Skip to Content

Guidewire Software Inc GWRE

Morningstar Rating
$116.10 −1.80 (1.53%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Guidewire Is Well-Positioned to Disrupt a Sleepy Niche Industry

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.

Price vs Fair Value

GWRE is trading at a 24% premium.
Price
$116.10
Fair Value
$75.00
Uncertainty
High
1-Star Price
$844.80
5-Star Price
$71.80
Economic Moat
Kcht
Capital Allocation
Fnqnfnwy

Bulls Say, Bears Say

Bulls

Guidewire is the clear leader seeking to modernize a large and underserved P&C insurance market that we believe is ripe for modernization.

Bears

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if GWRE is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$117.90
Day Range
$114.87116.39
52-Week Range
$68.45120.71
Bid/Ask
$100.00 / $127.13
Market Cap
$9.51 Bil
Volume/Avg
507,252 / 786,344

Key Statistics

Price/Earnings (Normalized)
263.44
Price/Sales
10.57
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.65%

Company Profile

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.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
3,415

Competitors

Valuation

Metric
GWRE
SAP
ACN
Price/Earnings (Normalized)
263.4436.8731.28
Price/Book Value
8.064.369.64
Price/Sales
10.576.203.67
Price/Cash Flow
102.0031.4921.89
Price/Earnings
GWRE
SAP
ACN

Financial Strength

Metric
GWRE
SAP
ACN
Quick Ratio
3.491.381.18
Current Ratio
3.721.551.33
Interest Coverage
−16.492.25162.06
Quick Ratio
GWRE
SAP
ACN

Profitability

Metric
GWRE
SAP
ACN
Return on Assets (Normalized)
1.98%7.42%17.12%
Return on Equity (Normalized)
3.23%12.88%37.32%
Return on Invested Capital (Normalized)
1.20%11.28%28.70%
Return on Assets
GWRE
SAP
ACN
See how this stock stacks up to its competitors with Morningstar Investor

Software - Application Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
CRM
Salesforce IncFngx$274.5 Bil
SAP
SAP SE ADRRgjtkx$205.2 Bil
INTU
Intuit IncRydpg$178.7 Bil
UBER
Uber Technologies IncYpdvz$158.7 Bil
NOW
ServiceNow IncJvrx$153.3 Bil
SHOP
Shopify Inc Registered Shs -A- Subord VtgZrblps$97.3 Bil
CDNS
Cadence Design Systems IncHrgznj$79.2 Bil
WDAY
Workday Inc Class AQbf$78.6 Bil
SNOW
Snowflake Inc Ordinary Shares - Class AYyrtk$71.1 Bil
DASTY
Dassault Systemes SE ADRNtty$60.7 Bil

Sponsor Center