GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWRE - US40171V1008 - Common Stock
212.31 USD
-3.67 (-1.7%)
212.5 USD
+0.19 (+0.09%)
GWRE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 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 expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
GWRE had positive earnings in the past year.
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.
1.2 Ratios
GWRE has a better Return On Assets (2.57%) than 65.48% of its industry peers.
Looking at the Return On Equity, with a value of 4.79%, GWRE is in the better half of the industry, outperforming 69.04% of the companies in the same industry.
GWRE has a Return On Invested Capital of 1.49%. This is in the better half of the industry: GWRE outperforms 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 4.79% | ||
| ROIC | 1.49% |
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
Looking at the Profit Margin, with a value of 5.81%, GWRE is in the better half of the industry, outperforming 67.26% of the companies in the same industry.
The Operating Margin of GWRE (3.42%) is better than 66.19% of its industry peers.
GWRE has a Gross Margin (62.54%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GWRE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.42% | ||
| PM (TTM) | 5.81% | ||
| GM | 62.54% |
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
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.
GWRE has a worse debt/assets ratio than last year.
2.2 Solvency
GWRE has an Altman-Z score of 9.35. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
GWRE has a Altman-Z score of 9.35. This is amongst the best in the industry. GWRE outperforms 85.77% of its industry peers.
The Debt to FCF ratio of GWRE is 2.41, which is a good value as it means it would take GWRE, 2.41 years of fcf income to pay off all of its debts.
GWRE has a Debt to FCF ratio of 2.41. This is in the better half of the industry: GWRE outperforms 66.55% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that GWRE is not too dependend on debt financing.
GWRE has a worse Debt to Equity ratio (0.46) than 63.35% of its industry peers.
Although GWRE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 9.35 |
ROIC/WACC0.14
WACC10.67%
2.3 Liquidity
A Current Ratio of 2.77 indicates that GWRE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.77, GWRE is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
GWRE has a Quick Ratio of 2.77. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GWRE (2.77) is better than 75.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.51%, 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 22.64% in the past year. This is a very strong growth!
GWRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.13% yearly.
EPS 1Y (TTM)98.51%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%35.48%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%22.32%
3.2 Future
The Earnings Per Share is expected to grow by 19.37% on average over the next years. This is quite good.
GWRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.46% yearly.
EPS Next Y14.19%
EPS Next 2Y22.87%
EPS Next 3Y22.58%
EPS Next 5Y19.37%
Revenue Next Year17.88%
Revenue Next 2Y16.48%
Revenue Next 3Y16.36%
Revenue Next 5Y14.46%
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.
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
Based on the Price/Earnings ratio of 79.82, the valuation of GWRE can be described as expensive.
GWRE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.11. GWRE is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 69.90 indicates a quite expensive valuation of GWRE.
The rest of the industry has a similar Price/Forward Earnings ratio as GWRE.
GWRE is valuated expensively when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.82 | ||
| Fwd PE | 69.9 |
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 | 64.37 | ||
| EV/EBITDA | 268.97 |
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 22.58% in the coming years.
PEG (NY)5.62
PEG (5Y)4.95
EPS Next 2Y22.87%
EPS Next 3Y22.58%
5. Dividend
5.1 Amount
No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
212.31
-3.67 (-1.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.7%
Inst Owner Change65.76%
Ins Owners0.4%
Ins Owner Change-1.97%
Market Cap18.05B
Revenue(TTM)1.20B
Net Income(TTM)69.80M
Analysts80
Price Target271.76 (28%)
Short Float %2.05%
Short Ratio2.5
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)58.16%
Min EPS beat(2)29.72%
Max EPS beat(2)86.6%
EPS beat(4)3
Avg EPS beat(4)38.41%
Min EPS beat(4)-3.3%
Max EPS beat(4)86.6%
EPS beat(8)7
Avg EPS beat(8)56.62%
EPS beat(12)10
Avg EPS beat(12)-4.25%
EPS beat(16)14
Avg EPS beat(16)20.42%
Revenue beat(2)2
Avg Revenue beat(2)2.32%
Min Revenue beat(2)1.18%
Max Revenue beat(2)3.47%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)3.47%
Revenue beat(8)6
Avg Revenue beat(8)0.98%
Revenue beat(12)8
Avg Revenue beat(12)0.51%
Revenue beat(16)11
Avg Revenue beat(16)0.88%
PT rev (1m)0%
PT rev (3m)6.92%
EPS NQ rev (1m)1.8%
EPS NQ rev (3m)18.72%
EPS NY rev (1m)0.88%
EPS NY rev (3m)6.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.82 | ||
| Fwd PE | 69.9 | ||
| P/S | 15.01 | ||
| P/FCF | 64.37 | ||
| P/OCF | 60 | ||
| P/B | 12.39 | ||
| P/tB | 17.17 | ||
| EV/EBITDA | 268.97 |
EPS(TTM)2.66
EY1.25%
EPS(NY)3.04
Fwd EY1.43%
FCF(TTM)3.3
FCFY1.55%
OCF(TTM)3.54
OCFY1.67%
SpS14.14
BVpS17.14
TBVpS12.36
PEG (NY)5.62
PEG (5Y)4.95
Graham Number32.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 4.79% | ||
| ROCE | 1.89% | ||
| ROIC | 1.49% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 5.23% | ||
| OM | 3.42% | ||
| PM (TTM) | 5.81% | ||
| GM | 62.54% | ||
| FCFM | 23.32% |
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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.41 | ||
| Debt/EBITDA | 10.41 | ||
| Cap/Depr | 86.1% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 3.48 | ||
| Cash Conversion | 464.12% | ||
| Profit Quality | 401.71% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 9.35 |
F-Score7
WACC10.67%
ROIC/WACC0.14
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)98.51%
EPS 3YN/A
EPS 5Y16.12%
EPS Q2Q%35.48%
EPS Next Y14.19%
EPS Next 2Y22.87%
EPS Next 3Y22.58%
EPS Next 5Y19.37%
Revenue 1Y (TTM)22.64%
Revenue growth 3Y13.95%
Revenue growth 5Y10.13%
Sales Q2Q%22.32%
Revenue Next Year17.88%
Revenue Next 2Y16.48%
Revenue Next 3Y16.36%
Revenue Next 5Y14.46%
EBIT growth 1Y183.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.97%
EBIT Next 3Y38.75%
EBIT Next 5Y21.54%
FCF growth 1Y58.23%
FCF growth 3YN/A
FCF growth 5Y26.26%
OCF growth 1Y53.7%
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.
What is the valuation status for GWRE stock?
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.
How financially healthy is GUIDEWIRE SOFTWARE INC?
The financial health rating of GUIDEWIRE SOFTWARE INC (GWRE) is 7 / 10.
What is the expected EPS growth for GUIDEWIRE SOFTWARE INC (GWRE) stock?
The Earnings per Share (EPS) of GUIDEWIRE SOFTWARE INC (GWRE) is expected to grow by 14.19% in the next year.