GOOSEHEAD INSURANCE INC -A (GSHD)
US38267D1090 - Common Stock
GSHD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. GSHD has only an average score on both its financial health and profitability. GSHD is valued quite expensively, but it does show have an excellent growth rating. 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.
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
GSHD has a Return On Assets of 4.38%. This is amongst the best in the industry. GSHD outperforms 82.14% of its industry peers.
GSHD has a better Return On Equity (23.81%) than 91.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.48%, GSHD belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GSHD is in line with the industry average of 3.96%.
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 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 of 5.99%. This is comparable to the rest of the industry: GSHD outperforms 47.14% of its industry peers.
GSHD's Profit Margin has declined in the last couple of years.
GSHD has a Operating Margin (12.30%) which is comparable to the rest of the industry.
GSHD's Operating Margin has declined in the last couple of years.
| 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.
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.
GSHD has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.05 indicates that GSHD is not in any danger for bankruptcy at the moment.
GSHD's Altman-Z score of 7.05 is amongst the best of the industry. GSHD outperforms 98.57% 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.
GSHD has a Debt to FCF ratio (1.70) which is comparable to the rest of the industry.
GSHD has a Debt/Equity ratio of 0.97. This is a neutral value indicating GSHD is somewhat dependend on debt financing.
GSHD has a worse Debt to Equity ratio (0.97) than 85.00% 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 | 7.05 |
ROIC/WACC0.96
WACC8.82%
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's Current ratio of 0.07 is fine compared to the rest of the industry. GSHD outperforms 66.43% 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 66.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
GSHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.84%, 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 38.39% on average per year.
Looking at the last year, GSHD shows a very strong growth in Revenue. The Revenue has grown by 24.77%.
GSHD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.17% yearly.
EPS 1Y (TTM)54.84%
EPS 3Y20.74%
EPS 5Y38.39%
EPS Q2Q%2.44%
Revenue 1Y (TTM)24.77%
Revenue growth 3Y30.71%
Revenue growth 5Y34.17%
Sales Q2Q%12.72%
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 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
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 61.58, GSHD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GSHD is valued a bit more expensive than the industry average as 77.86% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 24.41, GSHD is valued quite expensively.
With a Price/Forward Earnings ratio of 41.45, GSHD can be considered very expensive at the moment.
77.86% of the companies in the same industry are cheaper than GSHD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GSHD to the average of the S&P500 Index (20.59), we can say GSHD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.58 | ||
| Fwd PE | 41.45 |
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 66.43% of the companies in the same industry.
74.29% 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 | 76.35 | ||
| EV/EBITDA | 75.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GSHD has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GSHD's earnings are expected to grow with 32.57% in the coming years.
PEG (NY)3.4
PEG (5Y)1.6
EPS Next 2Y27.31%
EPS Next 3Y32.57%
5. Dividend
5.1 Amount
No dividends for GSHD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GOOSEHEAD INSURANCE INC -A
NASDAQ:GSHD (7/26/2024, 4:41:21 PM)
After market: 88.68 0 (0%)88.68
+3.79 (+4.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.37B
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)
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EPS beat(8)
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EPS beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.58 | ||
| Fwd PE | 41.45 | ||
| 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)3.4
PEG (5Y)1.6
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)
High Growth Momentum
Growth
EPS 1Y (TTM)54.84%
EPS 3Y20.74%
EPS 5Y
EPS Q2Q%
EPS Next Y18.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.77%
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