GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
NASDAQ:GSHD - Nasdaq - US38267D1090 - Common Stock - Currency: USD
Overall GSHD gets a fundamental rating of 6 out of 10. We evaluated GSHD against 143 industry peers in the Insurance industry. GSHD scores excellent on profitability, but there are some minor concerns on its financial health. GSHD is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year GSHD was profitable.
GSHD had a positive operating cash flow in the past year.
In the past 5 years GSHD has always been profitable.
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 95.80% of its industry peers.
The Return On Invested Capital of GSHD (18.18%) is better than 99.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GSHD is significantly above the industry average of 4.13%.
The last Return On Invested Capital (18.18%) 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 | 18.18% |
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
GSHD has a Profit Margin of 9.51%. This is in the better half of the industry: GSHD outperforms 63.64% of its industry peers.
In the last couple of years the Profit Margin of GSHD has grown nicely.
With a decent Operating Margin value of 20.36%, GSHD is doing good in the industry, outperforming 79.72% of the companies in the same industry.
GSHD's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.36% | ||
| PM (TTM) | 9.51% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GSHD is creating value.
GSHD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GSHD has more shares outstanding
The debt/assets ratio for GSHD is higher compared to a year ago.
2.2 Solvency
GSHD has an Altman-Z score of 5.48. This indicates that GSHD is financially healthy and has little risk of bankruptcy at the moment.
GSHD has a better Altman-Z score (5.48) than 99.30% of its industry peers.
The Debt to FCF ratio of GSHD is 4.70, which is a neutral value as it means it would take GSHD, 4.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.70, GSHD is doing worse than 66.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 5.48 |
ROIC/WACC2.01
WACC9.03%
2.3 Liquidity
GSHD has a Current Ratio of 0.26. 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 0.26, GSHD is in the better half of the industry, outperforming 69.93% of the companies in the same industry.
GSHD has a Quick Ratio of 0.26. 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 Quick ratio, with a value of 0.26, GSHD is in the better half of the industry, outperforming 69.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.46% over the past year.
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 21.60% in the past year. This is a very strong growth!
The Revenue has been growing by 32.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)38.46%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)21.6%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%17.26%
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 23.79% on average per year.
Based on estimates for the next years, GSHD will show a quite strong growth in Revenue. The Revenue will grow by 19.08% on average per year.
EPS Next Y-5.13%
EPS Next 2Y13.92%
EPS Next 3Y19.34%
EPS Next 5Y23.79%
Revenue Next Year21.7%
Revenue Next 2Y23.25%
Revenue Next 3Y23.91%
Revenue Next 5Y19.08%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 54.85, the valuation of GSHD can be described as expensive.
83.22% of the companies in the same industry are cheaper than GSHD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.17. GSHD is valued rather expensively when compared to this.
GSHD is valuated quite expensively with a Price/Forward Earnings ratio of 41.84.
GSHD's Price/Forward Earnings ratio is rather expensive when compared to the industry. GSHD is more expensive than 80.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. GSHD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.85 | ||
| Fwd PE | 41.84 |
4.2 Price Multiples
GSHD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GSHD is more expensive than 69.93% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GSHD indicates a rather expensive valuation: GSHD more expensive than 81.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.31 | ||
| EV/EBITDA | 55.41 |
4.3 Compensation for Growth
The decent profitability rating of GSHD may justify a higher PE ratio.
GSHD's earnings are expected to grow with 19.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y13.92%
EPS Next 3Y19.34%
5. Dividend
5.1 Amount
GSHD has a Yearly Dividend Yield of 5.43%, which is a nice return.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.23. GSHD pays more dividend than 88.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, GSHD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
The dividend of GSHD decreases each year by -24.29%.
GSHD has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)-24.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
677.80% of the earnings are spent on dividend by GSHD. This is not a sustainable payout ratio.
DP677.8%
EPS Next 2Y13.92%
EPS Next 3Y19.34%
108.61
-1.91 (-1.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners109.89%
Inst Owner Change0.94%
Ins Owners3.07%
Ins Owner Change-15.78%
Market Cap4.08B
Analysts72.5
Price Target120.74 (11.17%)
Short Float %12.59%
Short Ratio10.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
Yearly Dividend0.13
Dividend Growth(5Y)-24.29%
DP677.8%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.09%
Min EPS beat(2)17.09%
Max EPS beat(2)95.09%
EPS beat(4)4
Avg EPS beat(4)32.09%
Min EPS beat(4)7.84%
Max EPS beat(4)95.09%
EPS beat(8)7
Avg EPS beat(8)29.58%
EPS beat(12)9
Avg EPS beat(12)48.19%
EPS beat(16)11
Avg EPS beat(16)44.44%
Revenue beat(2)1
Avg Revenue beat(2)5.56%
Min Revenue beat(2)-6.08%
Max Revenue beat(2)17.19%
Revenue beat(4)2
Avg Revenue beat(4)2.27%
Min Revenue beat(4)-6.08%
Max Revenue beat(4)17.19%
Revenue beat(8)4
Avg Revenue beat(8)0.04%
Revenue beat(12)8
Avg Revenue beat(12)1.56%
Revenue beat(16)9
Avg Revenue beat(16)0.96%
PT rev (1m)-0.63%
PT rev (3m)8.05%
EPS NQ rev (1m)-6.77%
EPS NQ rev (3m)-12.68%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-3.09%
Revenue NQ rev (1m)-2.2%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.85 | ||
| Fwd PE | 41.84 | ||
| P/S | 12.52 | ||
| P/FCF | 65.31 | ||
| P/OCF | 54.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 55.41 |
EPS(TTM)1.98
EY1.82%
EPS(NY)2.6
Fwd EY2.39%
FCF(TTM)1.66
FCFY1.53%
OCF(TTM)2
OCFY1.84%
SpS8.68
BVpS-2.36
TBVpS-3.08
PEG (NY)N/A
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | N/A | ||
| ROCE | 20.25% | ||
| ROIC | 18.18% | ||
| ROICexc | 23.15% | ||
| ROICexgc | 26.6% | ||
| OM | 20.36% | ||
| PM (TTM) | 9.51% | ||
| GM | N/A | ||
| FCFM | 19.17% |
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%
ROICexcg growth 3Y72.95%
ROICexcg 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 112.99% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 6.9 | ||
| Cash Conversion | 96.88% | ||
| Profit Quality | 201.63% | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 5.48 |
F-Score8
WACC9.03%
ROIC/WACC2.01
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)38.46%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%-7.14%
EPS Next Y-5.13%
EPS Next 2Y13.92%
EPS Next 3Y19.34%
EPS Next 5Y23.79%
Revenue 1Y (TTM)21.6%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%17.26%
Revenue Next Year21.7%
Revenue Next 2Y23.25%
Revenue Next 3Y23.91%
Revenue Next 5Y19.08%
EBIT growth 1Y101.28%
EBIT growth 3Y91.54%
EBIT growth 5Y34.1%
EBIT Next Year115.48%
EBIT Next 3Y55.91%
EBIT Next 5Y33.78%
FCF growth 1Y127.61%
FCF growth 3Y43.64%
FCF growth 5Y28.2%
OCF growth 1Y86.84%
OCF growth 3Y26.38%
OCF growth 5Y27.49%