We believe Guidewire is reaping the benefits of years of groundwork in the form of convincing property and casualty insurers to upgrade their aging core legacy systems to Guidewire’s solutions. In our view, the company has used a modern software platform to disrupt a sleepy industry that has been underserved by legacy software vendors, and we still see a long runway for additional growth for Guidewire.
Guidewire is the clear leader seeking to modernize a large and underserved P&C insurance market that we believe is ripe for modernization.
Guidewire’s services business line has experienced various problems since the 2012 IPO, notably capacity constraints and low margins. Further, deployment capabilities have been a critical factor in driving customers to Guidewire, so any issues here could be problematic.
|
Metric
|
GWRE
|
SAP
|
ORCL
|
|---|---|---|---|
Price/Earnings (Normalized) | 101.35 | 29.45 | 24.96 |
Price/Book Value | 9.52 | 5.58 | 44.00 |
Price/Sales | 12.65 | 7.12 | 7.41 |
Price/Cash Flow | 88.15 | 51.90 | 20.48 |
|
Metric
|
GWRE
|
SAP
|
ORCL
|
|---|---|---|---|
Quick Ratio | 1.44 | 0.98 | 0.59 |
Current Ratio | 1.53 | 1.12 | 0.72 |
Interest Coverage | −9.30 | 4.86 | 4.21 |
|
Metric
|
GWRE
|
SAP
|
ORCL
|
|---|---|---|---|
Return on Assets (Normalized) | 6.21% | 7.96% | 11.49% |
Return on Equity (Normalized) | 10.03% | 13.06% | 363.05% |
Return on Invested Capital (Normalized) | 5.84% | 10.63% | 19.73% |
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1-Day Chart
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