GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
USA - NASDAQ:GSHD - US38267D1090 - Common Stock
80.64 USD
+1.01 (+1.27%)
80.64 USD
0 (0%)
Taking everything into account, GSHD scores 5 out of 10 in our fundamental rating. GSHD was compared to 146 industry peers in the Insurance industry. GSHD scores excellent on profitability, but there are some minor concerns on its financial health. GSHD is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year GSHD was profitable.
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 92.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.14%, GSHD belongs to the top of the industry, outperforming 98.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GSHD is significantly above the industry average of 4.47%.
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
GSHD has a Profit Margin of 8.76%. This is in the better half of the industry: GSHD outperforms 61.64% of its industry peers.
In the last couple of years the Profit Margin of GSHD has grown nicely.
The Operating Margin of GSHD (19.49%) is better than 74.66% of its industry peers.
GSHD's Operating Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for GSHD has been reduced compared to 1 year ago.
The number of shares outstanding for GSHD has been increased compared to 5 years ago.
GSHD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.08 indicates that GSHD is not in any danger for bankruptcy at the moment.
GSHD has a better Altman-Z score (4.08) than 96.58% of its industry peers.
GSHD has a debt to FCF ratio of 4.18. This is a neutral value as GSHD would need 4.18 years to pay back of all of its debts.
GSHD has a Debt to FCF ratio (4.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 4.08 |
ROIC/WACC1.98
WACC8.65%
2.3 Liquidity
GSHD has a Current 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 Current ratio (0.20) than 67.81% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.20, GSHD is in the better half of the industry, outperforming 67.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
GSHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.69%, 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 38.67% on average per year.
Looking at the last year, GSHD shows a very strong growth in Revenue. The Revenue has grown by 23.49%.
The Revenue has been growing by 32.33% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 19.78% on average over the next years. This is quite good.
GSHD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.08% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 39.53, which means the current valuation is very expensive for GSHD.
Based on the Price/Earnings ratio, GSHD is valued expensively inside the industry as 81.51% of the companies are valued cheaper.
GSHD is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.95 indicates a quite expensive valuation of GSHD.
Based on the Price/Forward Earnings ratio, GSHD is valued a bit more expensive than 78.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. GSHD is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.53 | ||
| Fwd PE | 32.95 |
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 69.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GSHD is valued a bit more expensive than 70.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.26 | ||
| EV/EBITDA | 40.78 |
4.3 Compensation for Growth
The decent profitability rating of GSHD 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)1.02
EPS Next 2Y10.62%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
GSHD has a Yearly Dividend Yield of 7.33%, which is a nice return.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.43. GSHD pays more dividend than 93.84% of the companies in the same industry.
GSHD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.33% |
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
GSHD pays out 700.01% of its income as dividend. This is not a sustainable payout ratio.
DP700.01%
EPS Next 2Y10.62%
EPS Next 3Y17.37%
80.64
+1.01 (+1.27%)
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-26.56%
Market Cap3.03B
Analysts71.76
Price Target112.88 (39.98%)
Short Float %9%
Short Ratio6.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.33% |
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)-0.3%
PT rev (3m)-6.51%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-11.35%
EPS NY rev (1m)-3.51%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.53 | ||
| Fwd PE | 32.95 | ||
| P/S | 8.87 | ||
| P/FCF | 43.26 | ||
| P/OCF | 35.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.78 |
EPS(TTM)2.04
EY2.53%
EPS(NY)2.45
Fwd EY3.03%
FCF(TTM)1.86
FCFY2.31%
OCF(TTM)2.26
OCFY2.81%
SpS9.09
BVpS-2.09
TBVpS-2.9
PEG (NY)N/A
PEG (5Y)1.02
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 | 4.08 |
F-Score6
WACC8.65%
ROIC/WACC1.98
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%