GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWRE - US40171V1008 - Common Stock
199.3 USD
+2.05 (+1.04%)
Overall GWRE gets a fundamental rating of 5 out of 10. We evaluated GWRE against 280 industry peers in the Software industry. GWRE has an excellent financial health rating, but there are some minor concerns on its profitability. GWRE is valued quite expensive, but it does show an excellent growth.
1. Profitability
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.
GWRE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GWRE has a better Return On Assets (3.48%) than 67.86% of its industry peers.
GWRE has a better Return On Equity (6.00%) than 70.00% of its industry peers.
The Return On Invested Capital of GWRE (2.26%) is better than 67.14% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
GWRE has a better Profit Margin (7.23%) than 67.86% of its industry peers.
The Operating Margin of GWRE (5.05%) is better than 68.21% of its industry peers.
Looking at the Gross Margin, with a value of 63.13%, GWRE is in line with its industry, outperforming 41.07% of the companies in the same industry.
In the last couple of years the Gross Margin of GWRE has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GWRE is destroying value.
The number of shares outstanding for GWRE has been increased compared to 1 year ago.
GWRE has more shares outstanding than it did 5 years ago.
GWRE has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.82 indicates that GWRE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.82, GWRE belongs to the best of the industry, outperforming 86.43% of the companies in the same industry.
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.
GWRE has a Debt to FCF ratio of 2.50. This is in the better half of the industry: GWRE outperforms 66.07% of its industry peers.
GWRE has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, GWRE is not doing good in the industry: 62.50% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 9.82 |
ROIC/WACC0.21
WACC10.83%
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.
With a decent Current ratio value of 3.48, GWRE is doing good in the industry, outperforming 78.93% of the companies in the same industry.
A Quick Ratio of 3.48 indicates that GWRE has no problem at all paying its short term obligations.
The Quick ratio of GWRE (3.48) is better than 78.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.28% over the past year.
GWRE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.12% yearly.
The Revenue has grown by 22.80% in the past year. This is a very strong growth!
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
GWRE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.37% yearly.
The Revenue is expected to grow by 14.46% on average over the next years. This is quite good.
EPS Next Y14.46%
EPS Next 2Y21.56%
EPS Next 3Y22.63%
EPS Next 5Y19.37%
Revenue Next Year17.88%
Revenue Next 2Y16.52%
Revenue Next 3Y16.09%
Revenue Next 5Y14.46%
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
A Price/Earnings ratio of 68.96 indicates a quite expensive valuation of GWRE.
GWRE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.29, GWRE is valued quite expensively.
The Price/Forward Earnings ratio is 50.71, which means the current valuation is very expensive for GWRE.
The rest of the industry has a similar Price/Forward Earnings ratio as GWRE.
The average S&P500 Price/Forward Earnings ratio is at 23.51. GWRE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.96 | ||
| Fwd PE | 50.71 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.66 | ||
| EV/EBITDA | 179.73 |
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.
GWRE's earnings are expected to grow with 22.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.77
PEG (5Y)4.28
EPS Next 2Y21.56%
EPS Next 3Y22.63%
5. Dividend
5.1 Amount
No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:GWRE (12/10/2025, 2:11:53 PM)
199.3
+2.05 (+1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change65.76%
Ins Owners0.43%
Ins Owner Change-1.97%
Market Cap16.94B
Revenue(TTM)1.27B
Net Income(TTM)91.97M
Analysts80
Price Target269.89 (35.42%)
Short Float %1.79%
Short Ratio2.3
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)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)-0.69%
PT rev (3m)6.19%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)0.24%
EPS NY rev (3m)6.37%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.96 | ||
| Fwd PE | 50.71 | ||
| P/S | 13.32 | ||
| P/FCF | 62.66 | ||
| P/OCF | 57.29 | ||
| P/B | 11.05 | ||
| P/tB | 15.02 | ||
| EV/EBITDA | 179.73 |
EPS(TTM)2.89
EY1.45%
EPS(NY)3.93
Fwd EY1.97%
FCF(TTM)3.18
FCFY1.6%
OCF(TTM)3.48
OCFY1.75%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)4.77
PEG (5Y)4.28
Graham Number34.25
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 9.82 |
F-Score8
WACC10.83%
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 Y14.46%
EPS Next 2Y21.56%
EPS Next 3Y22.63%
EPS Next 5Y19.37%
Revenue 1Y (TTM)22.8%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%26.53%
Revenue Next Year17.88%
Revenue Next 2Y16.52%
Revenue Next 3Y16.09%
Revenue Next 5Y14.46%
EBIT growth 1Y417.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year56.76%
EBIT Next 3Y39.95%
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.
What is the valuation status for GWRE stock?
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.
How financially healthy is GUIDEWIRE SOFTWARE INC?
The financial health rating of GUIDEWIRE SOFTWARE INC (GWRE) is 7 / 10.
What is the expected EPS growth for GUIDEWIRE SOFTWARE INC (GWRE) stock?
The Earnings per Share (EPS) of GUIDEWIRE SOFTWARE INC (GWRE) is expected to grow by 14.46% in the next year.