Guidewire Software, Inc. cash flow to debt ratio of 42.04% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Guidewire Software, Inc.'s free cash flow has increased 66.53% from $177.22M last year to $295.13M, signaling increasing performance

Guidewire Software, Inc.'s debt to equity ratio is 0.53, which means that the company's assets are healthy financed, signaling financial stability.

Guidewire Software, Inc.'s debt has increased relative to shareholder equity from 0.33 last year to 0.53 today, signaling weakened financials

Guidewire Software, Inc. has a net cash position, so leverage is healthy.

Guidewire Software, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Guidewire Software, Inc.'s profit margin has increased (-1.91K%) in the last year from -0.62% to 11.25%, signaling increasing performance

Guidewire Software, Inc.'s short-term assets of $1.51B exceed its short-term liabilities of $544.80M

Guidewire Software, Inc.'s return on assets of 6.30% is higher than the 5.00% threshold, indicating efficient asset utilization

Guidewire Software, Inc.'s return on equity of 10.99%, is lower than 15.00%, indicating bad performance

Guidewire Software, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Guidewire Software, Inc. had positive net income in only 1 out of 5 years, indicating unstable earnings

Guidewire Software, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Guidewire Software, Inc. has a free cash flow yield of 2.05%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Guidewire Software, Inc.'s yearly earnings has increased -1.24K% since last year from $-6.10M to $69.80M, signaling increasing performance

Guidewire Software, Inc.'s yearly revenue has increased 22.64% since last year from $980.50M to $1.20B, signaling increasing performance

ROIC 5.77% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Guidewire Software, Inc.'s 3-year revenue CAGR of 13.95% is positive, indicating growing revenue over the past 3 years

Guidewire Software, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Guidewire Software, Inc. had positive ROE in only 1 out of 5 years, indicating inconsistent returns on equity

Guidewire Software, Inc. is overvalued relative to its fair value price of 61.43 based on Discounted Cash Flow model

Guidewire Software, Inc. has an earnings yield of 1.09%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Guidewire Software, Inc. is overvalued relative to its fair value price of 6.92 based on EBITDA multiple model

Guidewire Software, Inc. has an EV/EBITDA ratio of 161.69x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Guidewire Software, Inc. is overvalued relative to its fair value price of -38.48 based on Earnings Fair Value model

Guidewire Software, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Guidewire Software, Inc. has a price-to-book ratio of 11.11x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Guidewire Software, Inc. has a price-to-sales ratio of 10.30x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue