GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
USA - NYSE:GWRE - US40171V1008 - Common Stock
253.765 USD
+1.29 (+0.51%)
Taking everything into account, GWRE scores 5 out of 10 in our fundamental rating. GWRE was compared to 285 industry peers in the Software industry. While GWRE has a great health rating, its profitability is only average at the moment. GWRE is valued quite expensively, but it does show have an excellent growth rating.
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.
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 (2.57%) is better than 66.67% of its industry peers.
GWRE's Return On Equity of 4.79% is fine compared to the rest of the industry. GWRE outperforms 68.42% of its industry peers.
GWRE has a Return On Invested Capital of 1.49%. This is in the better half of the industry: GWRE outperforms 65.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 4.79% | ||
| ROIC | 1.49% |
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
Looking at the Profit Margin, with a value of 5.81%, GWRE is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
GWRE's Operating Margin of 3.42% is fine compared to the rest of the industry. GWRE outperforms 67.02% of its industry peers.
With a Gross Margin value of 62.54%, GWRE perfoms like the industry average, outperforming 41.75% 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 | 3.42% | ||
| PM (TTM) | 5.81% | ||
| GM | 62.54% |
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
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.
The debt/assets ratio for GWRE is higher compared to a year ago.
2.2 Solvency
GWRE has an Altman-Z score of 10.76. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
GWRE has a better Altman-Z score (10.76) than 86.67% of its industry peers.
GWRE has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as GWRE would need 2.41 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.41, GWRE is doing good in the industry, outperforming 66.32% of the companies in the same industry.
GWRE has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, GWRE is doing worse than 64.21% of the companies in the same industry.
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 | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 10.76 |
ROIC/WACC0.14
WACC10.88%
2.3 Liquidity
GWRE has a Current Ratio of 2.77. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
GWRE's Current ratio of 2.77 is fine compared to the rest of the industry. GWRE outperforms 75.79% of its industry peers.
A Quick Ratio of 2.77 indicates that GWRE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.77, GWRE is in the better half of the industry, outperforming 76.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.51%, which is quite impressive.
The Earnings Per Share has been growing by 16.12% on average over the past years. This is quite good.
GWRE shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.64%.
Measured over the past years, GWRE shows a quite strong growth in Revenue. The Revenue has been growing by 10.13% on average per year.
EPS 1Y (TTM)98.51%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%35.48%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%22.32%
3.2 Future
The Earnings Per Share is expected to grow by 19.37% on average over the next years. This is quite good.
GWRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.46% yearly.
EPS Next Y12.86%
EPS Next 2Y22.69%
EPS Next 3Y22.86%
EPS Next 5Y19.37%
Revenue Next Year17.88%
Revenue Next 2Y16.41%
Revenue Next 3Y16.15%
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.
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 95.40, which means the current valuation is very expensive for GWRE.
GWRE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.83. GWRE is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 84.53, GWRE can be considered very expensive at the moment.
GWRE's Price/Forward Earnings ratio is in line with the industry average.
GWRE's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.4 | ||
| Fwd PE | 84.53 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.5 | ||
| EV/EBITDA | 314.92 |
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 22.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.42
PEG (5Y)5.92
EPS Next 2Y22.69%
EPS Next 3Y22.86%
5. Dividend
5.1 Amount
GWRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:GWRE (10/24/2025, 9:40:13 AM)
253.765
+1.29 (+0.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.7%
Inst Owner Change0.05%
Ins Owners0.4%
Ins Owner Change-2.02%
Market Cap21.45B
Revenue(TTM)1.20B
Net Income(TTM)69.80M
Analysts80
Price Target271.76 (7.09%)
Short Float %2.03%
Short Ratio2.35
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)58.16%
Min EPS beat(2)29.72%
Max EPS beat(2)86.6%
EPS beat(4)3
Avg EPS beat(4)38.41%
Min EPS beat(4)-3.3%
Max EPS beat(4)86.6%
EPS beat(8)7
Avg EPS beat(8)56.62%
EPS beat(12)10
Avg EPS beat(12)-4.25%
EPS beat(16)14
Avg EPS beat(16)20.42%
Revenue beat(2)2
Avg Revenue beat(2)2.32%
Min Revenue beat(2)1.18%
Max Revenue beat(2)3.47%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)3.47%
Revenue beat(8)6
Avg Revenue beat(8)0.98%
Revenue beat(12)8
Avg Revenue beat(12)0.51%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)0%
PT rev (3m)7.1%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)17.14%
EPS NY rev (1m)4.89%
EPS NY rev (3m)5.26%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)5.03%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.4 | ||
| Fwd PE | 84.53 | ||
| P/S | 17.84 | ||
| P/FCF | 76.5 | ||
| P/OCF | 71.3 | ||
| P/B | 14.72 | ||
| P/tB | 20.41 | ||
| EV/EBITDA | 314.92 |
EPS(TTM)2.66
EY1.05%
EPS(NY)3
Fwd EY1.18%
FCF(TTM)3.32
FCFY1.31%
OCF(TTM)3.56
OCFY1.4%
SpS14.23
BVpS17.24
TBVpS12.44
PEG (NY)7.42
PEG (5Y)5.92
Graham Number32.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 4.79% | ||
| ROCE | 1.89% | ||
| ROIC | 1.49% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 5.23% | ||
| OM | 3.42% | ||
| PM (TTM) | 5.81% | ||
| GM | 62.54% | ||
| FCFM | 23.32% |
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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 10.41 | ||
| Cap/Depr | 86.1% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 3.48 | ||
| Cash Conversion | 464.12% | ||
| Profit Quality | 401.71% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 10.76 |
F-Score7
WACC10.88%
ROIC/WACC0.14
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)98.51%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%35.48%
EPS Next Y12.86%
EPS Next 2Y22.69%
EPS Next 3Y22.86%
EPS Next 5Y19.37%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%22.32%
Revenue Next Year17.88%
Revenue Next 2Y16.41%
Revenue Next 3Y16.15%
Revenue Next 5Y14.46%
EBIT growth 1Y183.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.97%
EBIT Next 3Y38.75%
EBIT Next 5Y21.54%
FCF growth 1Y58.23%
FCF growth 3YN/A
FCF growth 5Y26.26%
OCF growth 1Y53.7%
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 12.86% in the next year.