GODADDY INC - CLASS A (GDDY)

US3802371076 - Common Stock

196.35  +3.34 (+1.73%)

After market: 196.35 0 (0%)

Fundamental Rating

5

Overall GDDY gets a fundamental rating of 5 out of 10. We evaluated GDDY against 84 industry peers in the IT Services industry. While GDDY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GDDY has a correct valuation and a medium growth rate.



9

1. Profitability

1.1 Basic Checks

In the past year GDDY was profitable.
GDDY had a positive operating cash flow in the past year.
Of the past 5 years GDDY 4 years were profitable.
Each year in the past 5 years GDDY had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 23.16%, GDDY belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
Looking at the Return On Equity, with a value of 519.26%, GDDY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
GDDY has a Return On Invested Capital of 13.17%. This is amongst the best in the industry. GDDY outperforms 85.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GDDY is in line with the industry average of 9.95%.
The last Return On Invested Capital (13.17%) for GDDY is above the 3 year average (8.46%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 23.16%
ROE 519.26%
ROIC 13.17%
ROA(3y)8.83%
ROA(5y)4.19%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.46%
ROIC(5y)6.97%

1.3 Margins

GDDY's Profit Margin of 41.34% is amongst the best of the industry. GDDY outperforms 98.78% of its industry peers.
In the last couple of years the Profit Margin of GDDY has grown nicely.
GDDY has a Operating Margin of 19.39%. This is amongst the best in the industry. GDDY outperforms 95.12% of its industry peers.
In the last couple of years the Operating Margin of GDDY has grown nicely.
GDDY has a better Gross Margin (63.57%) than 82.93% of its industry peers.
In the last couple of years the Gross Margin of GDDY has remained more or less at the same level.
Industry RankSector Rank
OM 19.39%
PM (TTM) 41.34%
GM 63.57%
OM growth 3Y20.81%
OM growth 5Y21.68%
PM growth 3YN/A
PM growth 5Y61.98%
GM growth 3Y-1.07%
GM growth 5Y-1.04%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GDDY is still creating some value.
Compared to 1 year ago, GDDY has less shares outstanding
GDDY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GDDY has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.47 indicates that GDDY is not a great score, but indicates only limited risk for bankruptcy at the moment.
GDDY has a Altman-Z score of 2.47. This is comparable to the rest of the industry: GDDY outperforms 47.56% of its industry peers.
GDDY has a debt to FCF ratio of 3.09. This is a good value and a sign of high solvency as GDDY would need 3.09 years to pay back of all of its debts.
GDDY has a better Debt to FCF ratio (3.09) than 64.63% of its industry peers.
A Debt/Equity ratio of 10.61 is on the high side and indicates that GDDY has dependencies on debt financing.
With a Debt to Equity ratio value of 10.61, GDDY is not doing good in the industry: 89.02% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 10.61
Debt/FCF 3.09
Altman-Z 2.47
ROIC/WACC1.25
WACC10.54%

2.3 Liquidity

A Current Ratio of 0.56 indicates that GDDY may have some problems paying its short term obligations.
GDDY's Current ratio of 0.56 is on the low side compared to the rest of the industry. GDDY is outperformed by 90.24% of its industry peers.
GDDY has a Quick Ratio of 0.56. This is a bad value and indicates that GDDY is not financially healthy enough and could expect problems in meeting its short term obligations.
GDDY has a worse Quick ratio (0.56) than 89.02% of its industry peers.
Industry RankSector Rank
Current Ratio 0.56
Quick Ratio 0.56

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 448.31% over the past year.
GDDY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.38% yearly.
The Revenue has been growing slightly by 6.85% in the past year.
The Revenue has been growing by 9.85% on average over the past years. This is quite good.
EPS 1Y (TTM)448.31%
EPS 3Y95.68%
EPS 5Y84.38%
EPS Q2Q%46.67%
Revenue 1Y (TTM)6.85%
Revenue growth 3Y8.65%
Revenue growth 5Y9.85%
Sales Q2Q%7.28%

3.2 Future

Based on estimates for the next years, GDDY will show a decrease in Earnings Per Share. The EPS will decrease by -4.16% on average per year.
GDDY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.68% yearly.
EPS Next Y-30.76%
EPS Next 2Y-15.52%
EPS Next 3Y-4.16%
EPS Next 5YN/A
Revenue Next Year7.02%
Revenue Next 2Y7.25%
Revenue Next 3Y7.3%
Revenue Next 5Y7.68%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.17, GDDY is valued correctly.
78.05% of the companies in the same industry are more expensive than GDDY, based on the Price/Earnings ratio.
GDDY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.20.
The Price/Forward Earnings ratio is 28.69, which means the current valuation is very expensive for GDDY.
GDDY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.00. GDDY is around the same levels.
Industry RankSector Rank
PE 15.17
Fwd PE 28.69

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as GDDY.
GDDY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GDDY is cheaper than 69.51% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.43
EV/EBITDA 29.82

4.3 Compensation for Growth

GDDY has an outstanding profitability rating, which may justify a higher PE ratio.
GDDY's earnings are expected to decrease with -4.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-15.52%
EPS Next 3Y-4.16%

0

5. Dividend

5.1 Amount

GDDY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

GODADDY INC - CLASS A

NYSE:GDDY (11/22/2024, 8:04:00 PM)

After market: 196.35 0 (0%)

196.35

+3.34 (+1.73%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap27.57B
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)
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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 15.17
Fwd PE 28.69
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)N/A
PEG (5Y)0.18
Profitability
Industry RankSector Rank
ROA 23.16%
ROE 519.26%
ROCE
ROIC
ROICexc
ROICexgc
OM 19.39%
PM (TTM) 41.34%
GM 63.57%
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 Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 10.61
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.56
Quick Ratio 0.56
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)448.31%
EPS 3Y95.68%
EPS 5Y
EPS Q2Q%
EPS Next Y-30.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.85%
Revenue growth 3Y8.65%
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
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EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y