GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
NYSE:GWRE • US40171V1008
147.72 USD
-1.29 (-0.87%)
Last: Mar 3, 2026, 11:13 AM
GWRE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. GWRE has an excellent financial health rating, but there are some minor concerns on its profitability. 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
- GWRE has a Return On Assets of 3.48%. This is in the better half of the industry: GWRE outperforms 67.75% of its industry peers.
- With a decent Return On Equity value of 6.00%, GWRE is doing good in the industry, outperforming 68.12% of the companies in the same industry.
- GWRE has a Return On Invested Capital of 2.26%. This is in the better half of the industry: GWRE outperforms 68.48% of its industry peers.
| 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 67.39% of its industry peers.
- Looking at the Operating Margin, with a value of 5.05%, GWRE is in the better half of the industry, outperforming 68.48% of the companies in the same industry.
- GWRE has a Gross Margin (63.13%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of GWRE has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GWRE is destroying value.
- GWRE has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for GWRE has been increased compared to 5 years ago.
- Compared to 1 year ago, GWRE has a worse debt to assets ratio.
2.2 Solvency
- GWRE has an Altman-Z score of 7.60. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of GWRE (7.60) is better than 86.59% 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.
- Looking at the Debt to FCF ratio, with a value of 2.50, GWRE is in the better half of the industry, outperforming 64.13% of the companies in the same industry.
- A Debt/Equity ratio of 0.44 indicates that GWRE is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.44, GWRE is not doing good in the industry: 64.49% of the companies in the same industry are doing better.
- 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 | 7.6 |
ROIC/WACC0.21
WACC10.72%
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 Current ratio of 3.48. This is in the better half of the industry: GWRE outperforms 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
- GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.28%, 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 22.80%.
- 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)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 very strong growth in Earnings Per Share. The EPS will grow by 21.41% on average per year.
- The Revenue is expected to grow by 15.55% on average over the next years. This is quite good.
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
- 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
- Based on the Price/Earnings ratio of 51.11, the valuation of GWRE can be described as expensive.
- 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 (27.13), we can say GWRE is valued expensively.
- With a Price/Forward Earnings ratio of 37.51, GWRE can be considered very expensive at the moment.
- GWRE's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 28.11. GWRE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.11 | ||
| Fwd PE | 37.51 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as GWRE.
- The rest of the industry has a similar Price/Free Cash Flow ratio as GWRE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.44 | ||
| EV/EBITDA | 133.41 |
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 21.49% in the coming years.
PEG (NY)3.86
PEG (5Y)3.17
EPS Next 2Y21.67%
EPS Next 3Y21.49%
5. Dividend
5.1 Amount
- GWRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:GWRE (3/3/2026, 11:13:09 AM)
147.72
-1.29 (-0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-05 2026-03-05/amc
Inst Owners100.44%
Inst Owner Change-37.69%
Ins Owners0.4%
Ins Owner Change-1.56%
Market Cap12.56B
Revenue(TTM)1.27B
Net Income(TTM)91.97M
Analysts81.82
Price Target258.71 (75.14%)
Short Float %4.7%
Short Ratio2.52
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)-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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.11 | ||
| Fwd PE | 37.51 | ||
| P/S | 9.87 | ||
| P/FCF | 46.44 | ||
| P/OCF | 42.46 | ||
| P/B | 8.19 | ||
| P/tB | 11.13 | ||
| EV/EBITDA | 133.41 |
EPS(TTM)2.89
EY1.96%
EPS(NY)3.94
Fwd EY2.67%
FCF(TTM)3.18
FCFY2.15%
OCF(TTM)3.48
OCFY2.36%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)3.86
PEG (5Y)3.17
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 | 7.6 |
F-Score8
WACC10.72%
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 Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue 1Y (TTM)22.8%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%26.53%
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 51.11 and the Price/Book (PB) ratio is 8.19.
Can you provide the financial health for GWRE stock?
The financial health rating of GUIDEWIRE SOFTWARE INC (GWRE) is 7 / 10.