(GWRE) Guidewire Software - Ratings and Ratios
Insurance, Management, Cloud, Platform, Analytics, Tools
GWRE EPS (Earnings per Share)
GWRE Revenue
Description: GWRE Guidewire Software
Guidewire Software Inc (NYSE:GWRE) is a leading provider of a cloud-based platform for property and casualty (P&C) insurers worldwide, offering a comprehensive suite of applications for policy, billing, and claims management. The companys InsuranceSuite Cloud, including PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud, enables insurers to streamline their operations and improve customer engagement.
Key performance indicators (KPIs) for Guidewire Software include revenue growth, customer acquisition, and retention rates. With a strong presence in the P&C insurance market, the companys revenue growth is driven by the increasing demand for cloud-based solutions. The companys customer base includes major P&C insurers, and its retention rates are a key indicator of its ability to deliver value to its customers. As of the latest available data, Guidewire Softwares revenue growth rate is around 15% YoY, and its customer retention rate is above 90%.
In terms of product offerings, Guidewire Software has a broad portfolio of solutions that cater to the diverse needs of P&C insurers. Its products, such as Guidewire Rating Management, Guidewire Reinsurance Management, and Guidewire Client Data Management, enable insurers to manage their pricing, reinsurance, and customer data effectively. The companys cloud-native applications, including Guidewire Advanced Product Designer and Guidewire Underwriting Management, provide insurers with the flexibility and scalability to innovate and grow their businesses.
Guidewire Softwares competitive advantage lies in its deep understanding of the P&C insurance industry and its ability to deliver tailored solutions that meet the specific needs of its customers. The companys strong R&D capabilities and its commitment to innovation enable it to stay ahead of the competition. With a market capitalization of around $18.5 billion, Guidewire Software is a significant player in the application software industry, and its financial performance is closely watched by investors and analysts.
From a valuation perspective, Guidewire Softwares price-to-earnings (P/E) ratio is around 524, indicating a high growth expectation from investors. However, its forward P/E ratio is significantly lower, at around 80, suggesting that the companys growth rate is expected to normalize in the future. The companys return on equity (RoE) is around 2.64%, which is relatively low compared to its peers. Investors should closely monitor Guidewire Softwares financial performance, including its revenue growth, profitability, and cash flow generation, to assess its investment potential.
GWRE Stock Overview
| Market Cap in USD | 21,951m |
| Sub-Industry | Application Software |
| IPO / Inception | 2012-01-25 |
GWRE Stock Ratings
| Growth Rating | 81.2% |
| Fundamental | 72.9% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 25.1% |
| Analyst Rating | 3.94 of 5 |
GWRE Dividends
Currently no dividends paidGWRE Growth Ratios
| Growth Correlation 3m | -39.3% |
| Growth Correlation 12m | 76% |
| Growth Correlation 5y | 44.8% |
| CAGR 5y | 58.19% |
| CAGR/Max DD 3y | 2.47 |
| CAGR/Mean DD 3y | 14.25 |
| Sharpe Ratio 12m | 0.78 |
| Alpha | 39.43 |
| Beta | 0.434 |
| Volatility | 37.95% |
| Current Volume | 535.9k |
| Average Volume 20d | 645k |
| Stop Loss | 245.3 (-3%) |
| Signal | 0.57 |
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 |
| (C) 0.03 = EBIT TTM 62.6m / Avg Total Assets 2.47b |
| (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) 72.90
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 1.32% = 0.66 |
| 3. FCF Margin 24.19% = 6.05 |
| 4. Debt/Equity 0.87 = 2.14 |
| 5. Debt/Ebitda 14.63 = -2.50 |
| 6. ROIC - WACC 5.16% = 6.45 |
| 7. RoE 5.21% = 0.43 |
| 8. Rev. Trend 85.40% = 4.27 |
| 9. Rev. CAGR 24.48% = 2.50 |
| 10. EPS Trend 76.07% = 1.90 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of GWRE shares?
Over the past week, the price has changed by -2.98%, over one month by +21.68%, over three months by +0.92% and over the past year by +48.96%.
Is Guidewire Software a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of GWRE is around 293.24 USD . This means that GWRE is currently undervalued and has a potential upside of +15.93% (Margin of Safety).
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 | 264.3 | 4.5% |
| Analysts Target Price | 264.3 | 4.5% |
| ValueRay Target Price | 324.4 | 28.2% |
Last update: 2025-09-07 02:01
GWRE Fundamental Data Overview
CCE Cash And Equivalents = 1.15b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 521.42
P/E Forward = 96.1538
P/S = 19.2988
P/B = 15.0632
P/EG = 2.8654
Beta = 1.219
Revenue TTM = 1.20b USD
EBIT TTM = 62.6m USD
EBITDA TTM = 86.4m USD
Long Term Debt = 719.1m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 544.8m USD (from totalCurrentLiabilities, last quarter)
Debt = 1.26b USD (Calculated: Short Term 544.8m + Long Term 719.1m)
Net Debt = 7.35m USD (from netDebt column, last quarter)
Enterprise Value = 22.06b USD (21.95b + Debt 1.26b - CCE 1.15b)
Interest Coverage Ratio = 4.74 (Ebit TTM 62.6m / Interest Expense TTM 13.2m)
FCF Yield = 1.32% (FCF TTM 290.9m / Enterprise Value 22.06b)
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)
Tobins Q-Ratio = -39.18 (set to none) (Enterprise Value 22.06b / Book Value Of Equity -563.2m)
Interest Expense / Debt = 0.26% (Interest Expense 3.30m / Debt 1.26b)
Taxrate = -41.32% (set to none) (-20.4m / 49.4m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 2.77 (Total Current Assets 1.51b / Total Current Liabilities 544.8m)
Debt / Equity = 0.87 (Debt 1.26b / last Quarter total Stockholder Equity 1.46b)
Debt / EBITDA = 14.63 (Net Debt 7.35m / EBITDA 86.4m)
Debt / FCF = 4.34 (Debt 1.26b / FCF TTM 290.9m)
Total Stockholder Equity = 1.34b (last 4 quarters mean)
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 = 3.04% (Ebit 62.6m / (Equity 1.34b + L.T.Debt 719.1m))
RoIC = 5.16% (Ebit 62.6m / (Assets 2.72b - Current Assets 1.51b))
WACC = unknown (E(21.95b)/V(23.21b) * Re(7.61%)) + (D(1.26b)/V(23.21b) * Rd(0.26%) * (1-Tc(none)))
Shares Correlation 3-Years: 32.75 | Cagr: 0.21%
Discount Rate = 7.61% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 81.43% ; FCFE base≈245.4m ; Y1≈302.8m ; Y5≈516.6m
Fair Price DCF = 104.4 (DCF Value 8.79b / Shares Outstanding 84.2m; 5y FCF grow 25.0% → 3.0% )
Revenue Correlation: 85.40 | Revenue CAGR: 24.48%
Rev Growth-of-Growth: 9.82
EPS Correlation: 76.07 | EPS CAGR: 0.0%
EPS Growth-of-Growth: 2.81
Additional Sources for GWRE Stock
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