NasdaqGS:GSHD

Stock Analysis Report

Executive Summary

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that provides personal lines insurance agency services in the United States.


Snowflake Analysis

Exceptional growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Goosehead Insurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GSHD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.4%

GSHD

-6.4%

US Insurance

-2.6%

US Market


1 Year Return

36.3%

GSHD

-23.5%

US Insurance

-13.3%

US Market

Return vs Industry: GSHD exceeded the US Insurance industry which returned -25.5% over the past year.

Return vs Market: GSHD exceeded the US Market which returned -15.1% over the past year.


Shareholder returns

GSHDIndustryMarket
7 Day-9.4%-6.4%-2.6%
30 Day-34.0%-24.4%-15.2%
90 Day-10.4%-31.7%-22.2%
1 Year36.3%36.3%-21.6%-23.5%-11.5%-13.3%
3 Yearn/a-10.1%-17.2%13.2%5.7%
5 Yearn/a12.5%-1.2%31.8%17.2%

Price Volatility Vs. Market

How volatile is Goosehead Insurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Goosehead Insurance undervalued compared to its fair value and its price relative to the market?

166.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GSHD ($39.15) is trading above our estimate of fair value ($5.03)

Significantly Below Fair Value: GSHD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GSHD is poor value based on its PE Ratio (163.1x) compared to the Insurance industry average (8.2x).

PE vs Market: GSHD is poor value based on its PE Ratio (163.1x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: GSHD is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: GSHD has negative assets, so we can't compare its PB Ratio to the US Insurance industry average.


Next Steps

Future Growth

How is Goosehead Insurance forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

46.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSHD's forecast earnings growth (46.3% per year) is above the savings rate (1.7%).

Earnings vs Market: GSHD's earnings (46.3% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GSHD's revenue (28.9% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: GSHD's revenue (28.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GSHD's Return on Equity is forecast to be very high in 3 years time (85.6%).


Next Steps

Past Performance

How has Goosehead Insurance performed over the past 5 years?

28.7%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: GSHD has high quality earnings.

Growing Profit Margin: GSHD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GSHD has become profitable over the past 5 years, growing earnings by 0% per year.

Accelerating Growth: GSHD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GSHD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (43.7%).


Return on Equity

High ROE: GSHD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Goosehead Insurance's financial position?


Financial Position Analysis

Short Term Liabilities: GSHD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: GSHD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: GSHD has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: GSHD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: GSHD's debt is well covered by operating cash flow (46%).

Interest Coverage: GSHD's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Goosehead Insurance's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GSHD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GSHD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GSHD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GSHD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GSHD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Mark Jones (57yo)

17.25s

Tenure

US$2,377,990

Compensation

Mr. Mark E. Jones serves as Chief Executive Officer of Goosehead Insurance, Inc. since co-founding the company in 2003 and also serves as Chairman of the Board since March 2018. Prior to leading GooseHead, ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.38M) is below average for companies of similar size in the US market ($USD4.73M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Colby
Former Vice President of Finance4.25yrsUS$753.13k1.3% $19.0m
Patrick Langston
VP, General Counsel & Corporate Secretary6.25yrsUS$413.14k0.23% $3.4m
Mark Jones
Controllerno dataUS$1.51mno data
Mark Jones
Co-Founder17.25yrsUS$2.38m4.54% $66.2m
Robyn Mary Jones
Co-Founder & Vice Chairman2.08yrsno data4.68% $68.2m
Mark Colby
Chief Financial Officer4.25yrsUS$762.58k0.72% $10.5m
Drew Burks
Chief Information Officerno datano data0.00025% $3.6k
Garrett Edson
Senior Vice Presidentno datano datano data
Julia Jordan
Managing Directorno datano datano data
Jared Sinclair
Managing Directorno datano datano data

6.3yrs

Average Tenure

37yo

Average Age

Experienced Management: GSHD's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Jones
Co-Founder17.25yrsUS$2.38m4.54% $66.2m
Robyn Mary Jones
Co-Founder & Vice Chairman2.08yrsno data4.68% $68.2m
James Reid
Independent Director2.08yrsUS$360.00kno data
Mark Miller
Independent Director2.08yrsUS$360.00kno data
Peter Lane
Lead Independent Directorno dataUS$360.00kno data

2.1yrs

Average Tenure

56yo

Average Age

Experienced Board: GSHD's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.7%.


Top Shareholders

Company Information

Goosehead Insurance, Inc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Goosehead Insurance, Inc
  • Ticker: GSHD
  • Exchange: NasdaqGS
  • Founded: 2003
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Implied Market Cap: US$1.458b
  • Market Cap: US$635.718m
  • Shares outstanding: 36.41m
  • Website: https://www.gooseheadinsurance.com

Number of Employees


Location

  • Goosehead Insurance, Inc
  • Building 4
  • Suite 4500
  • Westlake
  • Texas
  • 76262
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSHDNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2018
2OXDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2018

Biography

Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that provides personal lines insurance agency services in the United States. The company operates through two segments, Corporate Channel and Franchise Channel. It offers various insurance products, including homeowner’s insurance; auto insurance; other personal lines products, such as flood, wind, and earthquake insurance; excess liability or umbrella insurance; specialty lines insurance comprising motorcycle, recreational vehicle, and other insurance; commercial lines insurance consisting of general liability, property, and auto insurance for small businesses; and life insurance. As of December 31, 2019, the company had 614 operating franchises. Goosehead Insurance, Inc. was founded in 2003 and is headquartered in Westlake, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 05:13
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.