GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
NYSE:GWRE - US40171V1008 - Common Stock
217.02 USD
-1.69 (-0.77%)
217.02 USD
0 (0%)
Overall GWRE gets a fundamental rating of 5 out of 10. We evaluated GWRE against 280 industry peers in the Software industry. While GWRE has a great health rating, its profitability is only average at the moment. 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.
In the past year GWRE had a positive cash flow from operations.
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 (1.39%) than 64.77% of its industry peers.
Looking at the Return On Equity, with a value of 2.54%, GWRE is in the better half of the industry, outperforming 66.55% of the companies in the same industry.
GWRE has a better Return On Invested Capital (0.84%) than 62.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 2.54% | ||
| ROIC | 0.84% |
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
GWRE's Profit Margin of 3.04% is fine compared to the rest of the industry. GWRE outperforms 66.55% of its industry peers.
GWRE has a better Operating Margin (1.94%) than 63.70% of its industry peers.
Looking at the Gross Margin, with a value of 62.16%, GWRE is in line with its industry, outperforming 41.64% 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 | 1.94% | ||
| PM (TTM) | 3.04% | ||
| GM | 62.16% |
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.
Compared to 1 year ago, GWRE has more shares outstanding
GWRE has more shares outstanding than it did 5 years ago.
GWRE has a better debt/assets ratio than last year.
2.2 Solvency
GWRE has an Altman-Z score of 10.32. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
GWRE has a Altman-Z score of 10.32. This is amongst the best in the industry. GWRE outperforms 88.26% of its industry peers.
The Debt to FCF ratio of GWRE is 2.90, which is a good value as it means it would take GWRE, 2.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.90, GWRE is in the better half of the industry, outperforming 64.41% of the companies in the same industry.
GWRE has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GWRE (0.49) is worse than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | 10.32 |
ROIC/WACC0.08
WACC11.14%
2.3 Liquidity
A Current Ratio of 3.23 indicates that GWRE has no problem at all paying its short term obligations.
GWRE's Current ratio of 3.23 is fine compared to the rest of the industry. GWRE outperforms 79.00% of its industry peers.
A Quick Ratio of 3.23 indicates that GWRE has no problem at all paying its short term obligations.
GWRE has a better Quick ratio (3.23) than 79.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.12%, which is quite impressive.
GWRE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.43% yearly.
GWRE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.61%.
GWRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.39% yearly.
EPS 1Y (TTM)67.12%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%238.46%
Revenue 1Y (TTM)18.61%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%21.95%
3.2 Future
GWRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.40% yearly.
Based on estimates for the next years, GWRE will show a quite strong growth in Revenue. The Revenue will grow by 15.77% on average per year.
EPS Next Y86.66%
EPS Next 2Y46.15%
EPS Next 3Y41%
EPS Next 5Y33.4%
Revenue Next Year21.74%
Revenue Next 2Y18.06%
Revenue Next 3Y17.04%
Revenue Next 5Y15.77%
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.
4. Valuation
4.1 Price/Earnings Ratio
GWRE is valuated quite expensively with a Price/Earnings ratio of 88.94.
Compared to the rest of the industry, the Price/Earnings ratio of GWRE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.13, GWRE is valued quite expensively.
GWRE is valuated quite expensively with a Price/Forward Earnings ratio of 75.82.
The rest of the industry has a similar Price/Forward Earnings ratio as GWRE.
The average S&P500 Price/Forward Earnings ratio is at 22.76. GWRE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.94 | ||
| Fwd PE | 75.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWRE is on the same level as its industry peers.
GWRE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.74 | ||
| EV/EBITDA | 387.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GWRE's earnings are expected to grow with 41.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y46.15%
EPS Next 3Y41%
5. Dividend
5.1 Amount
No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
217.02
-1.69 (-0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.46%
Inst Owner Change-22.17%
Ins Owners0.29%
Ins Owner Change-5.23%
Market Cap18.27B
Analysts80
Price Target254.16 (17.11%)
Short Float %2.12%
Short Ratio2.34
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)41.65%
Min EPS beat(2)-3.3%
Max EPS beat(2)86.6%
EPS beat(4)3
Avg EPS beat(4)33.94%
Min EPS beat(4)-3.3%
Max EPS beat(4)86.6%
EPS beat(8)7
Avg EPS beat(8)64.07%
EPS beat(12)10
Avg EPS beat(12)18.61%
EPS beat(16)14
Avg EPS beat(16)21.21%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)1.18%
Revenue beat(4)3
Avg Revenue beat(4)0.78%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)1.9%
Revenue beat(8)6
Avg Revenue beat(8)0.71%
Revenue beat(12)8
Avg Revenue beat(12)0.59%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)0.17%
PT rev (3m)16.81%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)3.94%
EPS NY rev (1m)0.09%
EPS NY rev (3m)21.58%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.94 | ||
| Fwd PE | 75.82 | ||
| P/S | 16.07 | ||
| P/FCF | 78.74 | ||
| P/OCF | 73.15 | ||
| P/B | 13.41 | ||
| P/tB | 19.12 | ||
| EV/EBITDA | 387.96 |
EPS(TTM)2.44
EY1.12%
EPS(NY)2.86
Fwd EY1.32%
FCF(TTM)2.76
FCFY1.27%
OCF(TTM)2.97
OCFY1.37%
SpS13.51
BVpS16.18
TBVpS11.35
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.39% | ||
| ROE | 2.54% | ||
| ROCE | 1.06% | ||
| ROIC | 0.84% | ||
| ROICexc | 1.5% | ||
| ROICexgc | 2.31% | ||
| OM | 1.94% | ||
| PM (TTM) | 3.04% | ||
| GM | 62.16% | ||
| FCFM | 20.4% |
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-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.9 | ||
| Debt/EBITDA | 14.84 | ||
| Cap/Depr | 76.06% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 550.16% | ||
| Profit Quality | 670.5% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 | ||
| Altman-Z | 10.32 |
F-Score6
WACC11.14%
ROIC/WACC0.08
Cap/Depr(3y)72.71%
Cap/Depr(5y)71.28%
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)67.12%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%238.46%
EPS Next Y86.66%
EPS Next 2Y46.15%
EPS Next 3Y41%
EPS Next 5Y33.4%
Revenue 1Y (TTM)18.61%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%21.95%
Revenue Next Year21.74%
Revenue Next 2Y18.06%
Revenue Next 3Y17.04%
Revenue Next 5Y15.77%
EBIT growth 1Y141.06%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year114.45%
EBIT Next 3Y56.26%
EBIT Next 5Y31.2%
FCF growth 1Y444.56%
FCF growth 3Y28.91%
FCF growth 5Y21.38%
OCF growth 1Y587.44%
OCF growth 3Y20.6%
OCF growth 5Y11.01%