Guidewire Software, Inc.

Technology
Computer Software: Prepackaged Software
www.guidewire.com

Earnings Score
Moat Score

Market Cap $14.79B
PE 491
Debt $NaN
Cash $824.75M
EV $NaN
FCF $199.32M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$30.11M
EBIT	$9.71M
ROE	2%
ROA	0%
FCF	$199.32M
Equity	$1.27B
Growth Stability	-366%
PE	491.16
PB	11.66
P/FCF	74.19
P/S	14.27
Price/Cash	0.06
Net Margins	3%
Gross Margins	61%
Op. Margins	1%
Earnings CAGR	0%
Sales Growth YoY	27%
Sales Growth QoQ	-10%
Sales CAGR	10%
FCF CAGR	0%
Equity CAGR	7%
Earnings Stability	0
Earnings Growth YoY	-134%

Earnings Growth QoQ	-45%
Sales CAGR 5Y	8%
FCF CAGR 5Y	4%
Equity CAGR 5Y	-7%
Earnings CAGR 3Y	10%
Sales CAGR 3Y	10%
FCF CAGR 3Y	77%
Equity CAGR 3Y	-4%
Market Cap	$14.79B
Revenue	$1.04B
Assets	$2.60B
Cash	$824.75M
Shares Outstanding	83.28M
Earnings Score	6%
Moat Score	36%
Working Capital	1.02B
Current Ratio	2.66
Gross Profit	$629.46M
Shares Growth 3y	-1%
Equity Growth QoQ	-6%
Equity Growth YoY	5%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

Guidewire Software provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, as well as a variety of other add-on applications.

SEC Filings

Direct access to Guidewire Software, Inc. (GWRE) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Oct 31
- 10-K Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2023
- 10-Q Oct 31
- 10-K Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2022
- 10-Q Oct 31
- 10-K Jul 31
- 10-Q Apr 30
- 10-Q Jan 31

Sector Comparison

How does Guidewire Software, Inc. compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Guidewire Software, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 0%

Stability 0%

loading chart...

Guidewire Software, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Guidewire Software, Inc..

Years

Calculation mode

= $2.1B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$199M	$200M	$201M	$202M	$203M	$204M	$205M	$206M	$207M	$208M	$209M	$2.1B
DCF		$182M	$166M	$152M	$139M	$127M	$116M	$106M	$96M	$88M	$80M	$805M
Value	$2.1B

Competitiveness and MOAT

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.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	TTM
Net Margins	3%	4%	4%	-3%	3%	-4%	-9%	-22%	-12%	-1%	3%
ROA	-	2%	3%	0%	1%	-1%	-4%	-9%	-7%	-1%	0%
ROE	-	2%	2%	-1%	1%	-2%	-4%	-12%	-9%	-0%	2%

Bad Net Margins (3.48%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	TTM
Debt over FCF	-	-	-	2.33	4.46	3.6	3.71	-7.55	12.19	2.14	-
Debt over Equity	-	-	-	0.21	0.2	0.2	0.22	0.25	0.33	0.3	-
Growth Stability	-	-	-	-128%	100%	-366%	-	-	-	-	-366%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-366%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

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.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	CAGR 5Y
Revenue YoY growth	-	12%	21%	29%	9%	3%	0%	9%	11%	8%	8%
Earnings YoY growth	-	52%	42%	-193%	-205%	-231%	145%	171%	-38%	-95%	-
Equity YoY growth	-	14%	14%	59%	11%	5%	-7%	-6%	-17%	12%	-7%
FCF YoY growth	-	62%	41%	-0%	-46%	29%	1%	-151%	-169%	481%	4%