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Guidewire Software

NYSE:GWRE
Snowflake Description

Excellent balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GWRE
NYSE
$8B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The last earnings update was 16 days ago. More info.


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GWRE Share Price and Events
7 Day Returns
-0.3%
NYSE:GWRE
1.4%
US Software
0.4%
US Market
1 Year Returns
16.1%
NYSE:GWRE
26.7%
US Software
3.5%
US Market
GWRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Guidewire Software (GWRE) -0.3% 2.8% 24.2% 16.1% 75.1% 94.2%
US Software 1.4% 5.2% 22.7% 26.7% 110.9% 140.1%
US Market 0.4% 1.6% 16.4% 3.5% 39.4% 44%
1 Year Return vs Industry and Market
  • GWRE underperformed the Software industry which returned 26.7% over the past year.
  • GWRE outperformed the Market in United States of America which returned 3.5% over the past year.
Price Volatility
GWRE
Industry
5yr Volatility vs Market

Value

 Is Guidewire Software undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Guidewire Software to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Guidewire Software.

NYSE:GWRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GWRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (4.08%))
1.119
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.119 * 5.96%)
9.4%

Discounted Cash Flow Calculation for NYSE:GWRE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Guidewire Software is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GWRE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.4%)
2019 92.33 Analyst x7 84.40
2020 165.27 Analyst x6 138.09
2021 239.15 Analyst x5 182.65
2022 302.30 Est @ 26.41% 211.04
2023 360.67 Est @ 19.31% 230.15
2024 412.36 Est @ 14.33% 240.53
2025 457.12 Est @ 10.85% 243.73
2026 495.58 Est @ 8.42% 241.53
2027 528.84 Est @ 6.71% 235.59
2028 558.01 Est @ 5.52% 227.23
Present value of next 10 years cash flows $2,034.95
NYSE:GWRE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $558.01 × (1 + 2.73%) ÷ (9.4% – 2.73%)
$8,594.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,594.26 ÷ (1 + 9.4%)10
$3,499.72
NYSE:GWRE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,034.95 + $3,499.72
$5,534.67
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,534.67 / 81.41
$67.98
NYSE:GWRE Discount to Share Price
Calculation Result
Value per share (USD) From above. $67.98
Current discount Discount to share price of $93.59
= -1 x ($93.59 - $67.98) / $67.98
-37.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Guidewire Software is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Guidewire Software's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Guidewire Software's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GWRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in USD $0.51
NYSE:GWRE Share Price ** NYSE (2019-03-22) in USD $93.59
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 52.88x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Guidewire Software.

NYSE:GWRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GWRE Share Price ÷ EPS (both in USD)

= 93.59 ÷ 0.51

182.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guidewire Software is overvalued based on earnings compared to the US Software industry average.
  • Guidewire Software is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Guidewire Software's expected growth come at a high price?
Raw Data
NYSE:GWRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 182.91x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-17.1%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.6x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:GWRE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 182.91x ÷ -17.1%

-10.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guidewire Software earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Guidewire Software's assets?
Raw Data
NYSE:GWRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in USD $18.61
NYSE:GWRE Share Price * NYSE (2019-03-22) in USD $93.59
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.79x
United States of America Market PB Ratio Median Figure of 5,157 Publicly-Listed Companies 1.88x
NYSE:GWRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GWRE Share Price ÷ Book Value per Share (both in USD)

= 93.59 ÷ 18.61

5.03x

* Primary Listing of Guidewire Software.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Guidewire Software is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Guidewire Software's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Guidewire Software has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Guidewire Software expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-17.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Guidewire Software expected to grow at an attractive rate?
  • Guidewire Software's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Guidewire Software's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Guidewire Software's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GWRE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GWRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -17.1%
NYSE:GWRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 14.4%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GWRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GWRE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-07-31 979 270 7 7
2020-07-31 845 194 11 11
2019-07-31 731 136 5 11
NYSE:GWRE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-31 738 111 41
2018-10-31 733 144 -5
2018-07-31 661 140 -20
2018-04-30 594 122 -76
2018-01-31 576 124 -29
2017-10-31 528 119 20
2017-07-31 514 137 21
2017-04-30 474 101 10
2017-01-31 450 103 12
2016-10-31 436 98 9
2016-07-31 424 100 15
2016-04-30 409 84 11

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Guidewire Software's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Guidewire Software's revenue is expected to grow by 14.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GWRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Guidewire Software Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GWRE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-07-31 0.30 0.30 0.30 1.00
2020-07-31 0.23 0.41 0.06 3.00
2019-07-31 0.06 0.18 -0.09 4.00
NYSE:GWRE Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-31 0.51
2018-10-31 -0.07
2018-07-31 -0.25
2018-04-30 -1.00
2018-01-31 -0.39
2017-10-31 0.27
2017-07-31 0.29
2017-04-30 0.14
2017-01-31 0.16
2016-10-31 0.12
2016-07-31 0.21
2016-04-30 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Guidewire Software is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Guidewire Software's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Guidewire Software has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Guidewire Software performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Guidewire Software's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Guidewire Software's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Guidewire Software has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Guidewire Software has become profitable in the last year making it difficult to compare the US Software industry average.
Earnings and Revenue History
Guidewire Software's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Guidewire Software Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GWRE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 738.06 41.05 198.90 184.26
2018-10-31 732.58 -5.26 203.22 181.44
2018-07-31 661.07 -19.67 194.83 171.66
2018-04-30 593.53 -76.16 190.29 161.61
2018-01-31 576.50 -29.36 182.86 148.92
2017-10-31 528.33 20.17 166.41 135.28
2017-07-31 514.28 21.22 163.79 130.32
2017-04-30 474.36 10.39 158.46 127.01
2017-01-31 449.79 11.81 153.70 122.19
2016-10-31 436.29 8.75 151.24 117.57
2016-07-31 424.45 14.98 143.38 112.50
2016-04-30 409.19 10.77 137.59 106.63
2016-01-31 395.77 8.19 130.90 101.93
2015-10-31 383.08 11.25 126.53 98.80
2015-07-31 380.54 9.89 123.42 93.44
2015-04-30 372.83 17.75 118.47 88.53
2015-01-31 369.42 18.82 114.67 83.72
2014-10-31 363.45 18.18 110.22 78.96
2014-07-31 350.25 14.72 106.70 76.18
2014-04-30 328.95 16.34 96.55 70.30
2014-01-31 315.16 15.59 90.47 67.39
2013-10-31 303.88 17.76 85.00 65.75
2013-07-31 300.65 24.66 82.27 62.99
2013-04-30 271.33 6.96 81.40 61.86
2013-01-31 260.07 13.22 76.83 57.99
2012-10-31 242.98 9.07 73.83 54.27
2012-07-31 232.06 12.65 64.07 49.06
2012-04-30 215.48 5.83 62.93 46.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Guidewire Software has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Guidewire Software used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Guidewire Software's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Guidewire Software's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Guidewire Software has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Guidewire Software's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Guidewire Software's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Guidewire Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Guidewire Software's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Guidewire Software's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Guidewire Software Company Filings, last reported 1 month ago.

NYSE:GWRE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 1,514.38 311.14 1,074.26
2018-10-31 1,487.72 308.11 1,090.97
2018-07-31 1,423.74 305.13 1,067.15
2018-04-30 1,319.87 302.18 994.25
2018-01-31 1,087.49 0.00 505.18
2017-10-31 988.40 0.00 561.08
2017-07-31 893.28 0.00 573.20
2017-04-30 833.91 0.00 477.47
2017-01-31 817.70 0.00 582.81
2016-10-31 794.22 0.00 530.34
2016-07-31 783.94 0.00 628.24
2016-04-30 741.21 0.00 578.69
2016-01-31 721.89 0.00 590.94
2015-10-31 703.61 0.00 536.53
2015-07-31 689.39 0.00 571.64
2015-04-30 661.35 0.00 549.99
2015-01-31 659.07 0.00 545.39
2014-10-31 651.31 0.00 500.24
2014-07-31 650.69 0.00 444.33
2014-04-30 635.00 0.00 430.37
2014-01-31 628.89 0.00 444.19
2013-10-31 617.36 0.00 528.71
2013-07-31 221.83 0.00 156.70
2013-04-30 209.47 0.00 154.12
2013-01-31 207.04 0.00 165.85
2012-10-31 193.62 0.00 185.47
2012-07-31 183.96 0.00 205.72
2012-04-30 187.05 0.00 201.85
  • Guidewire Software's level of debt (20.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 20.5% today).
  • Debt is well covered by operating cash flow (35.7%, greater than 20% of total debt).
  • Guidewire Software earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Guidewire Software's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Guidewire Software has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Guidewire Software's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Guidewire Software dividends. Estimated to be 0% next year.
If you bought $2,000 of Guidewire Software shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Guidewire Software's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Guidewire Software's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GWRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2006 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GWRE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-07-31 0.00 2.00
2020-07-31 0.00 3.00
2019-07-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Guidewire Software has not reported any payouts.
  • Unable to verify if Guidewire Software's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Guidewire Software's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Guidewire Software has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Guidewire Software's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Guidewire Software's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Guidewire Software afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Guidewire Software has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Guidewire Software's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Marcus Ryu
COMPENSATION $11,210,472
AGE 44
TENURE AS CEO 9.2 years
CEO Bio

Mr. Marcus S. Ryu co-founded Guidewire Software, Inc., in 2001 and has been its Chief Executive Officer since October 1, 2010 and President since 2010. Mr. Ryu is responsible for the daily operations and strategic direction of Guidewire. Mr. Ryu has held a wide variety of roles for Guidewire Software, including securing key customer relationships, communicating its distinctive value proposition to the market and defining product strategy. Mr. Ryu plays a central role in developing and implementing leading solutions for the insurance industry. He served as Director at MuleSoft, Inc.since December 2017 until May 2, 2018. He served as the Vice President of Products at Guidewire Software, Inc from 2008 to 2010 and served as its Vice President of Strategy from 2001 to 2008. He served as Vice President of Strategy at Ariba, Inc. from 2000 to 2001. He had primary responsibility for Ariba's product strategy, mergers and acquisitions and corporate positioning. He played a key role in multiple large sales into target vertical industries. He worked as an Associate and Engagement Manager at McKinsey & Company from 1998 to 2000. He serves as a Director at BloomReach, Inc. He has been a Director of Cornerstone OnDemand Inc. since June 14, 2018. He has an extensive experience in consulting, sales and strategy in both enterprise software and financial services. He has considerable experience analyzing the underwriting and claims operations of insurers. He served as a Director of OPOWER, Inc. from August 2013 to June 14, 2016 and served as its Lead Independent Director until June 14, 2016. He has been a Director of Guidewire Software, Inc. since 2001. He is a frequent speaker to industry audiences on technology and operational issues. Mr. Ryu holds a Bachelor of Arts in economics from Princeton University and a Bachelor of Philosophy from New College, Oxford University.

CEO Compensation
  • Marcus's compensation has been consistent with company performance over the past year.
  • Marcus's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Guidewire Software management team in years:

1.8
Average Tenure
53
Average Age
  • The average tenure for the Guidewire Software management team is less than 2 years, this suggests a new team.
Management Team

Marcus Ryu

TITLE
Co-Founder
COMPENSATION
$11M
AGE
44
TENURE
9.2 yrs

Curtis Smith

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
53
TENURE
1 yrs

Priscilla Hung

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
51
TENURE
1.8 yrs

Steve Sherry

TITLE
Chief Sales Officer
COMPENSATION
$2M
AGE
62
TENURE
1.3 yrs

James King

TITLE
Chief Administrative Officer
AGE
46
TENURE
0.8 yrs

Garo Toomajanian

TITLE
Investor Relations

Diana Stott

TITLE
Director of Communications
TENURE
5.3 yrs

Brian Desmond

TITLE
Chief Marketing Officer
TENURE
3.5 yrs

Alex Naddaff

TITLE
Chief Cloud & Customer Officer
COMPENSATION
$992K
AGE
63
TENURE
0.8 yrs

Mike Polelle

TITLE
Chief Delivery Officer
COMPENSATION
$1M
AGE
54
TENURE
4.9 yrs
Board of Directors Tenure

Average tenure and age of the Guidewire Software board of directors in years:

5.9
Average Tenure
55
Average Age
  • The tenure for the Guidewire Software board of directors is about average.
Board of Directors

Peter Gassner

TITLE
Chairman of the Board
COMPENSATION
$297K
AGE
53
TENURE
2 yrs

Marcus Ryu

TITLE
Co-Founder
COMPENSATION
$11M
AGE
44
TENURE
18.2 yrs

Clifton Weatherford

TITLE
Director
COMPENSATION
$270K
AGE
71
TENURE
12.2 yrs

Guy Dubois

TITLE
Director
COMPENSATION
$262K
AGE
63
TENURE
6.5 yrs

Paul Lavin

TITLE
Director
COMPENSATION
$274K
AGE
56
TENURE
5 yrs

Andy Brown

TITLE
Director
COMPENSATION
$265K
AGE
54
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • Guidewire Software insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Mar 19 Sell Steven Sherry Individual 19. Mar 19 19. Mar 19 -1,404 $94.96 $-133,318
21. Mar 19 Sell James King Individual 19. Mar 19 19. Mar 19 -1,141 $94.96 $-108,344
21. Mar 19 Sell Curtis Smith Individual 19. Mar 19 19. Mar 19 -2,105 $94.96 $-199,881
21. Mar 19 Sell Marcus Ryu Individual 19. Mar 19 19. Mar 19 -9,515 $94.96 $-903,503
21. Mar 19 Sell Michael Polelle Individual 19. Mar 19 19. Mar 19 -912 $94.96 $-86,599
21. Mar 19 Sell Priscilla Hung Individual 19. Mar 19 19. Mar 19 -1,391 $94.96 $-132,083
20. Dec 18 Sell Steven Sherry Individual 18. Dec 18 18. Dec 18 -2,184 $81.17 $-177,277
20. Dec 18 Sell Curtis Smith Individual 18. Dec 18 18. Dec 18 -170 $81.17 $-13,799
20. Dec 18 Sell Michael Polelle Individual 18. Dec 18 18. Dec 18 -1,344 $81.17 $-109,093
20. Dec 18 Sell Marcus Ryu Individual 18. Dec 18 18. Dec 18 -9,715 $81.17 $-788,572
20. Dec 18 Sell James King Individual 18. Dec 18 18. Dec 18 -1,646 $81.17 $-133,607
20. Dec 18 Sell Priscilla Hung Individual 18. Dec 18 18. Dec 18 -2,024 $81.17 $-164,289
10. Dec 18 Sell Guy Dubois Individual 07. Dec 18 07. Dec 18 -798 $85.00 $-67,830
20. Sep 18 Sell Steven Sherry Individual 18. Sep 18 18. Sep 18 -2,579 $105.31 $-271,583
20. Sep 18 Sell Michael Polelle Individual 18. Sep 18 18. Sep 18 -1,126 $105.31 $-118,574
20. Sep 18 Sell James King Individual 18. Sep 18 18. Sep 18 -1,500 $105.31 $-157,959
20. Sep 18 Sell Priscilla Hung Individual 18. Sep 18 18. Sep 18 -2,093 $105.31 $-220,405
20. Sep 18 Sell Marcus Ryu Individual 18. Sep 18 18. Sep 18 -15,935 $105.31 $-1,678,046
21. Jun 18 Sell Steven Sherry Individual 19. Jun 18 19. Jun 18 -1,310 $92.56 $-121,245
21. Jun 18 Sell James King Individual 19. Jun 18 19. Jun 18 -1,038 $92.55 $-96,069
21. Jun 18 Sell Ali Kheirolomoom Individual 19. Jun 18 19. Jun 18 -2,375 $92.56 $-219,814
21. Jun 18 Sell Marcus Ryu Individual 19. Jun 18 19. Jun 18 -17,111 $92.55 $-1,583,680
21. Jun 18 Sell Priscilla Hung Individual 19. Jun 18 19. Jun 18 -1,283 $92.56 $-118,746
21. Jun 18 Sell Michael Polelle Individual 19. Jun 18 19. Jun 18 -1,300 $92.56 $-120,319
X
Management checks
We assess Guidewire Software's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Guidewire Software has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Now The Time To Look At Buying Guidewire Software, Inc. (NYSE:GWRE)?

Guidewire Software, Inc. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on Guidewire Software’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Should You Worry About Guidewire Software, Inc.'s (NYSE:GWRE) CEO Pay Cheque?

Marcus Ryu became the CEO of Guidewire Software, Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Marcus Ryu's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Guidewire Software, Inc. (NYSE:GWRE) Struggling With Its 1.7% Return On Capital Employed?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should You Be Worried About Insider Transactions At Guidewire Software, Inc. (NYSE:GWRE)?

So shareholders might well want to know whether insiders have been buying or selling shares in Guidewire Software, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In total, Guidewire Software insiders sold more than they bought over the last year

Simply Wall St -

All You Need To Know About Guidewire Software Inc's (NYSE:GWRE) Financial Health

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Guidewire Software Inc (NYSE:GWRE), with a market cap of US$7.1b, are often out of the spotlight. … Today we will look at GWRE’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Check out our latest analysis for Guidewire Software

Simply Wall St -

Why Did These Investors Just Divested From Guidewire Software Inc (NYSE:GWRE)?

Guidewire Software, Inc. … It is widely considered that insider selling stock in their own companies is potentially a bearish signal … The MIT Press (1998) published an article showing that stocks following insider selling underperformed the market by 2.7%

Simply Wall St -

Guidewire Software Inc (NYSE:GWRE): Financial Strength Analysis

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Guidewire Software Inc (NYSE:GWRE) with a market-capitalization of US$7.23b, rarely draw their attention. … Don’t forget that this is a general and concentrated examination of Guidewire Software's financial health, so you should conduct further analysis. … See our latest analysis for Guidewire Software

Simply Wall St -

Should You Buy Guidewire Software Inc (NYSE:GWRE) Now?

Guidewire Software Inc (NYSE:GWRE), a software company based in United States,. … Let’s take a look at Guidewire Software’s outlook and value based on the most recent financial data to see if the opportunity still exists? … View out our latest analysis for Guidewire Software

Simply Wall St -

What You Must Know About Guidewire Software Inc's (NYSE:GWRE) Return on Equity

Guidewire Software Inc (NYSE:GWRE) generated a below-average return on equity of 2.04% in the past 12 months, while its industry returned 12.42%. … Check out our latest analysis for Guidewire Software What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Guidewire Software exhibits a weak ROE against its peers, as well as insufficient levels to cover its own cost of equity this year.

Simply Wall St -

What Do Analysts Think About Guidewire Software Inc's (GWRE) Long Term Outlook?

Below is my commentary, albeit very simple and high-level, on how market analysts view Guidewire Software's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for Guidewire Software Market analysts' consensus outlook for the upcoming year seems pessimistic, with earnings declining by a double-digit -64.33%. … NYSE:GWRE Future Profit Nov 29th 17 Even though it is informative understanding the growth rate year by year relative to today’s level, it may be more valuable analyzing the rate at which the earnings are growing every year, on average.

Simply Wall St -

Company Info

Description

Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCenter applications. It also provides Guidewire InsuranceNow, a cloud-based platform, which offers policy, billing, and claims management functionality to insurers that prefer to subscribe to a cloud-based solution. In addition, the company offers Guidewire Underwriting Management, a cloud-based integrated business application; 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 Guidewire Client Data Management to enable customer information management. Further, it provides Guidewire Product Content Management that offers software tools and standards-based line-of-business templates to introduce and modify products; Guidewire AppReader, a submission intake management solution; and Guidewire London Market Messaging that provides a message-processing and action framework. Additionally, the company offers data management and analytics products, such as Guidewire DataHub, an operational data store; Guidewire InfoCenter, a business intelligence warehouse; Guidewire Live Analytics, a cloud analytics platform; Guidewire Predictive Analytics, a cloud-based tool; and Guidewire Cyence Risk Analytics, a cloud-native economic cyber risk modeling solution, as well as Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice. It also provides implementation and integration, maintenance support, and professional services, as well as Guidewire Production Services. The company was founded in 2001 and is headquartered in Foster City, California.

Details
Name: Guidewire Software, Inc.
GWRE
Exchange: NYSE
Founded: 2001
$7,619,600,181
81,414,683
Website: http://www.guidewire.com
Address: Guidewire Software, Inc.
1001 East Hillsdale Boulevard,
Suite 800,
Foster City,
California, 94404,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GWRE Common Stock New York Stock Exchange US USD 25. Jan 2012
DB 0GS Common Stock Deutsche Boerse AG DE EUR 25. Jan 2012
LSE 0J1G Common Stock London Stock Exchange GB USD 25. Jan 2012
Number of employees
Current staff
Staff numbers
2,314
Guidewire Software employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/23 00:19
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/03/07
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.