GOOSEHEAD INSURANCE INC -A (GSHD) Stock Fundamental Analysis
USA - NASDAQ:GSHD - US38267D1090 - Common Stock
69.12 USD
-0.43 (-0.62%)
69.12 USD
0 (0%)
GSHD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. While GSHD has a great profitability rating, there are some minor concerns on its financial health. GSHD is valued quite expensively, but it does show have an excellent growth rating.
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 better Return On Assets (7.50%) than 93.15% of its industry peers.
GSHD has a Return On Invested Capital of 20.39%. This is amongst the best in the industry. GSHD outperforms 98.63% 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 4.55%.
The last Return On Invested Capital (20.39%) for GSHD is above the 3 year average (11.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | N/A | ||
| ROIC | 20.39% |
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 Profit Margin (8.55%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GSHD has grown nicely.
The Operating Margin of GSHD (20.17%) is better than 78.77% 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 | 20.17% | ||
| PM (TTM) | 8.55% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GSHD 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.
Compared to 1 year ago, GSHD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.81 indicates that GSHD is not in any danger for bankruptcy at the moment.
The Altman-Z score of GSHD (3.81) is better than 95.89% of its industry peers.
The Debt to FCF ratio of GSHD is 4.65, which is a neutral value as it means it would take GSHD, 4.65 years of fcf income to pay off all of its debts.
GSHD has a Debt to FCF ratio of 4.65. This is in the lower half of the industry: GSHD underperforms 60.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 3.81 |
ROIC/WACC2.34
WACC8.7%
2.3 Liquidity
A Current Ratio of 0.16 indicates that GSHD may have some problems paying its short term obligations.
GSHD has a Current ratio of 0.16. This is in the better half of the industry: GSHD outperforms 65.75% of its industry peers.
GSHD has a Quick Ratio of 0.16. 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 Quick ratio, with a value of 0.16, GSHD is in the better half of the industry, outperforming 65.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.23% 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.
GSHD shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.81%.
The Revenue has been growing by 32.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)34.23%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%-8%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%15.89%
3.2 Future
GSHD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.35% yearly.
GSHD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.08% yearly.
EPS Next Y-10.29%
EPS Next 2Y5.36%
EPS Next 3Y14.48%
EPS Next 5Y20.35%
Revenue Next Year19.73%
Revenue Next 2Y19.88%
Revenue Next 3Y20.76%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.56, GSHD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GSHD indicates a rather expensive valuation: GSHD more expensive than 82.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. GSHD is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 31.13 indicates a quite expensive valuation of GSHD.
Based on the Price/Forward Earnings ratio, GSHD is valued a bit more expensive than 77.40% of the companies in the same industry.
GSHD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.56 | ||
| Fwd PE | 31.13 |
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 71.23% of the companies listed in the same industry.
69.18% of the companies in the same industry are cheaper than GSHD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.24 | ||
| EV/EBITDA | 34.16 |
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 14.48% in the coming years.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y5.36%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
GSHD has a Yearly Dividend Yield of 8.50%, which is a nice return.
GSHD's Dividend Yield is rather good when compared to the industry average which is at 3.39. GSHD pays more dividend than 94.52% 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 | 8.5% |
5.2 History
The dividend of GSHD decreases each year by -24.29%.
GSHD has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)-24.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GSHD pays out 691.97% of its income as dividend. This is not a sustainable payout ratio.
DP691.97%
EPS Next 2Y5.36%
EPS Next 3Y14.48%
69.12
-0.43 (-0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners113.63%
Inst Owner Change-0.06%
Ins Owners4.15%
Ins Owner Change-21.05%
Market Cap2.60B
Revenue(TTM)353.97M
Net Income(TTM)30.25M
Analysts71.76
Price Target96.08 (39%)
Short Float %10.3%
Short Ratio7.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.5% |
Yearly Dividend0.13
Dividend Growth(5Y)-24.29%
DP691.97%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.79%
Min EPS beat(2)-3.98%
Max EPS beat(2)-1.61%
EPS beat(4)2
Avg EPS beat(4)26.65%
Min EPS beat(4)-3.98%
Max EPS beat(4)95.09%
EPS beat(8)5
Avg EPS beat(8)17.43%
EPS beat(12)8
Avg EPS beat(12)46.29%
EPS beat(16)10
Avg EPS beat(16)41.76%
Revenue beat(2)0
Avg Revenue beat(2)-2.56%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-1.35%
Revenue beat(4)1
Avg Revenue beat(4)1.5%
Min Revenue beat(4)-6.08%
Max Revenue beat(4)17.19%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)6
Avg Revenue beat(12)0.77%
Revenue beat(16)8
Avg Revenue beat(16)0.52%
PT rev (1m)-14.45%
PT rev (3m)-20.42%
EPS NQ rev (1m)5.4%
EPS NQ rev (3m)10.4%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-5.07%
Revenue NQ rev (1m)1.88%
Revenue NQ rev (3m)2.86%
Revenue NY rev (1m)-1.05%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.56 | ||
| Fwd PE | 31.13 | ||
| P/S | 7.33 | ||
| P/FCF | 41.24 | ||
| P/OCF | 32.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.16 |
EPS(TTM)2
EY2.89%
EPS(NY)2.22
Fwd EY3.21%
FCF(TTM)1.68
FCFY2.43%
OCF(TTM)2.16
OCFY3.12%
SpS9.42
BVpS-2.79
TBVpS-3.71
PEG (NY)N/A
PEG (5Y)0.89
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.5% | ||
| ROE | N/A | ||
| ROCE | 22.7% | ||
| ROIC | 20.39% | ||
| ROICexc | 24.39% | ||
| ROICexgc | 28.82% | ||
| OM | 20.17% | ||
| PM (TTM) | 8.55% | ||
| GM | N/A | ||
| FCFM | 17.79% |
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%
ROICexgc growth 3Y72.95%
ROICexgc 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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 149.54% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 4.02 | ||
| Cash Conversion | 97.09% | ||
| Profit Quality | 208.1% | ||
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 3.81 |
F-Score8
WACC8.7%
ROIC/WACC2.34
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)34.23%
EPS 3Y60.91%
EPS 5Y38.67%
EPS Q2Q%-8%
EPS Next Y-10.29%
EPS Next 2Y5.36%
EPS Next 3Y14.48%
EPS Next 5Y20.35%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y27.62%
Revenue growth 5Y32.33%
Sales Q2Q%15.89%
Revenue Next Year19.73%
Revenue Next 2Y19.88%
Revenue Next 3Y20.76%
Revenue Next 5Y19.08%
EBIT growth 1Y78.62%
EBIT growth 3Y91.54%
EBIT growth 5Y34.1%
EBIT Next Year107.02%
EBIT Next 3Y53.46%
EBIT Next 5Y33.78%
FCF growth 1Y113.06%
FCF growth 3Y43.64%
FCF growth 5Y28.2%
OCF growth 1Y103.12%
OCF growth 3Y26.38%
OCF growth 5Y27.49%
GOOSEHEAD INSURANCE INC -A / GSHD FAQ
What is the fundamental rating for GSHD stock?
ChartMill assigns a fundamental rating of 6 / 10 to GSHD.
What is the valuation status of GOOSEHEAD INSURANCE INC -A (GSHD) stock?
ChartMill assigns a valuation rating of 1 / 10 to GOOSEHEAD INSURANCE INC -A (GSHD). This can be considered as Overvalued.
How profitable is GOOSEHEAD INSURANCE INC -A (GSHD) stock?
GOOSEHEAD INSURANCE INC -A (GSHD) has a profitability rating of 7 / 10.
What is the financial health of GOOSEHEAD INSURANCE INC -A (GSHD) stock?
The financial health rating of GOOSEHEAD INSURANCE INC -A (GSHD) is 4 / 10.
How sustainable is the dividend of GOOSEHEAD INSURANCE INC -A (GSHD) stock?
The dividend rating of GOOSEHEAD INSURANCE INC -A (GSHD) is 4 / 10 and the dividend payout ratio is 691.97%.