GUIDEWIRE SOFTWARE INC (GWRE) Fundamental Analysis & Valuation

NYSE:GWRE • US40171V1008

168.87 USD
+8.03 (+4.99%)
At close: Mar 6, 2026
169 USD
+0.13 (+0.08%)
After Hours: 3/6/2026, 8:23:39 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This GWRE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, GWRE scores 5 out of 10 in our fundamental rating. GWRE was compared to 276 industry peers in the Software industry. GWRE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. GWRE shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

4

1. GWRE Profitability Analysis

1.1 Basic Checks

  • In the past year GWRE was profitable.
  • GWRE had a positive operating cash flow in the past year.
  • 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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M 200M 300M

1.2 Ratios

  • GWRE's Return On Assets of 3.48% is fine compared to the rest of the industry. GWRE outperforms 68.12% of its industry peers.
  • GWRE's Return On Equity of 6.00% is fine compared to the rest of the industry. GWRE outperforms 68.12% 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 68.48% of the companies in the same industry.
Industry RankSector 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
GWRE Yearly ROA, ROE, ROICGWRE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5 -10

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.23%, GWRE is in the better half of the industry, outperforming 67.75% of the companies in the same industry.
  • GWRE has a better Operating Margin (5.05%) than 68.48% of its industry peers.
  • The Gross Margin of GWRE (63.13%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of GWRE has grown nicely.
Industry RankSector 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%
GWRE Yearly Profit, Operating, Gross MarginsGWRE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. GWRE Health Analysis

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.
  • The number of shares outstanding for GWRE has been increased compared to 5 years ago.
  • The debt/assets ratio for GWRE is higher compared to a year ago.
GWRE Yearly Shares OutstandingGWRE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
GWRE Yearly Total Debt VS Total AssetsGWRE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • GWRE has an Altman-Z score of 8.14. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.14, GWRE belongs to the best of the industry, outperforming 88.04% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 2.50, GWRE is doing good in the industry, outperforming 64.49% of the companies in the same industry.
  • GWRE has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
  • GWRE has a worse Debt to Equity ratio (0.44) than 64.49% 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 RankSector Rank
Debt/Equity 0.44
Debt/FCF 2.5
Altman-Z 8.14
ROIC/WACC0.21
WACC11%
GWRE Yearly LT Debt VS Equity VS FCFGWRE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • GWRE has a Current Ratio of 3.48. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
  • GWRE has a better Current ratio (3.48) than 76.81% of its industry peers.
  • A Quick Ratio of 3.48 indicates that GWRE has no problem at all paying its short term obligations.
  • The Quick ratio of GWRE (3.48) is better than 77.17% of its industry peers.
Industry RankSector Rank
Current Ratio 3.48
Quick Ratio 3.48
GWRE Yearly Current Assets VS Current LiabilitesGWRE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. GWRE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 95.05% over the past year.
  • Measured over the past years, GWRE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.12% on average per year.
  • GWRE shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.64%.
  • 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)95.05%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%129.41%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%

3.2 Future

  • The Earnings Per Share is expected to grow by 21.41% on average over the next years. This is a very strong growth
  • GWRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.55% yearly.
EPS Next Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue Next Year19.37%
Revenue Next 2Y17.4%
Revenue Next 3Y16.48%
Revenue Next 5Y15.55%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1B 2B 3B
GWRE Yearly EPS VS EstimatesGWRE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 2 4 6 8 10

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Find the best growth stocksShow best growing peers

2

4. GWRE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 47.57, GWRE can be considered very expensive at the moment.
  • GWRE's Price/Earnings is on the same level as the industry average.
  • GWRE is valuated expensively when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 42.88, the valuation of GWRE can be described as expensive.
  • GWRE's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 24.57. GWRE is valued rather expensively when compared to this.
Industry RankSector Rank
PE 47.57
Fwd PE 42.88
GWRE Price Earnings VS Forward Price EarningsGWRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • GWRE's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as GWRE.
Industry RankSector Rank
P/FCF 53.09
EV/EBITDA 144.77
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 GWRE does not grow enough to justify the current Price/Earnings ratio.
  • A more expensive valuation may be justified as GWRE's earnings are expected to grow with 21.49% in the coming years.
PEG (NY)3.59
PEG (5Y)2.95
EPS Next 2Y21.67%
EPS Next 3Y21.49%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. GWRE Dividend Analysis

5.1 Amount

  • GWRE does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

GWRE Fundamentals: All Metrics, Ratios and Statistics

GUIDEWIRE SOFTWARE INC

NYSE:GWRE (3/6/2026, 8:23:39 PM)

After market: 169 +0.13 (+0.08%)

168.87

+8.03 (+4.99%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-05
Earnings (Next)N/A
Inst Owners100.44%
Inst Owner Change-37.69%
Ins Owners0.4%
Ins Owner Change-1.56%
Market Cap14.36B
Revenue(TTM)1.20B
Net Income(TTM)91.97M
Analysts81.82
Price Target258.71 (53.2%)
Short Float %4.7%
Short Ratio2.52
Dividend
Industry RankSector 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)-3.51%
PT rev (3m)-4.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 47.57
Fwd PE 42.88
P/S 11.29
P/FCF 53.09
P/OCF 48.54
P/B 9.36
P/tB 12.72
EV/EBITDA 144.77
EPS(TTM)3.55
EY2.1%
EPS(NY)3.94
Fwd EY2.33%
FCF(TTM)3.18
FCFY1.88%
OCF(TTM)3.48
OCFY2.06%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)3.59
PEG (5Y)2.95
Graham Number37.96
Profitability
Industry RankSector 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 RankSector 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 8.14
F-Score8
WACC11%
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)95.05%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%129.41%
EPS Next Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%
Revenue Next Year19.37%
Revenue Next 2Y17.4%
Revenue Next 3Y16.48%
Revenue Next 5Y15.55%
EBIT growth 1Y417.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year61.24%
EBIT Next 3Y39.8%
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.


Can you provide the valuation status for GUIDEWIRE SOFTWARE INC?

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.


What is the valuation of GUIDEWIRE SOFTWARE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for GUIDEWIRE SOFTWARE INC (GWRE) is 47.57 and the Price/Book (PB) ratio is 9.36.


Can you provide the financial health for GWRE stock?

The financial health rating of GUIDEWIRE SOFTWARE INC (GWRE) is 7 / 10.