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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 10/10

vs
industry
vs
history
Cash to Debt No Debt
GWRE's Cash to Debt is ranked higher than
76% of the 1754 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 20.60 vs. GWRE: No Debt )
Ranked among companies with meaningful Cash to Debt only.
GWRE' s 10-Year Cash to Debt Range
Min: N/A  Med: 10000.00 Max: No Debt
Current: No Debt

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N/A
No Debt
Equity to Asset 0.86
GWRE's Equity to Asset is ranked higher than
89% of the 1549 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.61 vs. GWRE: 0.86 )
Ranked among companies with meaningful Equity to Asset only.
GWRE' s 10-Year Equity to Asset Range
Min: -0.42  Med: 0.72 Max: 0.89
Current: 0.86
-0.42
0.89
Interest Coverage No Debt
GWRE's Interest Coverage is ranked higher than
60% of the 1143 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 10000.00 vs. GWRE: No Debt )
Ranked among companies with meaningful Interest Coverage only.
GWRE' s 10-Year Interest Coverage Range
Min: 9999.99  Med: 10000.00 Max: 9999.99
Current: No Debt
F-Score: 6
Z-Score: 24.37
M-Score: -3.10
WACC vs ROIC
12.03%
11.14%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 5.21
GWRE's Operating margin (%) is ranked higher than
51% of the 1724 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.00 vs. GWRE: 5.21 )
Ranked among companies with meaningful Operating margin (%) only.
GWRE' s 10-Year Operating margin (%) Range
Min: -12.36  Med: 7.58 Max: 12.45
Current: 5.21
-12.36
12.45
Net-margin (%) 4.76
GWRE's Net-margin (%) is ranked higher than
57% of the 1724 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.15 vs. GWRE: 4.76 )
Ranked among companies with meaningful Net-margin (%) only.
GWRE' s 10-Year Net-margin (%) Range
Min: -12.94  Med: 7.38 Max: 20.62
Current: 4.76
-12.94
20.62
ROE (%) 2.72
GWRE's ROE (%) is ranked lower than
59% of the 1678 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.86 vs. GWRE: 2.72 )
Ranked among companies with meaningful ROE (%) only.
GWRE' s 10-Year ROE (%) Range
Min: 3.37  Med: 12.15 Max: 15.04
Current: 2.72
3.37
15.04
ROA (%) 2.37
GWRE's ROA (%) is ranked lower than
53% of the 1762 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.06 vs. GWRE: 2.37 )
Ranked among companies with meaningful ROA (%) only.
GWRE' s 10-Year ROA (%) Range
Min: 2.77  Med: 8.36 Max: 38.11
Current: 2.37
2.77
38.11
ROC (Joel Greenblatt) (%) 155.93
GWRE's ROC (Joel Greenblatt) (%) is ranked higher than
82% of the 1736 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 22.95 vs. GWRE: 155.93 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
GWRE' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 144.37  Med: 239.46 Max: 1303.47
Current: 155.93
144.37
1303.47
Revenue Growth (3Y)(%) -19.50
GWRE's Revenue Growth (3Y)(%) is ranked lower than
88% of the 1302 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.20 vs. GWRE: -19.50 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
GWRE' s 10-Year Revenue Growth (3Y)(%) Range
Min: 0  Med: 0.00 Max: -19.5
Current: -19.5
EBITDA Growth (3Y)(%) -11.00
GWRE's EBITDA Growth (3Y)(%) is ranked lower than
74% of the 1046 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.90 vs. GWRE: -11.00 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
GWRE' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: 0.00 Max: -11
Current: -11
EPS Growth (3Y)(%) -52.80
GWRE's EPS Growth (3Y)(%) is ranked lower than
92% of the 972 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.10 vs. GWRE: -52.80 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
GWRE' s 10-Year EPS Growth (3Y)(%) Range
Min: 0  Med: 0.00 Max: -52.8
Current: -52.8
» GWRE's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

GWRE Guru Trades in Q2 2014

Paul Tudor Jones 6,849 sh (New)
RS Investment Management 78,700 sh (+44.94%)
Ron Baron 5,120,823 sh (+8.79%)
Frank Sands 356,995 sh (+2.29%)
Pioneer Investments Sold Out
» More
Q3 2014

GWRE Guru Trades in Q3 2014

Joel Greenblatt 20,883 sh (New)
Frank Sands 509,820 sh (+42.81%)
Paul Tudor Jones Sold Out
Ron Baron 5,090,775 sh (-0.59%)
RS Investment Management 65,500 sh (-16.77%)
» More
Q4 2014

GWRE Guru Trades in Q4 2014

Joel Greenblatt 71,561 sh (+242.68%)
Ron Baron 5,020,951 sh (-1.37%)
Frank Sands 324,420 sh (-36.37%)
Frank Sands 324,420 sh (-36.37%)
RS Investment Management 40,000 sh (-38.93%)
» More
Q1 2015

GWRE Guru Trades in Q1 2015

Paul Tudor Jones 8,741 sh (New)
Ron Baron 5,203,778 sh (+3.64%)
Frank Sands 327,620 sh (+0.99%)
RS Investment Management 40,000 sh (unchged)
Ron Baron 5,020,951 sh (unchged)
Joel Greenblatt Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with GWRE

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Guru Investment Theses on Guidewire Software Inc

Ron Baron Comments on Guidewire Software Inc - Jul 28, 2014

Guidewire Software, Inc. (GWRE) shares declined as investors rotated from growth into value stocks and from small cap into larger cap stocks. The impact was particularly acute in stocks that had been strong recent performers, such as Guidewire, as investors abandoned winners in search of recent underperformers. Guidewire is the gold standard of property & casualty core system vendors, as evidenced by near-perfect retention rates, growing installed base, and accelerating adoption of its complete product suite. We maintain conviction in the stock. (Neal Rosenberg)

From Ron Baron (Trades, Portfolio)’s Baron Funds Second Quarter 2014 Report.

Check out Ron Baron latest stock trades

Baron Funds Comments on Guidewire Software - Feb 20, 2014

The Fund initiated a position in Guidewire Software, Inc. (NYSE:GWRE) this quarter. Guidewire is a leading provider of core systems software to the global property and casualty (P&C) insurance industry. Guidewire's software forms the "technological backbone" of a P&C insurance customer. The company's software serves as the transactional system-of-record, which enables the insurer to perform many of its key business functions, including underwriting policies, administering policies, managing claims, and billing.



The majority of P&C insurers are using legacy "green screen" core operating systems that have been in use for more than 20 years, rely on outdated programming languages, and are difficult to change, upgrade, or integrate with modern technology infrastructure. These legacy systems require support by specialized IT staff, many of whom are now retiring, further compounding the problem. We believe that all of the P&C industry will ultimately move to new software, but less than 20% have yet to complete such an upgrade.



We believe that Guidewire has emerged as the "gold standard" in terms of P&C functionality, as evidenced by its near-perfect retention rates, growing installed client base, and accelerating adoption of its complete suite of offerings. We believe that the addressable market for Guidewire's core business is $2.5-$3.5 billion of annual r ecurring revenue, implying that Guidewire currently has just 3-5% penetration of its market. We believe that new products targeting mobile applications, portals, business intelligence, and data migration double the company's core



addressable market. If these endeavors are successful, the company will benefit from lucrative, ongoing annual license fees. In addition, Guidewire will reap the indirect benefits of a "network effect," thereby attracting other insurance customers to its platform. Finally, we see significant embedded leverage in Guidewire's operating model. As its business scales, we expect margins to move from the low-teens to the 35-40% range. This margin expansion should lead to significant free cash flow generation, which the company can use to make niche acquisitions or to return to shareholders. (Neal Rosenberg)



From Baron Funds' fourth quarter letter 2013 to shareholders.



Check out Ron Baron latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 269.26
GWRE's P/E(ttm) is ranked lower than
94% of the 1093 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 26.40 vs. GWRE: 269.26 )
Ranked among companies with meaningful P/E(ttm) only.
GWRE' s 10-Year P/E(ttm) Range
Min: 24.49  Med: 200.83 Max: 403.33
Current: 269.26
24.49
403.33
Forward P/E 96.15
GWRE's Forward P/E is ranked lower than
90% of the 529 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 19.69 vs. GWRE: 96.15 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 269.80
GWRE's PE(NRI) is ranked lower than
94% of the 1087 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 26.20 vs. GWRE: 269.80 )
Ranked among companies with meaningful PE(NRI) only.
GWRE' s 10-Year PE(NRI) Range
Min: 9.38  Med: 172.89 Max: 396
Current: 269.8
9.38
396
P/B 6.32
GWRE's P/B is ranked lower than
78% of the 1614 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.71 vs. GWRE: 6.32 )
Ranked among companies with meaningful P/B only.
GWRE' s 10-Year P/B Range
Min: 3.76  Med: 5.89 Max: 12.68
Current: 6.32
3.76
12.68
P/S 11.75
GWRE's P/S is ranked lower than
88% of the 1701 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.19 vs. GWRE: 11.75 )
Ranked among companies with meaningful P/S only.
GWRE' s 10-Year P/S Range
Min: 1.86  Med: 8.89 Max: 11.78
Current: 11.75
1.86
11.78
PFCF 63.03
GWRE's PFCF is ranked lower than
79% of the 812 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 25.40 vs. GWRE: 63.03 )
Ranked among companies with meaningful PFCF only.
GWRE' s 10-Year PFCF Range
Min: 32.42  Med: 63.26 Max: 155.57
Current: 63.03
32.42
155.57
POCF 57.52
GWRE's POCF is ranked lower than
84% of the 1012 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 18.40 vs. GWRE: 57.52 )
Ranked among companies with meaningful POCF only.
GWRE' s 10-Year POCF Range
Min: 27.43  Med: 55.55 Max: 102.91
Current: 57.52
27.43
102.91
EV-to-EBIT 186.91
GWRE's EV-to-EBIT is ranked lower than
94% of the 1145 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 17.09 vs. GWRE: 186.91 )
Ranked among companies with meaningful EV-to-EBIT only.
GWRE' s 10-Year EV-to-EBIT Range
Min: 21.9  Med: 118.70 Max: 393.2
Current: 186.91
21.9
393.2
Current Ratio 6.14
GWRE's Current Ratio is ranked higher than
89% of the 1590 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.08 vs. GWRE: 6.14 )
Ranked among companies with meaningful Current Ratio only.
GWRE' s 10-Year Current Ratio Range
Min: 0.91  Med: 3.07 Max: 8.77
Current: 6.14
0.91
8.77
Quick Ratio 6.14
GWRE's Quick Ratio is ranked higher than
90% of the 1590 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.94 vs. GWRE: 6.14 )
Ranked among companies with meaningful Quick Ratio only.
GWRE' s 10-Year Quick Ratio Range
Min: 0.91  Med: 3.07 Max: 8.77
Current: 6.14
0.91
8.77
Days Sales Outstanding 58.30
GWRE's Days Sales Outstanding is ranked higher than
61% of the 1486 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 69.02 vs. GWRE: 58.30 )
Ranked among companies with meaningful Days Sales Outstanding only.
GWRE' s 10-Year Days Sales Outstanding Range
Min: 41.43  Med: 50.23 Max: 89.74
Current: 58.3
41.43
89.74

Valuation & Return

vs
industry
vs
history
Price/Net Cash 9.46
GWRE's Price/Net Cash is ranked higher than
57% of the 528 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 12.11 vs. GWRE: 9.46 )
Ranked among companies with meaningful Price/Net Cash only.
GWRE' s 10-Year Price/Net Cash Range
Min: 7.5  Med: 9.77 Max: 35.79
Current: 9.46
7.5
35.79
Price/Net Current Asset Value 7.93
GWRE's Price/Net Current Asset Value is ranked lower than
55% of the 1027 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.98 vs. GWRE: 7.93 )
Ranked among companies with meaningful Price/Net Current Asset Value only.
GWRE' s 10-Year Price/Net Current Asset Value Range
Min: 6.4  Med: 7.35 Max: 20.07
Current: 7.93
6.4
20.07
Price/Tangible Book 6.43
GWRE's Price/Tangible Book is ranked lower than
64% of the 1376 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 4.06 vs. GWRE: 6.43 )
Ranked among companies with meaningful Price/Tangible Book only.
GWRE' s 10-Year Price/Tangible Book Range
Min: 4.18  Med: 5.60 Max: 12.29
Current: 6.43
4.18
12.29
Price/Median PS Value 1.32
GWRE's Price/Median PS Value is ranked lower than
57% of the 1546 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.21 vs. GWRE: 1.32 )
Ranked among companies with meaningful Price/Median PS Value only.
GWRE' s 10-Year Price/Median PS Value Range
Min: 0.21  Med: 0.96 Max: 1.13
Current: 1.32
0.21
1.13
Price/Graham Number 8.19
GWRE's Price/Graham Number is ranked lower than
87% of the 845 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.24 vs. GWRE: 8.19 )
Ranked among companies with meaningful Price/Graham Number only.
GWRE' s 10-Year Price/Graham Number Range
Min: 2.43  Med: 6.87 Max: 12.85
Current: 8.19
2.43
12.85
Earnings Yield (Greenblatt) (%) 0.50
GWRE's Earnings Yield (Greenblatt) (%) is ranked lower than
64% of the 1696 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.70 vs. GWRE: 0.50 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
GWRE' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.3  Med: 0.80 Max: 4.6
Current: 0.5
0.3
4.6

Analyst Estimate

Jul15 Jul16 Jul17
Revenue(Mil) 378 420 479
EPS($) 0.54 0.62 0.85
EPS without NRI($) 0.54 0.62 0.85

Business Description

Industry: Application Software » Software - Infrastructure
Compare: » details
Traded in other countries:0GS.Germany,
Guidewire Software was incorporated in Delaware in 2001. The company is a provider of core system software to the global property and casualty, or P&C, insurance industry. Its solutions serve as the transactional systems-of-record for, and enable the key functions of, a P&C insurance carrier's business: underwriting and policy administration, claims management and billing. Since its inception, its mission has been to empower P&C insurance carriers to transform and improve their businesses by replacing their legacy core systems with innovative modern software platform. The company has developed an integrated suite of highly configurable applications that are delivered through a web-based interface and can be deployed either on-premise or in cloud environments. A key advantage of its architecture over that of legacy core systems is that its solutions enable extensive configurability of business rules, workflows and user interfaces without modification of the underlying code base, allowing customers to easily make changes in response to specific, evolving business needs. Its Guidewire InsuranceSuite includes Guidewire PolicyCenter, Guidewire ClaimCenter and Guidewire BillingCenter applications, which enable a broad range of core P&C insurance operations. The company's customers range from some of the largest global insurance carriers or their subsidiaries such as Tokio Marine & Nichido Fire Insurance Co., Ltd. and Zurich Financial Services Group Ltd. to national carriers such as Nationwide Mutual Insurance Company to regional carriers such as AAA affiliates. As of July 31, 2011, it had 101 customers. The company's total revenues are comprised of the following: License revenues: Its license software applications, PolicyCenter, ClaimCenter and BillingCenter, separately or combined as InsuranceSuite, to customers on either a multi-year renewable term basis with recurring annual billing periods or, to a limited extent, a perpetual basis when required by customers; Maintenance revenues: It offers maintenance under renewable, fee-based contracts that include unspecified software updates and upgrades released when and if available, software patches and fixes and email and phone support; and Services revenues: Services revenues are primarily comprised of revenues from implementation, reimbursable travel expenses and training services. Most of its revenue comes from Services. Guidewire, 'Guidewire Software,' 'Guidewire BillingCenter,' 'Guidewire ClaimCenter,' 'Guidewire PolicyCenter,' 'Guidewire InsuranceSuite' and 'Gosu' are registered or common law trademarks or service marks of Guidewire Software, Inc.
» More Articles for GWRE

Headlines

Articles On GuruFocus.com
Baron Opportunity Fund Fourth Quarter 2014 Commentary Mar 30 2015 
Ron Baron Comments on Guidewire Software Inc Jul 28 2014 
Baron Funds Comments on Guidewire Software Feb 20 2014 
Ron Baron Comments on Guidewire Software Inc. Jun 10 2013 
Weekly CEO Sells Highlight: Jack in the Box, Guidewire Software, Williams-Sonoma, and Ventas Mar 31 2013 
comment on GWRE Mar 06 2013 
Weekly CFO Sells Highlight: USB, GNC, WWWW, GWRE, CRIS, CSL Apr 30 2012 

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