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SLQT

SelectQuoteNYSE:SLQT Stock Report

Last Price

US$7.39

Market Cap

US$1.2b

7D

-10.6%

1Y

-70.4%

Updated

21 Jan, 2022

Data

Company Financials +
SLQT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth6/6
Past Performance2/6
Financial Health2/6
Dividends0/6

SLQT Stock Overview

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance policies to consumers from various insurance carriers in the United States.

SelectQuote Competitors

GoHealth

NasdaqGS:GOCO

US$833.6m

eHealth

NasdaqGS:EHTH

US$584.2m

CarGurus

NasdaqGS:CARG

US$3.5b

LendingTree

NasdaqGS:TREE

US$1.7b

Price History & Performance

Summary of all time highs, changes and price drops for SelectQuote
Historical stock prices
Current Share PriceUS$7.39
52 Week HighUS$33.00
52 Week LowUS$7.20
Beta0
1 Month Change-19.15%
3 Month Change-44.23%
1 Year Change-70.43%
3 Year Changen/a
5 Year Changen/a
Change since IPO-72.63%

Recent News & Updates

Dec 03

SelectQuote Appears Well Positioned For All-Important Q4

SelectQuote went public in May 2020 in an IPO that sold $570 million worth of company shares and selling shareholder stock. The firm operates online-centric insurance marketplaces for various types of insurance coverage. SLQT is building its business around Medicare Advantage enrollments, so the Q4 period is critical for its outlook. I'm optimistic about its preparation efforts for Q4 and I'm Bullish on the stock at around $8.70.

Nov 18

SelectQuote: Ignore Sentiment, And Stick To Fundamentals

Shares of SelectQuote have sunk more than 50% year to date. While the company has issued possibly worrying commentary about customer churn, the sharp fall in the stock price has more than compensated for that risk. SelectQuote published a Q3 earnings report that beat Wall Street's expectations on both the top and bottom line. Still, the stock plummeted. SelectQuote continues to trade at attractive adjusted EBITDA multiples.

Shareholder Returns

SLQTUS InsuranceUS Market
7D-10.6%-4.0%-6.1%
1Y-70.4%19.4%4.2%

Return vs Industry: SLQT underperformed the US Insurance industry which returned 19.8% over the past year.

Return vs Market: SLQT underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is SLQT's price volatile compared to industry and market?
SLQT volatility
SLQT Average Weekly Movement9.6%
Insurance Industry Average Movement4.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: SLQT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SLQT's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19993,300Tim Dankerhttps://www.selectquote.com

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance policies to consumers from various insurance carriers in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related policies, including prescription drugs, dental, vision, and hearing plans; term life policies; and non-commercial auto and home property, and casualty policies.

SelectQuote Fundamentals Summary

How do SelectQuote's earnings and revenue compare to its market cap?
SLQT fundamental statistics
Market CapUS$1.21b
Earnings (TTM)US$84.84m
Revenue (TTM)US$973.57m

14.3x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLQT income statement (TTM)
RevenueUS$973.57m
Cost of RevenueUS$311.84m
Gross ProfitUS$661.73m
ExpensesUS$576.89m
EarningsUS$84.84m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.52
Gross Margin67.97%
Net Profit Margin8.71%
Debt/Equity Ratio72.9%

How did SLQT perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLQT ($7.39) is trading below our estimate of fair value ($18.81)

Significantly Below Fair Value: SLQT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SLQT is poor value based on its PE Ratio (14.3x) compared to the US Insurance industry average (11x).

PE vs Market: SLQT is good value based on its PE Ratio (14.3x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: SLQT is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: SLQT is overvalued based on its PB Ratio (1.9x) compared to the US Insurance industry average (1.1x).


Future Growth

How is SelectQuote forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

50.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLQT's forecast earnings growth (50.5% per year) is above the savings rate (2%).

Earnings vs Market: SLQT's earnings (50.5% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: SLQT's revenue (26.5% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: SLQT's revenue (26.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLQT's Return on Equity is forecast to be high in 3 years time (23.1%)


Past Performance

How has SelectQuote performed over the past 5 years?

56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLQT has a high level of non-cash earnings.

Growing Profit Margin: SLQT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SLQT's earnings have grown significantly by 56.8% per year over the past 5 years.

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

Earnings vs Industry: SLQT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (39.8%).


Return on Equity

High ROE: SLQT's Return on Equity (13.4%) is considered low.


Financial Health

How is SelectQuote's financial position?


Financial Position Analysis

Short Term Liabilities: SLQT's short term assets ($443.7M) exceed its short term liabilities ($128.5M).

Long Term Liabilities: SLQT's short term assets ($443.7M) do not cover its long term liabilities ($627.5M).


Debt to Equity History and Analysis

Debt Level: SLQT's net debt to equity ratio (44%) is considered high.

Reducing Debt: Insufficient data to determine if SLQT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SLQT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SLQT's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Dividend

What is SelectQuote current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if SLQT'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 SLQT'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?

3.0yrs

Average management tenure


CEO

Tim Danker (48 yo)

5yrs

Tenure

US$2,593,585

Compensation

Mr. Timothy Danker, also known as Tim, serves as Chief Executive Officer and Director at Selectquote, Inc. since 2017. Mr. Danker serves as Senior Advisor of InsideResponse LLC. Mr. Danker served as the Pr...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD2.59M) is below average for companies of similar size in the US market ($USD3.73M).

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


Leadership Team

Experienced Management: SLQT's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: SLQT's board of directors are considered experienced (5 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SelectQuote, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: SelectQuote, Inc.
  • Ticker: SLQT
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Implied Market Cap: US$1.212b
  • Shares outstanding: 163.96m
  • Website: https://www.selectquote.com

Number of Employees


Location

  • SelectQuote, Inc.
  • 6800 West 115th Street
  • Suite 2511
  • Overland Park
  • Kansas
  • 66211
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:56
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/06/30


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.