Goosehead Insurance
Market Cap
US$1.5b
Last Updated
2020/04/07 05:13 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
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
| GSHD | Industry | Market | |
|---|---|---|---|
| 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 Year | 36.3%36.3% | -21.6%-23.5% | -11.5%-13.3% |
| 3 Year | n/a | -10.1%-17.2% | 13.2%5.7% |
| 5 Year | n/a | 12.5%-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
1 month ago | Simply Wall St
Introducing Goosehead Insurance (NASDAQ:GSHD), A Stock That Climbed 71% In The Last Year5 months ago | Simply Wall St
Goosehead Insurance, Inc Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next6 months ago | Simply Wall St
Does Goosehead Insurance's (NASDAQ:GSHD) Share Price Gain of 59% Match Its Business Performance?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Former Vice President of Finance | 4.25yrs | US$753.13k | 1.3% $19.0m | |
| VP, General Counsel & Corporate Secretary | 6.25yrs | US$413.14k | 0.23% $3.4m | |
| Controller | no data | US$1.51m | no data | |
| Co-Founder | 17.25yrs | US$2.38m | 4.54% $66.2m | |
| Co-Founder & Vice Chairman | 2.08yrs | no data | 4.68% $68.2m | |
| Chief Financial Officer | 4.25yrs | US$762.58k | 0.72% $10.5m | |
| Chief Information Officer | no data | no data | 0.00025% $3.6k | |
| Senior Vice President | no data | no data | no data | |
| Managing Director | no data | no data | no data | |
| Managing Director | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 17.25yrs | US$2.38m | 4.54% $66.2m | |
| Co-Founder & Vice Chairman | 2.08yrs | no data | 4.68% $68.2m | |
| Independent Director | 2.08yrs | US$360.00k | no data | |
| Independent Director | 2.08yrs | US$360.00k | no data | |
| Lead Independent Director | no data | US$360.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GSHD | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Apr 2018 |
| 2OX | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/07 05:13 |
| End of Day Share Price | 2020/04/06 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.