SELECTQUOTE INC (SLQT) Stock Fundamental Analysis
NYSE:SLQT - New York Stock Exchange, Inc. - US8163073005 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SLQT. SLQT was compared to 143 industry peers in the Insurance industry. SLQT has a bad profitability rating. Also its financial health evaluation is rather negative. SLQT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SLQT has reported negative net income.
SLQT had a positive operating cash flow in the past year.
In the past 5 years SLQT reported 4 times negative net income.
SLQT had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.16%, SLQT is not doing good in the industry: 83.22% of the companies in the same industry are doing better.
SLQT has a worse Return On Equity (-0.38%) than 81.12% of its industry peers.
SLQT has a Return On Invested Capital of 5.71%. This is amongst the best in the industry. SLQT outperforms 85.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.16% | ||
| ROE | -0.38% | ||
| ROIC | 5.71% |
ROA(3y)-10.24%
ROA(5y)-4.72%
ROE(3y)-34.57%
ROE(5y)-17.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 5.35%, SLQT is doing worse than 73.43% of the companies in the same industry.
In the last couple of years the Operating Margin of SLQT has declined.
Looking at the Gross Margin, with a value of 40.92%, SLQT belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
SLQT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.35% | ||
| PM (TTM) | N/A | ||
| GM | 40.92% |
OM growth 3Y-38.22%
OM growth 5Y-30.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.91%
GM growth 5Y-8.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SLQT is destroying value.
The number of shares outstanding for SLQT has been increased compared to 1 year ago.
The number of shares outstanding for SLQT has been increased compared to 5 years ago.
Compared to 1 year ago, SLQT has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that SLQT is in the distress zone and has some risk of bankruptcy.
SLQT has a Altman-Z score of 1.56. This is amongst the best in the industry. SLQT outperforms 86.01% of its industry peers.
The Debt to FCF ratio of SLQT is 11.15, which is on the high side as it means it would take SLQT, 11.15 years of fcf income to pay off all of its debts.
SLQT's Debt to FCF ratio of 11.15 is on the low side compared to the rest of the industry. SLQT is outperformed by 76.22% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that SLQT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, SLQT is not doing good in the industry: 80.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 11.15 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.62
WACC9.21%
2.3 Liquidity
A Current Ratio of 1.86 indicates that SLQT should not have too much problems paying its short term obligations.
SLQT's Current ratio of 1.86 is amongst the best of the industry. SLQT outperforms 90.91% of its industry peers.
SLQT has a Quick Ratio of 1.86. This is a normal value and indicates that SLQT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.86, SLQT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.62% over the past year.
Looking at the last year, SLQT shows a very strong growth in Revenue. The Revenue has grown by 20.41%.
SLQT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.39% yearly.
EPS 1Y (TTM)65.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)20.41%
Revenue growth 3Y12.43%
Revenue growth 5Y31.39%
Sales Q2Q%8.44%
3.2 Future
Based on estimates for the next years, SLQT will show a very strong growth in Earnings Per Share. The EPS will grow by 68.10% on average per year.
Based on estimates for the next years, SLQT will show a quite strong growth in Revenue. The Revenue will grow by 14.58% on average per year.
EPS Next Y83.81%
EPS Next 2Y68.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.91%
Revenue Next 2Y14.99%
Revenue Next 3Y14.58%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for SLQT. In the last year negative earnings were reported.
SLQT is valuated correctly with a Price/Forward Earnings ratio of 13.03.
SLQT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, SLQT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SLQT indicates a somewhat cheap valuation: SLQT is cheaper than 70.63% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SLQT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.11 | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SLQT's earnings are expected to grow with 68.10% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y68.1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SLQT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.26
+0.06 (+2.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners37.85%
Inst Owner Change12.71%
Ins Owners9.85%
Ins Owner Change1.02%
Market Cap390.35M
Analysts78
Price Target5.8 (156.64%)
Short Float %1.49%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)115.16%
Min EPS beat(2)26.07%
Max EPS beat(2)204.25%
EPS beat(4)2
Avg EPS beat(4)44.67%
Min EPS beat(4)-37.78%
Max EPS beat(4)204.25%
EPS beat(8)5
Avg EPS beat(8)34.08%
EPS beat(12)7
Avg EPS beat(12)53.06%
EPS beat(16)9
Avg EPS beat(16)27.88%
Revenue beat(2)1
Avg Revenue beat(2)1.98%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)5.51%
Revenue beat(4)3
Avg Revenue beat(4)4.55%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)10.34%
Revenue beat(8)7
Avg Revenue beat(8)8.05%
Revenue beat(12)10
Avg Revenue beat(12)4.89%
Revenue beat(16)12
Avg Revenue beat(16)0.28%
PT rev (1m)-22.44%
PT rev (3m)-22.44%
EPS NQ rev (1m)-9.39%
EPS NQ rev (3m)-5.75%
EPS NY rev (1m)0%
EPS NY rev (3m)75.61%
Revenue NQ rev (1m)1.23%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.03 | ||
| P/S | 0.26 | ||
| P/FCF | 11.11 | ||
| P/OCF | 8.52 | ||
| P/B | 0.7 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)-0.11
EYN/A
EPS(NY)0.17
Fwd EY7.67%
FCF(TTM)0.2
FCFY9%
OCF(TTM)0.27
OCFY11.74%
SpS8.62
BVpS3.23
TBVpS2.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.16% | ||
| ROE | -0.38% | ||
| ROCE | 7.23% | ||
| ROIC | 5.71% | ||
| ROICexc | 6.18% | ||
| ROICexgc | 6.51% | ||
| OM | 5.35% | ||
| PM (TTM) | N/A | ||
| GM | 40.92% | ||
| FCFM | 2.36% |
ROA(3y)-10.24%
ROA(5y)-4.72%
ROE(3y)-34.57%
ROE(5y)-17.64%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-30.93%
ROICexcg growth 5Y-23.78%
ROICexc growth 3Y-29.33%
ROICexc growth 5Y-24.21%
OM growth 3Y-38.22%
OM growth 5Y-30.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.91%
GM growth 5Y-8.11%
F-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 11.15 | ||
| Debt/EBITDA | 3.57 | ||
| Cap/Depr | 48.61% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 1.18 | ||
| Cash Conversion | 45.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 1.56 |
F-Score5
WACC9.21%
ROIC/WACC0.62
Cap/Depr(3y)73.19%
Cap/Depr(5y)111.33%
Cap/Sales(3y)2.11%
Cap/Sales(5y)2.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y83.81%
EPS Next 2Y68.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.41%
Revenue growth 3Y12.43%
Revenue growth 5Y31.39%
Sales Q2Q%8.44%
Revenue Next Year16.91%
Revenue Next 2Y14.99%
Revenue Next 3Y14.58%
Revenue Next 5YN/A
EBIT growth 1Y163.19%
EBIT growth 3Y-30.54%
EBIT growth 5Y-8.12%
EBIT Next Year134.6%
EBIT Next 3Y44.57%
EBIT Next 5YN/A
FCF growth 1Y146.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y168.59%
OCF growth 3YN/A
OCF growth 5Y168.1%