GODADDY INC - CLASS A (GDDY) Stock Fundamental Analysis
USA - NYSE:GDDY - US3802371076 - Common Stock
135 USD
+1 (+0.75%)
135 USD
0 (0%)
Taking everything into account, GDDY scores 5 out of 10 in our fundamental rating. GDDY was compared to 86 industry peers in the IT Services industry. GDDY has an excellent profitability rating, but there are some minor concerns on its financial health. GDDY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GDDY was profitable.
GDDY had a positive operating cash flow in the past year.
Of the past 5 years GDDY 4 years were profitable.
Each year in the past 5 years GDDY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GDDY (9.77%) is better than 83.91% of its industry peers.
GDDY has a Return On Equity of 199.93%. This is amongst the best in the industry. GDDY outperforms 100.00% of its industry peers.
GDDY's Return On Invested Capital of 15.56% is amongst the best of the industry. GDDY outperforms 88.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GDDY is significantly below the industry average of 21.42%.
The 3 year average ROIC (10.88%) for GDDY is below the current ROIC(15.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 199.93% | ||
| ROIC | 15.56% |
ROA(3y)11.53%
ROA(5y)6.03%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.88%
ROIC(5y)8.82%
1.3 Margins
The Profit Margin of GDDY (17.01%) is better than 94.25% of its industry peers.
In the last couple of years the Profit Margin of GDDY has grown nicely.
Looking at the Operating Margin, with a value of 21.79%, GDDY belongs to the top of the industry, outperforming 95.40% of the companies in the same industry.
In the last couple of years the Operating Margin of GDDY has grown nicely.
GDDY has a better Gross Margin (63.97%) than 82.76% of its industry peers.
In the last couple of years the Gross Margin of GDDY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.79% | ||
| PM (TTM) | 17.01% | ||
| GM | 63.97% |
OM growth 3Y26.76%
OM growth 5Y22.51%
PM growth 3Y47.76%
PM growth 5Y34.91%
GM growth 3Y-0.08%
GM growth 5Y-0.54%
2. Health
2.1 Basic Checks
GDDY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GDDY has been reduced compared to 1 year ago.
Compared to 5 years ago, GDDY has less shares outstanding
The debt/assets ratio for GDDY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.84 indicates that GDDY is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GDDY (1.84) is worse than 64.37% of its industry peers.
The Debt to FCF ratio of GDDY is 2.61, which is a good value as it means it would take GDDY, 2.61 years of fcf income to pay off all of its debts.
GDDY's Debt to FCF ratio of 2.61 is fine compared to the rest of the industry. GDDY outperforms 66.67% of its industry peers.
GDDY has a Debt/Equity ratio of 9.33. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 9.33, GDDY is not doing good in the industry: 87.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.33 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.92
WACC8.1%
2.3 Liquidity
GDDY has a Current Ratio of 0.64. This is a bad value and indicates that GDDY is not financially healthy enough and could expect problems in meeting its short term obligations.
GDDY has a Current ratio of 0.64. This is amonst the worse of the industry: GDDY underperforms 90.80% of its industry peers.
GDDY has a Quick Ratio of 0.64. This is a bad value and indicates that GDDY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.64, GDDY is doing worse than 90.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for GDDY have decreased strongly by -55.27% in the last year.
Measured over the past years, GDDY shows a very strong growth in Earnings Per Share. The EPS has been growing by 54.61% on average per year.
The Revenue has been growing slightly by 7.93% in the past year.
The Revenue has been growing by 8.88% on average over the past years. This is quite good.
EPS 1Y (TTM)-55.27%
EPS 3Y65.22%
EPS 5Y54.61%
EPS Q2Q%39.6%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y6.22%
Revenue growth 5Y8.88%
Sales Q2Q%8.28%
3.2 Future
The Earnings Per Share is expected to grow by 11.36% on average over the next years. This is quite good.
Based on estimates for the next years, GDDY will show a small growth in Revenue. The Revenue will grow by 7.81% on average per year.
EPS Next Y-4.67%
EPS Next 2Y6.25%
EPS Next 3Y11.36%
EPS Next 5YN/A
Revenue Next Year7.89%
Revenue Next 2Y7.55%
Revenue Next 3Y7.76%
Revenue Next 5Y7.81%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.11 indicates a rather expensive valuation of GDDY.
Compared to the rest of the industry, the Price/Earnings ratio of GDDY is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.86, GDDY is valued at the same level.
GDDY is valuated rather expensively with a Price/Forward Earnings ratio of 18.54.
64.37% of the companies in the same industry are more expensive than GDDY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.32. GDDY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 18.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GDDY.
86.21% of the companies in the same industry are more expensive than GDDY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.86 | ||
| EV/EBITDA | 18.41 |
4.3 Compensation for Growth
GDDY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y6.25%
EPS Next 3Y11.36%
5. Dividend
5.1 Amount
GDDY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
135
+1 (+0.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.33%
Inst Owner Change0%
Ins Owners0.66%
Ins Owner Change-0.23%
Market Cap18.69B
Analysts77.69
Price Target194.58 (44.13%)
Short Float %5.18%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.7%
Min EPS beat(2)3.85%
Max EPS beat(2)7.55%
EPS beat(4)3
Avg EPS beat(4)2.48%
Min EPS beat(4)-6.73%
Max EPS beat(4)7.55%
EPS beat(8)6
Avg EPS beat(8)106.1%
EPS beat(12)7
Avg EPS beat(12)66.97%
EPS beat(16)10
Avg EPS beat(16)54.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.36%
Revenue beat(12)0
Avg Revenue beat(12)-1.7%
Revenue beat(16)1
Avg Revenue beat(16)-1.27%
PT rev (1m)0%
PT rev (3m)-9.94%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 18.54 | ||
| P/S | 3.93 | ||
| P/FCF | 12.86 | ||
| P/OCF | 12.63 | ||
| P/B | 46.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.41 |
EPS(TTM)5.6
EY4.15%
EPS(NY)7.28
Fwd EY5.39%
FCF(TTM)10.5
FCFY7.77%
OCF(TTM)10.69
OCFY7.92%
SpS34.32
BVpS2.92
TBVpS-30.78
PEG (NY)N/A
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 199.93% | ||
| ROCE | 19.7% | ||
| ROIC | 15.56% | ||
| ROICexc | 19.62% | ||
| ROICexgc | N/A | ||
| OM | 21.79% | ||
| PM (TTM) | 17.01% | ||
| GM | 63.97% | ||
| FCFM | 30.58% |
ROA(3y)11.53%
ROA(5y)6.03%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.88%
ROIC(5y)8.82%
ROICexc(3y)12.98%
ROICexc(5y)10.73%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.77%
ROCE(5y)11.16%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y26.92%
ROICexc growth 5Y25%
OM growth 3Y26.76%
OM growth 5Y22.51%
PM growth 3Y47.76%
PM growth 5Y34.91%
GM growth 3Y-0.08%
GM growth 5Y-0.54%
F-Score8
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.33 | ||
| Debt/FCF | 2.61 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 21.44% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 127.4% | ||
| Profit Quality | 179.74% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.84 |
F-Score8
WACC8.1%
ROIC/WACC1.92
Cap/Depr(3y)31.91%
Cap/Depr(5y)52.56%
Cap/Sales(3y)1.29%
Cap/Sales(5y)2.59%
Profit Quality(3y)155.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-55.27%
EPS 3Y65.22%
EPS 5Y54.61%
EPS Q2Q%39.6%
EPS Next Y-4.67%
EPS Next 2Y6.25%
EPS Next 3Y11.36%
EPS Next 5YN/A
Revenue 1Y (TTM)7.93%
Revenue growth 3Y6.22%
Revenue growth 5Y8.88%
Sales Q2Q%8.28%
Revenue Next Year7.89%
Revenue Next 2Y7.55%
Revenue Next 3Y7.76%
Revenue Next 5Y7.81%
EBIT growth 1Y30.84%
EBIT growth 3Y34.65%
EBIT growth 5Y33.39%
EBIT Next Year76.02%
EBIT Next 3Y29.85%
EBIT Next 5Y21.82%
FCF growth 1Y70.5%
FCF growth 3Y29.84%
FCF growth 5Y14.85%
OCF growth 1Y56.45%
OCF growth 3Y15.8%
OCF growth 5Y12.22%