(GWRE) Guidewire Software - Overview
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 11.064m USD | Total Return: -32.6% in 12m
Avg Turnover: 178M
Qual. Beats: 4
Rev. Trend: 97.9%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Confidence
Guidewire Software, Inc. provides a specialized technology platform for the global property and casualty (P&C) insurance industry. Its core offerings include InsuranceSuite, which handles policy administration, claims, and billing, alongside InsuranceNow, a cloud-based solution for integrated management. The companys portfolio extends to advanced analytics, cyber-risk modeling, and machine-learning tools designed to help insurers modernize legacy systems and improve underwriting accuracy.
The business operates under a software-as-a-service (SaaS) model, reflecting a broader sector shift from on-premise installations to subscription-based cloud delivery. This transition is critical for P&C insurers who require high system availability and real-time data processing to manage complex risk profiles and regulatory compliance. You can further examine the companys valuation metrics and growth projections on ValueRay.
In addition to core operational software, Guidewire offers digital engagement applications and data warehouses like InfoCenter to support business intelligence. Founded in 2001 and headquartered in San Mateo, California, the firm serves as a primary infrastructure provider for the digital transformation of the insurance sector.
- Cloud transition momentum accelerates subscription revenue growth and improves long-term operating margins
- Legacy on-premise maintenance attrition pressures short-term professional services revenue and profitability
- P&C carrier digital transformation cycles drive adoption of core InsuranceSuite cloud applications
- Rising cyber risk demand boosts Cyence modeling software and hazard data integration
| Net Income: 189.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 3.32 > 1.0 |
| NWC/Revenue: 66.12% < 20% (prev 84.77%; Δ -18.65% < -1%) |
| CFO/TA 0.12 > 3% & CFO 321.8m > Net Income 189.4m |
| Net Debt (-185.5m) to EBITDA (197.4m): -0.94 < 3 |
| Current Ratio: 2.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (86.3m) vs 12m ago 3.15% < -2% |
| Gross Margin: 63.76% > 18% (prev 0.61%; Δ 6.31k% > 0.5%) |
| Asset Turnover: 51.27% > 50% (prev 42.65%; Δ 8.61% > 0%) |
| Interest Coverage Ratio: 12.00 > 6 (EBITDA TTM 197.4m / Interest Expense TTM 13.6m) |
| A: 0.33 (Total Current Assets 1.35b - Total Current Liabilities 459.0m) / Total Assets 2.69b |
| B: -0.23 (Retained Earnings -611.0m / Total Assets 2.69b) |
| C: 0.06 (EBIT TTM 163.3m / Avg Total Assets 2.62b) |
| D: -0.52 (Book Value of Equity -614.0m / Total Liabilities 1.18b) |
| Altman-Z'' = 1.30 = BB |
| DSRI: 1.15 (Receivables 337.7m/237.5m, Revenue 1.34b/1.08b) |
| GMI: 0.96 (GM 63.76% / 61.43%) |
| AQI: 1.21 (AQ_t 0.46 / AQ_t-1 0.38) |
| SGI: 1.24 (Revenue 1.34b / 1.08b) |
| TATA: -0.05 (NI 189.4m - CFO 321.8m) / TA 2.69b) |
| Beneish M = -2.69 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 135.71 with a total of 1,364,937 shares traded.
Over the past week, the price has changed by +7.78%,
over one month by -1.91%,
over three months by +14.76% and
over the past year by -32.57%.
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 | 233.1 | 71.7% |
P/E Forward = 35.7143
P/S = 8.2459
P/B = 7.759
P/EG = 0.8478
Revenue TTM = 1.34b USD
EBIT TTM = 163.3m USD
EBITDA TTM = 197.4m USD
Long Term Debt = 676.3m USD (from longTermDebt, last quarter)
Short Term Debt = 10.4m USD (from shortTermDebt, last fiscal year)
Debt = 733.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 28.7m
Net Debt = -185.5m USD (calculated: Debt 733.7m - CCE 919.2m)
Enterprise Value = 10.9b USD (11.1b + Debt 733.7m - CCE 919.2m)
Interest Coverage Ratio = 12.00 (Ebit TTM 163.3m / Interest Expense TTM 13.6m)
EV/FCF = 35.14x (Enterprise Value 10.9b / FCF TTM 309.6m)
FCF Yield = 2.85% (FCF TTM 309.6m / Enterprise Value 10.9b)
FCF Margin = 23.07% (FCF TTM 309.6m / Revenue TTM 1.34b)
Net Margin = 14.11% (Net Income TTM 189.4m / Revenue TTM 1.34b)
Gross Margin = 63.76% ((Revenue TTM 1.34b - Cost of Revenue TTM 486.3m) / Revenue TTM)
Gross Margin QoQ = 64.47% (prev 62.99%)
Tobins Q-Ratio = 4.04 (Enterprise Value 10.9b / Total Assets 2.69b)
Interest Expense / Debt = 1.86% (Interest Expense 13.6m / Debt 733.7m)
Taxrate = 19.37% (14.4m / 74.6m)
NOPAT = 131.7m (EBIT 163.3m * (1 - 19.37%))
Current Ratio = 2.93 (Total Current Assets 1.35b / Total Current Liabilities 459.0m)
Debt / Equity = 0.49 (Debt 733.7m / totalStockholderEquity, last quarter 1.51b)
Debt / EBITDA = -0.94 (Net Debt -185.5m / EBITDA 197.4m)
Debt / FCF = -0.60 (Net Debt -185.5m / FCF TTM 309.6m)
Total Stockholder Equity = 1.47b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.24% (Net Income 189.4m / Total Assets 2.69b)
RoE = 9.12% (Net Income TTM 189.4m / Total Stockholder Equity 2.08b)
RoCE = 5.93% (EBIT 163.3m / Capital Employed (Equity 2.08b + L.T.Debt 676.3m))
RoIC = 5.87% (NOPAT 131.7m / Invested Capital 2.24b)
WACC = 7.87% (E(11.1b)/V(11.8b) * Re(8.29%) + D(733.7m)/V(11.8b) * Rd(1.86%) * (1-Tc(0.19)))
Discount Rate = 8.29% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.33 | Cagr: 2.49%
[DCF] Terminal Value 77.97% ; FCFF base≈268.9m ; Y1≈308.3m ; Y5≈453.7m
[DCF] Fair Price = 82.83 (EV 6.83b - Net Debt -185.5m = Equity 7.01b / Shares 84.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.94 | # QB: 4
Revenue Correlation: 97.90 | Revenue CAGR: 16.71% | SUE: 2.79 | # QB: 4
EPS current Year (2026-07-31): EPS=3.51 | Chg30d=+0.00% | Revisions=+79% | GrowthEPS=+32.6% | GrowthRev=+20.2%
EPS next Year (2027-07-31): EPS=4.23 | Chg30d=+0.00% | Revisions=+79% | GrowthEPS=+20.5% | GrowthRev=+15.8%
[Analyst] Revisions Ratio: +79%