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Guidewire Software (MEX:GWRE) Piotroski F-Score : 6 (As of Dec. 14, 2024)


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What is Guidewire Software Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Guidewire Software has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Guidewire Software's Piotroski F-Score or its related term are showing as below:

MEX:GWRE' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 6

During the past 13 years, the highest Piotroski F-Score of Guidewire Software was 7. The lowest was 2. And the median was 5.


Guidewire Software Piotroski F-Score Historical Data

The historical data trend for Guidewire Software's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Guidewire Software Piotroski F-Score Chart

Guidewire Software Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 4.00 2.00 6.00 6.00

Guidewire Software Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 6.00 6.00 6.00

Competitive Comparison of Guidewire Software's Piotroski F-Score

For the Software - Application subindustry, Guidewire Software's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Guidewire Software's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, Guidewire Software's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Guidewire Software's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Oct24) TTM:Last Year (Oct23) TTM:
Net Income was 166.386 + -93.478 + 311.676 + 183.067 = MXN568 Mil.
Cash Flow from Operations was 1189.469 + 81.959 + 3603.768 + -1248.056 = MXN3,627 Mil.
Revenue was 4137.695 + 4106.978 + 5421.45 + 5266.275 = MXN18,932 Mil.
Gross Profit was 2445.994 + 2426.99 + 3467.244 + 3172.814 = MXN11,513 Mil.
Average Total Assets from the begining of this year (Oct23)
to the end of this year (Oct24) was
(34654.485 + 34584.622 + 34811.395 + 41403.503 + 52015.476) / 5 = MXN39493.8962 Mil.
Total Assets at the begining of this year (Oct23) was MXN34,654 Mil.
Long-Term Debt & Capital Lease Obligation was MXN14,117 Mil.
Total Current Assets was MXN32,797 Mil.
Total Current Liabilities was MXN12,324 Mil.
Net Income was -172.735 + -819.654 + 204.298 + -488.713 = MXN-1,277 Mil.

Revenue was 4372.622 + 3732.226 + 4513.239 + 3744.319 = MXN16,362 Mil.
Gross Profit was 2320.857 + 1779.288 + 2736.418 + 2027.207 = MXN8,864 Mil.
Average Total Assets from the begining of last year (Oct22)
to the end of last year (Oct23) was
(38673.987 + 37670.196 + 34473.511 + 33902.84 + 34654.485) / 5 = MXN35875.0038 Mil.
Total Assets at the begining of last year (Oct22) was MXN38,674 Mil.
Long-Term Debt & Capital Lease Obligation was MXN7,916 Mil.
Total Current Assets was MXN17,634 Mil.
Total Current Liabilities was MXN4,737 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Guidewire Software's current Net Income (TTM) was 568. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Guidewire Software's current Cash Flow from Operations (TTM) was 3,627. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Oct23)
=567.651/34654.485
=0.0163803

ROA (Last Year)=Net Income/Total Assets (Oct22)
=-1276.804/38673.987
=-0.03301454

Guidewire Software's return on assets of this year was 0.0163803. Guidewire Software's return on assets of last year was -0.03301454. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Guidewire Software's current Net Income (TTM) was 568. Guidewire Software's current Cash Flow from Operations (TTM) was 3,627. ==> 3,627 > 568 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct23 to Oct24
=14117.209/39493.8962
=0.35745293

Gearing (Last Year: Oct23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct22 to Oct23
=7915.753/35875.0038
=0.22064814

Guidewire Software's gearing of this year was 0.35745293. Guidewire Software's gearing of last year was 0.22064814. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Oct24)=Total Current Assets/Total Current Liabilities
=32797.251/12324.058
=2.66123796

Current Ratio (Last Year: Oct23)=Total Current Assets/Total Current Liabilities
=17634.134/4736.656
=3.72290789

Guidewire Software's current ratio of this year was 2.66123796. Guidewire Software's current ratio of last year was 3.72290789. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Guidewire Software's number of shares in issue this year was 85.961. Guidewire Software's number of shares in issue last year was 81.691. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=11513.042/18932.398
=0.60811325

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=8863.77/16362.406
=0.54171556

Guidewire Software's gross margin of this year was 0.60811325. Guidewire Software's gross margin of last year was 0.54171556. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Oct23)
=18932.398/34654.485
=0.54631884

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Oct22)
=16362.406/38673.987
=0.42308557

Guidewire Software's asset turnover of this year was 0.54631884. Guidewire Software's asset turnover of last year was 0.42308557. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Guidewire Software has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Guidewire Software  (MEX:GWRE) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Guidewire Software Piotroski F-Score Related Terms

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Guidewire Software Business Description

Traded in Other Exchanges
Address
970 Park Pl., Suite 200, San Mateo, CA, USA, 94403
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.