GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
NASDAQ:GSHD - Nasdaq - US38267D1090 - Common Stock - Currency: USD
Taking everything into account, GSHD scores 6 out of 10 in our fundamental rating. GSHD was compared to 143 industry peers in the Insurance industry. While GSHD has a great profitability rating, there are some minor concerns on its financial health. GSHD is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
GSHD had positive earnings in the past year.
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
GSHD has a Return On Assets of 7.50%. This is amongst the best in the industry. GSHD outperforms 95.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.18%, GSHD belongs to the top of the industry, outperforming 99.30% of the companies in the same industry.
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's Profit Margin of 9.51% is fine compared to the rest 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.
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 | 20.36% | ||
| 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
GSHD 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, GSHD has less shares outstanding
The number of shares outstanding for GSHD has been increased compared to 5 years ago.
The debt/assets ratio for GSHD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.49 indicates that GSHD is not in any danger for bankruptcy at the moment.
GSHD's Altman-Z score of 5.49 is amongst the best of the industry. GSHD outperforms 99.30% of its industry peers.
GSHD has a debt to FCF ratio of 4.70. This is a neutral value as GSHD would need 4.70 years to pay back of all of its debts.
GSHD's Debt to FCF ratio of 4.70 is on the low side compared to the rest of the industry. GSHD is outperformed by 66.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 5.49 |
ROIC/WACC2
WACC9.11%
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.
With a decent Current ratio value of 0.26, GSHD is doing good in 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.
With a decent Quick ratio value of 0.26, GSHD is doing good in 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
GSHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.46%, which is quite impressive.
Measured over the past years, GSHD shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.67% on average per year.
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.
The Revenue is expected to grow by 19.08% on average over the next years. This is quite good.
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 55.82 indicates a quite expensive valuation of GSHD.
83.22% of the companies in the same industry are cheaper than GSHD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GSHD to the average of the S&P500 Index (26.35), we can say GSHD is valued expensively.
With a Price/Forward Earnings ratio of 42.58, GSHD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GSHD indicates a rather expensive valuation: GSHD more expensive than 80.42% of the companies listed in the same industry.
GSHD is valuated expensively when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.82 | ||
| Fwd PE | 42.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSHD is valued a bit more expensive than 70.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GSHD is valued expensively inside the industry as 81.12% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.46 | ||
| EV/EBITDA | 55.5 |
4.3 Compensation for Growth
The decent profitability rating of GSHD may justify a higher PE ratio.
A more expensive valuation may be justified as GSHD's earnings are expected to grow with 19.34% in the coming years.
PEG (NY)N/A
PEG (5Y)1.44
EPS Next 2Y13.92%
EPS Next 3Y19.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.43%, GSHD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.23, GSHD pays a better dividend. On top of this GSHD pays more dividend than 88.81% of the companies listed in the same industry.
GSHD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| 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
GSHD pays out 677.80% of its income as dividend. This is not a sustainable payout ratio.
DP677.8%
EPS Next 2Y13.92%
EPS Next 3Y19.34%
110.52
+1.72 (+1.58%)
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 Cap4.15B
Analysts72.5
Price Target120.74 (9.25%)
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 | 55.82 | ||
| Fwd PE | 42.58 | ||
| P/S | 12.74 | ||
| P/FCF | 66.46 | ||
| P/OCF | 55.18 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 55.5 |
EPS(TTM)1.98
EY1.79%
EPS(NY)2.6
Fwd EY2.35%
FCF(TTM)1.66
FCFY1.5%
OCF(TTM)2
OCFY1.81%
SpS8.68
BVpS-2.36
TBVpS-3.08
PEG (NY)N/A
PEG (5Y)1.44
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 | 5.49 |
F-Score8
WACC9.11%
ROIC/WACC2
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%