Guidewire Software, Inc. (GWRE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Guidewire Software, Inc.

Why is Guidewire Software, Inc. ?

The company has declared Positive results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 300.87 MM
ROCE(HY) Highest at 4.99%
DEBTORS TURNOVER RATIO(HY) Highest at 4.85 times

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 19.83% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guidewire Software, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Guidewire Software, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guidewire Software, Inc.

-54.01%

1.36

40.24%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.99%

EBIT Growth (5y)

33.87%

EBIT to Interest (avg)

-6.88

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

0.55

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

0.39%

ROE (avg)

1.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.11

EV to EBIT

130.80

EV to EBITDA

82.89

EV to Capital Employed

9.47

EV to Sales

8.95

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

7.24%

ROE (Latest)

12.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 350.66 MM

NET PROFIT(9M)

At USD 109.24 MM has Grown at 54.57%

ROCE(HY)

Highest at 11.93%

RAW MATERIAL COST(Y)

Fallen by -1.83% (YoY

NET SALES(Q)

Highest at USD 372.54 MM

-10What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -3.44 %

PRE-TAX PROFIT(Q)

Lowest at USD 20.8 MM

NET PROFIT(Q)

Lowest at USD 17.34 MM

EPS(Q)

Lowest at USD 0.19

Here's what is working for Guidewire Software, Inc.

Operating Cash Flow

Highest at USD 350.66 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 372.54 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 372.54 MM has Grown at 26.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by -1.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 15.74 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Guidewire Software, Inc.

Pre-Tax Profit

At USD 20.8 MM has Fallen at -57.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 17.34 MM has Fallen at -62.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

Lowest at USD 20.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 17.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at -3.44 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio