GoDaddy Inc.
GoDaddy Inc. Fundamental Analysis
GoDaddy Inc. (GDDY) shows moderate financial fundamentals with a PE ratio of 12.60, profit margin of 17.67%, and ROE of 3.84%. The company generates $4.9B in annual revenue with moderate year-over-year growth of 7.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GDDY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGDDY demonstrates superior asset utilization.
Valuation Score
ExcellentGDDY trades at attractive valuation levels.
Growth Score
ModerateGDDY shows steady but slowing expansion.
Financial Health Score
WeakGDDY carries high financial risk with limited liquidity.
Profitability Score
ModerateGDDY maintains healthy but balanced margins.
Key Financial Metrics
Is GDDY Expensive or Cheap?
P/E Ratio
GDDY trades at 12.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GDDY's PEG of 1.82 indicates fair valuation.
Price to Book
The market values GoDaddy Inc. at 51.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.33 times EBITDA. This is generally considered low.
How Well Does GDDY Make Money?
Net Profit Margin
For every $100 in sales, GoDaddy Inc. keeps $17.67 as profit after all expenses.
Operating Margin
Core operations generate 22.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.84 in profit for every $100 of shareholder equity.
ROA
GoDaddy Inc. generates $10.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GoDaddy Inc. generates strong operating cash flow of $1.60B, reflecting robust business health.
Free Cash Flow
GoDaddy Inc. generates strong free cash flow of $1.57B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.63 in free cash annually.
FCF Yield
GDDY converts 14.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
51.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
18.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
3.84
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How GDDY Stacks Against Its Sector Peers
| Metric | GDDY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.60 | 34.43 | Better (Cheaper) |
| ROE | 384.19% | 1135.00% | Weak |
| Net Margin | 17.67% | -134663.00% (disorted) | Strong |
| Debt/Equity | 18.15 | 7.92 | Weak (High Leverage) |
| Current Ratio | 0.61 | 5.77 | Weak Liquidity |
| ROA | 10.89% | -310462.00% (disorted) | Strong |
GDDY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GoDaddy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
87.92%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
739.67%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
118.56%
Industry Style: Growth, Innovation, High Beta
High Growth