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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
96% of the 1700 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 19.19 vs. GWRE: No Debt )
GWRE' s 10-Year Cash to Debt Range
Min: No Debt   Max: No Debt
Current: No Debt

Equity to Asset 0.87
GWRE's Equity to Asset is ranked higher than
94% of the 1653 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 0.59 vs. GWRE: 0.87 )
GWRE' s 10-Year Equity to Asset Range
Min: -0.42   Max: 0.89
Current: 0.87

-0.42
0.89
Interest Coverage No Debt
GWRE's Interest Coverage is ranked higher than
96% of the 1081 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 554.09 vs. GWRE: No Debt )
GWRE' s 10-Year Interest Coverage Range
Min: 9999.99   Max: 9999.99
Current: No Debt

F-Score: 5
Z-Score: 19.48
M-Score: -2.27
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 : 5/10

vs
industry
vs
history
Operating margin (%) 5.60
GWRE's Operating margin (%) is ranked higher than
68% of the 1664 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.60 vs. GWRE: 5.60 )
GWRE' s 10-Year Operating margin (%) Range
Min: -12.36   Max: 12.45
Current: 5.6

-12.36
12.45
Net-margin (%) 5.12
GWRE's Net-margin (%) is ranked higher than
72% of the 1663 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.69 vs. GWRE: 5.12 )
GWRE' s 10-Year Net-margin (%) Range
Min: -12.94   Max: 20.62
Current: 5.12

-12.94
20.62
ROE (%) 6.73
GWRE's ROE (%) is ranked higher than
68% of the 1622 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 6.80 vs. GWRE: 6.73 )
GWRE' s 10-Year ROE (%) Range
Min: 6.73   Max: 195.89
Current: 6.73

6.73
195.89
ROA (%) 4.93
GWRE's ROA (%) is ranked higher than
74% of the 1683 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 3.56 vs. GWRE: 4.93 )
GWRE' s 10-Year ROA (%) Range
Min: -20.03   Max: 28.1
Current: 4.93

-20.03
28.1
ROC (Joel Greenblatt) (%) 130.44
GWRE's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 1665 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 30.29 vs. GWRE: 130.44 )
GWRE' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -551.45   Max: 651.74
Current: 130.44

-551.45
651.74
» GWRE's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

GWRE Guru Trades in Q3 2013

RS Investment Management 40,400 sh (New)
Frank Sands 350,895 sh (+15.6%)
Ron Baron 3,571,711 sh (+13.32%)
Pioneer Investments 158,264 sh (-1.52%)
» More
Q4 2013

GWRE Guru Trades in Q4 2013

RS Investment Management 54,300 sh (+34.41%)
Ron Baron 4,487,875 sh (+25.65%)
Frank Sands 350,095 sh (-0.23%)
Pioneer Investments 151,280 sh (-4.41%)
» More
Q1 2014

GWRE Guru Trades in Q1 2014

Ron Baron 4,707,227 sh (+4.89%)
RS Investment Management 54,300 sh (unchged)
Frank Sands 348,995 sh (-0.31%)
Pioneer Investments 147,233 sh (-2.68%)
» More
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
» Details

Insider Trades

Latest Guru Trades with GWRE

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2013-12-31 Add 25.65%0.19%$43.83 - $51.01 $ 44.55-6%4487875
Frank Sands 2013-06-30 Add 97.87%0.02%$35.51 - $43.56 $ 44.5512%303535
Frank Sands 2013-03-31 New Buy0.02%$29.72 - $38.75 $ 44.5531%153400
Ron Baron 2012-09-30 Add 179.73%0.32%$23.66 - $32.25 $ 44.5562%2544426
Ron Baron 2012-06-30 New Buy0.16%$22.65 - $30.65 $ 44.5566%909589
Premium More recent guru trades are included for Premium Members only!!
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Peter Lynch Chart ( What is Peter Lynch Charts )

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. (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

Ron Baron Comments on Guidewire Software Inc. - Jun 10, 2013

Shares of Guidewire Software, Inc. (GWRE), a leading provider of core systems software to the global P&C insurance industry, outperformed during the first quarter after reporting significantly better-than-expected financial results. We believe that Guidewire is emerging as the gold standard in terms of P&C core systems functionality, as evidenced by its near perfect retention rates, growing installed base, and the accelerating adoption of its complete suite of offerings. (Neal Rosenberg)

From Baron Funds’ first quarter 2013 commentary.
Check out Ron Baron latest stock trades

Top Ranked Articles about Guidewire Software Inc

Ron Baron Comments on Guidewire Software Inc
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) Read more...
Baron Funds Comments on Guidewire Software
The Fund initiated a position in Guidewire Software, Inc. (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. Read more...

Ratios

vs
industry
vs
history
P/B 4.70
GWRE's P/B is ranked lower than
52% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.90 vs. GWRE: 4.70 )
GWRE' s 10-Year P/B Range
Min: 3.76   Max: 12.32
Current: 4.7

3.76
12.32
P/S 8.90
GWRE's P/S is ranked lower than
77% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 2.25 vs. GWRE: 8.90 )
GWRE' s 10-Year P/S Range
Min: 1.86   Max: 10.65
Current: 8.9

1.86
10.65
PFCF 68.60
GWRE's PFCF is ranked higher than
63% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 104.07 vs. GWRE: 68.60 )
GWRE' s 10-Year PFCF Range
Min: 32.42   Max: 155.57
Current: 68.6

32.42
155.57
EV-to-EBIT -343.82
GWRE's EV-to-EBIT is ranked lower than
60% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 33.95 vs. GWRE: -343.82 )
GWRE' s 10-Year EV-to-EBIT Range
Min: 21.9   Max: 393.2
Current: -343.82

21.9
393.2
Current Ratio 5.69
GWRE's Current Ratio is ranked higher than
92% of the 1130 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.98 vs. GWRE: 5.69 )
GWRE' s 10-Year Current Ratio Range
Min: 0.91   Max: 8.77
Current: 5.69

0.91
8.77
Quick Ratio 5.69
GWRE's Quick Ratio is ranked higher than
93% of the 1130 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.85 vs. GWRE: 5.69 )
GWRE' s 10-Year Quick Ratio Range
Min: 0.91   Max: 8.77
Current: 5.69

0.91
8.77

Valuation & Return

vs
industry
vs
history
Price/Net Cash 9.20
GWRE's Price/Net Cash is ranked higher than
91% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 9999.00 vs. GWRE: 9.20 )
GWRE' s 10-Year Price/Net Cash Range
Min: 7.35   Max: 35.79
Current: 9.2

7.35
35.79
Price/Net Current Asset Value 8.10
GWRE's Price/Net Current Asset Value is ranked higher than
87% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 9999.00 vs. GWRE: 8.10 )
GWRE' s 10-Year Price/Net Current Asset Value Range
Min: 6.82   Max: 24.45
Current: 8.1

6.82
24.45
Price/Tangible Book 4.90
GWRE's Price/Tangible Book is ranked higher than
63% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 7.00 vs. GWRE: 4.90 )
GWRE' s 10-Year Price/Tangible Book Range
Min: 4.18   Max: 11.92
Current: 4.9

4.18
11.92
Price/Median PS Value 1.10
GWRE's Price/Median PS Value is ranked higher than
64% of the 1830 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 1.20 vs. GWRE: 1.10 )
GWRE' s 10-Year Price/Median PS Value Range
Min: 0.24   Max: 1.29
Current: 1.1

0.24
1.29
Earnings Yield (Greenblatt) 0.60
GWRE's Earnings Yield (Greenblatt) is ranked lower than
66% of the 1440 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 5.60 vs. GWRE: 0.60 )
GWRE' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.3   Max: 4.6
Current: 0.6

0.3
4.6

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
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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