GODADDY INC - CLASS A (GDDY) Stock Fundamental Analysis
NYSE:GDDY - New York Stock Exchange, Inc. - US3802371076 - Common Stock - Currency: USD
Taking everything into account, GDDY scores 5 out of 10 in our fundamental rating. GDDY was compared to 82 industry peers in the IT Services industry. While GDDY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, GDDY is valued expensive at the moment.
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.
GDDY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.63%, GDDY belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
GDDY's Return On Equity of 378.02% is amongst the best of the industry. GDDY outperforms 100.00% of its industry peers.
GDDY's Return On Invested Capital of 15.41% is amongst the best of the industry. GDDY outperforms 86.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GDDY is significantly below the industry average of 22.63%.
The 3 year average ROIC (10.88%) for GDDY is below the current ROIC(15.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.63% | ||
| ROE | 378.02% | ||
| ROIC | 15.41% |
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 (16.20%) is better than 91.46% of its industry peers.
In the last couple of years the Profit Margin of GDDY has grown nicely.
With an excellent Operating Margin value of 21.12%, GDDY belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
In the last couple of years the Operating Margin of GDDY has grown nicely.
With an excellent Gross Margin value of 63.98%, GDDY belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
GDDY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.12% | ||
| PM (TTM) | 16.2% | ||
| GM | 63.98% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GDDY is creating some value.
Compared to 1 year ago, GDDY has less shares outstanding
Compared to 5 years ago, GDDY has less shares outstanding
Compared to 1 year ago, GDDY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.41 indicates that GDDY is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.41, GDDY perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
GDDY has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as GDDY would need 2.77 years to pay back of all of its debts.
GDDY's Debt to FCF ratio of 2.77 is fine compared to the rest of the industry. GDDY outperforms 63.41% of its industry peers.
A Debt/Equity ratio of 18.91 is on the high side and indicates that GDDY has dependencies on debt financing.
The Debt to Equity ratio of GDDY (18.91) is worse than 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.91 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.67
WACC9.25%
2.3 Liquidity
GDDY has a Current Ratio of 0.56. 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 worse Current ratio (0.56) than 87.80% of its industry peers.
GDDY has a Quick Ratio of 0.56. 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. GDDY is outperformed by 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for GDDY have decreased strongly by -56.85% 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.
Looking at the last year, GDDY shows a small growth in Revenue. The Revenue has grown by 7.68% in the last year.
Measured over the past years, GDDY shows a quite strong growth in Revenue. The Revenue has been growing by 8.88% on average per year.
EPS 1Y (TTM)-56.85%
EPS 3Y65.22%
EPS 5Y54.61%
EPS Q2Q%-45.29%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y6.22%
Revenue growth 5Y8.88%
Sales Q2Q%7.74%
3.2 Future
GDDY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.04% yearly.
The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.
EPS Next Y-2.91%
EPS Next 2Y11.52%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue Next Year7.72%
Revenue Next 2Y7.57%
Revenue Next 3Y7.68%
Revenue Next 5Y8.14%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.16, the valuation of GDDY can be described as expensive.
GDDY's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.82, GDDY is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 22.79, the valuation of GDDY can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as GDDY.
When comparing the Price/Forward Earnings ratio of GDDY to the average of the S&P500 Index (21.76), we can say GDDY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.16 | ||
| Fwd PE | 22.79 |
4.2 Price Multiples
GDDY's Enterprise Value to EBITDA is on the same level as the industry average.
70.73% 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 | 19.02 | ||
| EV/EBITDA | 26.31 |
4.3 Compensation for Growth
The excellent profitability rating of GDDY may justify a higher PE ratio.
A more expensive valuation may be justified as GDDY's earnings are expected to grow with 16.04% in the coming years.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y11.52%
EPS Next 3Y16.04%
5. Dividend
5.1 Amount
No dividends for GDDY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
182.84
-1.13 (-0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.99%
Inst Owner Change1.61%
Ins Owners0.6%
Ins Owner Change0.42%
Market Cap26.04B
Analysts76.15
Price Target216.02 (18.15%)
Short Float %2.05%
Short Ratio1.73
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)1
Avg EPS beat(2)0.41%
Min EPS beat(2)-6.73%
Max EPS beat(2)7.55%
EPS beat(4)2
Avg EPS beat(4)-0.34%
Min EPS beat(4)-7.44%
Max EPS beat(4)7.55%
EPS beat(8)5
Avg EPS beat(8)104.78%
EPS beat(12)7
Avg EPS beat(12)67.74%
EPS beat(16)9
Avg EPS beat(16)53.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.55%
Revenue beat(12)0
Avg Revenue beat(12)-1.78%
Revenue beat(16)1
Avg Revenue beat(16)-1.24%
PT rev (1m)-4.29%
PT rev (3m)1.49%
EPS NQ rev (1m)-6.85%
EPS NQ rev (3m)-13.46%
EPS NY rev (1m)-3.9%
EPS NY rev (3m)-9.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.16 | ||
| Fwd PE | 22.79 | ||
| P/S | 5.59 | ||
| P/FCF | 19.02 | ||
| P/OCF | 18.67 | ||
| P/B | 130.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.31 |
EPS(TTM)5.2
EY2.84%
EPS(NY)8.02
Fwd EY4.39%
FCF(TTM)9.61
FCFY5.26%
OCF(TTM)9.8
OCFY5.36%
SpS32.71
BVpS1.4
TBVpS-30.88
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.63% | ||
| ROE | 378.02% | ||
| ROCE | 19.5% | ||
| ROIC | 15.41% | ||
| ROICexc | 17.97% | ||
| ROICexgc | N/A | ||
| OM | 21.12% | ||
| PM (TTM) | 16.2% | ||
| GM | 63.98% | ||
| FCFM | 29.39% |
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-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.91 | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 3.39 | ||
| Cap/Depr | 20.02% | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 6.48 | ||
| Cash Conversion | 125.37% | ||
| Profit Quality | 181.4% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.41 |
F-Score7
WACC9.25%
ROIC/WACC1.67
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)-56.85%
EPS 3Y65.22%
EPS 5Y54.61%
EPS Q2Q%-45.29%
EPS Next Y-2.91%
EPS Next 2Y11.52%
EPS Next 3Y16.04%
EPS Next 5YN/A
Revenue 1Y (TTM)7.68%
Revenue growth 3Y6.22%
Revenue growth 5Y8.88%
Sales Q2Q%7.74%
Revenue Next Year7.72%
Revenue Next 2Y7.57%
Revenue Next 3Y7.68%
Revenue Next 5Y8.14%
EBIT growth 1Y37.93%
EBIT growth 3Y34.65%
EBIT growth 5Y33.39%
EBIT Next Year73.15%
EBIT Next 3Y28.89%
EBIT Next 5Y22.37%
FCF growth 1Y48.32%
FCF growth 3Y29.84%
FCF growth 5Y14.85%
OCF growth 1Y40.38%
OCF growth 3Y15.8%
OCF growth 5Y12.22%