GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
USA - NYSE:GWRE - US40171V1008 - Common Stock
246.64 USD
-0.3 (-0.12%)
246.64 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GWRE. GWRE was compared to 280 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
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.
1.2 Ratios
The Return On Assets of GWRE (2.57%) is better than 67.14% of its industry peers.
Looking at the Return On Equity, with a value of 4.79%, GWRE is in the better half of the industry, outperforming 68.21% of the companies in the same industry.
GWRE has a Return On Invested Capital of 1.49%. This is in the better half of the industry: GWRE outperforms 65.36% 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 68.21% of its industry peers.
With a decent Operating Margin value of 3.42%, GWRE is doing good in the industry, outperforming 67.14% of the companies in the same industry.
GWRE has a Gross Margin (62.54%) which is in line with its industry peers.
GWRE's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, GWRE has more shares outstanding
The number of shares outstanding for GWRE has been increased compared to 5 years ago.
The debt/assets ratio for GWRE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.49 indicates that GWRE is not in any danger for bankruptcy at the moment.
GWRE has a Altman-Z score of 10.49. This is amongst the best in the industry. GWRE outperforms 86.07% 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.
GWRE has a better Debt to FCF ratio (2.41) than 65.71% of its industry peers.
GWRE has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GWRE (0.46) is worse than 64.29% 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 | 10.49 |
ROIC/WACC0.14
WACC10.99%
2.3 Liquidity
GWRE has a Current Ratio of 2.77. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GWRE (2.77) is better than 76.43% 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.
Looking at the Quick ratio, with a value of 2.77, GWRE is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
| 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.
GWRE shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.64%.
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)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 21.23% on average over the next years. This is a very strong growth
GWRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.09% yearly.
EPS Next Y7.6%
EPS Next 2Y18.83%
EPS Next 3Y20.39%
EPS Next 5Y21.24%
Revenue Next Year17.63%
Revenue Next 2Y16.23%
Revenue Next 3Y15.78%
Revenue Next 5Y14.09%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 92.72, which means the current valuation is very expensive for GWRE.
GWRE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, GWRE is valued quite expensively.
With a Price/Forward Earnings ratio of 86.17, GWRE can be considered very expensive at the moment.
GWRE's Price/Forward Earnings is on the same level as the industry average.
GWRE is valuated expensively when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.72 | ||
| Fwd PE | 86.17 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.06 | ||
| EV/EBITDA | 306.06 |
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 20.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)12.2
PEG (5Y)5.75
EPS Next 2Y18.83%
EPS Next 3Y20.39%
5. Dividend
5.1 Amount
GWRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
246.64
-0.3 (-0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.46%
Inst Owner Change-22.17%
Ins Owners0.29%
Ins Owner Change-5.25%
Market Cap20.77B
Analysts80
Price Target271.76 (10.18%)
Short Float %2.32%
Short Ratio2.76
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)6.92%
PT rev (3m)24.9%
EPS NQ rev (1m)15.37%
EPS NQ rev (3m)12.7%
EPS NY rev (1m)0.36%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)5.05%
Revenue NQ rev (3m)4.94%
Revenue NY rev (1m)2.75%
Revenue NY rev (3m)4.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.72 | ||
| Fwd PE | 86.17 | ||
| P/S | 17.27 | ||
| P/FCF | 74.06 | ||
| P/OCF | 69.02 | ||
| P/B | 14.25 | ||
| P/tB | 19.76 | ||
| EV/EBITDA | 306.06 |
EPS(TTM)2.66
EY1.08%
EPS(NY)2.86
Fwd EY1.16%
FCF(TTM)3.33
FCFY1.35%
OCF(TTM)3.57
OCFY1.45%
SpS14.28
BVpS17.31
TBVpS12.48
PEG (NY)12.2
PEG (5Y)5.75
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
ROICexcg growth 3YN/A
ROICexcg 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 | 250 | ||
| Cash Conversion | 464.12% | ||
| Profit Quality | 401.71% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 10.49 |
F-Score7
WACC10.99%
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 Y7.6%
EPS Next 2Y18.83%
EPS Next 3Y20.39%
EPS Next 5Y21.24%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%22.32%
Revenue Next Year17.63%
Revenue Next 2Y16.23%
Revenue Next 3Y15.78%
Revenue Next 5Y14.09%
EBIT growth 1Y183.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year47.75%
EBIT Next 3Y12%
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%