GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWRE - US40171V1008 - Common Stock
201.01 USD
-1.51 (-0.75%)
201.01 USD
0 (0%)
Taking everything into account, GWRE scores 5 out of 10 in our fundamental rating. GWRE was compared to 276 industry peers in the Software industry. GWRE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. GWRE is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year GWRE was profitable.
GWRE had a positive operating cash flow in the past year.
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
GWRE has a better Return On Assets (3.48%) than 67.39% of its industry peers.
With a decent Return On Equity value of 6.00%, GWRE is doing good in the industry, outperforming 69.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.26%, GWRE is in the better half of the industry, outperforming 67.03% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
With a decent Profit Margin value of 7.23%, GWRE is doing good in the industry, outperforming 67.75% of the companies in the same industry.
GWRE has a better Operating Margin (5.05%) than 68.12% of its industry peers.
Looking at the Gross Margin, with a value of 63.13%, GWRE is in line with its industry, outperforming 40.94% of the companies in the same industry.
GWRE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
Compared to 5 years ago, GWRE has more shares outstanding
GWRE has a worse debt/assets ratio than last year.
2.2 Solvency
GWRE has an Altman-Z score of 10.00. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GWRE (10.00) is better than 89.13% of its industry peers.
The Debt to FCF ratio of GWRE is 2.50, which is a good value as it means it would take GWRE, 2.50 years of fcf income to pay off all of its debts.
GWRE has a better Debt to FCF ratio (2.50) than 65.58% of its industry peers.
GWRE has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
GWRE has a worse Debt to Equity ratio (0.44) than 63.04% 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 | 0.44 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 10 |
ROIC/WACC0.21
WACC10.96%
2.3 Liquidity
A Current Ratio of 3.48 indicates that GWRE has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.48, GWRE is doing good in the industry, outperforming 78.62% of the companies in the same industry.
A Quick Ratio of 3.48 indicates that GWRE has no problem at all paying 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 78.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
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.
Looking at the last year, GWRE shows a very strong growth in Revenue. 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
GWRE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.37% yearly.
The Revenue is expected to grow by 14.46% on average over the next years. This is quite good.
EPS Next Y13.23%
EPS Next 2Y21.69%
EPS Next 3Y21.51%
EPS Next 5Y19.37%
Revenue Next Year19.45%
Revenue Next 2Y17.44%
Revenue Next 3Y16.5%
Revenue Next 5Y14.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 69.55 indicates a quite expensive valuation of GWRE.
Compared to the rest of the industry, the Price/Earnings ratio of GWRE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.51. GWRE is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 51.03, GWRE can be considered very expensive at the moment.
GWRE's Price/Forward Earnings ratio is in line with the industry average.
GWRE is valuated expensively when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.55 | ||
| Fwd PE | 51.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GWRE is on the same level as its industry peers.
GWRE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.2 | ||
| EV/EBITDA | 183.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GWRE's earnings are expected to grow with 21.51% in the coming years.
PEG (NY)5.26
PEG (5Y)4.32
EPS Next 2Y21.69%
EPS Next 3Y21.51%
5. Dividend
5.1 Amount
No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
201.01
-1.51 (-0.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change65.76%
Ins Owners0.43%
Ins Owner Change-1.49%
Market Cap17.09B
Revenue(TTM)1.27B
Net Income(TTM)91.97M
Analysts80
Price Target271.19 (34.91%)
Short Float %1.42%
Short Ratio1.35
Dividend
| Industry Rank | Sector 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)-0.21%
PT rev (3m)-0.21%
EPS NQ rev (1m)3.06%
EPS NQ rev (3m)4.82%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)1.64%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.55 | ||
| Fwd PE | 51.03 | ||
| P/S | 13.43 | ||
| P/FCF | 63.2 | ||
| P/OCF | 57.78 | ||
| P/B | 11.14 | ||
| P/tB | 15.15 | ||
| EV/EBITDA | 183.35 |
EPS(TTM)2.89
EY1.44%
EPS(NY)3.94
Fwd EY1.96%
FCF(TTM)3.18
FCFY1.58%
OCF(TTM)3.48
OCFY1.73%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)5.26
PEG (5Y)4.32
Graham Number34.25
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 10 |
F-Score8
WACC10.96%
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 5Y19.37%
Revenue 1Y (TTM)22.8%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%26.53%
Revenue Next Year19.45%
Revenue Next 2Y17.44%
Revenue Next 3Y16.5%
Revenue Next 5Y14.46%
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 69.55 and the Price/Book (PB) ratio is 11.14.
Can you provide the financial health for GWRE stock?
The financial health rating of GUIDEWIRE SOFTWARE INC (GWRE) is 7 / 10.