Goosehead Insurance, Inc
Goosehead Insurance, Inc Fundamental Analysis
Goosehead Insurance, Inc (GSHD) shows weak financial fundamentals with a PE ratio of 40.90, profit margin of 7.62%, and ROE of -25.60%. The company generates $0.4B in annual revenue with strong year-over-year growth of 20.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GSHD's fundamental strength across five key dimensions:
Efficiency Score
WeakGSHD struggles to generate sufficient returns from assets.
Valuation Score
ModerateGSHD shows balanced valuation metrics.
Growth Score
ModerateGSHD shows steady but slowing expansion.
Financial Health Score
ExcellentGSHD maintains a strong and stable balance sheet.
Profitability Score
WeakGSHD struggles to sustain strong margins.
Key Financial Metrics
Is GSHD Expensive or Cheap?
P/E Ratio
GSHD trades at 40.90 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GSHD's PEG of -4.91 indicates potential undervaluation.
Price to Book
The market values Goosehead Insurance, Inc at -6.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.05 times EBITDA. This signals the market has high growth expectations.
How Well Does GSHD Make Money?
Net Profit Margin
For every $100 in sales, Goosehead Insurance, Inc keeps $7.62 as profit after all expenses.
Operating Margin
Core operations generate 18.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-25.60 in profit for every $100 of shareholder equity.
ROA
Goosehead Insurance, Inc generates $6.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Goosehead Insurance, Inc produces operating cash flow of $81.87M, showing steady but balanced cash generation.
Free Cash Flow
Goosehead Insurance, Inc generates strong free cash flow of $73.05M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.93 in free cash annually.
FCF Yield
GSHD converts 4.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
-6.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.26
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How GSHD Stacks Against Its Sector Peers
| Metric | GSHD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.90 | 18.73 | Worse (Expensive) |
| ROE | -25.60% | 847.00% | Weak |
| Net Margin | 7.62% | 2562.00% | Weak |
| Debt/Equity | -0.37 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 1.60 | 674.76 | Neutral |
| ROA | 6.71% | -21692.00% (disorted) | Weak |
GSHD outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Goosehead Insurance, Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
144.68%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
76.67%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
103.05%
Industry Style: Value, Dividend, Cyclical
High Growth