GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
NASDAQ:GSHD - US38267D1090 - Common Stock
86.47 USD
-0.14 (-0.16%)
86.47 USD
0 (0%)
Taking everything into account, GSHD scores 5 out of 10 in our fundamental rating. GSHD was compared to 143 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
GSHD had positive earnings in the past year.
GSHD had a positive operating cash flow in the past year.
Each year in the past 5 years GSHD has been profitable.
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 93.71% of its industry peers.
The Return On Invested Capital of GSHD (17.14%) is better than 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 4.11%.
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
With a decent Profit Margin value of 8.76%, GSHD is doing good in the industry, outperforming 62.24% of the companies in the same industry.
GSHD's Profit Margin has improved in the last couple of years.
GSHD has a better Operating Margin (19.49%) than 77.62% of its industry peers.
In the last couple of years the Operating Margin of GSHD has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GSHD is creating value.
GSHD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GSHD has more shares outstanding
GSHD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.38 indicates that GSHD is not in any danger for bankruptcy at the moment.
GSHD has a better Altman-Z score (4.38) than 97.90% 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 42.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.38 |
ROIC/WACC1.93
WACC8.86%
2.3 Liquidity
A Current Ratio of 0.20 indicates that GSHD may have some problems paying its short term obligations.
With a decent Current ratio value of 0.20, GSHD is doing good in the industry, outperforming 67.83% 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 has a better Quick ratio (0.20) than 67.83% 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.
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!
Measured over the past years, GSHD shows a very strong growth in Revenue. The Revenue has been growing by 32.33% on average per year.
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 19.78% 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-8.81%
EPS Next 2Y10.62%
EPS Next 3Y17.37%
EPS Next 5Y19.78%
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
GSHD is valuated quite expensively with a Price/Earnings ratio of 42.39.
Based on the Price/Earnings ratio, GSHD is valued more expensive than 81.82% of the companies in the same industry.
When comparing the Price/Earnings ratio of GSHD to the average of the S&P500 Index (27.14), we can say GSHD is valued expensively.
Based on the Price/Forward Earnings ratio of 35.33, 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 79.02% of the companies listed in the same industry.
GSHD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.39 | ||
| Fwd PE | 35.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GSHD indicates a slightly more expensive valuation: GSHD is more expensive than 69.23% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GSHD indicates a slightly more expensive valuation: GSHD is more expensive than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.39 | ||
| EV/EBITDA | 44.06 |
4.3 Compensation for Growth
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 17.37% in the coming years.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y10.62%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
GSHD has a Yearly Dividend Yield of 6.60%, which is a nice return.
The stock price of GSHD dropped by -20.13% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.52. GSHD pays more dividend than 90.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GSHD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
5.2 History
The dividend of GSHD decreases each year by -24.29%.
GSHD has paid a dividend for less than 5 years, so there is no long track record yet.
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 2Y10.62%
EPS Next 3Y17.37%
86.47
-0.14 (-0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners104.96%
Inst Owner Change4.17%
Ins Owners5.59%
Ins Owner Change-29.7%
Market Cap3.25B
Analysts71.25
Price Target114.81 (32.77%)
Short Float %9.77%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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)-4.92%
PT rev (3m)-4.92%
EPS NQ rev (1m)-11.31%
EPS NQ rev (3m)-15.96%
EPS NY rev (1m)-3.51%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)-1.91%
Revenue NQ rev (3m)-4.8%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.39 | ||
| Fwd PE | 35.33 | ||
| P/S | 9.51 | ||
| P/FCF | 46.39 | ||
| P/OCF | 38.21 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 44.06 |
EPS(TTM)2.04
EY2.36%
EPS(NY)2.45
Fwd EY2.83%
FCF(TTM)1.86
FCFY2.16%
OCF(TTM)2.26
OCFY2.62%
SpS9.09
BVpS-2.09
TBVpS-2.9
PEG (NY)N/A
PEG (5Y)1.1
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 | 4.38 |
F-Score6
WACC8.86%
ROIC/WACC1.93
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 5Y19.78%
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 Year104.52%
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%