Guidewire Software, Inc. provides software products for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud comprising PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; and Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predict, a P&C-specific machine-learning platform; Guidewire HazardHub, that allows insurers to understand, assess, price, and manage property risk; Guidewire Canvas, Guidewire Compare, and Guidewire Explore cloud-native applications; Guidewire Cyence, a cyber-risk economic modeling product; The company was incorporated in 2001 and is headquartered in San Mateo, California.
Discounted Cash Flow Valuation of Guidewire Software, Inc.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is -7.88%.
The trend of Net Margin over the past 5 years is -3.64%.
The average ROA over the past 5 years is -3.39%.
The trend of ROA over the past 5 years is -1.85%.
The average ROE over the past 5 years is -4.63%.
The trend of ROE over the past 5 years is -2.39%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 12.19.
The trend of Debt/FCF over the past 5 years is 0.38.
Graham’s Stability measure stands at -3.66.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +6.49%.
The trend of Revenue growth rate over the past 5 years is -1.05%.
The Earnings CAGR over the past 5 years is +41.58%.
The trend of Earnings growth rate over the past 5 years is +37.29%.
The Equity CAGR over the past 5 years is -3.37%.
The trend of Equity growth rate over the past 5 years is -4.13%.
The FCF CAGR over the past 5 years is -24.3%.
The trend of FCF growth rate over the past 5 years is -3.37%.