NasdaqGS:GSHD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Exceptional growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

-5.8%

NasdaqGS:GSHD

-1.5%

US Insurance

-1.0%

US Market


1 Year Return

63.5%

NasdaqGS:GSHD

8.4%

US Insurance

-0.4%

US Market

GSHD outperformed the Insurance industry which returned 8.4% over the past year.

GSHD outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

GSHDIndustryMarket
7 Day-5.8%-1.5%-1.0%
30 Day-2.0%-3.1%-3.3%
90 Day8.5%2.3%0.8%
1 Year66.2%63.5%11.0%8.4%1.9%-0.4%
3 Yearn/a44.7%33.9%39.4%30.4%
5 Yearn/a66.5%46.8%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

165.03x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Goosehead Insurance to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Goosehead Insurance to establish if it is available at substantial discount.


Price Based on Earnings

Goosehead Insurance is overvalued based on earnings compared to the US Insurance industry average.

Goosehead Insurance is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Goosehead Insurance is poor value based on expected growth next year.


Price Based on Value of Assets

Goosehead Insurance is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Goosehead Insurance's revenue is expected to grow significantly at over 20% yearly.

Goosehead Insurance's earnings are expected to grow significantly at over 20% yearly.

Goosehead Insurance's revenue growth is expected to exceed the United States of America market average.

Goosehead Insurance's earnings growth is expected to exceed the United States of America market average.

Goosehead Insurance's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Goosehead Insurance is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Goosehead Insurance performed over the past 5 years?

42.7%

Last years revenue growth


Earnings and Revenue History


Past Earnings Growth Analysis

Insufficient data to establish if Goosehead Insurance's year on year earnings growth rate was positive over the past 5 years.

Goosehead Insurance has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Goosehead Insurance has become profitable in the last year making it difficult to compare the US Insurance industry average.


Return on Equity

It is difficult to establish if Goosehead Insurance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Goosehead Insurance used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Goosehead Insurance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Goosehead Insurance's financial position?


Financial Position Analysis

Goosehead Insurance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Goosehead Insurance's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Goosehead Insurance has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Goosehead Insurance's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (28.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Goosehead Insurance has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

0.31%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Goosehead Insurance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Goosehead Insurance's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Goosehead Insurance has not reported any payouts.

Unable to verify if Goosehead Insurance's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Goosehead Insurance has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Goosehead Insurance's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Goosehead Insurance's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Mark Jones (57yo)

16.6yrs

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

Mark's remuneration is lower than average for companies of similar size in United States of America.

Mark's compensation has increased in line with Goosehead Insurance recently becoming profitable.


Management Age and Tenure

5.6yrs

Average Tenure

38yo

Average Age

The average tenure for the Goosehead Insurance management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.4yrs

Average Tenure

56yo

Average Age

The average tenure for the Goosehead Insurance board of directors is less than 3 years, this suggests a new board.


Insider Trading

Goosehead Insurance individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$100,97116 Aug 19
Michael Colby
EntityIndividual
Role
President & COO
Shares2,287
Max PriceUS$44.15
SellUS$1,892,05214 Aug 19
Michael Colby
EntityIndividual
Role
President & COO
Shares42,100
Max PriceUS$45.53
SellUS$612,36213 Aug 19
Mark Jones
EntityIndividual
Role
Co-Founder
Chairman of the Board
Shares13,516
Max PriceUS$46.27
BuyUS$19,96719 Nov 18
Gary Delavan
EntityIndividual
Shares921
Max PriceUS$21.68

Ownership Breakdown


Management Team

  • Mark Colby (34yo)

    Chief Financial Officer

    • Tenure: 3.6yrs
    • Compensation: $762.58k
  • Patrick Langston (37yo)

    VP & General Counsel

    • Tenure: 5.6yrs
    • Compensation: $437.19k
  • Michael Colby (38yo)

    President & COO

    • Tenure: 3.6yrs
    • Compensation: $1.33m
  • Robyn Mary Jones (56yo)

    Co-Founder & Vice Chairman

    • Tenure: 16.6yrs
  • Drew Burks

    Chief Information Officer

  • Julia Jordan

    Managing Director

  • Jared Sinclair

    Managing Director

  • Brian Pattillo

    Managing Director

  • Mark Jones (57yo)

    Co-Founder

    • Tenure: 16.6yrs
    • Compensation: $2.38m
  • Garrett Edson

    Senior Vice President


Board Members

  • Rusty Reid (56yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: $360.00k
  • Mark Jones (57yo)

    Co-Founder

    • Tenure: 1.4yrs
    • Compensation: $2.38m
  • Mark Miller (53yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: $360.00k
  • Peter Lane (54yo)

    Lead Independent Director

    • Compensation: $360.00k
  • Robyn Mary Jones (56yo)

    Co-Founder & Vice Chairman

    • Tenure: 1.4yrs

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$1.579b
  • Market Cap: US$658.635m
  • Shares outstanding: 36.31m
  • Website: Click here

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. focuses on operating as a holding company for Goosehead Financial, LLC that provides personal lines insurance agency services in the United States. The company operates through tw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 01:14
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.