GUIDEWIRE SOFTWARE INC (GWRE) Fundamental Analysis & Valuation

NYSE:GWRE • US40171V1008

Current stock price

117.95 USD
-6.35 (-5.11%)
At close:
117.95 USD
0 (0%)
After Hours:

This GWRE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. GWRE Profitability Analysis

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.
  • GWRE had a positive operating cash flow in 4 of the past 5 years.
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

  • GWRE's Return On Assets of 7.03% is fine compared to the rest of the industry. GWRE outperforms 80.00% of its industry peers.
  • The Return On Equity of GWRE (12.54%) is better than 78.18% of its industry peers.
  • With a decent Return On Invested Capital value of 3.22%, GWRE is doing good in the industry, outperforming 69.45% of the companies in the same industry.
Industry RankSector Rank
ROA 7.03%
ROE 12.54%
ROIC 3.22%
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

  • Looking at the Profit Margin, with a value of 14.11%, GWRE belongs to the top of the industry, outperforming 80.73% of the companies in the same industry.
  • GWRE's Operating Margin of 6.78% is fine compared to the rest of the industry. GWRE outperforms 70.55% of its industry peers.
  • GWRE has a Gross Margin (63.76%) which is in line with its industry peers.
  • GWRE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.78%
PM (TTM) 14.11%
GM 63.76%
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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7

2. GWRE Health Analysis

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.
  • 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.
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

  • An Altman-Z score of 6.03 indicates that GWRE is not in any danger for bankruptcy at the moment.
  • GWRE has a better Altman-Z score (6.03) than 82.91% of its industry peers.
  • GWRE has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as GWRE would need 2.30 years to pay back of all of its debts.
  • The Debt to FCF ratio of GWRE (2.30) is better than 65.09% of its industry peers.
  • A Debt/Equity ratio of 0.45 indicates that GWRE is not too dependend on debt financing.
  • GWRE has a worse Debt to Equity ratio (0.45) than 63.64% 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 0.45
Debt/FCF 2.3
Altman-Z 6.03
ROIC/WACC0.3
WACC10.74%
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 2.93. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of GWRE (2.93) is better than 73.45% of its industry peers.
  • A Quick Ratio of 2.93 indicates that GWRE has no problem at all paying its short term obligations.
  • The Quick ratio of GWRE (2.93) is better than 73.45% of its industry peers.
Industry RankSector Rank
Current Ratio 2.93
Quick Ratio 2.93
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. GWRE Growth Analysis

3.1 Past

  • GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 95.05%, which is quite impressive.
  • The Earnings Per Share has been growing by 16.12% on average over the past years. This is quite good.
  • The Revenue has grown by 23.72% in the past year. This is a very strong growth!
  • 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)95.05%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%129.41%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%

3.2 Future

  • Based on estimates for the next years, GWRE will show a very strong growth in Earnings Per Share. The EPS will grow by 21.41% on average per year.
  • 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 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue Next Year21.85%
Revenue Next 2Y18.77%
Revenue Next 3Y17.45%
Revenue Next 5Y15.55%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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2

4. GWRE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 33.23, 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 26.78. GWRE is valued slightly more expensive when compared to this.
  • With a Price/Forward Earnings ratio of 29.95, GWRE can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as GWRE.
  • The average S&P500 Price/Forward Earnings ratio is at 23.54. GWRE is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 33.23
Fwd PE 29.95
GWRE Price Earnings VS Forward Price EarningsGWRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • GWRE's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as GWRE.
Industry RankSector Rank
P/FCF 33.99
EV/EBITDA 83.8
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.
  • GWRE's earnings are expected to grow with 21.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)2.06
EPS Next 2Y21.67%
EPS Next 3Y21.49%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. GWRE Dividend Analysis

5.1 Amount

  • No dividends for GWRE!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

GWRE Fundamentals: All Metrics, Ratios and Statistics

GUIDEWIRE SOFTWARE INC

NYSE:GWRE (4/10/2026, 8:28:29 PM)

After market: 117.95 0 (0%)

117.95

-6.35 (-5.11%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-05
Earnings (Next)06-01
Inst Owners99.83%
Inst Owner Change0%
Ins Owners0.39%
Ins Owner Change-10.2%
Market Cap9.99B
Revenue(TTM)1.34B
Net Income(TTM)189.36M
Analysts81.82
Price Target233.06 (97.59%)
Short Float %4.68%
Short Ratio2.23
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)27%
Min EPS beat(2)5.59%
Max EPS beat(2)48.4%
EPS beat(4)4
Avg EPS beat(4)42.58%
Min EPS beat(4)5.59%
Max EPS beat(4)86.6%
EPS beat(8)7
Avg EPS beat(8)38.94%
EPS beat(12)11
Avg EPS beat(12)53.37%
EPS beat(16)14
Avg EPS beat(16)19.65%
Revenue beat(2)2
Avg Revenue beat(2)3.01%
Min Revenue beat(2)3%
Max Revenue beat(2)3.02%
Revenue beat(4)4
Avg Revenue beat(4)2.66%
Min Revenue beat(4)1.18%
Max Revenue beat(4)3.47%
Revenue beat(8)7
Avg Revenue beat(8)1.83%
Revenue beat(12)9
Avg Revenue beat(12)0.84%
Revenue beat(16)12
Avg Revenue beat(16)1.23%
PT rev (1m)-9.92%
PT rev (3m)-14.06%
EPS NQ rev (1m)16.93%
EPS NQ rev (3m)16.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)4.77%
Revenue NQ rev (3m)4.76%
Revenue NY rev (1m)2.08%
Revenue NY rev (3m)2.01%
Valuation
Industry RankSector Rank
PE 33.23
Fwd PE 29.95
P/S 7.44
P/FCF 33.99
P/OCF 31.03
P/B 6.61
P/tB 9.34
EV/EBITDA 83.8
EPS(TTM)3.55
EY3.01%
EPS(NY)3.94
Fwd EY3.34%
FCF(TTM)3.47
FCFY2.94%
OCF(TTM)3.8
OCFY3.22%
SpS15.85
BVpS17.84
TBVpS12.62
PEG (NY)2.51
PEG (5Y)2.06
Graham Number37.75
Profitability
Industry RankSector Rank
ROA 7.03%
ROE 12.54%
ROCE 4.07%
ROIC 3.22%
ROICexc 5.47%
ROICexgc 8.25%
OM 6.78%
PM (TTM) 14.11%
GM 63.76%
FCFM 21.9%
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-Score9
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.3
Debt/EBITDA 5.8
Cap/Depr 109.51%
Cap/Sales 2.09%
Interest Coverage 6.8
Cash Conversion 276.08%
Profit Quality 155.16%
Current Ratio 2.93
Quick Ratio 2.93
Altman-Z 6.03
F-Score9
WACC10.74%
ROIC/WACC0.3
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)95.05%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%129.41%
EPS Next Y13.23%
EPS Next 2Y21.67%
EPS Next 3Y21.49%
EPS Next 5Y21.41%
Revenue 1Y (TTM)23.72%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%24.05%
Revenue Next Year21.85%
Revenue Next 2Y18.77%
Revenue Next 3Y17.45%
Revenue Next 5Y15.55%
EBIT growth 1Y14551.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year61.24%
EBIT Next 3Y39.8%
EBIT Next 5Y21.54%
FCF growth 1Y187.04%
FCF growth 3YN/A
FCF growth 5Y26.26%
OCF growth 1Y164.28%
OCF growth 3YN/A
OCF growth 5Y21.62%

GUIDEWIRE SOFTWARE INC / GWRE Fundamental Analysis 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.


How profitable is GUIDEWIRE SOFTWARE INC (GWRE) stock?

GUIDEWIRE SOFTWARE INC (GWRE) has a profitability rating of 5 / 10.


How financially healthy is GUIDEWIRE SOFTWARE INC?

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


What is the earnings growth outlook for GUIDEWIRE SOFTWARE INC?

The Earnings per Share (EPS) of GUIDEWIRE SOFTWARE INC (GWRE) is expected to grow by 13.23% in the next year.