GOOSEHEAD INSURANCE INC -A (GSHD)
US38267D1090 - Common Stock
Taking everything into account, GSHD scores 5 out of 10 in our fundamental rating. GSHD was compared to 141 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!
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.
Each year in the past 5 years GSHD had a positive operating cash flow.
1.2 Ratios
GSHD's Return On Assets of 4.38% is amongst the best of the industry. GSHD outperforms 82.86% of its industry peers.
GSHD has a Return On Equity of 23.81%. This is amongst the best in the industry. GSHD outperforms 92.14% of its industry peers.
GSHD has a better Return On Invested Capital (8.48%) than 93.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GSHD is in line with the industry average of 4.06%.
The 3 year average ROIC (5.11%) for GSHD is below the current ROIC(8.48%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
GSHD has a Profit Margin (5.99%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GSHD has declined.
GSHD has a Operating Margin (12.30%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GSHD has declined.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GSHD is destroying value.
The number of shares outstanding for GSHD has been increased compared to 1 year ago.
The number of shares outstanding for GSHD has been increased compared to 5 years ago.
GSHD has a better debt/assets ratio than last year.
2.2 Solvency
GSHD has an Altman-Z score of 5.17. This indicates that GSHD is financially healthy and has little risk of bankruptcy at the moment.
GSHD has a Altman-Z score of 5.17. This is amongst the best in the industry. GSHD outperforms 97.14% of its industry peers.
GSHD has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
GSHD has a Debt to FCF ratio (1.70) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.97 indicates that GSHD is somewhat dependend on debt financing.
The Debt to Equity ratio of GSHD (0.97) is worse than 85.71% of its industry peers.
Although GSHD does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 5.17 |
ROIC/WACC0.94
WACC8.99%
2.3 Liquidity
GSHD has a Current 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.
GSHD has a Current ratio of 0.07. This is in the better half of the industry: GSHD outperforms 65.00% 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.
GSHD has a Quick ratio of 0.07. This is in the better half of the industry: GSHD outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 110.29% 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 38.39% on average per year.
GSHD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.45%.
The Revenue has been growing by 34.17% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)110.29%
EPS 3Y20.74%
EPS 5Y38.39%
EPS growth Q2Q64.71%
Revenue 1Y (TTM)18.45%
Revenue growth 3Y30.71%
Revenue growth 5Y34.17%
Revenue growth Q2Q11.21%
3.2 Future
The Earnings Per Share is expected to grow by 25.29% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.95% on average over the next years. This is a very strong growth
EPS Next Y23.16%
EPS Next 2Y31.26%
EPS Next 3Y31.9%
EPS Next 5Y25.29%
Revenue Next Year17.3%
Revenue Next 2Y23.18%
Revenue Next 3Y29.26%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GSHD is valuated quite expensively with a Price/Earnings ratio of 42.66.
Compared to the rest of the industry, the Price/Earnings ratio of GSHD indicates a slightly more expensive valuation: GSHD is more expensive than 73.57% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.11. GSHD is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 26.83 indicates a quite expensive valuation of GSHD.
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 72.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, GSHD is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.66 | ||
| Fwd PE | 26.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSHD is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, GSHD is valued a bit more expensive than the industry average as 72.14% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.53 | ||
| EV/EBITDA | 53.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GSHD does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of GSHD may justify a higher PE ratio.
GSHD's earnings are expected to grow with 31.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.84
PEG (5Y)1.11
EPS Next 2Y31.26%
EPS Next 3Y31.9%
5. Dividend
5.1 Amount
No dividends for GSHD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GOOSEHEAD INSURANCE INC -A
NASDAQ:GSHD (5/7/2024, 7:00:02 PM)
After market: 53.52 -7.49 (-12.28%)61.01
+0.73 (+1.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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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EPS beat(8)
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)
Max Revenue beat(2)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.66 | ||
| Fwd PE | 26.83 | ||
| 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)1.84
PEG (5Y)1.11
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
Growth
EPS 1Y (TTM)110.29%
EPS 3Y20.74%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.45%
Revenue growth 3Y30.71%
Revenue growth 5Y
Revenue growth 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