GWRE Stock Analysis: Guidewire Software | NYSE
Software - Application | NYSE, USA | Market Cap: 11.935m USD | 12M Return: -37.4% | US40171V1008 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 244M
EPS Trend: 84.6%
Qual. Beats: 0
Rev. Trend: 99.3%
Qual. Beats: 6
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Guidewire Software, Inc. (NYSE: GWRE) provides a technology platform purpose-built for property and casualty (P&C) insurers, serving customers across the United States, Canada, the Americas, Europe, the Middle East, Africa, and Asia-Pacific. The companys core offering, Guidewire InsuranceSuite, is a suite of core applications covering policy administration (PolicyCenter), claims management (ClaimCenter), billing (BillingCenter), and product pricing and underwriting (PricingCenter and UnderwritingCenter).
In addition to its core suite, Guidewire offers InsuranceNow, a cloud-based application combining policy, claims, and billing functionality with integrated document production and analytics capabilities. The company also provides complementary products including Rating Management, Reinsurance Management, Client Data Management, Advanced Product Designer, and Product Content Management, as well as AI- and data-driven tools such as ProNavigator (an AI-powered intelligent assistant), HazardHub (property risk assessment), Predict (a P&C-specific machine-learning platform), and Cyence (a cyber-risk economic modeling product). Digital engagement applications and analytics tools like DataHub and InfoCenter further extend the platforms capabilities.
Founded in 2001 and headquartered in San Mateo, California, Guidewire operates in the Application Software sub-industry of the Information Technology sector. As a large-cap U.S. software vendor with a global footprint, the company primarily generates revenue through software subscriptions, cloud services, and related professional services for insurance carriers, a business model aligned with the broader shift of the P&C insurance industry toward digital modernization and cloud-based core systems.
- Cloud platform ARR growth accelerates subscription revenue mix
- P&C insurance modernization cycle drives large customer wins
- Competitive pressure from Duck Creek and insurtech challengers intensifies
- AI products Cyence and Predict gain insurer adoption
| Net Income: 139.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 0.57 > 1.0 |
| NWC/Revenue: 35.41% < 20% (prev 80.05%; Δ -44.64% < -1%) |
| CFO/TA 0.12 > 3% & CFO 312.0m > Net Income 139.3m |
| Net Debt (-12.9m) to EBITDA (213.9m): -0.06 < 3 |
| Current Ratio: 1.79 > 1.5 & < 3 |
| Outstanding Shares: last quarter (83.6m) vs 12m ago -3.07% < -2% |
| Gross Margin: 64.21% > 18% (prev 62.54%; Δ 1.67% > 0.5%) |
| Asset Turnover: 55.69% > 50% (prev 44.19%; Δ 11.50% > 0%) |
| Interest Coverage Ratio: 13.32 > 6 (EBIT TTM 177.4m / Interest Expense TTM 13.3m) |
| A: 0.20 (Total Current Assets 1.19b - Total Current Liabilities 664.5m) / Total Assets 2.58b |
| B: -0.40 (Retained Earnings -1.02b / Total Assets 2.58b) |
| C: 0.07 (EBIT TTM 177.4m / Avg Total Assets 2.65b) |
| D: 0.86 (Book Value of Equity 1.19b / Total Liabilities 1.38b) |
| Altman-Z'' = 1.39 = BB |
| DSRI: 0.91 (Receivables 334.6m/298.2m, Revenue 1.48b/1.20b) |
| GMI: 0.97 (GM 62.54% / 64.21%) |
| AQI: 1.22 (AQ_t 0.50 / AQ_t-1 0.41) |
| SGI: 1.23 (Revenue 1.48b / 1.20b) |
| TATA: -0.07 (NI 139.3m - CFO 312.0m) / TA 2.58b) |
| Beneish M = -2.83 (Cap -4..+1) = A |
As of September 29, 2026, the stock is trading at USD 145.18 with a total of 1,132,718 shares traded. Over the past week, the price has changed by -2.81%, over one month by -29.47%, over three months by +20.11% and over the past year by -37.37%.
Current recommended Stop Loss: 124.00 (which is 14.6% or 2.6 ATR below the current price).
Guidewire Software has received a consensus analysts rating of 3.94. Therefore, it is recommended to buy GWRE.
- StrongBuy: 6
- Buy: 6
- Hold: 2
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 213.3 | 46.9% |
P/E Trailing = 89.3006
P/E Forward = 34.8432
P/S = 8.0894
P/B = 10.5018
P/EG = 0.9979
Revenue TTM = 1.48b USD
EBIT TTM = 177.4m USD
EBITDA TTM = 213.9m USD
Long Term Debt = 678.1m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 740.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 36.9m
Net Debt = -12.9m USD (calculated: Debt 740.2m - CCE 753.1m)
Enterprise Value = 11.9b USD (11.9b + Debt 740.2m - CCE 753.1m)
Interest Coverage Ratio = 13.32 (Ebit TTM 177.4m / Interest Expense TTM 13.3m)
EV/FCF = 41.07x (Enterprise Value 11.9b / FCF TTM 290.3m)
FCF Yield = 2.43% (FCF TTM 290.3m / Enterprise Value 11.9b)
FCF Margin = 19.67% (FCF TTM 290.3m / Revenue TTM 1.48b)
Net Margin = 9.44% (Net Income TTM 139.3m / Revenue TTM 1.48b)
Gross Margin = 64.21% ((Revenue TTM 1.48b - Cost of Revenue TTM 528.0m) / Revenue TTM)
Gross Margin QoQ = 65.60% (prev 63.52%)
Tobins Q-Ratio = 4.63 (Enterprise Value 11.9b / Total Assets 2.58b)
Interest Expense / Debt = 1.80% (Interest Expense 13.3m / Debt 740.2m)
Taxrate = 15.13% (24.8m / 164.1m)
NOPAT = 150.6m (EBIT 177.4m * (1 - 15.13%))
Current Ratio = 1.79 (Total Current Assets 1.19b / Total Current Liabilities 664.5m)
Debt / Equity = 0.62 (Debt 740.2m / totalStockholderEquity, last quarter 1.19b)
Debt / EBITDA = -0.06 (Net Debt -12.9m / EBITDA 213.9m)
Debt / FCF = -0.04 (Net Debt -12.9m / FCF TTM 290.3m)
Total Stockholder Equity = 1.39b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.26% (Net Income 139.3m / Total Assets 2.58b)
RoE = 10.03% (Net Income TTM 139.3m / Total Stockholder Equity 1.39b)
RoCE = 8.59% (EBIT 177.4m / Capital Employed (Equity 1.39b + L.T.Debt 678.1m))
RoIC = 8.19% (NOPAT 150.6m / Invested Capital 1.84b)
WACC = 7.74% (E(11.9b)/V(12.7b) * Re(8.12%) + D(740.2m)/V(12.7b) * Rd(1.80%) * (1-Tc(0.15)))
Discount Rate = 8.12% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 50.68 | Cagr: 0.60%
[DCF] Terminal Value 75.41% ; FCFF base≈290.5m ; Y1≈291.2m ; Y5≈307.3m
[DCF] Fair Price = 58.47 (EV 4.78b - Net Debt -12.9m = Equity 4.79b / Shares 82.0m; r=8.35% [WACC [floored]]; 5y FCF grow -0.22% → 2.50% )
EPS Correlation: 84.60 | EPS CAGR: 146.2% | SUE: 0.38 | # QB: 0
Revenue Correlation: 99.27 | Revenue CAGR: 20.33% | SUE: 1.54 | # QB: 6
EPS current Quarter (2026-10-31): EPS=0.72 | Chg30d=-10.33% | Revisions=-75% | Analysts=15
EPS next Quarter (2027-01-31): EPS=1.07 | Chg30d=+1.83% | Revisions=+36% | Analysts=14
EPS current Year (2027-07-31): EPS=4.19 | Chg30d=+2.37% | Revisions=+27% | GrowthEPS=+22.1% | GrowthRev=+16.5%
EPS next Year (2028-07-31): EPS=5.35 | Chg30d=+4.70% | Revisions=+31% | GrowthEPS=+27.6% | GrowthRev=+15.7%
[Analyst] Revisions Ratio: +7% (up=21, down=18)