Overview Dividends

(GWRE) Guidewire Software - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US40171V1008

InsuranceSuite, InsuranceNow, Digital Engagement, Predictive Analytics, Claims Management

GWRE EPS (Earnings per Share)

EPS Growth (3Y CAGR): 76.25%
EPS Trend (3Y Correlation): 76.1%

GWRE Revenue

Revenue Growth (3Y CAGR): 24.48%
Revenue Trend (3Y Correlation): 85.4%

Description: GWRE Guidewire Software October 16, 2025

Guidewire Software, Inc. (NYSE: GWRE) delivers an end-to-end SaaS platform for property-and-casualty (P&C) insurers, encompassing core operations such as policy administration (PolicyCenter), claims handling (ClaimCenter), and billing (BillingCenter), as well as a suite of cloud-native extensions for rating, reinsurance, product design, digital engagement, and advanced analytics.

Beyond the core InsuranceSuite, Guidewire’s cloud offerings include InsuranceNow (a unified policy-claims-billing solution), Guidewire Predict (a machine-learning engine tailored to P&C risk modeling), HazardHub (property-risk data), and Cyence (cyber-risk economic modeling), together forming a data-centric ecosystem that enables insurers to monetize customer information through tools like Client Data Management, DataHub, and InfoCenter.

From a financial perspective, Guidewire reported FY 2023 revenue of roughly $1.7 billion, with subscription-based recurring revenue now accounting for about 85 % of total sales and growing at a ~20 % annual rate. The company’s gross margin consistently exceeds 80 % and its GAAP net margin hovers near 20 %, reflecting the high-margin nature of enterprise SaaS in a sector where digital transformation is a strategic imperative.

Key macro drivers for Guidewire’s market include steady growth in global P&C premiums (≈5 % CAGR), heightened regulatory scrutiny that pushes insurers toward compliant, auditable platforms, and the accelerating adoption of AI-driven underwriting and claims automation to contain loss ratios.

For a deeper quantitative view of GWRE’s valuation metrics, the ValueRay platform offers a granular breakdown of its forward cash-flow assumptions and scenario analyses.

GWRE Stock Overview

Market Cap in USD	19,985m
Sub-Industry	Application Software
IPO / Inception	2012-01-25

GWRE Stock Ratings

Growth Rating	78.1%
Fundamental	65.3%
Dividend Rating	-
Return 12m vs S&P 500	-2.25%
Analyst Rating	3.94 of 5

GWRE Dividends

Currently no dividends paid

GWRE Growth Ratios

Growth Correlation 3m	46.9%
Growth Correlation 12m	78.4%
Growth Correlation 5y	51.6%
CAGR 5y	55.15%
CAGR/Max DD 3y (Calmar Ratio)	2.34
CAGR/Mean DD 3y (Pain Ratio)	10.01
Sharpe Ratio 12m	0.32
Alpha	-6.13
Beta	1.210
Volatility	30.12%
Current Volume	766.2k
Average Volume 20d	644.7k
Stop Loss	206.4 (-4.1%)
Signal	-0.25

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (69.8m TTM) > 0 and > 6% of Revenue (6% = 72.1m TTM)

FCFTA 0.11 (>2.0%) and ΔFCFTA 2.73pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 80.05% (prev 46.70%; Δ 33.35pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.11 (>3.0%) and CFO 300.9m > Net Income 69.8m (YES >=105%, WARN >=100%)

Net Debt (7.35m) to EBITDA (86.4m) ratio: 0.09 <= 3.0 (WARN <= 3.5)

Current Ratio 2.77 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (86.3m) change vs 12m ago 4.83% (target <= -2.0% for YES)

Gross Margin 62.54% (prev 59.50%; Δ 3.05pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 48.61% (prev 44.04%; Δ 4.57pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 4.74 (EBITDA TTM 86.4m / Interest Expense TTM 13.2m) >= 6 (WARN >= 3)

Altman Z'' 1.36

(A) 0.35 = (Total Current Assets 1.51b - Total Current Liabilities 544.8m) / Total Assets 2.72b

(B) -0.20 = Retained Earnings (Balance) -554.2m / Total Assets 2.72b

(D) -0.45 = Book Value of Equity -563.2m / Total Liabilities 1.26b

Total Rating: 1.36 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 65.31

1. Piotroski 6.0pt = 1.0

2. FCF Yield 1.49% = 0.74

3. FCF Margin 24.19% = 6.05

4. Debt/Equity 0.48 = 2.39

5. Debt/Ebitda 0.09 = 2.49

6. ROIC - WACC (= -6.40)% = -8.00

7. RoE 5.21% = 0.43

8. Rev. Trend 85.40% = 6.40

9. EPS Trend 76.07% = 3.80

What is the price of GWRE shares?

As of November 07, 2025, the stock is trading at USD 215.32 with a total of 766,187 shares traded.
Over the past week, the price has changed by -8.92%, over one month by -7.56%, over three months by -4.54% and over the past year by +12.20%.

Is Guidewire Software a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Guidewire Software (NYSE:GWRE) is currently (November 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 65.31 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of GWRE is around 237.13 USD . This means that GWRE is currently undervalued and has a potential upside of +10.13% (Margin of Safety).

Is GWRE a buy, sell or hold?

Guidewire Software has received a consensus analysts rating of 3.94. Therefore, it is recommended to buy GWRE.

Strong Buy: 6
Buy: 6
Hold: 2
Sell: 1
Strong Sell: 1

What are the forecasts/targets for the GWRE price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	268.4	24.6%
Analysts Target Price	268.4	24.6%
ValueRay Target Price	268.3	24.6%

GWRE Fundamental Data Overview November 01, 2025

Market Cap USD = 19.98b (19.98b USD * 1.0 USD.USD)
P/E Trailing = 295.525
P/E Forward = 78.7402
P/S = 16.6199
P/B = 13.4004
P/EG = 2.2514
Beta = 1.21
Revenue TTM = 1.20b USD
EBIT TTM = 62.6m USD
EBITDA TTM = 86.4m USD
Long Term Debt = 674.6m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 705.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.35m USD (from netDebt column, last quarter)
Enterprise Value = 19.54b USD (19.98b + Debt 705.3m - CCE 1.15b)
Interest Coverage Ratio = 4.74 (Ebit TTM 62.6m / Interest Expense TTM 13.2m)
FCF Yield = 1.49% (FCF TTM 290.9m / Enterprise Value 19.54b)
FCF Margin = 24.19% (FCF TTM 290.9m / Revenue TTM 1.20b)
Net Margin = 5.81% (Net Income TTM 69.8m / Revenue TTM 1.20b)
Gross Margin = 62.54% ((Revenue TTM 1.20b - Cost of Revenue TTM 450.4m) / Revenue TTM)
Gross Margin QoQ = 65.01% (prev 62.25%)
Tobins Q-Ratio = 7.18 (Enterprise Value 19.54b / Total Assets 2.72b)
Interest Expense / Debt = 0.47% (Interest Expense 3.30m / Debt 705.3m)
Taxrate = -26.76% (negative due to tax credits) (-11.0m / 41.0m)
NOPAT = 79.4m (EBIT 62.6m * (1 - -26.76%)) [negative tax rate / tax credits]
Current Ratio = 2.77 (Total Current Assets 1.51b / Total Current Liabilities 544.8m)
Debt / Equity = 0.48 (Debt 705.3m / totalStockholderEquity, last quarter 1.46b)
Debt / EBITDA = 0.09 (Net Debt 7.35m / EBITDA 86.4m)
Debt / FCF = 0.03 (Net Debt 7.35m / FCF TTM 290.9m)
Total Stockholder Equity = 1.34b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.57% (Net Income 69.8m / Total Assets 2.72b)
RoE = 5.21% (Net Income TTM 69.8m / Total Stockholder Equity 1.34b)
RoCE = 3.11% (EBIT 62.6m / Capital Employed (Equity 1.34b + L.T.Debt 674.6m))
RoIC = 3.73% (NOPAT 79.4m / Invested Capital 2.13b)
WACC = 10.13% (E(19.98b)/V(20.69b) * Re(10.47%) + D(705.3m)/V(20.69b) * Rd(0.47%) * (1-Tc(-0.27)))
Discount Rate = 10.47% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.76%
[DCF Debug] Terminal Value 73.96% ; FCFE base≈245.4m ; Y1≈302.8m ; Y5≈516.6m
Fair Price DCF = 69.25 (DCF Value 5.85b / Shares Outstanding 84.5m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 76.07 | EPS CAGR: 76.25% | SUE: 1.13 | # QB: 2
Revenue Correlation: 85.40 | Revenue CAGR: 24.48% | SUE: 4.0 | # QB: 2

Additional Sources for GWRE Stock

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