NYSE:GWRE

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and overvalued.


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

Stable Share Price: GWRE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.7%

GWRE

3.3%

US Software

7.2%

US Market


1 Year Return

-16.3%

GWRE

11.0%

US Software

-10.4%

US Market

Return vs Industry: GWRE underperformed the US Software industry which returned 6.4% over the past year.

Return vs Market: GWRE underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

GWREIndustryMarket
7 Day6.7%3.3%7.2%
30 Day-24.2%-7.4%-12.6%
90 Day-24.3%-2.8%-19.4%
1 Year-16.3%-16.3%12.2%11.0%-8.5%-10.4%
3 Year41.0%41.0%109.9%100.6%15.8%8.3%
5 Year57.8%57.8%177.4%157.9%35.8%21.0%

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?

4.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GWRE ($80.84) is trading above our estimate of fair value ($33.68)

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


Price To Earnings Ratio

PE vs Industry: GWRE is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: GWRE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GWRE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GWRE is good value based on its PB Ratio (4.2x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

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

91.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWRE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GWRE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GWRE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GWRE's revenue (13.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: GWRE's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GWRE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Guidewire Software performed over the past 5 years?

-14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWRE is currently unprofitable.

Growing Profit Margin: GWRE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GWRE is unprofitable, and losses have increased over the past 5 years at a rate of -14.6% per year.

Accelerating Growth: Unable to compare GWRE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GWRE is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.7%).


Return on Equity

High ROE: GWRE has a negative Return on Equity (-1.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Guidewire Software's financial position?


Financial Position Analysis

Short Term Liabilities: GWRE's short term assets ($1.2B) exceed its short term liabilities ($182.6M).

Long Term Liabilities: GWRE's short term assets ($1.2B) exceed its long term liabilities ($446.4M).


Debt to Equity History and Analysis

Debt Level: GWRE's debt to equity ratio (20.3%) is considered satisfactory.

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


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 3.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GWRE has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: GWRE has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Mike Rosenbaum (48yo)

0.58

Tenure

Mr. Michael George Rosenbaum, also known as Mike, has been the Chief Executive Officer and Director of Guidewire Software, Inc. since August 3, 2019. He served as the Executive Vice President of leading th ...


Leadership Team

NamePositionTenureCompensationOwnership
Marcus Ryu
Co-Founder & Chairman0.58yrUS$4.56m0.0027% $183.2k
Priscilla Hung
Chief Operating Officer2.83yrsUS$3.43m0.0061% $420.1k
James King
Chief Administrative Officer1.67yrsUS$2.34m0.0037% $255.5k
Steven Sherry
Chief Sales Officer2.25yrsUS$4.05mno data
Michael Rosenbaum
CEO & Director0.58yrno datano data
Jeffrey Cooper
Interim Chief Financial Officerno datano datano data
Garo Toomajanian
Investor Relationsno datano datano data
Diana Stott
Director of Communications6.25yrsno datano data
Brian Desmond
Chief Marketing Officer4.42yrsno datano data
Alexander Naddaff
Chief Cloud & Customer Officer1.83yrsUS$992.28kno data

2.5yrs

Average Tenure

48yo

Average Age

Experienced Management: GWRE's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marcus Ryu
Co-Founder & Chairman0.58yrUS$4.56m0.0027% $183.2k
Michael Rosenbaum
CEO & Director0.58yrno datano data
Catherine Lego
Independent Director0.42yrno data0.0030% $207.3k
Michael Keller
Independent Director0.42yrno data0.0011% $73.7k
Paul Lavin
Lead Independent Director0.58yrUS$254.73k0.0089% $611.5k
Andrew Brown
Independent Director6.25yrsUS$258.23k0.0013% $86.8k
Margaret Dillon
Independent Director0.42yrno data0.0030% $207.3k

0.6yrs

Average Tenure

56yo

Average Age

Experienced Board: GWRE's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

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$6.886b
  • Shares outstanding: 82.89m
  • 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
0GSBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 2012

Biography

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 San Mateo, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:31
End of Day Share Price2020/03/30 00:00
Earnings2020/01/31
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.