Guidewire Software (GWRE) Fundamental Analysis: Revenue, Earnings & Valuation

6.81 / 10

Outperform

GWRE's fundamental score of 6.8/10 indicates adequate quality; key bullish factors include Revenue-MV and Net income-Revenue, while Cash-MV and PB-ROE present challenges. The stock ranks favorably on asset turnover and profitability relative to peers, but high P/B and low cash reserves temper the outlook. Historical back-tests show moderate one-month returns across metrics, supporting a cautiously positive stance.

Analysis Checks(8/10)

Revenue-MV

Value-1.48

Score2/3

Weight10.38%

1M Return7.23%

Days sales outstanding

Value41.61

Score2/3

Weight2.51%

1M Return1.73%

Profit-MV

Value-2.29

Score2/3

Weight7.76%

1M Return6.09%

Net income-Revenue

Value0.07

Score3/3

Weight7.47%

1M Return5.64%

PB-ROE

Value5.34

Score1/3

Weight0.05%

1M Return0.04%

Rate of return on total assets (%)

Value0.24

Score2/3

Weight2.07%

1M Return1.47%

Annualized return on total assets (%)

Value0.24

Score2/3

Weight2.07%

1M Return1.47%

Asset-MV

Value-0.50

Score3/3

Weight65.93%

1M Return27.51%

Inventory turnover days

Value300.47

Score3/3

Weight2.12%

1M Return1.44%

Cash-MV

Value-0.36

Score1/3

Weight-0.37%

1M Return-0.26%

Is GWRE fundamentally strong?

GWRE scores 6.81/10 on fundamentals and holds a Discounted valuation at present. Backed by its 2.09% ROE, 7.23% net margin, 118.50 P/E ratio, 7.11 P/B ratio, and 194.59% earnings growth, these metrics solidify its Outperform investment rating.