Guidewire Software Inc (GWRE, Financial), a leading player in the software industry, has seen a significant surge in its stock price over the past three months. The company's market cap stands at $7.69 billion, with its stock price currently at $94.39. Over the past week, the stock has gained 9.48%, and over the past three months, it has seen a remarkable 30.54% increase. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The GF Value of Guidewire Software Inc is $125.52, up from $123.92 three months ago. Despite the recent surge, the stock is still considered modestly undervalued, a significant shift from being a possible value trap three months ago.
Unpacking Guidewire Software Inc
Guidewire Software Inc operates in the software industry, providing software solutions for property and casualty insurers. Its flagship product, InsuranceSuite, is an on-premises system of record that includes ClaimCenter, a claims management system; PolicyCenter, a policy management system; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, along with a variety of other add-on applications.
Profitability Analysis of Guidewire Software Inc
Guidewire Software Inc's Profitability Rank is 5/10, indicating a moderate level of profitability compared to its industry peers. The company's Operating Margin stands at -21.34%, better than 26.55% of 2719 companies in the same industry. Its ROE is -11.93%, ROA is -7.53%, and ROIC is -12.48%, all of which are better than a significant percentage of companies in the industry. Over the past decade, the company has had six years of profitability, better than 52.92% of 2228 companies.
Growth Analysis of Guidewire Software Inc
The company's Growth Rank is 3/10, indicating a relatively low growth rate compared to its industry peers. However, its 3-Year Revenue Growth Rate per Share is 3.80%, better than 39.02% of 2396 companies, and its 5-Year Revenue Growth Rate per Share is 5.90%, better than 48.77% of 1876 companies. The company's future total revenue growth rate estimate is 9.72%, better than 43.8% of 500 companies.
Major Holders of Guidewire Software Inc's Stock
The top three holders of Guidewire Software Inc's stock are Ron Baron (Trades, Portfolio), Jerome Dodson (Trades, Portfolio), and Wallace Weitz (Trades, Portfolio). Ron Baron (Trades, Portfolio) holds the largest share with 6,201,987 shares, accounting for 7.62% of the total shares. Jerome Dodson (Trades, Portfolio) holds 423,353 shares, making up 0.52% of the total shares, while Wallace Weitz (Trades, Portfolio) holds 215,600 shares, accounting for 0.26% of the total shares.
Competitors of Guidewire Software Inc
Guidewire Software Inc faces competition from CDK Global Inc (CDK, Financial) with a market cap of $6.39 billion, Avalara Inc (AVLR, Financial) with a market cap of $8.28 billion, and Lyft Inc (LYFT, Financial) with a market cap of $4.13 billion. Despite the competition, Guidewire Software Inc has managed to maintain a strong position in the market.
Conclusion
In conclusion, Guidewire Software Inc has shown impressive stock performance over the past three months, with a 30.54% increase. Despite its modest profitability and growth ranks, the company has managed to maintain a competitive edge in the software industry. The company's stock is currently considered modestly undervalued, offering potential for further growth. However, investors should continue to monitor the company's performance and the market trends closely.
