Guidewire Software Inc (GWRE) Stock Analysis
Verdict: WATCH (do not buy)
Cloud migration and AI modules drive ARR expansion, but a steep 106.8x TTM P/E limits near-term upside if deal timing slips.
Investment score: 58/100
Analysis as of
Is Guidewire Software Inc stock worth reviewing? AI model thesis
Guidewire Software Inc delivers strong cloud growth and margin expansion, but its 106.80x TTM P/E leaves minimal safety margin against quarterly contract timing delays.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 75/100 (weight 15%)
- Technical Momentum: 60/100 (weight 15%)
- Earnings Quality: 78/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 58/100 (weight 15%)
Guidewire Software Inc opportunities and risks
What speaks for GWRE
- Cloud migration trajectory accelerating annual recurring revenue to $1.242B in FY26.
What speaks against GWRE
- Quarterly contract deal timing lumpiness and conservative Q1 guidance.
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| GWRE | 106.8x | 9.8x | 69.1x | 64.2% | 9.4% | 2.0% |
| DT | 125.5x | 8.8x | 57.6x | 81.4% | 7.2% | 3.1% |
| U | n/a | 9.1x | n/a | 64.9% | -28.9% | 2.9% |
| FICO | 21.7x | 6.8x | 17.1x | 85.1% | 34.1% | 6.1% |
| TYL | 47.4x | 6.1x | 27.2x | 46.6% | 13.4% | 4.8% |
| DOCU | 45.9x | 4.3x | 24.7x | 79.5% | 9.8% | 8.4% |
| Peer median | 45.9x | 6.8x | 24.7x | 79.5% | 9.8% | 4.8% |
Frequently asked questions about Guidewire Software Inc (GWRE)
Is GWRE stock a good investment?
The cached TradeMates AI model rates Guidewire Software Inc as WATCH (do not buy) with an investment score of 58/100. Guidewire Software Inc delivers strong cloud growth and margin expansion, but its 106.80x TTM P/E leaves minimal safety margin against quarterly contract timing delays. This is algorithmic model output, not personal investment advice.
Is GWRE stock a buy?
The TradeMates model verdict for GWRE is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.