Is Guidewire Software, Inc. (GWRE) Halal?
Shariah Screening — 5 Standards
Based on financial data from July 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 5.0% / 30% | 8.0% / 30% | 2.1% / 30% | 4.71% / 5% | ✓ HALAL |
| DJIM | 5.0% / 33% | 8.0% / 33% | 2.1% / 33% | 4.71% / 5% | ✓ HALAL |
| MSCI | 26.3% / 33% | 42.2% / 33% | 11.0% / 33% | 4.71% / 5% | ✗ NOT HALAL |
| S&P | 5.0% / 33% | 8.0% / 33% | 2.1% / 33% | 4.71% / 5% | ✓ HALAL |
| FTSE | 26.3% / 33% | 42.2% / 33% | 11.0% / 50% | 4.71% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 63.8% | |
| Operating Margin | 10.7% | |
| Net Margin | 14.1% | |
| Return on Equity (ROE) | 13.6% | |
| Return on Assets (ROA) | 2.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $301M |
| Free Cash Flow | $280M |
| Total Debt | $716M |
| Debt-to-Equity | 46.7 |
| Current Ratio | 2.9 |
| Total Assets | $2.7B |
Price & Trading
| Last Close | $151.34 |
| 50-Day MA | $146.83 |
| 200-Day MA | $204.29 |
| Avg Volume | 1.7M |
| Beta | 1.1 |
|
52-Week Range
$120.37
| |
About Guidewire Software, Inc. (GWRE)
Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers worldwide. It offers Guidewire InsuranceSuite, such as PolicyCenter, ClaimCenter, and BillingCenter applications. The company also provides Guidewire InsuranceNow, a cloud-based application that offers policy administration, claims management, and billing functionality, plus pre-integrated document production, analytics, and other capabilities. In addition, it offers Guidewire Rating Management to manage the pricing of insurance products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management that helps P&C insurers to capitalize on customer information; Guidewire Advanced Product Designer, a cloud-native application for insurance product design and management; Guidewire Product Content Management provides software tools and standards-based, line-of-business templates. Further, the company provides Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences; Guidewire Predict, a P&C-specific machine-learning platform; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Canvas, Guidewire Compare, Guidewire industry Intel, Guidewire Data Studio, and Guidewire Explore, an cloud-native applications; Guidewire Cyence, a cyber-risk economic modeling product; Guidewire DataHub, an operational data store; and Guidewire InfoCenter, a business intelligence warehouse for P&C insurers . The company was incorporated in 2001 and is headquartered in San Mateo, California.
Purification Calculator
As a halal stock with 4.71% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Guidewire Software, Inc. (GWRE) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Guidewire Software, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Guidewire Software, Inc.'s debt ratio?
Guidewire Software, Inc.'s debt ratio is 5.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 26.3%.
Does Guidewire Software, Inc. require dividend purification?
Yes, Guidewire Software, Inc. has an impermissible income ratio of 4.71%, which means 4.71% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Guidewire Software, Inc.'s key financial metrics?
Guidewire Software, Inc. has a market capitalization of $12.3B, trailing P/E ratio of 65.5, and revenue of $1.2B. The company maintains a gross margin of 63.8% and a net margin of 14.1%. Return on equity stands at 13.6%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.