GODADDY INC - CLASS A (GDDY) Stock Fundamental Analysis
NYSE:GDDY - New York Stock Exchange, Inc. - US3802371076 - Common Stock - Currency: USD
Overall GDDY gets a fundamental rating of 5 out of 10. We evaluated GDDY against 82 industry peers in the IT Services industry. GDDY scores excellent on profitability, but 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.
In the past year GDDY had a positive cash flow from operations.
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
With an excellent Return On Assets value of 11.38%, GDDY belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
GDDY's Return On Equity of 135.37% is amongst the best of the industry. GDDY outperforms 100.00% of its industry peers.
The Return On Invested Capital of GDDY (13.31%) is better than 81.71% of its industry peers.
GDDY had an Average Return On Invested Capital over the past 3 years of 10.88%. This is significantly below the industry average of 22.65%.
The last Return On Invested Capital (13.31%) for GDDY is above the 3 year average (10.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 135.37% | ||
| ROIC | 13.31% |
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
With an excellent Profit Margin value of 20.49%, GDDY belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Profit Margin of GDDY has grown nicely.
Looking at the Operating Margin, with a value of 20.40%, GDDY belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
GDDY's Operating Margin has improved in the last couple of years.
The Gross Margin of GDDY (63.88%) is better than 80.49% of its industry peers.
GDDY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.4% | ||
| PM (TTM) | 20.49% | ||
| GM | 63.88% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GDDY is still creating some value.
GDDY has less shares outstanding than it did 1 year ago.
GDDY has less shares outstanding than it did 5 years ago.
GDDY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.65 indicates that GDDY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.65, GDDY is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of GDDY is 3.01, which is a good value as it means it would take GDDY, 3.01 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.01, GDDY is doing good in the industry, outperforming 62.20% of the companies in the same industry.
A Debt/Equity ratio of 5.46 is on the high side and indicates that GDDY has dependencies on debt financing.
The Debt to Equity ratio of GDDY (5.46) is worse than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.46 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.55
WACC8.6%
2.3 Liquidity
GDDY has a Current Ratio of 0.72. 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 Current ratio of 0.72 is on the low side compared to the rest of the industry. GDDY is outperformed by 85.37% of its industry peers.
GDDY has a Quick Ratio of 0.72. 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 0.72, GDDY is doing worse than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
GDDY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.84%.
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 7.50% in the past year.
GDDY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.88% yearly.
EPS 1Y (TTM)-58.84%
EPS 3Y65.22%
EPS 5Y54.61%
EPS Q2Q%-53.99%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y6.22%
Revenue growth 5Y8.88%
Sales Q2Q%7.74%
3.2 Future
Based on estimates for the next years, GDDY will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.21% on average per year.
GDDY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.14% yearly.
EPS Next Y1.03%
EPS Next 2Y11.74%
EPS Next 3Y13.21%
EPS Next 5YN/A
Revenue Next Year7.65%
Revenue Next 2Y7.44%
Revenue Next 3Y7.65%
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.
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
The Price/Earnings ratio is 35.78, which means the current valuation is very expensive for GDDY.
Compared to the rest of the industry, the Price/Earnings ratio of GDDY is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.75. GDDY is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 22.04, GDDY is valued on the expensive side.
GDDY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GDDY to the average of the S&P500 Index (20.49), we can say GDDY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.78 | ||
| Fwd PE | 22.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GDDY is on the same level as its industry peers.
GDDY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GDDY is cheaper than 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.05 | ||
| EV/EBITDA | 28.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GDDY does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GDDY may justify a higher PE ratio.
GDDY's earnings are expected to grow with 13.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)34.89
PEG (5Y)0.66
EPS Next 2Y11.74%
EPS Next 3Y13.21%
5. Dividend
5.1 Amount
GDDY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:GDDY (5/2/2025, 1:17:52 PM)
177.47
-14.89 (-7.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.99%
Inst Owner Change1.39%
Ins Owners0.6%
Ins Owner Change0.52%
Market Cap25.28B
Analysts76.15
Price Target223.35 (25.85%)
Short Float %3.14%
Short Ratio2.47
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)-0.74%
Min EPS beat(2)-6.73%
Max EPS beat(2)5.26%
EPS beat(4)2
Avg EPS beat(4)43.21%
Min EPS beat(4)-7.44%
Max EPS beat(4)181.76%
EPS beat(8)4
Avg EPS beat(8)98.62%
EPS beat(12)6
Avg EPS beat(12)66.78%
EPS beat(16)8
Avg EPS beat(16)48.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-0.78%
Revenue beat(4)0
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)-0.78%
Revenue beat(8)0
Avg Revenue beat(8)-1.64%
Revenue beat(12)0
Avg Revenue beat(12)-1.7%
Revenue beat(16)1
Avg Revenue beat(16)-1.15%
PT rev (1m)-1.05%
PT rev (3m)8.45%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-6.73%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.78 | ||
| Fwd PE | 22.04 | ||
| P/S | 5.53 | ||
| P/FCF | 20.05 | ||
| P/OCF | 19.63 | ||
| P/B | 36.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.18 |
EPS(TTM)4.96
EY2.79%
EPS(NY)8.05
Fwd EY4.54%
FCF(TTM)8.85
FCFY4.99%
OCF(TTM)9.04
OCFY5.09%
SpS32.11
BVpS4.86
TBVpS-27.26
PEG (NY)34.89
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.38% | ||
| ROE | 135.37% | ||
| ROCE | 16.85% | ||
| ROIC | 13.31% | ||
| ROICexc | 16.57% | ||
| ROICexgc | N/A | ||
| OM | 20.4% | ||
| PM (TTM) | 20.49% | ||
| GM | 63.88% | ||
| FCFM | 27.58% |
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-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.46 | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 3.54 | ||
| Cap/Depr | 19.66% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 6.21 | ||
| Cash Conversion | 120.55% | ||
| Profit Quality | 134.6% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.65 |
F-Score7
WACC8.6%
ROIC/WACC1.55
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)-58.84%
EPS 3Y65.22%
EPS 5Y54.61%
EPS Q2Q%-53.99%
EPS Next Y1.03%
EPS Next 2Y11.74%
EPS Next 3Y13.21%
EPS Next 5YN/A
Revenue 1Y (TTM)7.5%
Revenue growth 3Y6.22%
Revenue growth 5Y8.88%
Sales Q2Q%7.74%
Revenue Next Year7.65%
Revenue Next 2Y7.44%
Revenue Next 3Y7.65%
Revenue Next 5Y8.14%
EBIT growth 1Y46.71%
EBIT growth 3Y34.65%
EBIT growth 5Y33.39%
EBIT Next Year73.15%
EBIT Next 3Y28.89%
EBIT Next 5Y22.37%
FCF growth 1Y29.98%
FCF growth 3Y29.84%
FCF growth 5Y14.85%
OCF growth 1Y22.92%
OCF growth 3Y15.8%
OCF growth 5Y12.22%