GODADDY INC - CLASS A (GDDY)
US3802371076 - Common Stock
We assign a fundamental rating of 5 out of 10 to GDDY. GDDY was compared to 86 industry peers in the IT Services industry. While GDDY belongs to the best of the industry regarding profitability, there are concerns on its financial health. GDDY is not valued too expensively and it also shows a decent growth rate.
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.
GDDY had positive earnings in 4 of the past 5 years.
GDDY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GDDY has a better Return On Assets (18.17%) than 95.24% of its industry peers.
GDDY has a better Return On Equity (2210.29%) than 100.00% of its industry peers.
GDDY has a better Return On Invested Capital (10.29%) than 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GDDY is below the industry average of 13.14%.
The last Return On Invested Capital (10.29%) for GDDY is above the 3 year average (8.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.17% | ||
| ROE | 2210.29% | ||
| ROIC | 10.29% |
ROA(3y)8.83%
ROA(5y)4.19%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.46%
ROIC(5y)6.97%
1.3 Margins
GDDY has a Profit Margin of 32.32%. This is amongst the best in the industry. GDDY outperforms 98.81% of its industry peers.
GDDY's Profit Margin has improved in the last couple of years.
GDDY has a Operating Margin of 14.95%. This is amongst the best in the industry. GDDY outperforms 82.14% of its industry peers.
In the last couple of years the Operating Margin of GDDY has grown nicely.
Looking at the Gross Margin, with a value of 63.01%, GDDY belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
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 | 14.95% | ||
| PM (TTM) | 32.32% | ||
| GM | 63.01% |
OM growth 3Y20.81%
OM growth 5Y21.68%
PM growth 3YN/A
PM growth 5Y61.98%
GM growth 3Y-1.07%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GDDY is destroying value.
GDDY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GDDY has been reduced compared to 5 years ago.
Compared to 1 year ago, GDDY has an improved debt to assets ratio.
2.2 Solvency
GDDY has an Altman-Z score of 1.59. This is a bad value and indicates that GDDY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GDDY (1.59) is comparable to the rest of the industry.
GDDY has a debt to FCF ratio of 3.93. This is a good value and a sign of high solvency as GDDY would need 3.93 years to pay back of all of its debts.
GDDY has a Debt to FCF ratio (3.93) which is comparable to the rest of the industry.
A Debt/Equity ratio of 61.07 is on the high side and indicates that GDDY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 61.07, GDDY is doing worse than 84.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 61.07 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 1.59 |
ROIC/WACC1
WACC10.3%
2.3 Liquidity
GDDY has a Current Ratio of 0.47. 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 Current ratio, with a value of 0.47, GDDY is doing worse than 90.48% of the companies in the same industry.
GDDY has a Quick Ratio of 0.47. 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 0.47, GDDY is doing worse than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
GDDY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 331.98%, which is quite impressive.
The Earnings Per Share has been growing by 84.38% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.98% in the past year.
Measured over the past years, GDDY shows a quite strong growth in Revenue. The Revenue has been growing by 9.85% on average per year.
EPS 1Y (TTM)331.98%
EPS 3Y95.68%
EPS 5Y84.38%
EPS growth Q2Q1166.13%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y8.65%
Revenue growth 5Y9.85%
Revenue growth Q2Q5.81%
3.2 Future
Based on estimates for the next years, GDDY will show a decrease in Earnings Per Share. The EPS will decrease by -6.53% on average per year.
GDDY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.63% yearly.
EPS Next Y-49.92%
EPS Next 2Y-18%
EPS Next 3Y-6.53%
EPS Next 5YN/A
Revenue Next Year6.15%
Revenue Next 2Y6.64%
Revenue Next 3Y6.98%
Revenue Next 5Y7.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GDDY is valuated correctly with a Price/Earnings ratio of 12.89.
80.95% of the companies in the same industry are more expensive than GDDY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GDDY to the average of the S&P500 Index (27.73), we can say GDDY is valued rather cheaply.
With a Price/Forward Earnings ratio of 25.75, GDDY can be considered very expensive at the moment.
GDDY's Price/Forward Earnings ratio is in line with the industry average.
GDDY is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 25.75 |
4.2 Price Multiples
GDDY's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, GDDY is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.09 | ||
| EV/EBITDA | 25.81 |
4.3 Compensation for Growth
GDDY has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as GDDY's earnings are expected to decrease with -6.53% in the coming years.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-18%
EPS Next 3Y-6.53%
5. Dividend
5.1 Amount
No dividends for GDDY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GODADDY INC - CLASS A
NYSE:GDDY (5/3/2024, 7:04:00 PM)
After market: 124.22 +0.58 (+0.47%)123.64
-0.69 (-0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 25.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.17% | ||
| ROE | 2210.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.95% | ||
| PM (TTM) | 32.32% | ||
| GM | 63.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 61.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)331.98%
EPS 3Y95.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y-49.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.98%
Revenue growth 3Y8.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y