GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
USA - NYSE:GWRE - US40171V1008 - Common Stock
222.51 USD
+4.25 (+1.95%)
222.51 USD
0 (0%)
GWRE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. GWRE has an excellent financial health rating, but there are some minor concerns on its profitability. GWRE shows excellent growth, but is valued quite expensive already.
1. Profitability
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.
GWRE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.57%, GWRE is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
GWRE has a Return On Equity of 4.79%. This is in the better half of the industry: GWRE outperforms 68.33% of its industry peers.
GWRE has a better Return On Invested Capital (1.49%) than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 4.79% | ||
| ROIC | 1.49% |
ROA(3y)-1.07%
ROA(5y)-2.81%
ROE(3y)-1.66%
ROE(5y)-4.34%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GWRE has a better Profit Margin (5.81%) than 66.90% of its industry peers.
Looking at the Operating Margin, with a value of 3.42%, GWRE is in the better half of the industry, outperforming 65.84% of the companies in the same industry.
GWRE has a Gross Margin of 62.54%. This is comparable to the rest of the industry: GWRE outperforms 40.93% of its industry peers.
In the last couple of years the Gross Margin of GWRE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.42% | ||
| PM (TTM) | 5.81% | ||
| GM | 62.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.45%
GM growth 5Y2.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GWRE is destroying value.
The number of shares outstanding for GWRE has been increased compared to 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.
2.2 Solvency
An Altman-Z score of 9.56 indicates that GWRE is not in any danger for bankruptcy at the moment.
GWRE has a Altman-Z score of 9.56. This is amongst the best in the industry. GWRE outperforms 87.19% of its industry peers.
The Debt to FCF ratio of GWRE is 2.41, which is a good value as it means it would take GWRE, 2.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.41, GWRE is in the better half of the industry, outperforming 66.19% of the companies in the same industry.
GWRE has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
GWRE has a Debt to Equity ratio of 0.46. This is in the lower half of the industry: GWRE underperforms 62.63% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 9.56 |
ROIC/WACC0.14
WACC10.87%
2.3 Liquidity
A Current Ratio of 2.77 indicates that GWRE has no problem at all paying its short term obligations.
The Current ratio of GWRE (2.77) is better than 75.80% of its industry peers.
GWRE has a Quick Ratio of 2.77. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
GWRE has a Quick ratio of 2.77. This is in the better half of the industry: GWRE outperforms 76.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.51%, which is quite impressive.
GWRE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.12% yearly.
Looking at the last year, GWRE shows a very strong growth in Revenue. The Revenue has grown by 22.64%.
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)98.51%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%35.48%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%22.32%
3.2 Future
The Earnings Per Share is expected to grow by 19.37% on average over the next years. This is quite good.
GWRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.46% yearly.
EPS Next Y14.19%
EPS Next 2Y22.87%
EPS Next 3Y22.64%
EPS Next 5Y19.37%
Revenue Next Year17.88%
Revenue Next 2Y16.48%
Revenue Next 3Y16.32%
Revenue Next 5Y14.46%
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
With a Price/Earnings ratio of 83.65, GWRE can be considered very expensive at the moment.
GWRE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.89. GWRE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 73.25 indicates a quite expensive valuation of GWRE.
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 34.59, GWRE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.65 | ||
| Fwd PE | 73.25 |
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 | 67.08 | ||
| EV/EBITDA | 275.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GWRE's earnings are expected to grow with 22.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.89
PEG (5Y)5.19
EPS Next 2Y22.87%
EPS Next 3Y22.64%
5. Dividend
5.1 Amount
GWRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
222.51
+4.25 (+1.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.7%
Inst Owner Change-0.71%
Ins Owners0.4%
Ins Owner Change-1.91%
Market Cap18.81B
Revenue(TTM)1.20B
Net Income(TTM)69.80M
Analysts80
Price Target271.76 (22.13%)
Short Float %1.72%
Short Ratio2
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)2
Avg EPS beat(2)58.16%
Min EPS beat(2)29.72%
Max EPS beat(2)86.6%
EPS beat(4)3
Avg EPS beat(4)38.41%
Min EPS beat(4)-3.3%
Max EPS beat(4)86.6%
EPS beat(8)7
Avg EPS beat(8)56.62%
EPS beat(12)10
Avg EPS beat(12)-4.25%
EPS beat(16)14
Avg EPS beat(16)20.42%
Revenue beat(2)2
Avg Revenue beat(2)2.32%
Min Revenue beat(2)1.18%
Max Revenue beat(2)3.47%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)3.47%
Revenue beat(8)6
Avg Revenue beat(8)0.98%
Revenue beat(12)8
Avg Revenue beat(12)0.51%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)0%
PT rev (3m)6.92%
EPS NQ rev (1m)1.8%
EPS NQ rev (3m)18.72%
EPS NY rev (1m)1.18%
EPS NY rev (3m)6.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.65 | ||
| Fwd PE | 73.25 | ||
| P/S | 15.64 | ||
| P/FCF | 67.08 | ||
| P/OCF | 62.52 | ||
| P/B | 12.91 | ||
| P/tB | 17.89 | ||
| EV/EBITDA | 275.85 |
EPS(TTM)2.66
EY1.2%
EPS(NY)3.04
Fwd EY1.37%
FCF(TTM)3.32
FCFY1.49%
OCF(TTM)3.56
OCFY1.6%
SpS14.23
BVpS17.24
TBVpS12.44
PEG (NY)5.89
PEG (5Y)5.19
Graham Number32.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 4.79% | ||
| ROCE | 1.89% | ||
| ROIC | 1.49% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 5.23% | ||
| OM | 3.42% | ||
| PM (TTM) | 5.81% | ||
| GM | 62.54% | ||
| FCFM | 23.32% |
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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 10.41 | ||
| Cap/Depr | 86.1% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 3.48 | ||
| Cash Conversion | 464.12% | ||
| Profit Quality | 401.71% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 9.56 |
F-Score7
WACC10.87%
ROIC/WACC0.14
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)98.51%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%35.48%
EPS Next Y14.19%
EPS Next 2Y22.87%
EPS Next 3Y22.64%
EPS Next 5Y19.37%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%22.32%
Revenue Next Year17.88%
Revenue Next 2Y16.48%
Revenue Next 3Y16.32%
Revenue Next 5Y14.46%
EBIT growth 1Y183.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.97%
EBIT Next 3Y38.75%
EBIT Next 5Y21.54%
FCF growth 1Y58.23%
FCF growth 3YN/A
FCF growth 5Y26.26%
OCF growth 1Y53.7%
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.
What is the valuation status for GWRE stock?
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.
How financially healthy is GUIDEWIRE SOFTWARE INC?
The financial health rating of GUIDEWIRE SOFTWARE INC (GWRE) is 7 / 10.
What is the expected EPS growth for GUIDEWIRE SOFTWARE INC (GWRE) stock?
The Earnings per Share (EPS) of GUIDEWIRE SOFTWARE INC (GWRE) is expected to grow by 14.19% in the next year.