GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
USA - NASDAQ:GSHD - US38267D1090 - Common Stock
67.02 USD
+1.82 (+2.79%)
67.02 USD
0 (0%)
GSHD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. While GSHD belongs to the best of the industry regarding profitability, 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.
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
GSHD's Return On Assets of 6.85% is amongst the best of the industry. GSHD outperforms 92.52% of its industry peers.
GSHD has a Return On Invested Capital of 17.14%. This is amongst the best in the industry. GSHD outperforms 98.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GSHD is significantly above the industry average of 4.40%.
The last Return On Invested Capital (17.14%) for GSHD is above the 3 year average (11.27%), which is a sign of increasing profitability.
| 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
The Profit Margin of GSHD (8.76%) is better than 61.90% of its industry peers.
In the last couple of years the Profit Margin of GSHD has grown nicely.
GSHD has a better Operating Margin (19.49%) than 74.83% 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
GSHD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GSHD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GSHD has been increased compared to 5 years ago.
The debt/assets ratio for GSHD is higher compared to a year ago.
2.2 Solvency
GSHD has an Altman-Z score of 3.53. This indicates that GSHD is financially healthy and has little risk of bankruptcy at the moment.
GSHD has a Altman-Z score of 3.53. This is amongst the best in the industry. GSHD outperforms 94.56% of its industry peers.
The Debt to FCF ratio of GSHD is 4.18, which is a neutral value as it means it would take GSHD, 4.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.18, GSHD is in line with its industry, outperforming 44.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.99
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.20 indicates that GSHD may have some problems paying its short term obligations.
GSHD has a Current ratio of 0.20. This is in the better half of the industry: GSHD outperforms 68.03% of its industry peers.
A Quick Ratio of 0.20 indicates that GSHD may have some problems paying its short term obligations.
GSHD has a better Quick ratio (0.20) than 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.69% 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 38.67% on average per year.
The Revenue has grown by 23.49% in the past year. This is a very strong growth!
GSHD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.33% yearly.
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
GSHD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.98% yearly.
The Revenue is expected to grow by 19.08% on average over the next years. This is quite good.
EPS Next Y-8.81%
EPS Next 2Y10.62%
EPS Next 3Y17.37%
EPS Next 5Y18.98%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.85 indicates a quite expensive valuation of GSHD.
80.27% of the companies in the same industry are cheaper than GSHD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.40. GSHD is around the same levels.
The Price/Forward Earnings ratio is 27.38, which means the current valuation is very expensive for GSHD.
76.19% of the companies in the same industry are cheaper than GSHD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, GSHD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.85 | ||
| Fwd PE | 27.38 |
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 70.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GSHD is valued a bit more expensive than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.95 | ||
| EV/EBITDA | 34.72 |
4.3 Compensation for Growth
GSHD has a very decent profitability rating, which 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)0.85
EPS Next 2Y10.62%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.82%, GSHD is a good candidate for dividend investing.
The stock price of GSHD dropped by -34.35% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.20. GSHD pays more dividend than 95.24% of the companies in the same industry.
GSHD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.82% |
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
700.01% of the earnings are spent on dividend by GSHD. This is not a sustainable payout ratio.
DP700.01%
EPS Next 2Y10.62%
EPS Next 3Y17.37%
67.02
+1.82 (+2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners113.63%
Inst Owner Change-0.02%
Ins Owners4.15%
Ins Owner Change-23.75%
Market Cap2.52B
Analysts71.76
Price Target112.31 (67.58%)
Short Float %8.66%
Short Ratio5.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.82% |
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)-0.5%
PT rev (3m)-6.98%
EPS NQ rev (1m)-7.99%
EPS NQ rev (3m)-18.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.51%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-3.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.85 | ||
| Fwd PE | 27.38 | ||
| P/S | 7.37 | ||
| P/FCF | 35.95 | ||
| P/OCF | 29.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.72 |
EPS(TTM)2.04
EY3.04%
EPS(NY)2.45
Fwd EY3.65%
FCF(TTM)1.86
FCFY2.78%
OCF(TTM)2.26
OCFY3.38%
SpS9.09
BVpS-2.09
TBVpS-2.9
PEG (NY)N/A
PEG (5Y)0.85
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 | 3.53 |
F-Score6
WACC8.62%
ROIC/WACC1.99
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 5Y18.98%
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 Year107.02%
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%