GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
USA - NASDAQ:GSHD - US38267D1090 - Common Stock
67.02 USD
+1.82 (+2.79%)
67.02 USD
0 (0%)
Taking everything into account, GSHD scores 5 out of 10 in our fundamental rating. GSHD was compared to 145 industry peers in the Insurance industry. GSHD has an excellent profitability rating, 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.
In the past year GSHD had a positive cash flow from operations.
GSHD had positive earnings in each of the past 5 years.
In the past 5 years GSHD always reported a positive cash flow from operatings.
1.2 Ratios
GSHD's Return On Assets of 6.85% is amongst the best of the industry. GSHD outperforms 93.10% of its industry peers.
With an excellent Return On Invested Capital value of 17.14%, GSHD belongs to the best of the industry, outperforming 98.62% of the companies in the same industry.
GSHD had an Average Return On Invested Capital over the past 3 years of 11.27%. This is significantly above the industry average of 4.40%.
The 3 year average ROIC (11.27%) for GSHD is below the current ROIC(17.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | N/A | ||
| ROIC | 17.14% |
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 better Profit Margin (8.76%) than 62.07% of its industry peers.
GSHD's Profit Margin has improved in the last couple of years.
GSHD has a better Operating Margin (19.49%) than 74.48% of its industry peers.
GSHD's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.49% | ||
| PM (TTM) | 8.76% | ||
| 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
Compared to 5 years ago, GSHD has more shares outstanding
Compared to 1 year ago, GSHD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.45 indicates that GSHD is not in any danger for bankruptcy at the moment.
The Altman-Z score of GSHD (3.45) is better than 94.48% of its industry peers.
The Debt to FCF ratio of GSHD is 4.18, which is a neutral value as it means it would take GSHD, 4.18 years of fcf income to pay off all of its debts.
GSHD has a Debt to FCF ratio of 4.18. This is comparable to the rest of the industry: GSHD outperforms 44.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.45 |
ROIC/WACC2
WACC8.59%
2.3 Liquidity
GSHD has a Current Ratio of 0.20. This is a bad value and indicates that GSHD is not financially healthy enough and could expect problems in meeting its short term obligations.
GSHD has a better Current ratio (0.20) than 67.59% of its industry peers.
A Quick Ratio of 0.20 indicates that GSHD may have some problems paying its short term obligations.
GSHD has a Quick ratio of 0.20. This is in the better half of the industry: GSHD outperforms 67.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.69% over the past year.
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 23.49% 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)40.69%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%13.95%
Revenue 1Y (TTM)23.49%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%20.41%
3.2 Future
Based on estimates for the next years, GSHD will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.98% 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-8.81%
EPS Next 2Y10.62%
EPS Next 3Y17.37%
EPS Next 5Y18.98%
Revenue Next Year21%
Revenue Next 2Y22.2%
Revenue Next 3Y22.72%
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.
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
With a Price/Earnings ratio of 32.85, GSHD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GSHD is valued more expensive than 80.69% of the companies in the same industry.
GSHD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.40.
Based on the Price/Forward Earnings ratio of 27.38, the valuation of GSHD can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GSHD indicates a slightly more expensive valuation: GSHD is more expensive than 77.24% of the companies listed in the same industry.
GSHD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.85 | ||
| Fwd PE | 27.38 |
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 71.03% of the companies in the same industry.
68.28% of the companies in the same industry are cheaper than GSHD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.95 | ||
| EV/EBITDA | 33.85 |
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 17.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y10.62%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
GSHD has a Yearly Dividend Yield of 8.62%, which is a nice return.
In the last 3 months the price of GSHD has falen by -34.35%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.54. GSHD pays more dividend than 95.17% of the companies in the same industry.
GSHD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.62% |
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
GSHD pays out 700.01% of its income as dividend. This is not a sustainable payout ratio.
DP700.01%
EPS Next 2Y10.62%
EPS Next 3Y17.37%
67.02
+1.82 (+2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners113.63%
Inst Owner Change-0.02%
Ins Owners4.15%
Ins Owner Change-23.75%
Market Cap2.52B
Analysts71.76
Price Target112.31 (67.58%)
Short Float %8.66%
Short Ratio5.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.62% |
Yearly Dividend0.13
Dividend Growth(5Y)-24.29%
DP700.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.55%
Min EPS beat(2)-3.98%
Max EPS beat(2)17.09%
EPS beat(4)3
Avg EPS beat(4)29.14%
Min EPS beat(4)-3.98%
Max EPS beat(4)95.09%
EPS beat(8)6
Avg EPS beat(8)23.55%
EPS beat(12)9
Avg EPS beat(12)48.62%
EPS beat(16)11
Avg EPS beat(16)46.05%
Revenue beat(2)0
Avg Revenue beat(2)-3.71%
Min Revenue beat(2)-6.08%
Max Revenue beat(2)-1.35%
Revenue beat(4)1
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-6.08%
Max Revenue beat(4)17.19%
Revenue beat(8)3
Avg Revenue beat(8)-0.62%
Revenue beat(12)7
Avg Revenue beat(12)1.37%
Revenue beat(16)9
Avg Revenue beat(16)0.92%
PT rev (1m)-2.17%
PT rev (3m)-6.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.85 | ||
| Fwd PE | 27.38 | ||
| P/S | 7.37 | ||
| P/FCF | 35.95 | ||
| P/OCF | 29.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.85 |
EPS(TTM)2.04
EY3.04%
EPS(NY)2.45
Fwd EY3.65%
FCF(TTM)1.86
FCFY2.78%
OCF(TTM)2.26
OCFY3.38%
SpS9.09
BVpS-2.09
TBVpS-2.9
PEG (NY)N/A
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | N/A | ||
| ROCE | 19.09% | ||
| ROIC | 17.14% | ||
| ROICexc | 23.32% | ||
| ROICexgc | 27.21% | ||
| OM | 19.49% | ||
| PM (TTM) | 8.76% | ||
| GM | N/A | ||
| FCFM | 20.5% |
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-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.18 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 128.08% | ||
| Cap/Sales | 4.39% | ||
| Interest Coverage | 4.75 | ||
| Cash Conversion | 108.61% | ||
| Profit Quality | 234.11% | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | 3.45 |
F-Score6
WACC8.59%
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)40.69%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%13.95%
EPS Next Y-8.81%
EPS Next 2Y10.62%
EPS Next 3Y17.37%
EPS Next 5Y18.98%
Revenue 1Y (TTM)23.49%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%20.41%
Revenue Next Year21%
Revenue Next 2Y22.2%
Revenue Next 3Y22.72%
Revenue Next 5Y19.08%
EBIT growth 1Y79.19%
EBIT growth 3Y91.54%
EBIT growth 5Y34.1%
EBIT Next Year107.02%
EBIT Next 3Y53.46%
EBIT Next 5Y33.78%
FCF growth 1Y184.02%
FCF growth 3Y43.64%
FCF growth 5Y28.2%
OCF growth 1Y103.64%
OCF growth 3Y26.38%
OCF growth 5Y27.49%