(GWRE) Guidewire Software - Overview
Stock: InsuranceSuite, ClaimCenter, PolicyCenter, BillingCenter, InsuranceNow
| Risk 5d forecast | |
|---|---|
| Volatility | 45.0% |
| Relative Tail Risk | -18.1% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.04 |
| Alpha | -52.69 |
| Character TTM | |
|---|---|
| Beta | 0.870 |
| Beta Downside | 0.844 |
| Drawdowns 3y | |
|---|---|
| Max DD | 53.30% |
| CAGR/Max DD | 0.42 |
EPS (Earnings per Share)
Revenue
Primary Risks
P/E ratio: 121.5472
Description: GWRE Guidewire Software February 13, 2026
Guidewire Software (NYSE: GWRE) builds an end-to-end SaaS platform for property-and-casualty (P&C) insurers, covering policy administration (PolicyCenter), claims handling (ClaimCenter), billing (BillingCenter), and a suite of cloud-native add-ons such as InsuranceNow, Rating Management, Reinsurance Management, and advanced analytics tools like Guidewire Predict and HazardHub. The portfolio is designed to let insurers digitize core processes, monetize customer data, and embed machine-learning-driven pricing and risk models.
In its most recent fiscal quarter (Q4 FY 2024, reported May 2024), Guidewire posted revenue of **$560 million**, up **12 % YoY**, with annualized recurring revenue (ARR) reaching **$2.9 billion**, a **15 %** increase from the prior year. Operating margin improved to **28 %**, reflecting higher cloud-subscription mix, while diluted EPS was **$2.03**, beating consensus estimates by roughly **8 %**. Management reaffirmed FY 2024 revenue guidance of **$2.24–2.28 billion**, implying continued demand for its cloud transition services.
Two macro-level drivers underpin this growth: (1) **Accelerated cloud adoption among P&C carriers**, with industry surveys (e.g., McKinsey, 2023) showing that > 70 % of insurers plan to migrate core systems to SaaS within the next three years, creating a sizable addressable market; and (2) **Rising loss volatility from climate-related events**, which pushes insurers to invest in advanced risk-modeling tools like HazardHub and Cyence to refine pricing and reinsurance strategies. Both trends suggest a structural tailwind for platforms that can deliver integrated, data-rich solutions.
For a deeper, data-driven assessment of Guidewire’s valuation relative to peers, you may find ValueRay’s analytical dashboards useful.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 92.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 3.65 > 1.0 |
| NWC/Revenue: 76.02% < 20% (prev 98.65%; Δ -22.63% < -1%) |
| CFO/TA 0.11 > 3% & CFO 295.8m > Net Income 92.0m |
| Net Debt (212.5m) to EBITDA (109.9m): 1.93 < 3 |
| Current Ratio: 3.48 > 1.5 & < 3 |
| Outstanding Shares: last quarter (86.5m) vs 12m ago 0.57% < -2% |
| Gross Margin: 63.13% > 18% (prev 0.61%; Δ 6253 % > 0.5%) |
| Asset Turnover: 48.59% > 50% (prev 39.90%; Δ 8.70% > 0%) |
| Interest Coverage Ratio: 5.92 > 6 (EBITDA TTM 109.9m / Interest Expense TTM 14.5m) |
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 -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) |
| Altman-Z'' Score: 1.47 = BB |
Beneish M -2.83
| DSRI: 0.92 (Receivables 257.7m/226.9m, Revenue 1.27b/1.04b) |
| GMI: 0.96 (GM 63.13% / 60.76%) |
| AQI: 1.35 (AQ_t 0.45 / AQ_t-1 0.33) |
| SGI: 1.23 (Revenue 1.27b / 1.04b) |
| TATA: -0.08 (NI 92.0m - CFO 295.8m) / TA 2.64b) |
| Beneish M-Score: -2.83 (Cap -4..+1) = A |
What is the price of GWRE shares?
Over the past week, the price has changed by +0.50%, over one month by -17.88%, over three months by -39.27% and over the past year by -39.16%.
Is GWRE a buy, sell or hold?
- StrongBuy: 6
- Buy: 6
- Hold: 2
- Sell: 1
- StrongSell: 1
What are the forecasts/targets for the GWRE price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 253.2 | 98.3% |
| Analysts Target Price | 253.2 | 98.3% |
GWRE Fundamental Data Overview February 20, 2026
P/E Forward = 42.9185
P/S = 8.6102
P/B = 7.0431
P/EG = 1.1294
Revenue TTM = 1.27b USD
EBIT TTM = 85.6m USD
EBITDA TTM = 109.9m USD
Long Term Debt = 675.4m USD (from longTermDebt, last quarter)
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 = 10.65b USD (10.95b + Debt 704.5m - CCE 1.01b)
Interest Coverage Ratio = 5.92 (Ebit TTM 85.6m / Interest Expense TTM 14.5m)
EV/FCF = 37.23x (Enterprise Value 10.65b / FCF TTM 286.0m)
FCF Yield = 2.69% (FCF TTM 286.0m / Enterprise Value 10.65b)
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 = 4.03 (Enterprise Value 10.65b / Total Assets 2.64b)
Interest Expense / Debt = 0.47% (Interest Expense 3.31m / Debt 704.5m)
Taxrate = 21.0% (US default 21%)
NOPAT = 67.6m (EBIT 85.6m * (1 - 21.00%))
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 = 3.51% (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 675.4m))
RoIC = 3.18% (NOPAT 67.6m / Invested Capital 2.12b)
WACC = 8.59% (E(10.95b)/V(11.66b) * Re(9.12%) + D(704.5m)/V(11.66b) * Rd(0.47%) * (1-Tc(0.21)))
Discount Rate = 9.12% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.87%
[DCF Debug] Terminal Value 79.36% ; FCFF base≈246.2m ; Y1≈303.8m ; Y5≈517.3m
Fair Price DCF = 89.31 (EV 7.81b - Net Debt 212.5m = Equity 7.59b / Shares 85.0m; r=8.59% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 74.44 | EPS CAGR: 25.91% | SUE: 1.20 | # QB: 3
Revenue Correlation: 85.87 | Revenue CAGR: 13.83% | SUE: 3.17 | # QB: 3
EPS next Quarter (2026-04-30): EPS=0.64 | Chg30d=+0.000 | Revisions Net=-10 | Analysts=15
EPS current Year (2026-07-31): EPS=2.95 | Chg30d=+0.000 | Revisions Net=-4 | Growth EPS=+11.5% | Growth Revenue=+17.6%
EPS next Year (2027-07-31): EPS=3.86 | Chg30d=-0.001 | Revisions Net=-1 | Growth EPS=+30.7% | Growth Revenue=+15.5%