Goosehead Insurance, Inc Fundamental Analysis
Goosehead Insurance, Inc (GSHD) shows weak financial fundamentals with a PE ratio of 30.39, profit margin of 7.94%, and ROE of -30.35%. 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 58.6/100 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
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 30.39 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GSHD's PEG of -2.24 indicates potential undervaluation.
Price to Book
The market values Goosehead Insurance, Inc at -7.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.47 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 $7.94 as profit after all expenses.
Operating Margin
Core operations generate 20.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-30.35 in profit for every $100 of shareholder equity.
ROA
Goosehead Insurance, Inc generates $7.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Goosehead Insurance, Inc generates strong operating cash flow of $101.49M, reflecting robust business health.
Free Cash Flow
Goosehead Insurance, Inc generates strong free cash flow of $97.44M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.92 in free cash annually.
FCF Yield
GSHD converts 6.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
-7.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.30
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How GSHD Stacks Against Its Sector Peers
| Metric | GSHD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.39 | 19.38 | Worse (Expensive) |
| ROE | -30.35% | 804.00% | Weak |
| Net Margin | 7.94% | -7623.00% (disorted) | Weak |
| Debt/Equity | -3.10 | 1.07 | Strong (Low Leverage) |
| Current Ratio | 6.09 | 609.22 | Strong Liquidity |
| ROA | 7.73% | -20946.00% (disorted) | Weak |
GSHD outperforms its industry in 2 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