GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
NYSE:GWRE - New York Stock Exchange, Inc. - US40171V1008 - Common Stock - Currency: USD
Taking everything into account, GWRE scores 4 out of 10 in our fundamental rating. GWRE was compared to 286 industry peers in the Software industry. The financial health of GWRE is average, but there are quite some concerns on its profitability. GWRE is quite expensive at the moment. It does show a decent growth rate.
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 each of the past 5 years.
GWRE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.16%, GWRE is doing good in the industry, outperforming 64.52% of the companies in the same industry.
GWRE's Return On Equity of 2.37% is fine compared to the rest of the industry. GWRE outperforms 67.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.37% | ||
| ROIC | N/A |
ROA(3y)-4.58%
ROA(5y)-3.55%
ROE(3y)-7.4%
ROE(5y)-5.63%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GWRE has a better Profit Margin (2.91%) than 65.95% of its industry peers.
With a Gross Margin value of 61.08%, GWRE perfoms like the industry average, outperforming 40.50% of the companies in the same industry.
GWRE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 2.91% | ||
| GM | 61.08% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.51%
GM growth 5Y1.73%
2. Health
2.1 Basic Checks
GWRE does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
GWRE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.16 indicates that GWRE is not in any danger for bankruptcy at the moment.
GWRE has a Altman-Z score of 8.16. This is in the better half of the industry: GWRE outperforms 75.63% of its industry peers.
The Debt to FCF ratio of GWRE is 5.09, which is a neutral value as it means it would take GWRE, 5.09 years of fcf income to pay off all of its debts.
GWRE has a Debt to FCF ratio (5.09) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.53 indicates that GWRE is somewhat dependend on debt financing.
GWRE has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: GWRE underperforms 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 8.16 |
ROIC/WACCN/A
WACC10.92%
2.3 Liquidity
A Current Ratio of 2.66 indicates that GWRE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.66, GWRE is in the better half of the industry, outperforming 72.04% of the companies in the same industry.
A Quick Ratio of 2.66 indicates that GWRE has no problem at all paying its short term obligations.
GWRE's Quick ratio of 2.66 is fine compared to the rest of the industry. GWRE outperforms 72.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 293.33%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.43% on average over the past years.
Looking at the last year, GWRE shows a quite strong growth in Revenue. The Revenue has grown by 12.91% in the last year.
GWRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.39% yearly.
EPS 1Y (TTM)293.33%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%132.08%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%26.76%
3.2 Future
GWRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.44% yearly.
The Revenue is expected to grow by 15.76% on average over the next years. This is quite good.
EPS Next Y54.82%
EPS Next 2Y40.19%
EPS Next 3Y36.4%
EPS Next 5Y34.44%
Revenue Next Year19.42%
Revenue Next 2Y16.9%
Revenue Next 3Y16.77%
Revenue Next 5Y15.76%
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
GWRE is valuated quite expensively with a Price/Earnings ratio of 117.02.
The rest of the industry has a similar Price/Earnings ratio as GWRE.
GWRE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.42.
With a Price/Forward Earnings ratio of 78.65, GWRE can be considered very expensive at the moment.
GWRE's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of GWRE to the average of the S&P500 Index (24.39), we can say GWRE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.02 | ||
| Fwd PE | 78.65 |
4.2 Price Multiples
GWRE's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GWRE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 92.7 | ||
| EV/EBITDA | 6414.07 |
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 36.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)N/A
EPS Next 2Y40.19%
EPS Next 3Y36.4%
5. Dividend
5.1 Amount
GWRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GUIDEWIRE SOFTWARE INC
NYSE:GWRE (1/28/2025, 8:04:00 PM)
After market: 207.12 0 (0%)207.12
+4.32 (+2.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.32%
Inst Owner Change0.05%
Ins Owners0.4%
Ins Owner Change3.13%
Market Cap17.30B
Analysts81
Price Target218.72 (5.6%)
Short Float %2.05%
Short Ratio1.74
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)26.41%
Min EPS beat(2)11.83%
Max EPS beat(2)40.99%
EPS beat(4)4
Avg EPS beat(4)60.07%
Min EPS beat(4)11.83%
Max EPS beat(4)95.4%
EPS beat(8)7
Avg EPS beat(8)-29.19%
EPS beat(12)11
Avg EPS beat(12)16.41%
EPS beat(16)15
Avg EPS beat(16)83.65%
Revenue beat(2)2
Avg Revenue beat(2)1.28%
Min Revenue beat(2)0.67%
Max Revenue beat(2)1.9%
Revenue beat(4)3
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)2.03%
Revenue beat(8)6
Avg Revenue beat(8)0.27%
Revenue beat(12)9
Avg Revenue beat(12)0.93%
Revenue beat(16)12
Avg Revenue beat(16)1.04%
PT rev (1m)6.45%
PT rev (3m)10.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.85%
EPS NY rev (1m)0%
EPS NY rev (3m)8.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 117.02 | ||
| Fwd PE | 78.65 | ||
| P/S | 16.7 | ||
| P/FCF | 92.7 | ||
| P/OCF | 84.17 | ||
| P/B | 13.64 | ||
| P/tB | 19.48 | ||
| EV/EBITDA | 6414.07 |
EPS(TTM)1.77
EY0.85%
EPS(NY)2.63
Fwd EY1.27%
FCF(TTM)2.23
FCFY1.08%
OCF(TTM)2.46
OCFY1.19%
SpS12.4
BVpS15.18
TBVpS10.63
PEG (NY)2.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.37% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 2.91% | ||
| GM | 61.08% | ||
| FCFM | 18.01% |
ROA(3y)-4.58%
ROA(5y)-3.55%
ROE(3y)-7.4%
ROE(5y)-5.63%
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 3Y4.51%
GM growth 5Y1.73%
F-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Debt/EBITDA | 268.73 | ||
| Cap/Depr | 83.27% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 8221.04% | ||
| Profit Quality | 619.83% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 8.16 |
F-Score5
WACC10.92%
ROIC/WACCN/A
Cap/Depr(3y)72.76%
Cap/Depr(5y)71.34%
Cap/Sales(3y)2.16%
Cap/Sales(5y)2.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)293.33%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%132.08%
EPS Next Y54.82%
EPS Next 2Y40.19%
EPS Next 3Y36.4%
EPS Next 5Y34.44%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%26.76%
Revenue Next Year19.42%
Revenue Next 2Y16.9%
Revenue Next 3Y16.77%
Revenue Next 5Y15.76%
EBIT growth 1Y81.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year94.65%
EBIT Next 3Y50.04%
EBIT Next 5Y42.49%
FCF growth 1Y600.3%
FCF growth 3Y28.92%
FCF growth 5Y21.4%
OCF growth 1Y1223.09%
OCF growth 3Y20.6%
OCF growth 5Y11.01%