GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWRE - US40171V1008 - Common Stock
205.46 USD
-0.44 (-0.21%)
205.46 USD
0 (0%)
Overall GWRE gets a fundamental rating of 5 out of 10. We evaluated GWRE against 278 industry peers in the Software industry. While GWRE has a great health rating, its profitability is only average at the moment. GWRE shows excellent growth, but is valued quite expensive already.
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
With a decent Return On Assets value of 3.48%, GWRE is doing good in the industry, outperforming 67.63% of the companies in the same industry.
The Return On Equity of GWRE (6.00%) is better than 70.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.26%, GWRE is in the better half of the industry, outperforming 66.91% of the companies in the same industry.
| 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
The Profit Margin of GWRE (7.23%) is better than 68.35% of its industry peers.
With a decent Operating Margin value of 5.05%, GWRE is doing good in the industry, outperforming 67.99% of the companies in the same industry.
GWRE's Gross Margin of 63.13% is in line compared to the rest of the industry. GWRE outperforms 41.01% of its industry peers.
GWRE's Gross Margin has improved in the last couple of years.
| 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.
Compared to 5 years ago, GWRE has more shares outstanding
The debt/assets ratio for GWRE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.22 indicates that GWRE is not in any danger for bankruptcy at the moment.
GWRE has a better Altman-Z score (10.22) than 88.13% of its industry peers.
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 65.47% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that GWRE is not too dependend on debt financing.
GWRE has a worse Debt to Equity ratio (0.44) than 63.31% of its industry peers.
Even though the debt/equity ratio score it not favorable for GWRE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 10.22 |
ROIC/WACC0.21
WACC10.89%
2.3 Liquidity
A Current Ratio of 3.48 indicates that GWRE has no problem at all paying its short term obligations.
GWRE has a better Current ratio (3.48) than 78.42% of its industry peers.
GWRE has a Quick Ratio of 3.48. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
GWRE has a Quick ratio of 3.48. This is in the better half of the industry: GWRE outperforms 78.42% 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.
Looking at the last year, GWRE shows a very strong growth in Revenue. The Revenue has grown by 22.80%.
GWRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.13% yearly.
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
Based on estimates for the next years, GWRE will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.37% on average per year.
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 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 71.09 indicates a quite expensive valuation of GWRE.
GWRE's Price/Earnings is on the same level as the industry average.
GWRE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 52.27, the valuation of GWRE can be described as expensive.
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 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.09 | ||
| Fwd PE | 52.27 |
4.2 Price Multiples
GWRE's Enterprise Value to EBITDA ratio is in line with the industry average.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.59 | ||
| EV/EBITDA | 188.04 |
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 22.63% in the coming years.
PEG (NY)4.92
PEG (5Y)4.41
EPS Next 2Y21.56%
EPS Next 3Y22.63%
5. Dividend
5.1 Amount
GWRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
205.46
-0.44 (-0.21%)
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-1.61%
Market Cap17.47B
Revenue(TTM)1.27B
Net Income(TTM)91.97M
Analysts80
Price Target269.89 (31.36%)
Short Float %1.52%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-0.69%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)4.02%
EPS NY rev (1m)0.24%
EPS NY rev (3m)6.37%
Revenue NQ rev (1m)1.64%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.09 | ||
| Fwd PE | 52.27 | ||
| P/S | 13.73 | ||
| P/FCF | 64.59 | ||
| P/OCF | 59.06 | ||
| P/B | 11.39 | ||
| P/tB | 15.48 | ||
| EV/EBITDA | 188.04 |
EPS(TTM)2.89
EY1.41%
EPS(NY)3.93
Fwd EY1.91%
FCF(TTM)3.18
FCFY1.55%
OCF(TTM)3.48
OCFY1.69%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)4.92
PEG (5Y)4.41
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 | 10.22 |
F-Score8
WACC10.89%
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.