GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis

NYSE:GWRE • US40171V1008

144.28 USD
+0.2 (+0.14%)
Last: Feb 27, 2026, 03:18 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, GWRE scores 5 out of 10 in our fundamental rating. GWRE was compared to 274 industry peers in the Software industry. GWRE has an excellent financial health rating, but there are some minor concerns on its profitability. GWRE is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

4

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.
  • 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

  • The Return On Assets of GWRE (3.48%) is better than 66.06% of its industry peers.
  • GWRE has a better Return On Equity (6.00%) than 67.15% of its industry peers.
  • GWRE has a better Return On Invested Capital (2.26%) than 66.79% of its industry peers.
Industry RankSector 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
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

  • Looking at the Profit Margin, with a value of 7.23%, GWRE is in the better half of the industry, outperforming 65.69% of the companies in the same industry.
  • With a decent Operating Margin value of 5.05%, GWRE is doing good in the industry, outperforming 66.79% of the companies in the same industry.
  • GWRE has a Gross Margin (63.13%) which is in line with its industry peers.
  • GWRE's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • GWRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • GWRE has more shares outstanding than it did 1 year ago.
  • GWRE has more shares outstanding than it did 5 years ago.
  • 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 7.37. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
  • GWRE has a Altman-Z score of 7.37. This is amongst the best in the industry. GWRE outperforms 85.40% of its industry peers.
  • GWRE has a debt to FCF ratio of 2.50. This is a good value and a sign of high solvency as GWRE would need 2.50 years to pay back of all of its debts.
  • The Debt to FCF ratio of GWRE (2.50) is better than 64.60% of its industry peers.
  • A Debt/Equity ratio of 0.44 indicates that GWRE is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.44, GWRE is doing worse than 64.60% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0.44
Debt/FCF 2.5
Altman-Z 7.37
ROIC/WACC0.21
WACC10.82%
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 3.48. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
  • GWRE's Current ratio of 3.48 is fine compared to the rest of the industry. GWRE outperforms 78.83% of its industry peers.
  • GWRE has a Quick Ratio of 3.48. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Quick ratio value of 3.48, GWRE is doing good in the industry, outperforming 79.20% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.48
Quick Ratio 3.48
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. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 63.28% over the past year.
  • 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%.
  • The Revenue has been growing by 10.13% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 21.41% on average over the next years. This is a very strong growth
  • 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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 49.92, the valuation of GWRE can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of GWRE is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of GWRE to the average of the S&P500 Index (27.11), we can say GWRE is valued expensively.
  • A Price/Forward Earnings ratio of 36.64 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 28.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 49.92
Fwd PE 36.64
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

  • GWRE's Enterprise Value to EBITDA is on the same level as the industry average.
  • GWRE's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 45.36
EV/EBITDA 128.68
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)3.77
PEG (5Y)3.1
EPS Next 2Y21.67%
EPS Next 3Y21.49%

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

0

5. Dividend

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

GUIDEWIRE SOFTWARE INC

NYSE:GWRE (2/27/2026, 3:18:00 PM)

144.28

+0.2 (+0.14%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03
Earnings (Next)03-05
Inst Owners100.44%
Inst Owner Change-37.09%
Ins Owners0.4%
Ins Owner Change-1.58%
Market Cap12.27B
Revenue(TTM)1.27B
Net Income(TTM)91.97M
Analysts81.82
Price Target261.85 (81.49%)
Short Float %3.17%
Short Ratio1.78
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)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)-2.34%
PT rev (3m)-3.64%
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)1.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 49.92
Fwd PE 36.64
P/S 9.64
P/FCF 45.36
P/OCF 41.47
P/B 8
P/tB 10.87
EV/EBITDA 128.68
EPS(TTM)2.89
EY2%
EPS(NY)3.94
Fwd EY2.73%
FCF(TTM)3.18
FCFY2.2%
OCF(TTM)3.48
OCFY2.41%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)3.77
PEG (5Y)3.1
Graham Number34.25
Profitability
Industry RankSector 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 RankSector 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 7.37
F-Score8
WACC10.82%
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 3Y39.84%
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 49.92 and the Price/Book (PB) ratio is 8.


Can you provide the financial health for GWRE stock?

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