GUIDEWIRE SOFTWARE INC (GWRE)
US40171V1008 - Common Stock
Taking everything into account, GWRE scores 4 out of 10 in our fundamental rating. GWRE was compared to 279 industry peers in the Software industry. GWRE has a great financial health rating, but its profitability evaluates not so good. 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.
GWRE had negative earnings in each of the past 5 years.
GWRE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of -0.27%, GWRE is doing good in the industry, outperforming 62.37% of the companies in the same industry.
GWRE has a better Return On Equity (-0.45%) than 64.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.45% | ||
| ROIC | N/A |
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
With a Gross Margin value of 59.83%, GWRE is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
GWRE's Gross Margin has improved in the last couple of years.
GWRE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 59.83% |
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
GWRE does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for GWRE has been increased compared to 1 year ago.
Compared to 5 years ago, GWRE has more shares outstanding
The debt/assets ratio for GWRE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.41 indicates that GWRE is not in any danger for bankruptcy at the moment.
GWRE's Altman-Z score of 11.41 is amongst the best of the industry. GWRE outperforms 83.87% of its industry peers.
GWRE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 11.41 |
ROIC/WACCN/A
WACC11.74%
2.3 Liquidity
A Current Ratio of 1.55 indicates that GWRE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.55, GWRE is in line with its industry, outperforming 45.88% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that GWRE should not have too much problems paying its short term obligations.
GWRE has a Quick ratio (1.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 306.06%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.43% on average over the past years.
GWRE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.29%.
Measured over the past years, GWRE shows a small growth in Revenue. The Revenue has been growing by 6.39% on average per year.
EPS 1Y (TTM)306.06%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%-16.22%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%7.99%
3.2 Future
GWRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.83% yearly.
The Revenue is expected to grow by 12.87% on average over the next years. This is quite good.
EPS Next Y47.52%
EPS Next 2Y37.46%
EPS Next 3Y36.46%
EPS Next 5Y31.83%
Revenue Next Year17.2%
Revenue Next 2Y15.9%
Revenue Next 3Y16.6%
Revenue Next 5Y12.87%
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
The Price/Earnings ratio is 147.19, which means the current valuation is very expensive for GWRE.
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 28.65, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 99.77, GWRE can be considered very expensive at the moment.
GWRE's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.56. GWRE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 147.19 | ||
| Fwd PE | 99.77 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as GWRE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.95 | ||
| EV/EBITDA | N/A |
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 36.46% in the coming years.
PEG (NY)3.1
PEG (5Y)N/A
EPS Next 2Y37.46%
EPS Next 3Y36.46%
5. Dividend
5.1 Amount
No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GUIDEWIRE SOFTWARE INC
NYSE:GWRE (11/20/2024, 8:04:00 PM)
Premarket: 196.45 -0.78 (-0.4%)197.23
+0.86 (+0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 147.19 | ||
| Fwd PE | 99.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -0.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 59.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)306.06%
EPS 3Y39.84%
EPS 5Y
EPS Q2Q%
EPS Next Y47.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.29%
Revenue growth 3Y9.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 3Y
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