GOOSEHEAD INSURANCE INC -A (GSHD)
US38267D1090 - Common Stock
GSHD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. Both the profitability and the financial health of GSHD get a neutral evaluation. Nothing too spectacular is happening here. GSHD is valued quite expensive, but it does show an excellent growth. With these ratings, GSHD could be worth investigating further for growth investing!.
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.
GSHD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GSHD's Return On Assets of 5.36% is amongst the best of the industry. GSHD outperforms 85.61% of its industry peers.
GSHD's Return On Equity of 32.89% is amongst the best of the industry. GSHD outperforms 96.40% of its industry peers.
GSHD has a better Return On Invested Capital (10.58%) than 95.68% of its industry peers.
GSHD had an Average Return On Invested Capital over the past 3 years of 5.11%. This is in line with the industry average of 4.27%.
The 3 year average ROIC (5.11%) for GSHD is below the current ROIC(10.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 32.89% | ||
| ROIC | 10.58% |
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's Profit Margin of 6.77% is in line compared to the rest of the industry. GSHD outperforms 52.52% of its industry peers.
In the last couple of years the Profit Margin of GSHD has declined.
Looking at the Operating Margin, with a value of 14.10%, GSHD is in the better half of the industry, outperforming 64.03% of the companies in the same industry.
In the last couple of years the Operating Margin of GSHD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.1% | ||
| PM (TTM) | 6.77% | ||
| 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
GSHD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GSHD has been increased compared to 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 9.83 indicates that GSHD is not in any danger for bankruptcy at the moment.
The Altman-Z score of GSHD (9.83) is better than 99.28% of its industry peers.
The Debt to FCF ratio of GSHD is 1.60, which is an excellent value as it means it would take GSHD, only 1.60 years of fcf income to pay off all of its debts.
GSHD has a Debt to FCF ratio of 1.60. This is comparable to the rest of the industry: GSHD outperforms 55.40% of its industry peers.
GSHD has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GSHD (1.45) is worse than 90.65% 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 | 1.45 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 9.83 |
ROIC/WACC1.18
WACC8.98%
2.3 Liquidity
GSHD has a Current Ratio of 0.06. 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 (0.06) than 65.47% of its industry peers.
GSHD has a Quick Ratio of 0.06. 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 (0.06) than 65.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.57% over the past year.
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.
The Revenue has grown by 10.92% in the past year. This is quite good.
Measured over the past years, GSHD shows a very strong growth in Revenue. The Revenue has been growing by 34.17% on average per year.
EPS 1Y (TTM)29.57%
EPS 3Y20.74%
EPS 5Y38.39%
EPS Q2Q%8.7%
Revenue 1Y (TTM)10.92%
Revenue growth 3Y30.71%
Revenue growth 5Y34.17%
Sales Q2Q%9.86%
3.2 Future
Based on estimates for the next years, GSHD will show a very strong growth in Earnings Per Share. The EPS will grow by 25.29% on average per year.
GSHD is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.95% yearly.
EPS Next Y23.65%
EPS Next 2Y28.27%
EPS Next 3Y31.61%
EPS Next 5Y25.29%
Revenue Next Year12.35%
Revenue Next 2Y18.71%
Revenue Next 3Y21.14%
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
GSHD is valuated quite expensively with a Price/Earnings ratio of 82.00.
Compared to the rest of the industry, the Price/Earnings ratio of GSHD indicates a rather expensive valuation: GSHD more expensive than 81.30% of the companies listed in the same industry.
GSHD is valuated expensively when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 56.26, which means the current valuation is very expensive for GSHD.
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 79.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, GSHD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82 | ||
| Fwd PE | 56.26 |
4.2 Price Multiples
68.35% of the companies in the same industry are cheaper than GSHD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GSHD is valued a bit more expensive than 78.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.67 | ||
| EV/EBITDA | 90.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 31.61% in the coming years.
PEG (NY)3.47
PEG (5Y)2.14
EPS Next 2Y28.27%
EPS Next 3Y31.61%
5. Dividend
5.1 Amount
GSHD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GOOSEHEAD INSURANCE INC -A
NASDAQ:GSHD (11/21/2024, 8:00:01 PM)
After market: 122.18 0 (0%)122.18
+1.75 (+1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.53B
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)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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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 | 82 | ||
| Fwd PE | 56.26 | ||
| 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)3.47
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 32.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.1% | ||
| PM (TTM) | 6.77% | ||
| 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| 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)29.57%
EPS 3Y20.74%
EPS 5Y
EPS Q2Q%
EPS Next Y23.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.92%
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