GUIDEWIRE SOFTWARE INC (GWRE) Fundamental Analysis & Valuation

NYSE:GWRE • US40171V1008

Current stock price

136.62 USD
-2.94 (-2.11%)
At close:
136.62 USD
0 (0%)
After Hours:

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

5

1. GWRE Profitability Analysis

1.1 Basic Checks

  • In the past year GWRE was profitable.
  • In the past year GWRE had a positive cash flow from operations.
  • GWRE had negative earnings in 4 of the past 5 years.
  • Of the past 5 years GWRE 4 years had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 7.03%, GWRE is in the better half of the industry, outperforming 77.94% of the companies in the same industry.
  • The Return On Equity of GWRE (12.54%) is better than 76.84% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.22%, GWRE is in the better half of the industry, outperforming 69.12% of the companies in the same industry.
Industry RankSector Rank
ROA 7.03%
ROE 12.54%
ROIC 3.22%
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

  • GWRE has a Profit Margin of 14.11%. This is amongst the best in the industry. GWRE outperforms 80.15% of its industry peers.
  • GWRE has a Operating Margin of 6.78%. This is in the better half of the industry: GWRE outperforms 69.85% of its industry peers.
  • The Gross Margin of GWRE (63.76%) is comparable to the rest of the industry.
  • GWRE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.78%
PM (TTM) 14.11%
GM 63.76%
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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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.
  • Compared to 1 year ago, GWRE has more shares outstanding
  • GWRE has more shares outstanding than it did 5 years ago.
  • GWRE has a worse debt/assets ratio than last year.
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

  • An Altman-Z score of 6.56 indicates that GWRE is not in any danger for bankruptcy at the moment.
  • GWRE's Altman-Z score of 6.56 is amongst the best of the industry. GWRE outperforms 81.99% of its industry peers.
  • The Debt to FCF ratio of GWRE is 2.30, which is a good value as it means it would take GWRE, 2.30 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of GWRE (2.30) is better than 64.71% of its industry peers.
  • GWRE has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.45, GWRE is not doing good in the industry: 65.07% of the companies in the same industry are doing better.
  • Although GWRE's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.3
Altman-Z 6.56
ROIC/WACC0.3
WACC10.66%
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

  • A Current Ratio of 2.93 indicates that GWRE has no problem at all paying its short term obligations.
  • The Current ratio of GWRE (2.93) is better than 72.43% of its industry peers.
  • GWRE has a Quick Ratio of 2.93. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Quick ratio value of 2.93, GWRE is doing good in the industry, outperforming 72.43% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.93
Quick Ratio 2.93
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

  • GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 95.05%, 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 23.72%.
  • 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)95.05%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%129.41%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%

3.2 Future

  • The Earnings Per Share is expected to grow by 24.08% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, GWRE will show a quite strong growth in Revenue. The Revenue will grow by 16.51% on average per year.
EPS Next Y34.7%
EPS Next 2Y27.43%
EPS Next 3Y26.95%
EPS Next 5Y24.08%
Revenue Next Year22.1%
Revenue Next 2Y18.87%
Revenue Next 3Y17.53%
Revenue Next 5Y16.51%

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.
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 5 10

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2

4. GWRE Valuation Analysis

4.1 Price/Earnings Ratio

  • GWRE is valuated quite expensively with a Price/Earnings ratio of 38.48.
  • GWRE's Price/Earnings ratio is in line with the industry average.
  • GWRE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.15.
  • A Price/Forward Earnings ratio of 31.63 indicates a quite expensive valuation of GWRE.
  • GWRE's Price/Forward Earnings is on the same level as the industry average.
  • GWRE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 38.48
Fwd PE 31.63
GWRE Price Earnings VS Forward Price EarningsGWRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 39.37
EV/EBITDA 92.75
GWRE Per share dataGWRE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as GWRE's earnings are expected to grow with 26.95% in the coming years.
PEG (NY)1.11
PEG (5Y)2.39
EPS Next 2Y27.43%
EPS Next 3Y26.95%

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

0

5. GWRE Dividend Analysis

5.1 Amount

  • No dividends for GWRE!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

GWRE Fundamentals: All Metrics, Ratios and Statistics

GUIDEWIRE SOFTWARE INC

NYSE:GWRE (4/27/2026, 8:04:00 PM)

After market: 136.62 0 (0%)

136.62

-2.94 (-2.11%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-05
Earnings (Next)06-01
Inst Owners100.33%
Inst Owner Change0.4%
Ins Owners0.36%
Ins Owner Change-10.05%
Market Cap11.57B
Revenue(TTM)1.34B
Net Income(TTM)189.36M
Analysts81.82
Price Target233.93 (71.23%)
Short Float %5.02%
Short Ratio2.39
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)27%
Min EPS beat(2)5.59%
Max EPS beat(2)48.4%
EPS beat(4)4
Avg EPS beat(4)42.58%
Min EPS beat(4)5.59%
Max EPS beat(4)86.6%
EPS beat(8)7
Avg EPS beat(8)38.94%
EPS beat(12)11
Avg EPS beat(12)53.37%
EPS beat(16)14
Avg EPS beat(16)19.65%
Revenue beat(2)2
Avg Revenue beat(2)3.01%
Min Revenue beat(2)3%
Max Revenue beat(2)3.02%
Revenue beat(4)4
Avg Revenue beat(4)2.66%
Min Revenue beat(4)1.18%
Max Revenue beat(4)3.47%
Revenue beat(8)7
Avg Revenue beat(8)1.83%
Revenue beat(12)9
Avg Revenue beat(12)0.84%
Revenue beat(16)12
Avg Revenue beat(16)1.23%
PT rev (1m)-9.58%
PT rev (3m)-12.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.93%
EPS NY rev (1m)18.96%
EPS NY rev (3m)18.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.76%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)2.29%
Valuation
Industry RankSector Rank
PE 38.48
Fwd PE 31.63
P/S 8.62
P/FCF 39.37
P/OCF 35.94
P/B 7.66
P/tB 10.82
EV/EBITDA 92.75
EPS(TTM)3.55
EY2.6%
EPS(NY)4.32
Fwd EY3.16%
FCF(TTM)3.47
FCFY2.54%
OCF(TTM)3.8
OCFY2.78%
SpS15.85
BVpS17.84
TBVpS12.62
PEG (NY)1.11
PEG (5Y)2.39
Graham Number37.7523 (-72.37%)
Profitability
Industry RankSector Rank
ROA 7.03%
ROE 12.54%
ROCE 4.07%
ROIC 3.22%
ROICexc 5.47%
ROICexgc 8.25%
OM 6.78%
PM (TTM) 14.11%
GM 63.76%
FCFM 21.9%
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-Score9
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.3
Debt/EBITDA 5.8
Cap/Depr 109.51%
Cap/Sales 2.09%
Interest Coverage 6.8
Cash Conversion 276.08%
Profit Quality 155.16%
Current Ratio 2.93
Quick Ratio 2.93
Altman-Z 6.56
F-Score9
WACC10.66%
ROIC/WACC0.3
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 Y34.7%
EPS Next 2Y27.43%
EPS Next 3Y26.95%
EPS Next 5Y24.08%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%
Revenue Next Year22.1%
Revenue Next 2Y18.87%
Revenue Next 3Y17.53%
Revenue Next 5Y16.51%
EBIT growth 1Y14551.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year66.92%
EBIT Next 3Y42.12%
EBIT Next 5Y21.54%
FCF growth 1Y187.04%
FCF growth 3YN/A
FCF growth 5Y26.26%
OCF growth 1Y164.28%
OCF growth 3YN/A
OCF growth 5Y21.62%

GUIDEWIRE SOFTWARE INC / GWRE Fundamental Analysis 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.


How profitable is GUIDEWIRE SOFTWARE INC (GWRE) stock?

GUIDEWIRE SOFTWARE INC (GWRE) has a profitability rating of 5 / 10.


How financially healthy is GUIDEWIRE SOFTWARE INC?

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


What is the earnings growth outlook for GUIDEWIRE SOFTWARE INC?

The Earnings per Share (EPS) of GUIDEWIRE SOFTWARE INC (GWRE) is expected to grow by 34.7% in the next year.