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 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.
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
GSHD has a better Return On Assets (6.85%) than 93.71% of its industry peers.
GSHD has a Return On Invested Capital of 17.14%. This is amongst the best in the industry. GSHD outperforms 99.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GSHD is significantly above the industry average of 4.05%.
The last Return On Invested Capital (17.14%) for GSHD is above the 3 year average (11.27%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.76%, GSHD is doing good in the industry, outperforming 60.14% of the companies in the same industry.
GSHD's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.49%, 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 | 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
The debt/assets ratio for GSHD is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.48 indicates that GSHD is not in any danger for bankruptcy at the moment.
The Altman-Z score of GSHD (4.48) is better than 97.90% of its industry peers.
GSHD has a debt to FCF ratio of 4.18. This is a neutral value as GSHD would need 4.18 years to pay back of 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 41.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.94
WACC8.82%
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.
With a decent Current ratio value of 0.20, GSHD is doing good in the industry, outperforming 68.53% of the companies in the same industry.
GSHD has a Quick 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's Quick ratio of 0.20 is fine compared to the rest of the industry. GSHD outperforms 68.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
GSHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.69%, which is quite impressive.
The Earnings Per Share has been growing by 38.67% on average over the past years. This is a very strong growth
The Revenue has grown by 23.49% 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)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 very strong growth in Earnings Per Share. The EPS will grow by 21.28% 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-5.49%
EPS Next 2Y13.71%
EPS Next 3Y19.1%
EPS Next 5Y21.28%
Revenue Next Year21.08%
Revenue Next 2Y22.2%
Revenue Next 3Y22.72%
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
With a Price/Earnings ratio of 43.46, GSHD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GSHD indicates a slightly more expensive valuation: GSHD is more expensive than 79.02% of the companies listed in the same industry.
GSHD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.03.
GSHD is valuated quite expensively with a Price/Forward Earnings ratio of 34.28.
Based on the Price/Forward Earnings ratio, GSHD is valued a bit more expensive than the industry average as 79.02% of the companies are valued more cheaply.
GSHD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.46 | ||
| Fwd PE | 34.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSHD is valued a bit more expensive than 69.23% of the companies in the same industry.
74.13% 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 | 47.56 | ||
| EV/EBITDA | 45.11 |
4.3 Compensation for Growth
GSHD has a very decent profitability rating, which may justify a higher PE ratio.
GSHD's earnings are expected to grow with 19.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y13.71%
EPS Next 3Y19.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.89%, GSHD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.38, GSHD pays a better dividend. On top of this GSHD pays more dividend than 93.01% 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 | 6.89% |
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
700.01% of the earnings are spent on dividend by GSHD. This is not a sustainable payout ratio.
DP700.01%
EPS Next 2Y13.71%
EPS Next 3Y19.1%
88.65
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners106.29%
Inst Owner Change-1.1%
Ins Owners5.65%
Ins Owner Change-16.23%
Market Cap3.33B
Analysts72.5
Price Target120.74 (36.2%)
Short Float %9.15%
Short Ratio7.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.89% |
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)0%
PT rev (3m)-0.63%
EPS NQ rev (1m)-10.54%
EPS NQ rev (3m)-15.2%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-1.33%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)-2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.46 | ||
| Fwd PE | 34.28 | ||
| P/S | 9.75 | ||
| P/FCF | 47.56 | ||
| P/OCF | 39.17 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 45.11 |
EPS(TTM)2.04
EY2.3%
EPS(NY)2.59
Fwd EY2.92%
FCF(TTM)1.86
FCFY2.1%
OCF(TTM)2.26
OCFY2.55%
SpS9.09
BVpS-2.09
TBVpS-2.9
PEG (NY)N/A
PEG (5Y)1.12
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 | 4.48 |
F-Score6
WACC8.82%
ROIC/WACC1.94
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-5.49%
EPS Next 2Y13.71%
EPS Next 3Y19.1%
EPS Next 5Y21.28%
Revenue 1Y (TTM)23.49%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%20.41%
Revenue Next Year21.08%
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 Year115.48%
EBIT Next 3Y55.91%
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%