GUIDEWIRE SOFTWARE INC (GWRE)
US40171V1008 - Common Stock
GWRE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. While GWRE seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, GWRE is valued expensive at the moment.
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.
GWRE had negative earnings in each of the past 5 years.
Of the past 5 years GWRE 4 years had a positive operating cash flow.
1.2 Ratios
GWRE's Return On Assets of 1.16% is fine compared to the rest of the industry. GWRE outperforms 64.87% of its industry peers.
GWRE's Return On Equity of 2.37% is fine compared to the rest of the industry. GWRE outperforms 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.37% | ||
| ROIC | N/A |
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 has a better Profit Margin (2.91%) than 66.67% of its industry peers.
GWRE has a Gross Margin (61.08%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GWRE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 2.91% | ||
| GM | 61.08% |
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
GWRE does not have a ROIC to compare to the WACC, probably because it is not profitable.
GWRE has more shares outstanding than it did 1 year ago.
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 7.07. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
GWRE has a Altman-Z score of 7.07. This is in the better half of the industry: GWRE outperforms 72.04% of its industry peers.
The Debt to FCF ratio of GWRE is 5.09, which is a neutral value as it means it would take GWRE, 5.09 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.09, GWRE perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that GWRE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, GWRE is not doing good in the industry: 68.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 7.07 |
ROIC/WACCN/A
WACC11.73%
2.3 Liquidity
A Current Ratio of 2.66 indicates that GWRE has no problem at all paying its short term obligations.
GWRE has a better Current ratio (2.66) than 72.04% of its industry peers.
GWRE has a Quick Ratio of 2.66. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
GWRE has a Quick ratio of 2.66. This is in the better half of the industry: GWRE outperforms 72.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 293.33%, 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.
Looking at the last year, GWRE shows a quite strong growth in Revenue. The Revenue has grown by 12.91% 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)293.33%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%132.08%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%26.76%
3.2 Future
The Earnings Per Share is expected to grow by 34.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.76% on average over the next years. This is quite good.
EPS Next Y54.82%
EPS Next 2Y40.19%
EPS Next 3Y36.4%
EPS Next 5Y34.44%
Revenue Next Year19.52%
Revenue Next 2Y16.9%
Revenue Next 3Y16.82%
Revenue Next 5Y15.76%
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
The Price/Earnings ratio is 98.16, which means the current valuation is very expensive for GWRE.
The rest of the industry has a similar Price/Earnings ratio as GWRE.
Compared to an average S&P500 Price/Earnings ratio of 27.29, GWRE is valued quite expensively.
The Price/Forward Earnings ratio is 65.97, which means the current valuation is very expensive for GWRE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWRE is on the same level as its industry peers.
GWRE is valuated expensively when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.16 | ||
| Fwd PE | 65.97 |
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 | 77.76 | ||
| EV/EBITDA | 5443.23 |
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 36.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y40.19%
EPS Next 3Y36.4%
5. Dividend
5.1 Amount
GWRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GUIDEWIRE SOFTWARE INC
NYSE:GWRE (12/23/2024, 8:09:38 PM)
After market: 173.74 0 (0%)173.74
-2.29 (-1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.32%
Inst Owner Change0.25%
Ins Owners0.4%
Ins Owner Change3.52%
Market Cap14.51B
Analysts81
Price Target205.46 (18.26%)
Short Float %2.06%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)26.41%
Min EPS beat(2)11.83%
Max EPS beat(2)40.99%
EPS beat(4)4
Avg EPS beat(4)60.07%
Min EPS beat(4)11.83%
Max EPS beat(4)95.4%
EPS beat(8)7
Avg EPS beat(8)-29.19%
EPS beat(12)11
Avg EPS beat(12)16.41%
EPS beat(16)15
Avg EPS beat(16)83.65%
Revenue beat(2)2
Avg Revenue beat(2)1.28%
Min Revenue beat(2)0.67%
Max Revenue beat(2)1.9%
Revenue beat(4)3
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)2.03%
Revenue beat(8)6
Avg Revenue beat(8)0.27%
Revenue beat(12)9
Avg Revenue beat(12)0.93%
Revenue beat(16)12
Avg Revenue beat(16)1.04%
PT rev (1m)4.23%
PT rev (3m)38.28%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-2.85%
EPS NY rev (1m)4.95%
EPS NY rev (3m)8.64%
Revenue NQ rev (1m)2.95%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)6.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.16 | ||
| Fwd PE | 65.97 | ||
| P/S | 14.01 | ||
| P/FCF | 77.76 | ||
| P/OCF | 70.6 | ||
| P/B | 11.44 | ||
| P/tB | 16.34 | ||
| EV/EBITDA | 5443.23 |
EPS(TTM)1.77
EY1.02%
EPS(NY)2.63
Fwd EY1.52%
FCF(TTM)2.23
FCFY1.29%
OCF(TTM)2.46
OCFY1.42%
SpS12.4
BVpS15.18
TBVpS10.63
PEG (NY)1.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.37% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 2.91% | ||
| GM | 61.08% | ||
| FCFM | 18.01% |
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-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Debt/EBITDA | 268.73 | ||
| Cap/Depr | 83.27% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 8221.04% | ||
| Profit Quality | 619.83% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 7.07 |
F-Score5
WACC11.73%
ROIC/WACCN/A
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)293.33%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%132.08%
EPS Next Y54.82%
EPS Next 2Y40.19%
EPS Next 3Y36.4%
EPS Next 5Y34.44%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%26.76%
Revenue Next Year19.52%
Revenue Next 2Y16.9%
Revenue Next 3Y16.82%
Revenue Next 5Y15.76%
EBIT growth 1Y81.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year88.15%
EBIT Next 3Y51.73%
EBIT Next 5Y42.49%
FCF growth 1Y600.3%
FCF growth 3Y28.92%
FCF growth 5Y21.4%
OCF growth 1Y1223.09%
OCF growth 3Y20.6%
OCF growth 5Y11.01%