(GWRE) Guidewire Software - Ratings and Ratios
InsuranceSuite, InsuranceNow, Digital, Analytics, Data
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 33.6% |
| Value at Risk 5%th | 46.0% |
| Relative Tail Risk | -16.66% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.14 |
| Alpha | -9.55 |
| CAGR/Max DD | 2.12 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.843 |
| Beta | 0.792 |
| Beta Downside | 0.922 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.59% |
| Mean DD | 5.86% |
| Median DD | 4.07% |
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.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (92.0m TTM) > 0 and > 6% of Revenue (6% = 76.3m TTM) |
| FCFTA 0.11 (>2.0%) and ΔFCFTA 3.65pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 76.02% (prev 98.65%; Δ -22.63pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.11 (>3.0%) and CFO 295.8m > Net Income 92.0m (YES >=105%, WARN >=100%) |
| Net Debt (212.5m) to EBITDA (109.9m) ratio: 1.93 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.48 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (86.5m) change vs 12m ago 0.57% (target <= -2.0% for YES) |
| Gross Margin 63.13% (prev 60.76%; Δ 2.37pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 48.59% (prev 39.90%; Δ 8.70pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.92 (EBITDA TTM 109.9m / Interest Expense TTM 14.5m) >= 6 (WARN >= 3) |
Altman Z'' 1.47
| (A) 0.37 = (Total Current Assets 1.36b - Total Current Liabilities 389.9m) / Total Assets 2.64b |
| (B) -0.20 = Retained Earnings (Balance) -522.9m / Total Assets 2.64b |
| (C) 0.03 = EBIT TTM 85.6m / Avg Total Assets 2.62b |
| (D) -0.48 = Book Value of Equity -530.8m / Total Liabilities 1.11b |
| Total Rating: 1.47 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 67.17
| 1. Piotroski 6.50pt |
| 2. FCF Yield 1.62% |
| 3. FCF Margin 22.48% |
| 4. Debt/Equity 0.46 |
| 5. Debt/Ebitda 1.93 |
| 6. ROIC - WACC (= -3.40)% |
| 7. RoE 6.54% |
| 8. Rev. Trend 85.87% |
| 9. EPS Trend 79.47% |
What is the price of GWRE shares?
Over the past week, the price has changed by -2.51%, over one month by -4.39%, over three months by -19.24% and over the past year by +1.93%.
Is GWRE a buy, sell or hold?
- 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 | 266.4 | 26.5% |
| Analysts Target Price | 266.4 | 26.5% |
| ValueRay Target Price | 239.9 | 13.9% |
GWRE Fundamental Data Overview December 06, 2025
P/E Trailing = 199.1227
P/E Forward = 73.5294
P/S = 14.9236
P/B = 11.9626
P/EG = 2.1028
Beta = 1.071
Revenue TTM = 1.27b USD
EBIT TTM = 85.6m USD
EBITDA TTM = 109.9m USD
Long Term Debt = 674.6m USD (from longTermDebt, last fiscal year)
Short Term Debt = 10.4m USD (from shortTermDebt, last fiscal year)
Debt = 704.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 212.5m USD (from netDebt column, last quarter)
Enterprise Value = 17.64b USD (17.94b + Debt 704.5m - CCE 1.01b)
Interest Coverage Ratio = 5.92 (Ebit TTM 85.6m / Interest Expense TTM 14.5m)
FCF Yield = 1.62% (FCF TTM 286.0m / Enterprise Value 17.64b)
FCF Margin = 22.48% (FCF TTM 286.0m / Revenue TTM 1.27b)
Net Margin = 7.23% (Net Income TTM 92.0m / Revenue TTM 1.27b)
Gross Margin = 63.13% ((Revenue TTM 1.27b - Cost of Revenue TTM 469.0m) / Revenue TTM)
Gross Margin QoQ = 62.99% (prev 65.01%)
Tobins Q-Ratio = 6.68 (Enterprise Value 17.64b / Total Assets 2.64b)
Interest Expense / Debt = 0.47% (Interest Expense 3.31m / Debt 704.5m)
Taxrate = -27.78% (negative due to tax credits) (-6.81m / 24.5m)
NOPAT = 109.4m (EBIT 85.6m * (1 - -27.78%)) [negative tax rate / tax credits]
Current Ratio = 3.48 (Total Current Assets 1.36b / Total Current Liabilities 389.9m)
Debt / Equity = 0.46 (Debt 704.5m / totalStockholderEquity, last quarter 1.53b)
Debt / EBITDA = 1.93 (Net Debt 212.5m / EBITDA 109.9m)
Debt / FCF = 0.74 (Net Debt 212.5m / FCF TTM 286.0m)
Total Stockholder Equity = 1.41b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.48% (Net Income 92.0m / Total Assets 2.64b)
RoE = 6.54% (Net Income TTM 92.0m / Total Stockholder Equity 1.41b)
RoCE = 4.11% (EBIT 85.6m / Capital Employed (Equity 1.41b + L.T.Debt 674.6m))
RoIC = 5.22% (NOPAT 109.4m / Invested Capital 2.10b)
WACC = 8.62% (E(17.94b)/V(18.65b) * Re(8.93%) + D(704.5m)/V(18.65b) * Rd(0.47%) * (1-Tc(-0.28)))
Discount Rate = 8.93% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.87%
[DCF Debug] Terminal Value 78.61% ; FCFE base≈246.2m ; Y1≈303.8m ; Y5≈518.3m
Fair Price DCF = 87.82 (DCF Value 7.47b / Shares Outstanding 85.0m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 79.47 | EPS CAGR: 37.78% | SUE: 0.30 | # QB: 0
Revenue Correlation: 85.87 | Revenue CAGR: 13.83% | SUE: 3.17 | # QB: 3
EPS next Quarter (2026-01-31): EPS=0.77 | Chg30d=+0.024 | Revisions Net=+2 | Analysts=14
EPS current Year (2026-07-31): EPS=2.96 | Chg30d=-0.021 | Revisions Net=+2 | Growth EPS=+11.8% | Growth Revenue=+17.6%
EPS next Year (2027-07-31): EPS=3.85 | Chg30d=-0.003 | Revisions Net=+1 | Growth EPS=+29.9% | Growth Revenue=+15.1%
Additional Sources for GWRE Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle