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Stock impact report

Guidewire Software: A Maturing Compounder Still Waiting For The Right Price [Seeking Alpha]

Guidewire Software, Inc. (GWRE) 
Last guidewire software, inc. earnings: 3/4 04:15 pm Check Earnings Report
US:NYSE Investor Relations: ir.guidewire.com
Company Research Source: Seeking Alpha
Margins are stable—subscription/support gross margins guided at 72-73% and overall gross margin at 66%—but lack meaningful expansion, shifting the thesis from margin-led to volume-led growth. FCF margins remain steady near 20%, with Rule of 40 metrics robust; a new $500M buyback should offset SBC dilution over the next three years. I maintain a strong Hold rating: GWRE's growth durability is intact, but further valuation compression (to ~8x EV/forward revenue or 3-4% FCF yield) is needed for a Buy. Suwatchai Wongaong/iStock via Getty Images In August last year, I had initiated coverage for Guidewire Software, Inc. ( GWRE ). At the time, I saw decent fundamentals with improving margin and steady growth. The gating variable at that point was valuations, despite This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I w Show less Read more
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