GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:GWRE • US40171V1008

128.19 USD
+2.2 (+1.75%)
At close: Feb 6, 2026
128.19 USD
0 (0%)
After Hours: 2/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to GWRE. GWRE was compared to 278 industry peers in the Software industry. While GWRE has a great health rating, its profitability is only average at the moment. 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

  • In the past year GWRE was profitable.
  • In the past year GWRE had a positive cash flow from operations.
  • In the past 5 years GWRE reported 4 times negative net income.
  • 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

  • With a decent Return On Assets value of 3.48%, GWRE is doing good in the industry, outperforming 67.27% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 6.00%, GWRE is in the better half of the industry, outperforming 69.42% of the companies in the same industry.
  • The Return On Invested Capital of GWRE (2.26%) is better than 66.91% 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

  • GWRE's Profit Margin of 7.23% is fine compared to the rest of the industry. GWRE outperforms 66.91% of its industry peers.
  • GWRE's Operating Margin of 5.05% is fine compared to the rest of the industry. GWRE outperforms 67.99% of its industry peers.
  • Looking at the Gross Margin, with a value of 63.13%, GWRE is in line with its industry, outperforming 40.65% of the companies in the same industry.
  • 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.
  • 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 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 6.54. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
  • GWRE has a better Altman-Z score (6.54) than 84.53% 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.
  • GWRE has a better Debt to FCF ratio (2.50) than 65.47% of its industry peers.
  • A Debt/Equity ratio of 0.44 indicates that GWRE is not too dependend on debt financing.
  • GWRE has a Debt to Equity ratio of 0.44. This is in the lower half of the industry: GWRE underperforms 64.03% 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 RankSector Rank
Debt/Equity 0.44
Debt/FCF 2.5
Altman-Z 6.54
ROIC/WACC0.21
WACC10.83%
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.
  • With a decent Current ratio value of 3.48, GWRE is doing good in the industry, outperforming 77.70% of the companies in the same industry.
  • 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.
  • Looking at the Quick ratio, with a value of 3.48, GWRE is in the better half of the industry, outperforming 77.70% 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

  • GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.28%, which is quite impressive.
  • The Earnings Per Share has been growing by 16.12% on average over the past years. This is quite good.
  • Looking at the last year, GWRE shows a very strong growth in Revenue. The Revenue has grown by 22.80%.
  • 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)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
  • GWRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.55% yearly.
EPS Next Y13.23%
EPS Next 2Y21.69%
EPS Next 3Y21.51%
EPS Next 5Y21.41%
Revenue Next Year19.37%
Revenue Next 2Y17.44%
Revenue Next 3Y16.5%
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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 44.36 indicates a quite expensive valuation of GWRE.
  • The rest of the industry has a similar Price/Earnings ratio as GWRE.
  • When comparing the Price/Earnings ratio of GWRE to the average of the S&P500 Index (27.92), we can say GWRE is valued expensively.
  • The Price/Forward Earnings ratio is 32.54, which means the current valuation is very expensive for GWRE.
  • GWRE's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. GWRE is around the same levels.
Industry RankSector Rank
PE 44.36
Fwd PE 32.54
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.
  • GWRE's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 40.3
EV/EBITDA 111.31
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 21.51% in the coming years.
PEG (NY)3.35
PEG (5Y)2.75
EPS Next 2Y21.69%
EPS Next 3Y21.51%

More info and screens

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%

More info and screens

Find the best dividend stocksShow peers with best dividend

GUIDEWIRE SOFTWARE INC

NYSE:GWRE (2/6/2026, 8:04:00 PM)

After market: 128.19 0 (0%)

128.19

+2.2 (+1.75%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03
Earnings (Next)03-05
Inst Owners100.44%
Inst Owner Change0.17%
Ins Owners0.4%
Ins Owner Change-0.83%
Market Cap10.90B
Revenue(TTM)1.27B
Net Income(TTM)91.97M
Analysts81.82
Price Target261.85 (104.27%)
Short Float %2.07%
Short Ratio1.4
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)-1.13%
PT rev (3m)-1.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.6%
EPS NY rev (1m)0%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.58%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE 44.36
Fwd PE 32.54
P/S 8.57
P/FCF 40.3
P/OCF 36.85
P/B 7.11
P/tB 9.66
EV/EBITDA 111.31
EPS(TTM)2.89
EY2.25%
EPS(NY)3.94
Fwd EY3.07%
FCF(TTM)3.18
FCFY2.48%
OCF(TTM)3.48
OCFY2.71%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)3.35
PEG (5Y)2.75
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 6.54
F-Score8
WACC10.83%
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 2Y21.69%
EPS Next 3Y21.51%
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 2Y17.44%
Revenue Next 3Y16.5%
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 44.36 and the Price/Book (PB) ratio is 7.11.


Can you provide the financial health for GWRE stock?

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