GUIDEWIRE SOFTWARE INC (GWRE) Fundamental Analysis & Valuation

NYSE:GWRE • US40171V1008

Current stock price

146.33 USD
-5.01 (-3.31%)
Last:

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

  • GWRE had positive earnings in the past year.
  • GWRE had a positive operating cash flow in the past year.
  • 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

  • GWRE has a better Return On Assets (7.03%) than 79.86% of its industry peers.
  • GWRE has a better Return On Equity (12.54%) than 78.06% of its industry peers.
  • GWRE has a Return On Invested Capital of 3.22%. This is in the better half of the industry: GWRE outperforms 70.14% of its industry peers.
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 80.58% of its industry peers.
  • GWRE's Operating Margin of 6.78% is fine compared to the rest of the industry. GWRE outperforms 70.86% of its industry peers.
  • GWRE has a Gross Margin of 63.76%. This is comparable to the rest of the industry: GWRE outperforms 42.09% of its industry peers.
  • In the last couple of years the Gross Margin of GWRE has grown nicely.
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

  • 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.
  • Compared to 5 years ago, GWRE has more shares outstanding
  • 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 7.20. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of GWRE (7.20) is better than 84.89% of its industry peers.
  • GWRE has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as GWRE would need 2.30 years to pay back of all of its debts.
  • GWRE has a better Debt to FCF ratio (2.30) than 65.83% of its industry peers.
  • A Debt/Equity ratio of 0.45 indicates that GWRE is not too dependend on debt financing.
  • The Debt to Equity ratio of GWRE (0.45) is worse than 64.03% of its industry peers.
  • 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 7.2
ROIC/WACC0.3
WACC10.78%
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 2.93. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
  • GWRE has a Current ratio of 2.93. This is in the better half of the industry: GWRE outperforms 73.74% of its industry peers.
  • A Quick Ratio of 2.93 indicates that GWRE has no problem at all paying its short term obligations.
  • With a decent Quick ratio value of 2.93, GWRE is doing good in the industry, outperforming 73.74% 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.
  • 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 23.72%.
  • 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)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 21.41% 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 15.55% on average per year.
EPS Next Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue Next Year21.61%
Revenue Next 2Y18.66%
Revenue Next 3Y17.43%
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.
  • 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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2

4. GWRE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 41.22, 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 25.23, which is the current average of the S&P500 Index.
  • GWRE is valuated quite expensively with a Price/Forward Earnings ratio of 37.16.
  • The rest of the industry has a similar Price/Forward Earnings ratio as GWRE.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.51, GWRE is valued quite expensively.
Industry RankSector Rank
PE 41.22
Fwd PE 37.16
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as GWRE.
  • 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 RankSector Rank
P/FCF 42.16
EV/EBITDA 103.44
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)3.12
PEG (5Y)2.56
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

  • 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 (3/27/2026, 12:35:00 PM)

146.33

-5.01 (-3.31%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-05
Earnings (Next)06-01
Inst Owners99.83%
Inst Owner Change-37.7%
Ins Owners0.39%
Ins Owner Change-10.2%
Market Cap12.39B
Revenue(TTM)1.34B
Net Income(TTM)189.36M
Analysts81.82
Price Target258.71 (76.8%)
Short Float %4.39%
Short Ratio2.06
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)-1.2%
PT rev (3m)-4.14%
EPS NQ rev (1m)17.05%
EPS NQ rev (3m)16.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)4.47%
Revenue NQ rev (3m)4.42%
Revenue NY rev (1m)1.87%
Revenue NY rev (3m)3.16%
Valuation
Industry RankSector Rank
PE 41.22
Fwd PE 37.16
P/S 9.23
P/FCF 42.16
P/OCF 38.49
P/B 8.2
P/tB 11.59
EV/EBITDA 103.44
EPS(TTM)3.55
EY2.43%
EPS(NY)3.94
Fwd EY2.69%
FCF(TTM)3.47
FCFY2.37%
OCF(TTM)3.8
OCFY2.6%
SpS15.85
BVpS17.84
TBVpS12.62
PEG (NY)3.12
PEG (5Y)2.56
Graham Number37.75
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 7.2
F-Score9
WACC10.78%
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 Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%
Revenue Next Year21.61%
Revenue Next 2Y18.66%
Revenue Next 3Y17.43%
Revenue Next 5Y15.55%
EBIT growth 1Y14551.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year61.24%
EBIT Next 3Y39.8%
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.


What is the profitability of GWRE stock?

GUIDEWIRE SOFTWARE INC (GWRE) has a profitability rating of 5 / 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 41.22 and the Price/Book (PB) ratio is 8.2.


Can you provide the financial health for GWRE stock?

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