector Rank
PE 42.48
Fwd PE 38.29
GWRE Price Earnings VS Forward Price EarningsGWRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • GWRE's Enterprise Value to EBITDA is on the same level as the industry average.
  • GWRE's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 43.45
EV/EBITDA 103.04
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 GWRE does not grow enough to justify the current Price/Earnings ratio.
  • A more expensive valuation may be justified as GWRE's earnings are expected to grow with 21.49% in the coming years.
PEG (NY)3.21
PEG (5Y)2.64
EPS Next 2Y21.67%
EPS Next 3Y21.49%

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

0

5. GWRE Dividend Analysis

5.1 Amount

  • No dividends for GWRE!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

GWRE Fundamentals: All Metrics, Ratios and Statistics

GUIDEWIRE SOFTWARE INC

NYSE:GWRE (4/2/2026, 8:04:00 PM)

After market: 150.79 0 (0%)

150.79

+2.21 (+1.49%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-05
Earnings (Next)06-01
Inst Owners99.83%
Inst Owner Change-37.7%
Ins Owners0.39%
Ins Owner Change-10.51%
Market Cap12.77B
Revenue(TTM)1.34B
Net Income(TTM)189.36M
Analysts81.82
Price Target233.06 (54.56%)
Short Float %4.68%
Short Ratio2.23
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)27%
Min EPS beat(2)5.59%
Max EPS beat(2)48.4%
EPS beat(4)4
Avg EPS beat(4)42.58%
Min EPS beat(4)5.59%
Max EPS beat(4)86.6%
EPS beat(8)7
Avg EPS beat(8)38.94%
EPS beat(12)11
Avg EPS beat(12)53.37%
EPS beat(16)14
Avg EPS beat(16)19.65%
Revenue beat(2)2
Avg Revenue beat(2)3.01%
Min Revenue beat(2)3%
Max Revenue beat(2)3.02%
Revenue beat(4)4
Avg Revenue beat(4)2.66%
Min Revenue beat(4)1.18%
Max Revenue beat(4)3.47%
Revenue beat(8)7
Avg Revenue beat(8)1.83%
Revenue beat(12)9
Avg Revenue beat(12)0.84%
Revenue beat(16)12
Avg Revenue beat(16)1.23%
PT rev (1m)-9.92%
PT rev (3m)-14.06%
EPS NQ rev (1m)16.93%
EPS NQ rev (3m)16.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)4.77%
Revenue NQ rev (3m)4.76%
Revenue NY rev (1m)1.87%
Revenue NY rev (3m)1.8%
Valuation
Industry RankSector Rank
PE 42.48
Fwd PE 38.29
P/S 9.51
P/FCF 43.45
P/OCF 39.67
P/B 8.45
P/tB 11.95
EV/EBITDA 103.04
EPS(TTM)3.55
EY2.35%
EPS(NY)3.94
Fwd EY2.61%
FCF(TTM)3.47
FCFY2.3%
OCF(TTM)3.8
OCFY2.52%
SpS15.85
BVpS17.84
TBVpS12.62
PEG (NY)3.21
PEG (5Y)2.64
Graham Number37.75
Profitability
Industry RankSector Rank
ROA 7.03%
ROE 12.54%
ROCE 4.07%
ROIC 3.22%
ROICexc 5.47%
ROICexgc 8.25%
OM 6.78%
PM (TTM) 14.11%
GM 63.76%
FCFM 21.9%
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-Score9
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.3
Debt/EBITDA 5.8
Cap/Depr 109.51%
Cap/Sales 2.09%
Interest Coverage 6.8
Cash Conversion 276.08%
Profit Quality 155.16%
Current Ratio 2.93
Quick Ratio 2.93
Altman-Z 7.17
F-Score9
WACC10.87%
ROIC/WACC0.3
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)95.05%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%129.41%
EPS Next Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%
Revenue Next Year21.61%
Revenue Next 2Y18.66%
Revenue Next 3Y17.43%
Revenue Next 5Y15.55%
EBIT growth 1Y14551.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year61.24%
EBIT Next 3Y39.8%
EBIT Next 5Y21.54%
FCF growth 1Y187.04%
FCF growth 3YN/A
FCF growth 5Y26.26%
OCF growth 1Y164.28%
OCF growth 3YN/A
OCF growth 5Y21.62%

GUIDEWIRE SOFTWARE INC / GWRE Fundamental Analysis 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.


How profitable is GUIDEWIRE SOFTWARE INC (GWRE) stock?

GUIDEWIRE SOFTWARE INC (GWRE) has a profitability rating of 5 / 10.


How financially healthy is GUIDEWIRE SOFTWARE INC?

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


What is the earnings growth outlook for GUIDEWIRE SOFTWARE INC?

The Earnings per Share (EPS) of GUIDEWIRE SOFTWARE INC (GWRE) is expected to grow by 13.23% in the next year.