GODADDY INC - CLASS A (GDDY) Stock Fundamental Analysis
USA - NYSE:GDDY - US3802371076 - Common Stock
135.02 USD
+1.89 (+1.42%)
135.02 USD
0 (0%)
GDDY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GDDY was profitable.
GDDY had a positive operating cash flow in the past year.
GDDY had positive earnings in 4 of the past 5 years.
In the past 5 years GDDY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GDDY (10.38%) is better than 88.24% of its industry peers.
GDDY has a better Return On Equity (902.51%) than 100.00% of its industry peers.
GDDY has a better Return On Invested Capital (17.32%) than 89.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GDDY is significantly below the industry average of 27.91%.
The last Return On Invested Capital (17.32%) for GDDY is above the 3 year average (10.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 902.51% | ||
| ROIC | 17.32% |
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 94.12% of its industry peers.
GDDY's Profit Margin has improved in the last couple of years.
GDDY's Operating Margin of 22.25% is amongst the best of the industry. GDDY outperforms 95.29% of its industry peers.
GDDY's Operating Margin has improved in the last couple of years.
The Gross Margin of GDDY (63.59%) is better than 83.53% of its industry peers.
GDDY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.25% | ||
| PM (TTM) | 17.01% | ||
| GM | 63.59% |
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.
Compared to 1 year ago, GDDY has less shares outstanding
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
Based on the Altman-Z score of 1.77, we must say that GDDY is in the distress zone and has some risk of bankruptcy.
GDDY has a Altman-Z score of 1.77. This is in the lower half of the industry: GDDY underperforms 63.53% of its industry peers.
GDDY has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as GDDY would need 2.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.46, GDDY is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
A Debt/Equity ratio of 41.06 is on the high side and indicates that GDDY has dependencies on debt financing.
GDDY has a Debt to Equity ratio of 41.06. This is amonst the worse of the industry: GDDY underperforms 87.06% of its industry peers.
Although GDDY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 41.06 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 1.77 |
ROIC/WACC2.04
WACC8.48%
2.3 Liquidity
GDDY has a Current Ratio of 0.57. This is a bad value and indicates that GDDY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of GDDY (0.57) is worse than 90.59% of its industry peers.
A Quick Ratio of 0.57 indicates that GDDY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, GDDY is doing worse than 90.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for GDDY have decreased strongly by -55.26% in the last year.
GDDY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.61% yearly.
GDDY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.68%.
The Revenue has been growing by 8.88% on average over the past years. This is quite good.
EPS 1Y (TTM)-55.26%
EPS 3Y65.22%
EPS 5Y54.61%
EPS Q2Q%14.39%
Revenue 1Y (TTM)8.68%
Revenue growth 3Y6.22%
Revenue growth 5Y8.88%
Sales Q2Q%10.26%
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 13.58% yearly.
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-4.58%
EPS Next 2Y6.69%
EPS Next 3Y13.58%
EPS Next 5YN/A
Revenue Next Year8.3%
Revenue Next 2Y7.64%
Revenue Next 3Y7.55%
Revenue Next 5Y7.81%
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 23.32, which indicates a rather expensive current valuation of GDDY.
GDDY's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.11. GDDY is around the same levels.
Based on the Price/Forward Earnings ratio of 18.39, the valuation of GDDY can be described as rather expensive.
67.06% of the companies in the same industry are more expensive than GDDY, based on the Price/Forward Earnings ratio.
GDDY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GDDY.
Based on the Price/Free Cash Flow ratio, GDDY is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.16 | ||
| EV/EBITDA | 17.66 |
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 13.58% in the coming years.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y6.69%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
GDDY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
135.02
+1.89 (+1.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.33%
Inst Owner Change-1.41%
Ins Owners0.66%
Ins Owner Change-0.22%
Market Cap18.69B
Revenue(TTM)4.87B
Net Income(TTM)828.50M
Analysts78.4
Price Target190.62 (41.18%)
Short Float %4.63%
Short Ratio4.2
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)2.55%
Min EPS beat(2)1.25%
Max EPS beat(2)3.85%
EPS beat(4)3
Avg EPS beat(4)1.48%
Min EPS beat(4)-6.73%
Max EPS beat(4)7.55%
EPS beat(8)6
Avg EPS beat(8)103.35%
EPS beat(12)7
Avg EPS beat(12)66.59%
EPS beat(16)10
Avg EPS beat(16)52.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)0.58%
Revenue beat(8)1
Avg Revenue beat(8)-1.09%
Revenue beat(12)1
Avg Revenue beat(12)-1.47%
Revenue beat(16)2
Avg Revenue beat(16)-1.23%
PT rev (1m)-2.04%
PT rev (3m)-11.77%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.32 | ||
| Fwd PE | 18.39 | ||
| P/S | 3.84 | ||
| P/FCF | 12.16 | ||
| P/OCF | 11.91 | ||
| P/B | 203.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.66 |
EPS(TTM)5.79
EY4.29%
EPS(NY)7.34
Fwd EY5.44%
FCF(TTM)11.11
FCFY8.23%
OCF(TTM)11.33
OCFY8.39%
SpS35.17
BVpS0.66
TBVpS-32.82
PEG (NY)N/A
PEG (5Y)0.43
Graham Number9.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 902.51% | ||
| ROCE | 21.93% | ||
| ROIC | 17.32% | ||
| ROICexc | 21.3% | ||
| ROICexgc | N/A | ||
| OM | 22.25% | ||
| PM (TTM) | 17.01% | ||
| GM | 63.59% | ||
| FCFM | 31.58% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 41.06 | ||
| Debt/FCF | 2.46 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 25.74% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.18% | ||
| Profit Quality | 185.63% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.77 |
F-Score8
WACC8.48%
ROIC/WACC2.04
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)-55.26%
EPS 3Y65.22%
EPS 5Y54.61%
EPS Q2Q%14.39%
EPS Next Y-4.58%
EPS Next 2Y6.69%
EPS Next 3Y13.58%
EPS Next 5YN/A
Revenue 1Y (TTM)8.68%
Revenue growth 3Y6.22%
Revenue growth 5Y8.88%
Sales Q2Q%10.26%
Revenue Next Year8.3%
Revenue Next 2Y7.64%
Revenue Next 3Y7.55%
Revenue Next 5Y7.81%
EBIT growth 1Y24.73%
EBIT growth 3Y34.65%
EBIT growth 5Y33.39%
EBIT Next Year76.02%
EBIT Next 3Y29.85%
EBIT Next 5Y21.82%
FCF growth 1Y77.3%
FCF growth 3Y29.84%
FCF growth 5Y14.85%
OCF growth 1Y63.83%
OCF growth 3Y15.8%
OCF growth 5Y12.22%
GODADDY INC - CLASS A / GDDY FAQ
What is the fundamental rating for GDDY stock?
ChartMill assigns a fundamental rating of 5 / 10 to GDDY.
What is the valuation status of GODADDY INC - CLASS A (GDDY) stock?
ChartMill assigns a valuation rating of 4 / 10 to GODADDY INC - CLASS A (GDDY). This can be considered as Fairly Valued.
How profitable is GODADDY INC - CLASS A (GDDY) stock?
GODADDY INC - CLASS A (GDDY) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for GDDY stock?
The Price/Earnings (PE) ratio for GODADDY INC - CLASS A (GDDY) is 23.32 and the Price/Book (PB) ratio is 203.63.
How sustainable is the dividend of GODADDY INC - CLASS A (GDDY) stock?
The dividend rating of GODADDY INC - CLASS A (GDDY) is 0 / 10 and the dividend payout ratio is 0%.