(GWRE) Guidewire Software - NYSE
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 8.980m USD | Total Return: -56.9% in 12m
Avg Turnover: 245M
EPS Trend: 87.6%
Qual. Beats: 0
Rev. Trend: 98.4%
Qual. Beats: 5
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
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: 159.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 0.46 > 1.0 |
| NWC/Revenue: 50.55% < 20% (prev 79.75%; Δ -29.20% < -1%) |
| CFO/TA 0.11 > 3% & CFO 272.9m > Net Income 159.8m |
| Net Debt (-18.3m) to EBITDA (208.4m): -0.09 < 3 |
| Current Ratio: 2.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (85.9m) vs 12m ago 0.08% < -2% |
| Gross Margin: 64.01% > 18% (prev 62.13%; Δ 1.88% > 0.5%) |
| Asset Turnover: 56.57% > 50% (prev 45.71%; Δ 10.86% > 0%) |
| Interest Coverage Ratio: 13.05 > 6 (EBIT TTM 173.1m / Interest Expense TTM 13.3m) |
| A: 0.28 (Total Current Assets 1.22b - Total Current Liabilities 497.2m) / Total Assets 2.54b |
| B: -0.33 (Retained Earnings -845.5m / Total Assets 2.54b) |
| C: 0.07 (EBIT TTM 173.1m / Avg Total Assets 2.51b) |
| D: 1.08 (Book Value of Equity 1.32b / Total Liabilities 1.22b) |
| Altman-Z'' = 2.37 = BBB |
| DSRI: 0.93 (Receivables 363.6m/314.2m, Revenue 1.42b/1.14b) |
| GMI: 0.97 (GM 62.13% / 64.01%) |
| AQI: 1.11 (AQ_t 0.48 / AQ_t-1 0.43) |
| SGI: 1.25 (Revenue 1.42b / 1.14b) |
| TATA: -0.04 (NI 159.8m - CFO 272.9m) / TA 2.54b) |
| Beneish M = -2.88 (Cap -4..+1) = A |
As of June 23, 2026, the stock is trading at USD 102.69 with a total of 2,058,302 shares traded. Over the past week, the price has changed by -16.21%, over one month by -26.79%, over three months by -34.51% and over the past year by -56.93%.
Current recommended Stop Loss: 92.60 (which is 9.8% or 1.2 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 | 207 | 101.6% |
P/E Trailing = 57.9892
P/E Forward = 25.7732
P/S = 6.3202
P/B = 6.8178
P/EG = 0.5918
Revenue TTM = 1.42b USD
EBIT TTM = 173.1m USD
EBITDA TTM = 208.4m USD
Long Term Debt = 677.2m USD (from longTermDebt, last quarter)
Short Term Debt = 10.4m USD (from shortTermDebt, last fiscal year)
Debt = 731.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 27.0m
Net Debt = -18.3m USD (calculated: Debt 731.3m - CCE 749.5m)
Enterprise Value = 8.96b USD (8.98b + Debt 731.3m - CCE 749.5m)
Interest Coverage Ratio = 13.05 (Ebit TTM 173.1m / Interest Expense TTM 13.3m)
EV/FCF = 35.15x (Enterprise Value 8.96b / FCF TTM 255.0m)
FCF Yield = 2.85% (FCF TTM 255.0m / Enterprise Value 8.96b)
FCF Margin = 17.95% (FCF TTM 255.0m / Revenue TTM 1.42b)
Net Margin = 11.25% (Net Income TTM 159.8m / Revenue TTM 1.42b)
Gross Margin = 64.01% ((Revenue TTM 1.42b - Cost of Revenue TTM 511.3m) / Revenue TTM)
Gross Margin QoQ = 63.52% (prev 64.47%)
Tobins Q-Ratio = 3.54 (Enterprise Value 8.96b / Total Assets 2.54b)
Interest Expense / Debt = 1.81% (Interest Expense 13.3m / Debt 731.3m)
Taxrate = 16.64% (3.29m / 19.8m)
NOPAT = 144.3m (EBIT 173.1m * (1 - 16.64%))
Current Ratio = 2.44 (Total Current Assets 1.22b / Total Current Liabilities 497.2m)
Debt / Equity = 0.56 (Debt 731.3m / totalStockholderEquity, last quarter 1.32b)
Debt / EBITDA = -0.09 (Net Debt -18.3m / EBITDA 208.4m)
Debt / FCF = -0.07 (Net Debt -18.3m / FCF TTM 255.0m)
Total Stockholder Equity = 1.45b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.36% (Net Income 159.8m / Total Assets 2.54b)
RoE = 10.99% (Net Income TTM 159.8m / Total Stockholder Equity 1.45b)
RoCE = 8.12% (EBIT 173.1m / Capital Employed (Equity 1.45b + L.T.Debt 677.2m))
RoIC = 7.30% (NOPAT 144.3m / Invested Capital 1.98b)
WACC = 8.34% (E(8.98b)/V(9.71b) * Re(8.90%) + D(731.3m)/V(9.71b) * Rd(1.81%) * (1-Tc(0.17)))
Discount Rate = 8.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 55.56 | Cagr: 1.40%
[DCF] Terminal Value 76.29% ; FCFF base≈248.5m ; Y1≈263.5m ; Y5≈311.4m
[DCF] Fair Price = 57.74 (EV 4.79b - Net Debt -18.3m = Equity 4.81b / Shares 83.3m; r=8.35% [WACC [floored]]; 5y FCF grow 6.77% → 2.50% )
EPS Correlation: 87.57 | EPS CAGR: 166.3% | SUE: 0.55 | # QB: 0
Revenue Correlation: 98.44 | Revenue CAGR: 18.65% | SUE: 3.24 | # QB: 5
EPS next Quarter (2026-10-31): EPS=0.84 | Chg30d=-8.53% | Revisions=-7% | Analysts=11
EPS current Year (2026-07-31): EPS=3.48 | Chg30d=-1.01% | Revisions=-11% | GrowthEPS=+31.2% | GrowthRev=+22.6%
EPS next Year (2027-07-31): EPS=4.11 | Chg30d=-2.82% | Revisions=+56% | GrowthEPS=+18.3% | GrowthRev=+15.8%
[Analyst] Revisions Ratio: +56%