GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
NASDAQ:GSHD - Nasdaq - US38267D1090 - Common Stock - Currency: USD
Taking everything into account, GSHD scores 6 out of 10 in our fundamental rating. 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. This makes GSHD very considerable for growth investing!
1. Profitability
1.1 Basic Checks
GSHD had positive earnings in the past year.
In the past year GSHD had a positive cash flow from operations.
In the past 5 years GSHD has always been profitable.
In the past 5 years GSHD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.36%, GSHD belongs to the top of the industry, outperforming 81.56% of the companies in the same industry.
GSHD has a Return On Equity of 32.89%. This is amongst the best in the industry. GSHD outperforms 95.04% of its industry peers.
GSHD has a better Return On Invested Capital (10.58%) than 94.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GSHD is in line with the industry average of 4.59%.
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.
GSHD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.10%, GSHD is in the better half of the industry, outperforming 60.99% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GSHD is still creating some value.
GSHD has more shares outstanding than it did 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 8.93 indicates that GSHD is not in any danger for bankruptcy at the moment.
GSHD has a better Altman-Z score (8.93) than 98.58% 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's Debt to FCF ratio of 1.60 is in line compared to the rest of the industry. GSHD outperforms 54.61% of its industry peers.
A Debt/Equity ratio of 1.45 is on the high side and indicates that GSHD has dependencies on debt financing.
GSHD has a Debt to Equity ratio of 1.45. This is amonst the worse of the industry: GSHD underperforms 90.78% of its industry peers.
Even though the debt/equity ratio score it not favorable for GSHD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 8.93 |
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.
Looking at the Current ratio, with a value of 0.06, GSHD is in the better half of the industry, outperforming 64.54% 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 Quick ratio of 0.06. This is in the better half of the industry: GSHD outperforms 64.54% 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
GSHD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.00% yearly.
Based on estimates for the next years, GSHD will show a very strong growth in Revenue. The Revenue will grow by 27.95% on average per year.
EPS Next Y23.14%
EPS Next 2Y21.79%
EPS Next 3Y27.69%
EPS Next 5Y26%
Revenue Next Year12.13%
Revenue Next 2Y18.38%
Revenue Next 3Y21.05%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 71.60, GSHD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GSHD is valued expensively inside the industry as 83.69% of the companies are valued cheaper.
The average S&P500 Price/Earnings ratio is at 29.63. GSHD is valued rather expensively when compared to this.
GSHD is valuated quite expensively with a Price/Forward Earnings ratio of 54.49.
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 79.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GSHD to the average of the S&P500 Index (22.68), we can say GSHD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.6 | ||
| Fwd PE | 54.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GSHD indicates a slightly more expensive valuation: GSHD is more expensive than 63.83% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GSHD is valued a bit more expensive than the industry average as 75.18% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.94 | ||
| EV/EBITDA | 81.71 |
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 27.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.09
PEG (5Y)1.86
EPS Next 2Y21.79%
EPS Next 3Y27.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.37%, GSHD is a good candidate for dividend investing.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.09. GSHD pays more dividend than 90.07% of the companies in the same industry.
GSHD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
5.2 History
GSHD has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GSHD pays out 36.12% of its income as dividend. This is a sustainable payout ratio.
DP36.12%
EPS Next 2Y21.79%
EPS Next 3Y27.69%
106.68
-3.47 (-3.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners112.01%
Inst Owner Change-0.44%
Ins Owners3.13%
Ins Owner Change-2.46%
Market Cap3.96B
Analysts72.94
Price Target111.75 (4.75%)
Short Float %12.46%
Short Ratio13.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Yearly Dividend0.29
Dividend Growth(5Y)N/A
DP36.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0%
PT rev (3m)18.7%
EPS NQ rev (1m)-1.6%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)2.06%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.6 | ||
| Fwd PE | 54.49 | ||
| P/S | 13.96 | ||
| P/FCF | 66.94 | ||
| P/OCF | 54.55 | ||
| P/B | 67.85 | ||
| P/tB | 112.73 | ||
| EV/EBITDA | 81.71 |
EPS(TTM)1.49
EY1.4%
EPS(NY)1.96
Fwd EY1.84%
FCF(TTM)1.59
FCFY1.49%
OCF(TTM)1.96
OCFY1.83%
SpS7.64
BVpS1.57
TBVpS0.95
PEG (NY)3.09
PEG (5Y)1.86
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 | 8.93 |
F-Score7
WACC8.98%
ROIC/WACC1.18
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 Y23.14%
EPS Next 2Y21.79%
EPS Next 3Y27.69%
EPS Next 5Y26%
Revenue 1Y (TTM)10.92%
Revenue growth 3Y30.71%
Revenue growth 5Y34.17%
Sales Q2Q%9.86%
Revenue Next Year12.13%
Revenue Next 2Y18.38%
Revenue Next 3Y21.05%
Revenue Next 5Y27.95%
EBIT growth 1Y20.95%
EBIT growth 3Y18.31%
EBIT growth 5YN/A
EBIT Next Year97.44%
EBIT Next 3Y49.74%
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%