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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Guidewire Software's 5-Year ROIIC % for the quarter that ended in Jul. 2025 was 13.01%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Guidewire Software's 5-Year ROIIC % or its related term are showing as below:
STU:0GS's 5-Year ROIIC % is ranked better than 65.11% of 2319
companies
in the Software industry
Industry Median: 5.11
vs STU:0GS: 13.01
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Guidewire Software 5-Year ROIIC % Related Terms
Guidewire Software 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Guidewire Software's 5-Year ROIIC % 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.
STU:0GS vs FIG, FROG, HUBS: 5-Year ROIIC % Comparison
For the Software - Application subindustry, Guidewire Software's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Guidewire Software's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Guidewire Software's 5-Year ROIIC % falls into.
Guidewire Software's 5-Year ROIIC % for the quarter that ended in Jul. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 35.195 (Jul. 2025) - -20.781 (Jul. 2020) )
/
( 1468.034 (Jul. 2025) - 1055.944 (Jul. 2020) )
=
55.976
/
412.09
=
13.58%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Guidewire Software (STU:0GS) has a 5-Year ROIIC % of 13.01 as of Jul. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Guidewire Software and its competitors. According to the industry distribution chart, Guidewire Software ranks #809 out of 2319 companies in the Software industry, placing it in the top 34.9%.
Is Guidewire Software's 5-Year ROIIC % too high?
Guidewire Software's current 5-Year ROIIC % is 13.01. The Software industry median 5-Year ROIIC % is 5.11. Guidewire Software's value of 13.01 is 154.6% above this industry median. Based on the distribution chart, Guidewire Software ranks #809 out of 2319 companies in the Software industry, which is above the industry midpoint. Overall, Guidewire Software has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guidewire Software's 5-Year ROIIC % compare to FIG and FROG?
According to the Software industry distribution chart, Guidewire Software ranks #809 out of 2319 companies for 5-Year ROIIC %. This puts Guidewire Software in the upper half of its industry. The industry median 5-Year ROIIC % is 5.11. Guidewire Software's value of 13.01 is 154.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Software company?
The median 5-Year ROIIC % among Software companies is 5.11, based on 2,319 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Guidewire Software's current 5-Year ROIIC % of 13.01 is 154.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Guidewire Software and its competitors. For the Software industry, the median 5-Year ROIIC % is 5.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guidewire Software's current 5-Year ROIIC % is 13.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guidewire Software stock overvalued right now?
Based on GuruFocus' analysis, Guidewire Software (STU:0GS) is currently considered Significantly Undervalued. The stock's GF Value™ is €180.68, compared to a current price of €125.45 — trading 30.6% below its estimated fair value. The current 5-Year ROIIC % is 13.01 and 154.6% above the Software industry median of 5.11. Guidewire Software's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Guidewire Software (STU:0GS), the current 5-Year ROIIC % is 13.01 as of Jul. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Guidewire Software (STU:0GS) Overvalued in 2026?
Based on GuruFocus' analysis, Guidewire Software stock appears to be undervalued.
The current stock price of €125.45 is trading 30.6% below its estimated GF Value™ of €180.68.
GuruFocus considers Guidewire Software to be Significantly Undervalued.
Key valuation signals for STU:0GS:
5-Year ROIIC %: 13.01
GF Value™: €180.68 vs. price of €125.45 (30.6% below fair value)
Industry Position: 154.6% above the Software median (#809 of 2319)
No single metric tells the full story. See the STU:0GS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guidewire Software provides cloud-based software solutions for property and casualty insurers. The flagship product, InsuranceSuite is a 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 midmarket offering, as well as a variety of other add-on applications and services.
71GF Score
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