GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
NASDAQ:GSHD - Nasdaq - US38267D1090 - Common Stock
We assign a fundamental rating of 5 out of 10 to GSHD. GSHD was compared to 143 industry peers in the Insurance industry. GSHD has only an average score on both its financial health and profitability. 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
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.
Each year in the past 5 years GSHD had a positive operating cash flow.
1.2 Ratios
GSHD has a Return On Assets of 5.36%. This is amongst the best in the industry. GSHD outperforms 82.27% of its industry peers.
Looking at the Return On Equity, with a value of 32.89%, GSHD belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.58%, GSHD belongs to the top of the industry, outperforming 94.33% of the companies in the same industry.
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 4.61%.
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 has a Profit Margin (6.77%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GSHD has declined.
GSHD's Operating Margin of 14.10% is fine compared to the rest of the industry. GSHD outperforms 60.99% of its industry peers.
GSHD's Operating Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GSHD is creating some value.
Compared to 1 year ago, GSHD has more shares outstanding
GSHD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GSHD has been reduced compared to a year ago.
2.2 Solvency
GSHD has an Altman-Z score of 8.65. This indicates that GSHD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.65, GSHD belongs to the top of the industry, outperforming 98.58% of the companies in the same industry.
GSHD has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
The Debt to FCF ratio of GSHD (1.60) is comparable to the rest of the industry.
GSHD has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
GSHD has a worse Debt to Equity ratio (1.45) than 91.49% 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 | 8.65 |
ROIC/WACC1.15
WACC9.17%
2.3 Liquidity
A Current Ratio of 0.06 indicates that GSHD may have some problems paying its short term obligations.
With a decent Current ratio value of 0.06, GSHD is doing good in the industry, outperforming 63.83% of the companies in the same industry.
A Quick Ratio of 0.06 indicates that GSHD may have some problems paying its short term obligations.
GSHD has a better Quick ratio (0.06) than 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
GSHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.57%, which is quite impressive.
GSHD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.39% yearly.
GSHD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.92%.
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
The Earnings Per Share is expected to grow by 27.85% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.95% on average over the next years. This is a very strong growth
EPS Next Y23.71%
EPS Next 2Y28.17%
EPS Next 3Y31.61%
EPS Next 5Y27.85%
Revenue Next Year12.16%
Revenue Next 2Y18.61%
Revenue Next 3Y21.82%
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
The Price/Earnings ratio is 70.13, which means the current valuation is very expensive for GSHD.
Based on the Price/Earnings ratio, GSHD is valued more expensive than 82.98% of the companies in the same industry.
GSHD is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 48.19, GSHD can be considered very expensive at the moment.
78.72% of the companies in the same industry are cheaper than GSHD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GSHD to the average of the S&P500 Index (24.44), we can say GSHD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.13 | ||
| Fwd PE | 48.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSHD is valued a bit more expensive than 68.79% of the companies in the same industry.
GSHD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GSHD is more expensive than 73.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.57 | ||
| EV/EBITDA | 78.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GSHD does not grow enough to justify the current Price/Earnings ratio.
GSHD has a very decent profitability rating, which may justify a higher PE ratio.
GSHD's earnings are expected to grow with 31.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.96
PEG (5Y)1.83
EPS Next 2Y28.17%
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 (1/22/2025, 1:07:56 PM)
104.49
-1.83 (-1.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners112.01%
Inst Owner Change0.14%
Ins Owners3.13%
Ins Owner Change-8.15%
Market Cap3.88B
Analysts72.94
Price Target109.37 (4.67%)
Short Float %12.98%
Short Ratio13.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.29
Dividend Growth(5Y)N/A
DP36.12%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.09%
Min EPS beat(2)7.84%
Max EPS beat(2)8.34%
EPS beat(4)3
Avg EPS beat(4)8.21%
Min EPS beat(4)-16.43%
Max EPS beat(4)33.08%
EPS beat(8)6
Avg EPS beat(8)56.11%
EPS beat(12)8
Avg EPS beat(12)46.79%
EPS beat(16)10
Avg EPS beat(16)34.46%
Revenue beat(2)1
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-5.14%
Max Revenue beat(2)3.12%
Revenue beat(4)1
Avg Revenue beat(4)-3.69%
Min Revenue beat(4)-9.51%
Max Revenue beat(4)3.12%
Revenue beat(8)5
Avg Revenue beat(8)0.4%
Revenue beat(12)7
Avg Revenue beat(12)0.19%
Revenue beat(16)10
Avg Revenue beat(16)1.23%
PT rev (1m)1.05%
PT rev (3m)32.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.31%
EPS NY rev (1m)0%
EPS NY rev (3m)5.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.13 | ||
| Fwd PE | 48.19 | ||
| P/S | 13.67 | ||
| P/FCF | 65.57 | ||
| P/OCF | 53.43 | ||
| P/B | 66.46 | ||
| P/tB | 110.42 | ||
| EV/EBITDA | 78.91 |
EPS(TTM)1.49
EY1.43%
EPS(NY)2.17
Fwd EY2.08%
FCF(TTM)1.59
FCFY1.53%
OCF(TTM)1.96
OCFY1.87%
SpS7.64
BVpS1.57
TBVpS0.95
PEG (NY)2.96
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 32.89% | ||
| ROCE | 15.04% | ||
| ROIC | 10.58% | ||
| ROICexc | 12.89% | ||
| ROICexgc | 14.77% | ||
| OM | 14.1% | ||
| PM (TTM) | 6.77% | ||
| GM | N/A | ||
| FCFM | 20.85% |
ROA(3y)2.06%
ROA(5y)3.35%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.11%
ROIC(5y)8.92%
ROICexc(3y)6.03%
ROICexc(5y)11.34%
ROICexgc(3y)6.53%
ROICexgc(5y)12.01%
ROCE(3y)7.26%
ROCE(5y)12.67%
ROICexcg growth 3Y-3.97%
ROICexcg growth 5YN/A
ROICexc growth 3Y-5.92%
ROICexc growth 5YN/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
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 1.6 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 126.4% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 143.42% | ||
| Profit Quality | 308.13% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 8.65 |
F-Score7
WACC9.17%
ROIC/WACC1.15
Cap/Depr(3y)226.51%
Cap/Depr(5y)232.14%
Cap/Sales(3y)7.83%
Cap/Sales(5y)7.53%
Profit Quality(3y)1482.27%
Profit Quality(5y)1015.27%
High Growth Momentum
Growth
EPS 1Y (TTM)29.57%
EPS 3Y20.74%
EPS 5Y38.39%
EPS Q2Q%8.7%
EPS Next Y23.71%
EPS Next 2Y28.17%
EPS Next 3Y31.61%
EPS Next 5Y27.85%
Revenue 1Y (TTM)10.92%
Revenue growth 3Y30.71%
Revenue growth 5Y34.17%
Sales Q2Q%9.86%
Revenue Next Year12.16%
Revenue Next 2Y18.61%
Revenue Next 3Y21.82%
Revenue Next 5Y27.95%
EBIT growth 1Y20.95%
EBIT growth 3Y18.31%
EBIT growth 5YN/A
EBIT Next Year98.48%
EBIT Next 3Y50.59%
EBIT Next 5YN/A
FCF growth 1Y202.49%
FCF growth 3Y30.49%
FCF growth 5Y31.58%
OCF growth 1Y74.2%
OCF growth 3Y27.24%
OCF growth 5Y37.63%