GWRE Stock Analysis: Guidewire Software | NYSE
Software - Application | NYSE, USA | Market Cap: 11.663m USD | 12M Return: -44.3% | US40171V1008 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 243M
EPS Trend: 84.6%
Qual. Beats: 0
Rev. Trend: 99.3%
Qual. Beats: 6
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 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) is a San Mateo, California-based software company founded in 2001 that provides technology platforms primarily for the global property and casualty (P&C) insurance industry. Its core offerings include the InsuranceSuite suite (PolicyCenter, ClaimCenter, and BillingCenter) for core policy, claims, and billing operations, alongside InsuranceNow, a cloud-based application combining policy administration, claims, billing, document production, and analytics in a single platform.
The company also provides a broad set of supplementary products spanning pricing and rating, reinsurance management, customer data management, product design and content management, digital customer engagement, machine learning, property risk assessment, cyber-risk modeling, and business intelligence. As a large-cap application software company (GICS Sub Industry: Application Software) within the Information Technology sector, Guidewire operates in the insurance core systems market, where it is a notable vendor for P&C insurers.
- Guidewire Cloud ARR growth accelerates subscription revenue mix shift
- Cloud transition costs pressure near-term operating margins
- P&C insurer digital transformation spending expands deal pipeline
| 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 (-22.7m) to EBITDA (213.9m): -0.11 < 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 15, 2026, the stock is trading at USD 140.92 with a total of 1,988,541 shares traded. Over the past week, the price has changed by -30.53%, over one month by -20.23%, over three months by +18.90% and over the past year by -44.34%.
Current recommended Stop Loss: 121.90 (which is 13.5% or 1.8 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 | 51.4% |
P/E Trailing = 76.1359
P/E Forward = 32.3625
P/S = 7.9054
P/B = 8.991
P/EG = 0.9284
Revenue TTM = 1.48b USD
EBIT TTM = 177.4m USD
EBITDA TTM = 213.9m USD
Long Term Debt = 677.2m USD (from longTermDebt, two quarters ago)
Short Term Debt = unknown (none)
Debt = 730.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 27.0m
Net Debt = -22.7m USD (calculated: Debt 730.3m - CCE 753.1m)
Enterprise Value = 11.6b USD (11.7b + Debt 730.3m - CCE 753.1m)
Interest Coverage Ratio = 13.32 (Ebit TTM 177.4m / Interest Expense TTM 13.3m)
EV/FCF = 40.11x (Enterprise Value 11.6b / FCF TTM 290.3m)
FCF Yield = 2.49% (FCF TTM 290.3m / Enterprise Value 11.6b)
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 = 4.52 (Enterprise Value 11.6b / Total Assets 2.58b)
Interest Expense / Debt = 1.82% (Interest Expense 13.3m / Debt 730.3m)
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 = 0.61 (Debt 730.3m / totalStockholderEquity, last quarter 1.19b)
Debt / EBITDA = -0.11 (Net Debt -22.7m / EBITDA 213.9m)
Debt / FCF = -0.08 (Net Debt -22.7m / 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 677.2m))
RoIC = 8.19% (NOPAT 150.6m / Invested Capital 1.84b)
WACC = 7.72% (E(11.7b)/V(12.4b) * Re(8.11%) + D(730.3m)/V(12.4b) * Rd(1.82%) * (1-Tc(0.15)))
Discount Rate = 8.11% (= 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 = 57.70 (EV 4.78b - Net Debt -22.7m = Equity 4.80b / Shares 83.3m; 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=-9.29% | Revisions=+25% | Analysts=15
EPS next Quarter (2027-01-31): EPS=1.07 | Chg30d=+2.90% | Revisions=+0% | Analysts=14
EPS current Year (2027-07-31): EPS=4.19 | Chg30d=+2.60% | Revisions=+0% | GrowthEPS=+22.1% | GrowthRev=+16.5%
EPS next Year (2028-07-31): EPS=5.35 | Chg30d=+5.73% | Revisions=+0% | GrowthEPS=+27.6% | GrowthRev=+15.7%
[Analyst] Revisions Ratio: +10% (up=4, down=3)