GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
NYSE:GWRE - New York Stock Exchange, Inc. - US40171V1008 - Common Stock - Currency: USD
Taking everything into account, GWRE scores 4 out of 10 in our fundamental rating. GWRE was compared to 281 industry peers in the Software industry. Both the profitability and the financial health of GWRE get a neutral evaluation. Nothing too spectacular is happening here. GWRE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GWRE was profitable.
In the past year GWRE had a positive cash flow from operations.
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.
1.2 Ratios
GWRE has a Return On Assets of -0.66%. This is in the better half of the industry: GWRE outperforms 60.14% of its industry peers.
The Return On Equity of GWRE (-1.33%) is better than 61.21% of its industry peers.
With a decent Return On Invested Capital value of 0.02%, GWRE is doing good in the industry, outperforming 62.99% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
GWRE's Operating Margin of 0.06% is fine compared to the rest of the industry. GWRE outperforms 62.99% of its industry peers.
GWRE has a Gross Margin (61.43%) which is in line with its industry peers.
GWRE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GWRE is destroying value.
Compared to 1 year ago, GWRE has more shares outstanding
GWRE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GWRE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.32 indicates that GWRE is not in any danger for bankruptcy at the moment.
GWRE has a Altman-Z score of 7.32. This is in the better half of the industry: GWRE outperforms 77.58% of its industry peers.
GWRE has a debt to FCF ratio of 4.16. This is a neutral value as GWRE would need 4.16 years to pay back of all of its debts.
The Debt to FCF ratio of GWRE (4.16) is comparable to the rest of the 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: 66.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 7.32 |
ROIC/WACC0
WACC12.63%
2.3 Liquidity
A Current Ratio of 2.65 indicates that GWRE has no problem at all paying its short term obligations.
GWRE's Current ratio of 2.65 is fine compared to the rest of the industry. GWRE outperforms 72.95% of its industry peers.
A Quick Ratio of 2.65 indicates that GWRE has no problem at all paying its short term obligations.
The Quick ratio of GWRE (2.65) is better than 73.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.50%, which is quite impressive.
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.
The Revenue has been growing slightly by 6.39% on average over the past years.
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 34.44% on average per year.
GWRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.76% yearly.
EPS Next Y54.9%
EPS Next 2Y40.13%
EPS Next 3Y37.04%
EPS Next 5Y34.44%
Revenue Next Year19.42%
Revenue Next 2Y16.9%
Revenue Next 3Y16.72%
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
Based on the Price/Earnings ratio of 95.19, the valuation of GWRE can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as GWRE.
The average S&P500 Price/Earnings ratio is at 29.35. GWRE is valued rather expensively when compared to this.
GWRE is valuated quite expensively with a Price/Forward Earnings ratio of 65.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWRE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, GWRE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.19 | ||
| Fwd PE | 65.84 |
4.2 Price Multiples
GWRE's Enterprise Value to EBITDA ratio is in line with the industry average.
GWRE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.58 | ||
| EV/EBITDA | 580.44 |
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 37.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)N/A
EPS Next 2Y40.13%
EPS Next 3Y37.04%
5. Dividend
5.1 Amount
No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
173.24
-13.74 (-7.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.74%
Inst Owner Change0.83%
Ins Owners0.41%
Ins Owner Change2.62%
Market Cap14.47B
Analysts80.95
Price Target222.61 (28.5%)
Short Float %4.46%
Short Ratio2.94
Dividend
| Industry Rank | Sector 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)1.07%
PT rev (3m)8.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.73%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)4.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.19 | ||
| Fwd PE | 65.84 | ||
| P/S | 13.34 | ||
| P/FCF | 70.58 | ||
| P/OCF | 65.1 | ||
| P/B | 11.4 | ||
| P/tB | 16.25 | ||
| EV/EBITDA | 580.44 |
EPS(TTM)1.82
EY1.05%
EPS(NY)2.63
Fwd EY1.52%
FCF(TTM)2.45
FCFY1.42%
OCF(TTM)2.66
OCFY1.54%
SpS12.99
BVpS15.19
TBVpS10.66
PEG (NY)1.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.16 | ||
| Debt/EBITDA | 28.55 | ||
| Cap/Depr | 75.25% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 943.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.65 | ||
| Altman-Z | 7.32 |
F-Score4
WACC12.63%
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 Y54.9%
EPS Next 2Y40.13%
EPS Next 3Y37.04%
EPS Next 5Y34.44%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%20.17%
Revenue Next Year19.42%
Revenue Next 2Y16.9%
Revenue Next 3Y16.72%
Revenue Next 5Y15.76%
EBIT growth 1Y100.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year95.21%
EBIT Next 3Y51.38%
EBIT Next 5Y42.49%
FCF growth 1Y767.75%
FCF growth 3Y28.92%
FCF growth 5Y21.4%
OCF growth 1Y1687.61%
OCF growth 3Y20.6%
OCF growth 5Y11.01%