Quality Investor

Guidewire Software, Inc.

Rank #160Hypergrowth

GWRE · NYSE · Technology

Guidewire Software, Inc. (GWRE) — Rank #160 by gross profitability (GP/assets 0.37) · ROE 11.7% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001528396 · all metrics point-in-time as of the filing date.

About

Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers the United States, Canada, other Americas, Europe, the Middle East, Africa, and Asia-Pacific.

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It offers Guidewire InsuranceSuite, such as PolicyCenter, ClaimCenter, BillingCenter, PricingCenter, and UnderwritingCente applications. The company also provides Guidewire InsuranceNow, a cloud-based application that offers policy administration, claims management, and billing functionality, plus pre-integrated document production, analytics, and other capabilities. In addition, it offers Guidewire Rating Management to manage the pricing of insurance services and products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management that helps P&C insurers to capitalize on customer information; Guidewire Advanced Product Designer, a cloud-native application for insurance product design and management; Guidewire Product Content Management provides software tools and standards-based, line-of-business templates; and Guidewire ProNavigator, an AI-powered intelligent assistant. Further, the company provides Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Predict, a P&C-specific machine-learning platform; Guidewire Data Studio, Guidewire Canvas, Guidewire Compare, Guidewire industry Intel, and Guidewire Explore, an cloud-native applications; Guidewire Cyence, a cyber-risk economic modeling product; Guidewire DataHub, an operational data store; and Guidewire InfoCenter, a business intelligence warehouse for P&C insurers.

The company was incorporated in 2001 and is headquartered in San Mateo, California.

Industry
Software - Application
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
July 31

Price History

GWRE+14.6% · +2.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$12.56B

P/E (annual)

92.5

P/S (annual)

8.5

P/B

10.5

P/OCF (annual)

32.2

Shareholder Yield

-9.9%

Employees

4,174

Industry

Software - Application

Exchange

NYSE

Signal Flags

2 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.37
Return on equity
11.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.16
Current ratio
1.79×
Net cash

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
12.3%

Growth

1/2 pass
Revenue growth
126.0%
Piotroski F-Score
N/A
Share dilution
9.9%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

15.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 9.9% — per-share value needs a total required return of 24.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 14.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

10.2%

r = 10% (base)

15.0%

r = 12%

19.1%

Base FCF: $377.7M3Y mean FCF: $111.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

421.5xExpensive
39.6xmed 213.7x421.5x

P / S

Price / revenue per share

12.1xExpensive
3.1xmed 9.8x12.1x

P / B

Price / book value per share

5.5xCheap
4.8xmed 5.8x29.5x

P / GP

Price / gross profit per share

22.0xExpensive
5.1xmed 16.3x22.0x

P / FCF

Price / free cash flow per share

122.4xExpensive
21.5xmed 62.9x124.6x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.37

Primary signal (Novy-Marx).

49th pctl of 38 SIC 7372 peers

Return on equity

11.7%

Gross margin

64.2%

35th pctl of 38 SIC 7372 peers

Revenue growth (YoY)

126.0%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2016201720182019
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.16

19th pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

1.79×

46th pctl of 38 SIC 7372 peers

Quick ratio

1.42×

Net cash

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$377.66M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.71

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

12.3%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20142019
Op. Leverage
Value
Hypergrowth