GreenSky, Inc.
GreenSky, Inc. Fundamental Analysis
GreenSky, Inc. (GSKY) shows moderate financial fundamentals with a PE ratio of 6.55, profit margin of 22.74%, and ROE of 5.47%. The company generates $1.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.3/100 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 GSKY's fundamental strength across five key dimensions:
Efficiency Score
WeakGSKY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGSKY trades at attractive valuation levels.
Growth Score
ModerateGSKY shows steady but slowing expansion.
Financial Health Score
ModerateGSKY shows balanced financial health with some risks.
Profitability Score
ModerateGSKY maintains healthy but balanced margins.
Key Financial Metrics
Is GSKY Expensive or Cheap?
P/E Ratio
GSKY trades at 6.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GSKY's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values GreenSky, Inc. at 15.73 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.31 times EBITDA. This is generally considered low.
How Well Does GSKY Make Money?
Net Profit Margin
For every $100 in sales, GreenSky, Inc. keeps $22.74 as profit after all expenses.
Operating Margin
Core operations generate 31.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.47 in profit for every $100 of shareholder equity.
ROA
GreenSky, Inc. generates $9.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GreenSky, Inc. generates strong operating cash flow of $1.53B, reflecting robust business health.
Free Cash Flow
GreenSky, Inc. generates strong free cash flow of $1.50B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.13 in free cash annually.
FCF Yield
GSKY converts 32.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
9.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
14.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
5.47
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How GSKY Stacks Against Its Sector Peers
| Metric | GSKY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.55 | 34.79 | Better (Cheaper) |
| ROE | 547.12% | 1185.00% | Weak |
| Net Margin | 22.74% | -131296.00% (disorted) | Strong |
| Debt/Equity | 9.46 | 0.43 | Weak (High Leverage) |
| Current Ratio | 14.78 | 4.90 | Strong Liquidity |
| ROA | 9.91% | -325472.00% (disorted) | Weak |
GSKY 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 GreenSky, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta