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. 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.
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
GDDY has a Return On Assets of 9.63%. This is amongst the best in the industry. GDDY outperforms 81.71% of its industry peers.
GDDY has a better Return On Equity (378.02%) than 100.00% of its industry peers.
GDDY has a better Return On Invested Capital (15.41%) than 87.80% 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 22.78%.
The last Return On Invested Capital (15.41%) for GDDY is above the 3 year average (10.88%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 16.20%, GDDY belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Profit Margin of GDDY has grown nicely.
GDDY has a Operating Margin of 21.12%. This is amongst the best in the industry. GDDY outperforms 95.12% of its industry peers.
GDDY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 63.98%, GDDY belongs to the top of the industry, outperforming 82.93% 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
The number of shares outstanding for GDDY has been reduced compared to 5 years ago.
GDDY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.11 indicates that GDDY is not a great score, but indicates only limited risk for bankruptcy at the moment.
GDDY's Altman-Z score of 2.11 is in line compared to the rest of the industry. GDDY outperforms 41.46% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.77, GDDY is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
A Debt/Equity ratio of 18.91 is on the high side and indicates that GDDY has dependencies on debt financing.
GDDY's Debt to Equity ratio of 18.91 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 | ||
|---|---|---|---|
| Debt/Equity | 18.91 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.63
WACC9.45%
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.
With a Current ratio value of 0.56, GDDY is not doing good in the industry: 91.46% of the companies in the same industry are doing better.
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 has a Quick ratio of 0.56. This is amonst the worse of the industry: GDDY underperforms 91.46% 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.
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 a small growth in Revenue. In the last year, the Revenue has grown by 7.68%.
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)-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
Based on estimates for the next years, GDDY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.03% on average per year.
GDDY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.26% yearly.
EPS Next Y-5.18%
EPS Next 2Y7.45%
EPS Next 3Y12.03%
EPS Next 5YN/A
Revenue Next Year7.72%
Revenue Next 2Y7.6%
Revenue Next 3Y7.78%
Revenue Next 5Y8.26%
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 30.41, the valuation of GDDY can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as GDDY.
Compared to an average S&P500 Price/Earnings ratio of 26.82, GDDY is valued at the same level.
The Price/Forward Earnings ratio is 21.24, which indicates a rather expensive current valuation of GDDY.
GDDY's Price/Forward Earnings is on the same level as the industry average.
GDDY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.41 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GDDY.
75.61% 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 | 16.46 | ||
| EV/EBITDA | 22.79 |
4.3 Compensation for Growth
The excellent profitability rating of GDDY may justify a higher PE ratio.
GDDY's earnings are expected to grow with 12.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y7.45%
EPS Next 3Y12.03%
5. Dividend
5.1 Amount
No dividends for GDDY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
158.15
+1.68 (+1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.63%
Inst Owner Change-1.35%
Ins Owners0.67%
Ins Owner Change0.43%
Market Cap22.53B
Analysts76.15
Price Target216.06 (36.62%)
Short Float %2.76%
Short Ratio2.92
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)0%
PT rev (3m)-3.27%
EPS NQ rev (1m)-1.46%
EPS NQ rev (3m)-12.16%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-6.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.41 | ||
| Fwd PE | 21.24 | ||
| P/S | 4.84 | ||
| P/FCF | 16.46 | ||
| P/OCF | 16.15 | ||
| P/B | 112.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.79 |
EPS(TTM)5.2
EY3.29%
EPS(NY)7.45
Fwd EY4.71%
FCF(TTM)9.61
FCFY6.08%
OCF(TTM)9.79
OCFY6.19%
SpS32.7
BVpS1.4
TBVpS-30.86
PEG (NY)N/A
PEG (5Y)0.56
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 | 2.11 |
F-Score7
WACC9.45%
ROIC/WACC1.63
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-5.18%
EPS Next 2Y7.45%
EPS Next 3Y12.03%
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 2Y7.6%
Revenue Next 3Y7.78%
Revenue Next 5Y8.26%
EBIT growth 1Y37.93%
EBIT growth 3Y34.65%
EBIT growth 5Y33.39%
EBIT Next Year74.7%
EBIT Next 3Y29.68%
EBIT Next 5Y22.43%
FCF growth 1Y48.32%
FCF growth 3Y29.84%
FCF growth 5Y14.85%
OCF growth 1Y40.38%
OCF growth 3Y15.8%
OCF growth 5Y12.22%