SELECTQUOTE INC (SLQT) Stock Fundamental Analysis
NYSE:SLQT - New York Stock Exchange, Inc. - US8163073005 - Common Stock - Currency: USD
SLQT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. The financial health of SLQT is average, but there are quite some concerns on its profitability. SLQT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SLQT has reported negative net income.
In the past year SLQT had a positive cash flow from operations.
In the past 5 years SLQT reported 4 times negative net income.
SLQT had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
SLQT's Return On Assets of -1.08% is on the low side compared to the rest of the industry. SLQT is outperformed by 85.82% of its industry peers.
With a Return On Equity value of -4.23%, SLQT is not doing good in the industry: 81.56% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 6.60%, SLQT belongs to the top of the industry, outperforming 83.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.08% | ||
| ROE | -4.23% | ||
| ROIC | 6.6% |
ROA(3y)-10.24%
ROA(5y)-4.72%
ROE(3y)-34.57%
ROE(5y)-17.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SLQT has a worse Operating Margin (6.22%) than 64.54% of its industry peers.
In the last couple of years the Operating Margin of SLQT has declined.
SLQT has a Gross Margin of 43.15%. This is amongst the best in the industry. SLQT outperforms 92.91% of its industry peers.
In the last couple of years the Gross Margin of SLQT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.22% | ||
| PM (TTM) | N/A | ||
| GM | 43.15% |
OM growth 3Y-38.22%
OM growth 5Y-30.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.91%
GM growth 5Y-8.11%
2. Health
2.1 Basic Checks
SLQT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SLQT has more shares outstanding
The number of shares outstanding for SLQT has been increased compared to 5 years ago.
SLQT has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 1.85 indicates that SLQT is not a great score, but indicates only limited risk for bankruptcy at the moment.
SLQT has a Altman-Z score of 1.85. This is amongst the best in the industry. SLQT outperforms 87.94% of its industry peers.
SLQT has a debt to FCF ratio of 82.74. This is a negative value and a sign of low solvency as SLQT would need 82.74 years to pay back of all of its debts.
With a Debt to FCF ratio value of 82.74, SLQT is not doing good in the industry: 76.60% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.10 is on the high side and indicates that SLQT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.10, SLQT is doing worse than 93.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 82.74 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.74
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.92 indicates that SLQT should not have too much problems paying its short term obligations.
The Current ratio of SLQT (1.92) is better than 91.49% of its industry peers.
SLQT has a Quick Ratio of 1.92. This is a normal value and indicates that SLQT is financially healthy and should not expect problems in meeting its short term obligations.
SLQT's Quick ratio of 1.92 is amongst the best of the industry. SLQT outperforms 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 70.97% over the past year.
Looking at the last year, SLQT shows a very strong growth in Revenue. The Revenue has grown by 25.67%.
The Revenue has been growing by 31.39% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)70.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%172.73%
Revenue 1Y (TTM)25.67%
Revenue growth 3Y12.43%
Revenue growth 5Y31.39%
Sales Q2Q%18.65%
3.2 Future
The Earnings Per Share is expected to grow by 50.30% on average over the next years. This is a very strong growth
Based on estimates for the next years, SLQT will show a quite strong growth in Revenue. The Revenue will grow by 15.45% on average per year.
EPS Next Y33.62%
EPS Next 2Y50.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.22%
Revenue Next 2Y15.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
SLQT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 84.01, which means the current valuation is very expensive for SLQT.
SLQT's Price/Forward Earnings ratio is rather expensive when compared to the industry. SLQT is more expensive than 80.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SLQT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 84.01 |
4.2 Price Multiples
SLQT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLQT indicates a slightly more expensive valuation: SLQT is more expensive than 76.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.43 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SLQT's earnings are expected to grow with 50.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SLQT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.57
-0.92 (-16.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners37.85%
Inst Owner Change-1.03%
Ins Owners9.85%
Ins Owner Change1.82%
Market Cap786.68M
Analysts80
Price Target7.48 (63.68%)
Short Float %1.74%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)83.23%
Min EPS beat(2)-37.78%
Max EPS beat(2)204.25%
EPS beat(4)2
Avg EPS beat(4)54%
Min EPS beat(4)-37.78%
Max EPS beat(4)204.25%
EPS beat(8)5
Avg EPS beat(8)49.17%
EPS beat(12)7
Avg EPS beat(12)57.65%
EPS beat(16)8
Avg EPS beat(16)26.24%
Revenue beat(2)2
Avg Revenue beat(2)4.7%
Min Revenue beat(2)3.89%
Max Revenue beat(2)5.51%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.89%
Max Revenue beat(4)10.34%
Revenue beat(8)8
Avg Revenue beat(8)9.82%
Revenue beat(12)11
Avg Revenue beat(12)5.33%
Revenue beat(16)12
Avg Revenue beat(16)0.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)3.58%
EPS NQ rev (3m)13.73%
EPS NY rev (1m)31.67%
EPS NY rev (3m)29.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 84.01 | ||
| P/S | 0.54 | ||
| P/FCF | 91.43 | ||
| P/OCF | 41.03 | ||
| P/B | 2.41 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 14.38 |
EPS(TTM)-0.09
EYN/A
EPS(NY)0.05
Fwd EY1.19%
FCF(TTM)0.05
FCFY1.09%
OCF(TTM)0.11
OCFY2.44%
SpS8.46
BVpS1.89
TBVpS1.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.08% | ||
| ROE | -4.23% | ||
| ROCE | 8.36% | ||
| ROIC | 6.6% | ||
| ROICexc | 6.68% | ||
| ROICexgc | 7.01% | ||
| OM | 6.22% | ||
| PM (TTM) | N/A | ||
| GM | 43.15% | ||
| FCFM | 0.59% |
ROA(3y)-10.24%
ROA(5y)-4.72%
ROE(3y)-34.57%
ROE(5y)-17.64%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-30.93%
ROICexcg growth 5Y-23.78%
ROICexc growth 3Y-29.33%
ROICexc growth 5Y-24.21%
OM growth 3Y-38.22%
OM growth 5Y-30.08%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.91%
GM growth 5Y-8.11%
F-Score4
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.1 | ||
| Debt/FCF | 82.74 | ||
| Debt/EBITDA | 5.98 | ||
| Cap/Depr | 44.46% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | 16.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 1.85 |
F-Score4
WACC8.91%
ROIC/WACC0.74
Cap/Depr(3y)73.19%
Cap/Depr(5y)111.33%
Cap/Sales(3y)2.11%
Cap/Sales(5y)2.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%172.73%
EPS Next Y33.62%
EPS Next 2Y50.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)25.67%
Revenue growth 3Y12.43%
Revenue growth 5Y31.39%
Sales Q2Q%18.65%
Revenue Next Year16.22%
Revenue Next 2Y15.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y193.37%
EBIT growth 3Y-30.54%
EBIT growth 5Y-8.12%
EBIT Next Year99.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y106.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y117.73%
OCF growth 3YN/A
OCF growth 5Y168.1%