NYSE:GWRE

Stock Analysis Report

Executive Summary

Guidewire Software, Inc. provides software products for property and casualty insurers worldwide.

Snowflake

Fundamentals

Excellent balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Guidewire Software's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

GWRE

-3.0%

US Software

0.4%

US Market


1 Year Return

23.9%

GWRE

23.8%

US Software

11.4%

US Market

Return vs Industry: GWRE exceeded the US Software industry which returned 19.3% over the past year.

Return vs Market: GWRE exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

GWREIndustryMarket
7 Day-2.0%-3.0%0.4%
30 Day2.1%-3.1%0.3%
90 Day5.1%-9.0%-1.2%
1 Year23.9%23.9%25.6%23.8%13.9%11.4%
3 Year89.3%89.3%110.3%101.8%47.2%37.6%
5 Year117.2%117.2%159.3%140.5%62.4%44.6%

Price Volatility Vs. Market

How volatile is Guidewire Software's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Guidewire Software undervalued compared to its fair value and its price relative to the market?

427.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GWRE ($108.89) is trading above our estimate of fair value ($71.79)

Significantly Below Fair Value: GWRE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GWRE is poor value based on its PE Ratio (427.8x) compared to the Software industry average (45x).

PE vs Market: GWRE is poor value based on its PE Ratio (427.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GWRE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GWRE is overvalued based on its PB Ratio (5.7x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is Guidewire Software forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-32.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWRE's earnings are forecast to decline over the next 3 years (-32.2% per year).

Earnings vs Market: GWRE's earnings are forecast to decline over the next 3 years (-32.2% per year).

High Growth Earnings: GWRE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GWRE's revenue (11.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: GWRE's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GWRE's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Guidewire Software performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GWRE's earnings have declined by -7.2% per year over the past 5 years.

Accelerating Growth: GWRE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GWRE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: GWRE's Return on Equity (1.3%) is considered low.


Return on Assets

ROA vs Industry: GWRE's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: GWRE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Guidewire Software's financial position?


Financial Position Analysis

Short Term Liabilities: GWRE's short term assets ($1.3B) exceeds its short term liabilities ($232.3M)

Long Term Liabilities: GWRE's short term assets (1.3B) exceeds its long term liabilities (360.5M)


Debt to Equity History and Analysis

Debt Level: GWRE's debt to equity ratio (20.2%) is considered satisfactory

Reducing Debt: Insufficient data to determine if GWRE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GWRE's debt is well covered by operating cash flow (36.6%).

Interest Coverage: GWRE earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GWRE has a low level of unsold assets or inventory.

Debt Coverage by Assets: GWRE's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate GWRE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GWRE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if GWRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GWRE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GWRE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Mike Rosenbaum 0

0.2yrs

Tenure

0

Mr. Mike Rosenbaum has been the Chief Executive Officer and Director of Guidewire Software, Inc. since August 05, 2019. He served as the Executive Vice President of leading the Salesforce Platform business ...


Management Age and Tenure

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: GWRE's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

0.2yrs

Average Tenure

58yo

Average Age

Experienced Board: GWRE's board of directors are not considered experienced ( 0.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: GWRE insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$435,94902 Oct 19
James King
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares4,188
Max PriceUS$104.09
SellUS$1,048,58321 Sep 19
Clifton Weatherford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,651
Max PriceUS$108.85
SellUS$5,337,10318 Sep 19
Marcus Ryu
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares49,982
Max PriceUS$106.78
SellUS$139,88218 Sep 19
Curtis Smith
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,310
Max PriceUS$106.78
SellUS$492,47218 Sep 19
Steven Sherry
EntityIndividual
Role
Head of Sales
Chief Sales Officer
Shares4,612
Max PriceUS$106.78
SellUS$437,37318 Sep 19
Priscilla Hung
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares4,096
Max PriceUS$106.78
SellUS$204,69818 Sep 19
Michael Polelle
EntityIndividual
Shares1,917
Max PriceUS$106.78
SellUS$327,60318 Sep 19
James King
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares3,068
Max PriceUS$106.78
SellUS$1,326,60116 Sep 19
Marcus Ryu
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares12,351
Max PriceUS$107.41
BuyUS$212,32416 Sep 19
Catherine Lego
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$106.16
SellUS$308,33012 Sep 19
Paul Lavin
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,947
Max PriceUS$104.63
SellUS$299,82411 Sep 19
Andrew Brown
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,800
Max PriceUS$107.08
SellUS$445,58711 Sep 19
James King
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares4,200
Max PriceUS$106.15
SellUS$969,85721 Jun 19
Marcus Ryu
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares9,748
Max PriceUS$99.49
SellUS$69,94421 Jun 19
Curtis Smith
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares703
Max PriceUS$99.49
SellUS$109,44221 Jun 19
James King
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares1,100
Max PriceUS$99.49
SellUS$87,05621 Jun 19
Michael Polelle
EntityIndividual
Shares875
Max PriceUS$99.49
SellUS$161,27821 Jun 19
Steven Sherry
EntityIndividual
Role
Head of Sales
Chief Sales Officer
Shares1,621
Max PriceUS$99.49
SellUS$134,11621 Jun 19
Priscilla Hung
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,348
Max PriceUS$99.49
SellUS$199,88121 Mar 19
Curtis Smith
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,105
Max PriceUS$94.96
SellUS$133,31821 Mar 19
Steven Sherry
EntityIndividual
Role
Head of Sales
Chief Sales Officer
Shares1,404
Max PriceUS$94.96
SellUS$108,34421 Mar 19
James King
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares1,141
Max PriceUS$94.96
SellUS$903,50321 Mar 19
Marcus Ryu
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares9,515
Max PriceUS$94.96
SellUS$86,59921 Mar 19
Michael Polelle
EntityIndividual
Shares912
Max PriceUS$94.96
SellUS$132,08321 Mar 19
Priscilla Hung
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,391
Max PriceUS$94.96
SellUS$13,79920 Dec 18
Curtis Smith
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares170
Max PriceUS$81.17
SellUS$788,57220 Dec 18
Marcus Ryu
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares9,715
Max PriceUS$81.17
SellUS$133,60720 Dec 18
James King
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares1,646
Max PriceUS$81.17
SellUS$109,09320 Dec 18
Michael Polelle
EntityIndividual
Shares1,344
Max PriceUS$81.17
SellUS$177,27720 Dec 18
Steven Sherry
EntityIndividual
Role
Head of Sales
Chief Sales Officer
Shares2,184
Max PriceUS$81.17
SellUS$164,28920 Dec 18
Priscilla Hung
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares2,024
Max PriceUS$81.17
SellUS$67,83010 Dec 18
Guy Dubois
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares798
Max PriceUS$85.00

Ownership Breakdown


Management Team

  • Brian Desmond

    Chief Marketing Officer

    • Tenure: 4.1yrs
  • Curtis Smith (54yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: US$2.48m
  • Marcus Ryu (45yo)

    Co-Founder & Chairman

    • Tenure: 0.2yrs
    • Compensation: US$11.21m
  • Alex Naddaff (64yo)

    Chief Cloud & Customer Officer

    • Tenure: 1.4yrs
    • Compensation: US$992.28k
  • Priscilla Hung (52yo)

    Chief Operating Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.69m
  • Steve Sherry (63yo)

    Chief Sales Officer

    • Tenure: 1.9yrs
    • Compensation: US$1.75m
  • Garo Toomajanian

    Investor Relations

    • Tenure: 0yrs
  • James King (47yo)

    Chief Administrative Officer

    • Tenure: 1.3yrs
  • Diana Stott

    Director of Communications

    • Tenure: 5.8yrs
  • Mike Rosenbaum

    CEO & Director

    • Tenure: 0.2yrs

Board Members

  • Guy Dubois (64yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$262.44k
  • Cathy Lego (62yo)

    Director

    • Tenure: 0.08yrs
  • Mike Keller (59yo)

    Director

    • Tenure: 0.08yrs
  • Clifton Weatherford (72yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$269.94k
  • Marcus Ryu (45yo)

    Co-Founder & Chairman

    • Tenure: 0.2yrs
    • Compensation: US$11.21m
  • Peter Gassner (54yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$297.44k
  • Paul Lavin (57yo)

    Lead Independent Director

    • Tenure: 0.2yrs
    • Compensation: US$273.94k
  • Andy Brown (56yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$264.94k
  • Mike Rosenbaum

    CEO & Director

    • Tenure: 0.2yrs
  • Margaret Dillon

    Director

    • Tenure: 0.08yrs

Company Information

Guidewire Software, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guidewire Software, Inc.
  • Ticker: GWRE
  • Exchange: NYSE
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$8.945b
  • Shares outstanding: 82.14m
  • Website: https://www.guidewire.com

Number of Employees


Location

  • Guidewire Software, Inc.
  • 2850 South Delaware Street
  • Suite 400
  • San Mateo
  • California
  • 94403
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWRENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2012
0GSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2012
0J1GLSE (London Stock Exchange)YesCommon StockGBUSDJan 2012

Biography

Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCent ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:29
End of Day Share Price2019/10/23 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.