Goosehead Insurance, Inc Fundamental Analysis (NASDAQ: GSHD)
Goosehead Insurance, Inc Fundamental Analysis (NASDAQ: GSHD)
Goosehead Insurance, Inc (NASDAQ: GSHD) shows weak financial fundamentals with a PE ratio of 44.84, profit margin of 8.78%, and ROE of -32.52%. The company generates $0.4B in annual revenue with strong year-over-year growth of 16.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
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
WeakGSHD trades at a premium to fair value.
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 44.84 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GSHD's PEG of 7.57 indicates potential overvaluation.
Price to Book
The market values Goosehead Insurance, Inc at -13.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.70 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 $8.78 as profit after all expenses.
Operating Margin
Core operations generate 25.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-32.52 in profit for every $100 of shareholder equity.
ROA
Goosehead Insurance, Inc generates $8.67 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 $87.86M, showing steady but balanced cash generation.
Free Cash Flow
Goosehead Insurance, Inc generates strong free cash flow of $84.08M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.44 in free cash annually.
FCF Yield
GSHD converts 3.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
-13.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.33
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How GSHD Stacks Against Its Sector Peers
| Metric | GSHD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.84 | 21.18 | Worse (Expensive) |
| ROE | -32.52% | 664.00% | Weak |
| Net Margin | 8.78% | 1007.00% | Weak |
| Debt/Equity | -3.32 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.54 | 906.73 | Neutral |
| ROA | 8.67% | 4475633.00% | 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
109.81%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
101.40%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
150.24%
Industry Style: Value, Dividend, Cyclical
High Growth