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 an excellent profitability rating, but there are some minor concerns on its financial health. GSHD is valued quite expensively, but it does show have an excellent growth rating. These ratings could make GSHD a good candidate 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.
In the past 5 years GSHD has always 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 7.65%. This is amongst the best in the industry. GSHD outperforms 95.10% of its industry peers.
GSHD has a Return On Equity of 69.32%. This is amongst the best in the industry. GSHD outperforms 98.60% of its industry peers.
GSHD has a Return On Invested Capital of 18.28%. This is amongst the best in the industry. GSHD outperforms 99.30% of its industry peers.
GSHD had an Average Return On Invested Capital over the past 3 years of 11.27%. This is significantly above the industry average of 4.47%.
The last Return On Invested Capital (18.28%) for GSHD is above the 3 year average (11.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 69.32% | ||
| ROIC | 18.28% |
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 better Profit Margin (9.67%) than 60.84% of its industry peers.
In the last couple of years the Profit Margin of GSHD has grown nicely.
GSHD's Operating Margin of 19.44% is fine compared to the rest of the industry. GSHD outperforms 76.22% of its industry peers.
In the last couple of years the Operating Margin of GSHD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.44% | ||
| PM (TTM) | 9.67% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GSHD is creating value.
The number of shares outstanding for GSHD has been reduced compared to 1 year ago.
GSHD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GSHD has a worse debt to assets ratio.
2.2 Solvency
GSHD has an Altman-Z score of 7.24. This indicates that GSHD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.24, GSHD belongs to the best of the industry, outperforming 98.60% of the companies in the same industry.
The Debt to FCF ratio of GSHD is 1.56, which is an excellent value as it means it would take GSHD, only 1.56 years of fcf income to pay off all of its debts.
GSHD has a Debt to FCF ratio (1.56) which is in line with its industry peers.
GSHD has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
GSHD has a Debt to Equity ratio of 1.87. This is amonst the worse of the industry: GSHD underperforms 91.61% 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 | 1.87 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 7.24 |
ROIC/WACC2.03
WACC9.02%
2.3 Liquidity
A Current Ratio of 0.08 indicates that GSHD may have some problems paying its short term obligations.
GSHD's Current ratio of 0.08 is fine compared to the rest of the industry. GSHD outperforms 65.03% of its industry peers.
GSHD has a Quick Ratio of 0.08. 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's Quick ratio of 0.08 is fine compared to the rest of the industry. GSHD outperforms 65.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 |
3. Growth
3.1 Past
GSHD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.52%, 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.
GSHD shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.37%.
GSHD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.33% yearly.
EPS 1Y (TTM)51.52%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%182.14%
Revenue 1Y (TTM)20.37%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%49.05%
3.2 Future
The Earnings Per Share is expected to grow by 23.79% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.08% on average over the next years. This is quite good.
EPS Next Y-5.26%
EPS Next 2Y14.91%
EPS Next 3Y21.71%
EPS Next 5Y23.79%
Revenue Next Year24.27%
Revenue Next 2Y24.97%
Revenue Next 3Y26.55%
Revenue Next 5Y19.08%
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 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 51.61 indicates a quite expensive valuation of GSHD.
Based on the Price/Earnings ratio, GSHD is valued more expensive than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.33, GSHD is valued quite expensively.
The Price/Forward Earnings ratio is 54.47, which means the current valuation is very expensive for GSHD.
Based on the Price/Forward Earnings ratio, GSHD is valued a bit more expensive than 79.02% of the companies in the same industry.
GSHD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.61 | ||
| Fwd PE | 54.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GSHD is valued a bit more expensive than the industry average as 67.83% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GSHD indicates a slightly more expensive valuation: GSHD is more expensive than 74.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.26 | ||
| EV/EBITDA | 51.78 |
4.3 Compensation for Growth
GSHD has an outstanding 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 21.71% in the coming years.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y14.91%
EPS Next 3Y21.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.52%, GSHD is a good candidate for dividend investing.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.28. GSHD pays more dividend than 89.51% of the companies in the same industry.
GSHD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
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
15.87% of the earnings are spent on dividend by GSHD. This is a low number and sustainable payout ratio.
DP15.87%
EPS Next 2Y14.91%
EPS Next 3Y21.71%
103.22
+4.77 (+4.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners109.89%
Inst Owner Change0.31%
Ins Owners3.07%
Ins Owner Change-6.46%
Market Cap3.87B
Analysts72.94
Price Target123.76 (19.9%)
Short Float %10.31%
Short Ratio9.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
Yearly Dividend0.13
Dividend Growth(5Y)-24.29%
DP15.87%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.72%
Min EPS beat(2)8.34%
Max EPS beat(2)95.09%
EPS beat(4)4
Avg EPS beat(4)36.09%
Min EPS beat(4)7.84%
Max EPS beat(4)95.09%
EPS beat(8)7
Avg EPS beat(8)69.14%
EPS beat(12)9
Avg EPS beat(12)57.11%
EPS beat(16)10
Avg EPS beat(16)40.18%
Revenue beat(2)1
Avg Revenue beat(2)6.03%
Min Revenue beat(2)-5.14%
Max Revenue beat(2)17.19%
Revenue beat(4)2
Avg Revenue beat(4)2.99%
Min Revenue beat(4)-5.14%
Max Revenue beat(4)17.19%
Revenue beat(8)5
Avg Revenue beat(8)1.33%
Revenue beat(12)8
Avg Revenue beat(12)1.8%
Revenue beat(16)10
Avg Revenue beat(16)1.78%
PT rev (1m)2.34%
PT rev (3m)13.16%
EPS NQ rev (1m)-12.29%
EPS NQ rev (3m)-28.75%
EPS NY rev (1m)-3.22%
EPS NY rev (3m)-12.61%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.61 | ||
| Fwd PE | 54.47 | ||
| P/S | 12.32 | ||
| P/FCF | 65.26 | ||
| P/OCF | 54.15 | ||
| P/B | 88.26 | ||
| P/tB | 205.9 | ||
| EV/EBITDA | 51.78 |
EPS(TTM)2
EY1.94%
EPS(NY)1.89
Fwd EY1.84%
FCF(TTM)1.58
FCFY1.53%
OCF(TTM)1.91
OCFY1.85%
SpS8.38
BVpS1.17
TBVpS0.5
PEG (NY)N/A
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 69.32% | ||
| ROCE | 20.36% | ||
| ROIC | 18.28% | ||
| ROICexc | 22.31% | ||
| ROICexgc | 25.48% | ||
| OM | 19.44% | ||
| PM (TTM) | 9.67% | ||
| GM | N/A | ||
| FCFM | 18.87% |
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-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 111.26% | ||
| Cap/Sales | 3.88% | ||
| Interest Coverage | 8.89 | ||
| Cash Conversion | 99.24% | ||
| Profit Quality | 195.08% | ||
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 | ||
| Altman-Z | 7.24 |
F-Score8
WACC9.02%
ROIC/WACC2.03
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)51.52%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%182.14%
EPS Next Y-5.26%
EPS Next 2Y14.91%
EPS Next 3Y21.71%
EPS Next 5Y23.79%
Revenue 1Y (TTM)20.37%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%49.05%
Revenue Next Year24.27%
Revenue Next 2Y24.97%
Revenue Next 3Y26.55%
Revenue Next 5Y19.08%
EBIT growth 1Y85.54%
EBIT growth 3Y91.54%
EBIT growth 5Y34.1%
EBIT Next Year116.57%
EBIT Next 3Y59.46%
EBIT Next 5Y33.78%
FCF growth 1Y87.21%
FCF growth 3Y43.64%
FCF growth 5Y28.2%
OCF growth 1Y40.95%
OCF growth 3Y26.38%
OCF growth 5Y27.49%