GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
NYSE:GWRE - New York Stock Exchange, Inc. - US40171V1008 - Common Stock - Currency: USD
Overall GWRE gets a fundamental rating of 4 out of 10. We evaluated GWRE against 281 industry peers in the Software industry. Both the profitability and the financial health of GWRE get a neutral evaluation. Nothing too spectacular is happening here. GWRE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GWRE had positive earnings in the past year.
GWRE had a positive operating cash flow in the past year.
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
The Return On Assets of GWRE (-0.66%) is better than 61.21% of its industry peers.
The Return On Equity of GWRE (-1.33%) is better than 62.28% of its industry peers.
With a decent Return On Invested Capital value of 0.02%, GWRE is doing good in the industry, outperforming 64.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -1.33% | ||
| ROIC | 0.02% |
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
Looking at the Operating Margin, with a value of 0.06%, GWRE is in the better half of the industry, outperforming 64.41% of the companies in the same industry.
GWRE's Gross Margin of 61.43% is in line compared to the rest of the industry. GWRE outperforms 43.42% of its industry peers.
In the last couple of years the Gross Margin of GWRE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.06% | ||
| PM (TTM) | N/A | ||
| GM | 61.43% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GWRE is destroying value.
GWRE has more shares outstanding than it did 1 year ago.
GWRE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GWRE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.39 indicates that GWRE is not in any danger for bankruptcy at the moment.
GWRE has a Altman-Z score of 8.39. This is amongst the best in the industry. GWRE outperforms 82.56% of its industry peers.
GWRE has a debt to FCF ratio of 4.16. This is a neutral value as GWRE would need 4.16 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.16, GWRE is doing good in the industry, outperforming 60.14% of the companies in the same industry.
GWRE has a Debt/Equity ratio of 0.53. This is a neutral value indicating GWRE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, GWRE is not doing good in the industry: 65.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 8.39 |
ROIC/WACC0
WACC10.44%
2.3 Liquidity
A Current Ratio of 2.65 indicates that GWRE has no problem at all paying its short term obligations.
GWRE's Current ratio of 2.65 is fine compared to the rest of the industry. GWRE outperforms 70.46% of its industry peers.
A Quick Ratio of 2.65 indicates that GWRE has no problem at all paying its short term obligations.
The Quick ratio of GWRE (2.65) is better than 71.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.50% over the past year.
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 17.15% in the last year.
The Revenue has been growing slightly by 6.39% on average over the past years.
EPS 1Y (TTM)62.5%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%10.87%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%20.17%
3.2 Future
GWRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.00% yearly.
The Revenue is expected to grow by 15.81% on average over the next years. This is quite good.
EPS Next Y53.53%
EPS Next 2Y42.79%
EPS Next 3Y39.61%
EPS Next 5Y35%
Revenue Next Year20.63%
Revenue Next 2Y17.29%
Revenue Next 3Y16.57%
Revenue Next 5Y15.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
GWRE is valuated quite expensively with a Price/Earnings ratio of 109.65.
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 28.87.
A Price/Forward Earnings ratio of 73.04 indicates a quite expensive valuation of GWRE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GWRE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.38. GWRE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.65 | ||
| Fwd PE | 73.04 |
4.2 Price Multiples
GWRE's Enterprise Value to EBITDA ratio is in line with the industry average.
GWRE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.66 | ||
| EV/EBITDA | 676.79 |
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 39.61% in the coming years.
PEG (NY)2.05
PEG (5Y)N/A
EPS Next 2Y42.79%
EPS Next 3Y39.61%
5. Dividend
5.1 Amount
No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
199.57
+2.13 (+1.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.74%
Inst Owner Change0.51%
Ins Owners0.41%
Ins Owner Change-3.36%
Market Cap16.74B
Analysts80.95
Price Target217.59 (9.03%)
Short Float %3.99%
Short Ratio3.49
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)1
Avg EPS beat(2)18.66%
Min EPS beat(2)-3.3%
Max EPS beat(2)40.63%
EPS beat(4)3
Avg EPS beat(4)35.3%
Min EPS beat(4)-3.3%
Max EPS beat(4)92.05%
EPS beat(8)7
Avg EPS beat(8)58.77%
EPS beat(12)10
Avg EPS beat(12)12.01%
EPS beat(16)14
Avg EPS beat(16)17.99%
Revenue beat(2)1
Avg Revenue beat(2)0.64%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)1.9%
Revenue beat(4)3
Avg Revenue beat(4)1%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)2.03%
Revenue beat(8)5
Avg Revenue beat(8)-0.08%
Revenue beat(12)8
Avg Revenue beat(12)0.75%
Revenue beat(16)11
Avg Revenue beat(16)0.77%
PT rev (1m)-2.25%
PT rev (3m)-0.52%
EPS NQ rev (1m)1.09%
EPS NQ rev (3m)5.88%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.65 | ||
| Fwd PE | 73.04 | ||
| P/S | 15.43 | ||
| P/FCF | 81.66 | ||
| P/OCF | 75.31 | ||
| P/B | 13.19 | ||
| P/tB | 18.81 | ||
| EV/EBITDA | 676.79 |
EPS(TTM)1.82
EY0.91%
EPS(NY)2.73
Fwd EY1.37%
FCF(TTM)2.44
FCFY1.22%
OCF(TTM)2.65
OCFY1.33%
SpS12.93
BVpS15.13
TBVpS10.61
PEG (NY)2.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -1.33% | ||
| ROCE | 0.03% | ||
| ROIC | 0.02% | ||
| ROICexc | 0.06% | ||
| ROICexgc | 0.11% | ||
| OM | 0.06% | ||
| PM (TTM) | N/A | ||
| GM | 61.43% | ||
| FCFM | 18.9% |
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-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.16 | ||
| Debt/EBITDA | 28.55 | ||
| Cap/Depr | 75.25% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 0.11 | ||
| Cash Conversion | 943.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.65 | ||
| Quick Ratio | 2.65 | ||
| Altman-Z | 8.39 |
F-Score4
WACC10.44%
ROIC/WACC0
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)62.5%
EPS 3Y39.84%
EPS 5Y-1.43%
EPS Q2Q%10.87%
EPS Next Y53.53%
EPS Next 2Y42.79%
EPS Next 3Y39.61%
EPS Next 5Y35%
Revenue 1Y (TTM)17.15%
Revenue growth 3Y9.67%
Revenue growth 5Y6.39%
Sales Q2Q%20.17%
Revenue Next Year20.63%
Revenue Next 2Y17.29%
Revenue Next 3Y16.57%
Revenue Next 5Y15.81%
EBIT growth 1Y100.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year106.35%
EBIT Next 3Y56.42%
EBIT Next 5Y31.2%
FCF growth 1Y767.75%
FCF growth 3Y28.92%
FCF growth 5Y21.4%
OCF growth 1Y1687.61%
OCF growth 3Y20.6%
OCF growth 5Y11.01%