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GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis

NYSE:GWRE - New York Stock Exchange, Inc. - US40171V1008 - Common Stock - Currency: USD

209.53  -0.41 (-0.2%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to GWRE. GWRE was compared to 282 industry peers in the Software industry. GWRE has an average financial health and profitability rating. GWRE is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

GWRE had positive earnings in the past year.
GWRE had a positive operating cash flow in the past year.
In the past 5 years GWRE always reported 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M

1.2 Ratios

GWRE has a Return On Assets of -0.66%. This is in the better half of the industry: GWRE outperforms 61.70% of its industry peers.
With a decent Return On Equity value of -1.33%, GWRE is doing good in the industry, outperforming 63.12% of the companies in the same industry.
GWRE has a better Return On Invested Capital (0.02%) than 63.48% of its industry peers.
Industry RankSector 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
GWRE Yearly ROA, ROE, ROICGWRE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -5 -10

1.3 Margins

GWRE has a better Operating Margin (0.06%) than 63.48% of its industry peers.
GWRE has a Gross Margin (61.43%) which is comparable to the rest of the industry.
GWRE's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
GWRE Yearly Profit, Operating, Gross MarginsGWRE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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6

2. Health

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.
The number of shares outstanding for GWRE has been increased compared to 1 year ago.
The number of shares outstanding for GWRE has been increased compared to 5 years ago.
The debt/assets ratio for GWRE has been reduced compared to a year ago.
GWRE Yearly Shares OutstandingGWRE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
GWRE Yearly Total Debt VS Total AssetsGWRE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

GWRE has an Altman-Z score of 8.80. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.80, GWRE belongs to the best of the industry, outperforming 82.27% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.16, GWRE is in line with its industry, outperforming 59.57% of the companies in the same industry.
GWRE has a Debt/Equity ratio of 0.53. This is a neutral value indicating GWRE is somewhat dependend on debt financing.
The Debt to Equity ratio of GWRE (0.53) is worse than 66.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 4.16
Altman-Z 8.8
ROIC/WACC0
WACC10.95%
GWRE Yearly LT Debt VS Equity VS FCFGWRE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 2.65 indicates that GWRE has no problem at all paying its short term obligations.
GWRE has a Current ratio of 2.65. This is in the better half of the industry: GWRE outperforms 72.34% of its industry peers.
A Quick Ratio of 2.65 indicates that GWRE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.65, GWRE is in the better half of the industry, outperforming 73.05% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.65
Quick Ratio 2.65
GWRE Yearly Current Assets VS Current LiabilitesGWRE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 62.50% over the past year.
Measured over the past years, GWRE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.43% on average per year.
Looking at the last year, GWRE shows a quite strong growth in Revenue. The Revenue has grown by 17.15% in the last year.
Measured over the past years, GWRE shows a small growth in Revenue. The Revenue has been growing by 6.39% on average per year.
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

Based on estimates for the next years, GWRE will show a very strong growth in Earnings Per Share. The EPS will grow by 35.00% on average per year.
GWRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.81% yearly.
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.
GWRE Yearly Revenue VS EstimatesGWRE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B 2B 2.5B
GWRE Yearly EPS VS EstimatesGWRE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 4 6 8 10

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2

4. Valuation

4.1 Price/Earnings Ratio

GWRE is valuated quite expensively with a Price/Earnings ratio of 115.13.
The rest of the industry has a similar Price/Earnings ratio as GWRE.
When comparing the Price/Earnings ratio of GWRE to the average of the S&P500 Index (25.91), we can say GWRE is valued expensively.
Based on the Price/Forward Earnings ratio of 76.69, the valuation of GWRE can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as GWRE.
The average S&P500 Price/Forward Earnings ratio is at 21.77. GWRE is valued rather expensively when compared to this.
Industry RankSector Rank
PE 115.13
Fwd PE 76.69
GWRE Price Earnings VS Forward Price EarningsGWRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as GWRE.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GWRE is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 85.73
EV/EBITDA 713.7
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 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)2.15
PEG (5Y)N/A
EPS Next 2Y42.79%
EPS Next 3Y39.61%

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0

5. Dividend

5.1 Amount

No dividends for GWRE!.
Industry RankSector Rank
Dividend Yield N/A

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GUIDEWIRE SOFTWARE INC

NYSE:GWRE (5/27/2025, 3:07:06 PM)

209.53

-0.41 (-0.2%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-06 2025-03-06/amc
Earnings (Next)06-03 2025-06-03/amc
Inst Owners100.74%
Inst Owner Change32.12%
Ins Owners0.41%
Ins Owner Change-3.8%
Market Cap17.58B
Analysts80.95
Price Target217.59 (3.85%)
Short Float %3.95%
Short Ratio3.78
Dividend
Industry RankSector 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 RankSector Rank
PE 115.13
Fwd PE 76.69
P/S 16.2
P/FCF 85.73
P/OCF 79.07
P/B 13.85
P/tB 19.74
EV/EBITDA 713.7
EPS(TTM)1.82
EY0.87%
EPS(NY)2.73
Fwd EY1.3%
FCF(TTM)2.44
FCFY1.17%
OCF(TTM)2.65
OCFY1.26%
SpS12.93
BVpS15.13
TBVpS10.61
PEG (NY)2.15
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 8.8
F-Score4
WACC10.95%
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%