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.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$7.39|
|52 Week High||US$33.00|
|52 Week Low||US$7.20|
|1 Month Change||-19.15%|
|3 Month Change||-44.23%|
|1 Year Change||-70.43%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-72.63%|
Recent News & Updates
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.
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.
|SLQT||US Insurance||US Market|
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.
|SLQT Average Weekly Movement||9.6%|
|Insurance Industry Average Movement||4.2%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.4%|
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
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
|SLQT fundamental statistics|
Is SLQT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SLQT income statement (TTM)|
|Cost of Revenue||US$311.84m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.52|
|Net Profit Margin||8.71%|
How did SLQT perform over the long term?See historical performance and comparison
Is SelectQuote undervalued compared to its fair value and its price relative to the market?
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).
How is SelectQuote forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
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%)
How has SelectQuote performed over the past 5 years?
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.
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 ($627.5M).
Debt to Equity History and Analysis
Debt Level: SLQT's net debt to equity ratio (44%) is considered high.
Reducing Debt: Insufficient data to determine if SLQT's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: SLQT's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: SLQT's interest payments on its debt are well covered by EBIT (4.5x coverage).
What is SelectQuote current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SLQT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SLQT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SLQT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SLQT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SLQT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim Danker (48 yo)
Mr. Timothy Danker, also known as Tim, serves as Chief Executive Officer and Director at Selectquote, Inc. since 2017. Mr. Danker serves as Senior Advisor of InsideResponse LLC. Mr. Danker served as the Pr...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($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.
Experienced Management: SLQT's management team is considered experienced (3 years average tenure).
Experienced Board: SLQT's board of directors are considered experienced (5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
SelectQuote, Inc.'s employee growth, exchange listings and data sources
- 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
- SelectQuote, Inc.
- 6800 West 115th Street
- Suite 2511
- Overland Park
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/21 23:56|
|End of Day Share Price||2022/01/21 00:00|
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.