GUIDEWIRE SOFTWARE INC (GWRE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GWRE - US40171V1008 - Common Stock
166.09 USD
-4.76 (-2.79%)
166 USD
-0.09 (-0.05%)
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 has an excellent financial health rating, but there are some minor concerns on its profitability. GWRE shows excellent growth, but is valued quite expensive already.
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.
- In the past 5 years GWRE reported 4 times negative net income.
- GWRE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of GWRE (3.48%) is better than 67.39% of its industry peers.
- GWRE has a better Return On Equity (6.00%) than 69.57% of its industry peers.
- GWRE's Return On Invested Capital of 2.26% is fine compared to the rest of the industry. GWRE outperforms 67.03% of its industry peers.
| 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
- GWRE's Profit Margin of 7.23% is fine compared to the rest of the industry. GWRE outperforms 67.39% of its industry peers.
- GWRE has a better Operating Margin (5.05%) than 68.12% of its industry peers.
- With a Gross Margin value of 63.13%, GWRE perfoms like the industry average, outperforming 40.94% of the companies in the same industry.
- In the last couple of years the Gross Margin of GWRE has grown nicely.
| 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
- 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
- GWRE has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for GWRE is higher compared to a year ago.
2.2 Solvency
- GWRE has an Altman-Z score of 8.61. This indicates that GWRE is financially healthy and has little risk of bankruptcy at the moment.
- GWRE's Altman-Z score of 8.61 is amongst the best of the industry. GWRE outperforms 86.59% of its industry peers.
- GWRE has a debt to FCF ratio of 2.50. This is a good value and a sign of high solvency as GWRE would need 2.50 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.50, GWRE is in the better half of the industry, outperforming 65.58% of the companies in the same industry.
- A Debt/Equity ratio of 0.44 indicates that GWRE is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.44, GWRE is doing worse than 63.41% of the companies in the same industry.
- 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 | 0.44 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 8.61 |
ROIC/WACC0.21
WACC10.85%
2.3 Liquidity
- A Current Ratio of 3.48 indicates that GWRE has no problem at all paying its short term obligations.
- GWRE's Current ratio of 3.48 is fine compared to the rest of the industry. GWRE outperforms 77.90% of its industry peers.
- GWRE has a Quick Ratio of 3.48. This indicates that GWRE is financially healthy and has no problem in meeting its short term obligations.
- GWRE's Quick ratio of 3.48 is fine compared to the rest of the industry. GWRE outperforms 77.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
- GWRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.28%, which is quite impressive.
- GWRE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.12% yearly.
- GWRE shows a strong growth in Revenue. In the last year, 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
- The Earnings Per Share is expected to grow by 21.41% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 15.55% on average over the next years. This is quite good.
EPS Next Y13.23%
EPS Next 2Y21.69%
EPS Next 3Y21.51%
EPS Next 5Y21.41%
Revenue Next Year19.45%
Revenue Next 2Y17.44%
Revenue Next 3Y16.5%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 57.47, the valuation of GWRE can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of GWRE is on the same level as its industry peers.
- GWRE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.54.
- GWRE is valuated quite expensively with a Price/Forward Earnings ratio of 42.16.
- The rest of the industry has a similar Price/Forward Earnings ratio as GWRE.
- When comparing the Price/Forward Earnings ratio of GWRE to the average of the S&P500 Index (24.31), we can say GWRE is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.47 | ||
| Fwd PE | 42.16 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.22 | ||
| EV/EBITDA | 154.38 |
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 21.51% in the coming years.
PEG (NY)4.34
PEG (5Y)3.57
EPS Next 2Y21.69%
EPS Next 3Y21.51%
5. Dividend
5.1 Amount
- No dividends for GWRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
166.09
-4.76 (-2.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-03 2025-12-03/amc
Earnings (Next)03-04 2026-03-04/amc
Inst Owners100.44%
Inst Owner Change0.29%
Ins Owners0.4%
Ins Owner Change-1.19%
Market Cap14.12B
Revenue(TTM)1.27B
Net Income(TTM)91.97M
Analysts81.82
Price Target271.19 (63.28%)
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)0.48%
PT rev (3m)-0.21%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)4.6%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.47 | ||
| Fwd PE | 42.16 | ||
| P/S | 11.1 | ||
| P/FCF | 52.22 | ||
| P/OCF | 47.74 | ||
| P/B | 9.21 | ||
| P/tB | 12.51 | ||
| EV/EBITDA | 154.38 |
EPS(TTM)2.89
EY1.74%
EPS(NY)3.94
Fwd EY2.37%
FCF(TTM)3.18
FCFY1.92%
OCF(TTM)3.48
OCFY2.09%
SpS14.96
BVpS18.04
TBVpS13.27
PEG (NY)4.34
PEG (5Y)3.57
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 | 8.61 |
F-Score8
WACC10.85%
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 5Y21.41%
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 5Y15.55%
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 57.47 and the Price/Book (PB) ratio is 9.21.
Can you provide the financial health for GWRE stock?
The financial health rating of GUIDEWIRE SOFTWARE INC (GWRE) is 7 / 10.