GOOSEHEAD INSURANCE INC -A (GSHD)

US38267D1090 - Common Stock

56.19  -0.53 (-0.93%)

After market: 57.5 +1.31 (+2.33%)

Fundamental Rating

5

Overall GSHD gets a fundamental rating of 5 out of 10. We evaluated GSHD against 139 industry peers in the Insurance industry. Both the profitability and the financial health of GSHD get a neutral evaluation. Nothing too spectacular is happening here. GSHD shows excellent growth, but is valued quite expensive already. This makes GSHD very considerable for growth investing!



6

1. Profitability

1.1 Basic Checks

GSHD had positive earnings in the past year.
GSHD had a positive operating cash flow in the past year.
GSHD had positive earnings in each of the past 5 years.
Each year in the past 5 years GSHD had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 4.38%, GSHD belongs to the best of the industry, outperforming 81.75% of the companies in the same industry.
GSHD's Return On Equity of 23.81% is amongst the best of the industry. GSHD outperforms 91.97% of its industry peers.
With an excellent Return On Invested Capital value of 8.48%, GSHD belongs to the best of the industry, outperforming 94.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GSHD is in line with the industry average of 3.97%.
The last Return On Invested Capital (8.48%) for GSHD is above the 3 year average (5.11%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.38%
ROE 23.81%
ROIC 8.48%
ROA(3y)2.06%
ROA(5y)3.35%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.11%
ROIC(5y)8.92%

1.3 Margins

The Profit Margin of GSHD (5.99%) is comparable to the rest of the industry.
GSHD's Profit Margin has declined in the last couple of years.
GSHD's Operating Margin of 12.30% is in line compared to the rest of the industry. GSHD outperforms 55.47% of its industry peers.
In the last couple of years the Operating Margin of GSHD has declined.
Industry RankSector Rank
OM 12.3%
PM (TTM) 5.99%
GM N/A
OM growth 3Y-9.48%
OM growth 5YN/A
PM growth 3Y-12.03%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A

5

2. Health

2.1 Basic Checks

GSHD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GSHD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GSHD has been increased compared to 5 years ago.
The debt/assets ratio for GSHD has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.90 indicates that GSHD is not in any danger for bankruptcy at the moment.
GSHD has a Altman-Z score of 4.90. This is amongst the best in the industry. GSHD outperforms 97.81% of its industry peers.
The Debt to FCF ratio of GSHD is 1.70, which is an excellent value as it means it would take GSHD, only 1.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.70, GSHD is in line with its industry, outperforming 57.66% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that GSHD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.97, GSHD is not doing good in the industry: 86.13% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for GSHD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF 1.7
Altman-Z 4.9
ROIC/WACC0.97
WACC8.75%

2.3 Liquidity

A Current Ratio of 0.07 indicates that GSHD may have some problems paying its short term obligations.
The Current ratio of GSHD (0.07) is better than 66.42% of its industry peers.
GSHD has a Quick Ratio of 0.07. This is a bad value and indicates that GSHD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GSHD (0.07) is better than 66.42% of its industry peers.
Industry RankSector Rank
Current Ratio 0.07
Quick Ratio 0.07

9

3. Growth

3.1 Past

GSHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.29%, which is quite impressive.
The Earnings Per Share has been growing by 38.39% on average over the past years. This is a very strong growth
GSHD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.45%.
Measured over the past years, GSHD shows a very strong growth in Revenue. The Revenue has been growing by 34.17% on average per year.
EPS 1Y (TTM)110.29%
EPS 3Y20.74%
EPS 5Y38.39%
EPS Q2Q%64.71%
Revenue 1Y (TTM)18.45%
Revenue growth 3Y30.71%
Revenue growth 5Y34.17%
Sales Q2Q%11.22%

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 25.29% on average per year.
GSHD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.95% yearly.
EPS Next Y18.13%
EPS Next 2Y27.31%
EPS Next 3Y32.57%
EPS Next 5Y25.29%
Revenue Next Year12.48%
Revenue Next 2Y19.82%
Revenue Next 3Y27.1%
Revenue Next 5Y27.95%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

1

4. Valuation

4.1 Price/Earnings Ratio

GSHD is valuated quite expensively with a Price/Earnings ratio of 39.29.
Based on the Price/Earnings ratio, GSHD is valued a bit more expensive than the industry average as 77.37% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.63, GSHD is valued a bit more expensive.
With a Price/Forward Earnings ratio of 26.26, GSHD can be considered very expensive at the moment.
GSHD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GSHD is more expensive than 76.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.22. GSHD is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 39.29
Fwd PE 26.26

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GSHD is valued a bit more expensive than 67.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GSHD is valued a bit more expensive than 75.91% of the companies in the same industry.
Industry RankSector Rank
P/FCF 48.38
EV/EBITDA 50.8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of GSHD may justify a higher PE ratio.
GSHD's earnings are expected to grow with 32.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)1.02
EPS Next 2Y27.31%
EPS Next 3Y32.57%

0

5. Dividend

5.1 Amount

No dividends for GSHD!.
Industry RankSector Rank
Dividend Yield N/A

GOOSEHEAD INSURANCE INC -A

NASDAQ:GSHD (6/21/2024, 7:01:54 PM)

After market: 57.5 +1.31 (+2.33%)

56.19

-0.53 (-0.93%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.13B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 39.29
Fwd PE 26.26
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.17
PEG (5Y)1.02
Profitability
Industry RankSector Rank
ROA 4.38%
ROE 23.81%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.3%
PM (TTM) 5.99%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.97
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.07
Quick Ratio 0.07
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)110.29%
EPS 3Y20.74%
EPS 5Y
EPS Q2Q%
EPS Next Y18.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.45%
Revenue growth 3Y30.71%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y