GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
USA - NASDAQ:GSHD - US38267D1090 - Common Stock
69.55 USD
+1.84 (+2.72%)
69.55 USD
0 (0%)
Overall GSHD gets a fundamental rating of 6 out of 10. We evaluated GSHD against 146 industry peers in the Insurance industry. GSHD scores excellent on profitability, but there are some minor concerns on its financial health. GSHD shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year GSHD was profitable.
In the past year GSHD had a positive cash flow from operations.
GSHD had positive earnings in each of the past 5 years.
GSHD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GSHD (7.50%) is better than 93.84% of its industry peers.
The Return On Invested Capital of GSHD (20.39%) is better than 98.63% of its industry peers.
GSHD had an Average Return On Invested Capital over the past 3 years of 11.27%. This is significantly above the industry average of 4.53%.
The last Return On Invested Capital (20.39%) for GSHD is above the 3 year average (11.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | N/A | ||
| ROIC | 20.39% |
ROA(3y)3.94%
ROA(5y)3.77%
ROE(3y)33.31%
ROE(5y)N/A
ROIC(3y)11.27%
ROIC(5y)10.24%
1.3 Margins
The Profit Margin of GSHD (8.55%) is comparable to the rest of the industry.
GSHD's Profit Margin has improved in the last couple of years.
The Operating Margin of GSHD (20.17%) is better than 78.77% of its industry peers.
In the last couple of years the Operating Margin of GSHD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.17% | ||
| PM (TTM) | 8.55% | ||
| GM | N/A |
OM growth 3Y50.09%
OM growth 5Y1.33%
PM growth 3Y39.43%
PM growth 5Y15.8%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GSHD is creating value.
The number of shares outstanding for GSHD has been reduced compared to 1 year ago.
The number of shares outstanding for GSHD has been increased compared to 5 years ago.
Compared to 1 year ago, GSHD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.81 indicates that GSHD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.81, GSHD belongs to the best of the industry, outperforming 95.89% of the companies in the same industry.
GSHD has a debt to FCF ratio of 4.65. This is a neutral value as GSHD would need 4.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.65, GSHD is doing worse than 60.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 3.81 |
ROIC/WACC2.34
WACC8.7%
2.3 Liquidity
GSHD has a Current Ratio of 0.16. This is a bad value and indicates that GSHD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.16, GSHD is in the better half of the industry, outperforming 65.75% of the companies in the same industry.
A Quick Ratio of 0.16 indicates that GSHD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.16, GSHD is in the better half of the industry, outperforming 65.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
GSHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.23%, which is quite impressive.
GSHD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.67% yearly.
The Revenue has grown by 24.81% in the past year. This is a very strong growth!
GSHD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.33% yearly.
EPS 1Y (TTM)34.23%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%-8%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%15.89%
3.2 Future
Based on estimates for the next years, GSHD will show a very strong growth in Earnings Per Share. The EPS will grow by 20.35% on average per year.
GSHD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.08% yearly.
EPS Next Y-10.29%
EPS Next 2Y5.36%
EPS Next 3Y14.48%
EPS Next 5Y20.35%
Revenue Next Year19.73%
Revenue Next 2Y19.88%
Revenue Next 3Y20.76%
Revenue Next 5Y19.08%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
GSHD is valuated quite expensively with a Price/Earnings ratio of 34.77.
Based on the Price/Earnings ratio, GSHD is valued more expensive than 82.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of GSHD to the average of the S&P500 Index (25.83), we can say GSHD is valued slightly more expensively.
With a Price/Forward Earnings ratio of 31.32, GSHD can be considered very expensive at the moment.
78.08% of the companies in the same industry are cheaper than GSHD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GSHD to the average of the S&P500 Index (32.68), we can say GSHD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.78 | ||
| Fwd PE | 31.32 |
4.2 Price Multiples
71.23% of the companies in the same industry are cheaper than GSHD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GSHD indicates a slightly more expensive valuation: GSHD is more expensive than 69.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.49 | ||
| EV/EBITDA | 34.16 |
4.3 Compensation for Growth
GSHD has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GSHD's earnings are expected to grow with 14.48% in the coming years.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y5.36%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.50%, GSHD is a good candidate for dividend investing.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.31. GSHD pays more dividend than 95.21% of the companies in the same industry.
GSHD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.5% |
5.2 History
The dividend of GSHD decreases each year by -24.29%.
GSHD has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)-24.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
691.97% of the earnings are spent on dividend by GSHD. This is not a sustainable payout ratio.
DP691.97%
EPS Next 2Y5.36%
EPS Next 3Y14.48%
69.55
+1.84 (+2.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners113.63%
Inst Owner Change0.12%
Ins Owners4.15%
Ins Owner Change-23.71%
Market Cap2.61B
Revenue(TTM)353.97M
Net Income(TTM)30.25M
Analysts71.76
Price Target96.08 (38.15%)
Short Float %10.3%
Short Ratio7.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.5% |
Yearly Dividend0.13
Dividend Growth(5Y)-24.29%
DP691.97%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.79%
Min EPS beat(2)-3.98%
Max EPS beat(2)-1.61%
EPS beat(4)2
Avg EPS beat(4)26.65%
Min EPS beat(4)-3.98%
Max EPS beat(4)95.09%
EPS beat(8)5
Avg EPS beat(8)17.43%
EPS beat(12)8
Avg EPS beat(12)46.29%
EPS beat(16)10
Avg EPS beat(16)41.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-1.35%
Revenue beat(4)1
Avg Revenue beat(4)1.5%
Min Revenue beat(4)-6.08%
Max Revenue beat(4)17.19%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)6
Avg Revenue beat(12)0.77%
Revenue beat(16)8
Avg Revenue beat(16)0.52%
PT rev (1m)-14.45%
PT rev (3m)-20.42%
EPS NQ rev (1m)5.4%
EPS NQ rev (3m)10.4%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-5.07%
Revenue NQ rev (1m)1.88%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.78 | ||
| Fwd PE | 31.32 | ||
| P/S | 7.38 | ||
| P/FCF | 41.49 | ||
| P/OCF | 32.21 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.16 |
EPS(TTM)2
EY2.88%
EPS(NY)2.22
Fwd EY3.19%
FCF(TTM)1.68
FCFY2.41%
OCF(TTM)2.16
OCFY3.1%
SpS9.42
BVpS-2.79
TBVpS-3.71
PEG (NY)N/A
PEG (5Y)0.9
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | N/A | ||
| ROCE | 22.7% | ||
| ROIC | 20.39% | ||
| ROICexc | 24.39% | ||
| ROICexgc | 28.82% | ||
| OM | 20.17% | ||
| PM (TTM) | 8.55% | ||
| GM | N/A | ||
| FCFM | 17.79% |
ROA(3y)3.94%
ROA(5y)3.77%
ROE(3y)33.31%
ROE(5y)N/A
ROIC(3y)11.27%
ROIC(5y)10.24%
ROICexc(3y)13.56%
ROICexc(5y)12.36%
ROICexgc(3y)15.18%
ROICexgc(5y)13.51%
ROCE(3y)12.56%
ROCE(5y)11.4%
ROICexgc growth 3Y72.95%
ROICexgc growth 5Y-5.88%
ROICexc growth 3Y68.02%
ROICexc growth 5Y-7.47%
OM growth 3Y50.09%
OM growth 5Y1.33%
PM growth 3Y39.43%
PM growth 5Y15.8%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 149.54% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 4.02 | ||
| Cash Conversion | 97.09% | ||
| Profit Quality | 208.1% | ||
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 3.81 |
F-Score8
WACC8.7%
ROIC/WACC2.34
Cap/Depr(3y)163.27%
Cap/Depr(5y)216.25%
Cap/Sales(3y)5.73%
Cap/Sales(5y)7.25%
Profit Quality(3y)1423.66%
Profit Quality(5y)959.07%
High Growth Momentum
Growth
EPS 1Y (TTM)34.23%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%-8%
EPS Next Y-10.29%
EPS Next 2Y5.36%
EPS Next 3Y14.48%
EPS Next 5Y20.35%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%15.89%
Revenue Next Year19.73%
Revenue Next 2Y19.88%
Revenue Next 3Y20.76%
Revenue Next 5Y19.08%
EBIT growth 1Y78.62%
EBIT growth 3Y91.54%
EBIT growth 5Y34.1%
EBIT Next Year107.02%
EBIT Next 3Y53.46%
EBIT Next 5Y33.78%
FCF growth 1Y113.06%
FCF growth 3Y43.64%
FCF growth 5Y28.2%
OCF growth 1Y103.12%
OCF growth 3Y26.38%
OCF growth 5Y27.49%
GOOSEHEAD INSURANCE INC -A / GSHD FAQ
What is the fundamental rating for GSHD stock?
ChartMill assigns a fundamental rating of 5 / 10 to GSHD.
What is the valuation status of GOOSEHEAD INSURANCE INC -A (GSHD) stock?
ChartMill assigns a valuation rating of 1 / 10 to GOOSEHEAD INSURANCE INC -A (GSHD). This can be considered as Overvalued.
How profitable is GOOSEHEAD INSURANCE INC -A (GSHD) stock?
GOOSEHEAD INSURANCE INC -A (GSHD) has a profitability rating of 7 / 10.
What is the financial health of GOOSEHEAD INSURANCE INC -A (GSHD) stock?
The financial health rating of GOOSEHEAD INSURANCE INC -A (GSHD) is 4 / 10.
How sustainable is the dividend of GOOSEHEAD INSURANCE INC -A (GSHD) stock?
The dividend rating of GOOSEHEAD INSURANCE INC -A (GSHD) is 4 / 10 and the dividend payout ratio is 691.97%.