NasdaqGS:GSKY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

GreenSky, Inc., a technology company, provides point-of-sale financing and payment solutions to merchants, consumers, and banks. More Details


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.8%

GSKY

-0.5%

US IT

-1.9%

US Market


1 Year Return

-36.6%

GSKY

23.7%

US IT

13.1%

US Market

Return vs Industry: GSKY underperformed the US IT industry which returned 23.7% over the past year.

Return vs Market: GSKY underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

GSKYIndustryMarket
7 Day-5.8%-0.5%-1.9%
30 Day-9.8%-2.1%-2.9%
90 Day-17.9%7.4%8.2%
1 Year-36.6%-36.6%25.0%23.7%15.7%13.1%
3 Yearn/a97.2%89.4%38.4%29.1%
5 Yearn/a169.5%147.2%89.3%68.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GSKY ($4.07) is trading below our estimate of fair value ($6.66)

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


Price To Earnings Ratio

PE vs Industry: GSKY is good value based on its PE Ratio (14.7x) compared to the US IT industry average (31.5x).

PE vs Market: GSKY is good value based on its PE Ratio (14.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

How is GreenSky forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

47.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSKY's forecast earnings growth (47% per year) is above the savings rate (2.2%).

Earnings vs Market: GSKY's earnings (47% per year) are forecast to grow faster than the US market (23% per year).

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

Revenue vs Market: GSKY's revenue (13.6% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: GSKY's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GSKY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GreenSky performed over the past 5 years?

-37.0%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: GSKY's current net profit margins (3.3%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: GSKY's earnings have declined by 37% per year over the past 5 years.

Accelerating Growth: GSKY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GSKY had negative earnings growth (-48.3%) over the past year, making it difficult to compare to the IT industry average (8.6%).


Return on Equity

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


Next Steps

Financial Health

How is GreenSky's financial position?


Financial Position Analysis

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

Long Term Liabilities: GSKY 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: GSKY has negative shareholder equity, which is a more serious situation than a high debt level.

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

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

Interest Coverage: GSKY's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GSKY'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 GSKY's dividends per share have been stable in the past.

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

4.8yrs

Average management tenure


CEO

David Zalik (46 yo)

14.67yrs

Tenure

US$502,365

Compensation

Mr. David Zalik is the Co-Founder of GreenSky, LLC and serves as its Chief Executive Officer since it was founded in 2006. Mr. Zalik is Chief Executive Officer of GreenSky, Inc. since co-founding it in 200 ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD502.37K) is below average for companies of similar size in the US market ($USD3.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Zalik
Chairman & CEO14.67yrsUS$502.37kno data
Gerald Benjamin
Vice Chairman & Chief Administrative Officer6.67yrsUS$4.31m1.0%
$ 7.7m
Timothy Daniel Kaliban
President & Chief Risk Officer8.67yrsUS$3.26m2.17%
$ 16.6m
Robert Partlow
Executive VP & CFO6.67yrsUS$2.90m0.55%
$ 4.2m
Ritesh Gupta
Executive Vice President of Operations1.92yrsno data0.36%
$ 2.7m
Angela Nagy
Senior VP & Chief Accounting Officer0.25yrno data0.063%
$ 483.2k
Minaz Vastani
Chief Technology Officer1.17yrsno data0.44%
$ 3.4m
Steven Fox
Executive VP4.67yrsno data0.23%
$ 1.8m
Lois Rickard
Chief Human Resources Officer5.67yrsno data0.19%
$ 1.5m
Alan Mustacchi
Executive Vice President of Capital Markets6.67yrsno data0.13%
$ 994.9k
Christopher Forshay
President of GreenSky Home Improvement2.58yrsno data0.31%
$ 2.4m
Dennis Kelly
President of GreenSky Patient Solutions4.83yrsno data0.22%
$ 1.7m

4.8yrs

Average Tenure

54yo

Average Age

Experienced Management: GSKY's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Zalik
Chairman & CEO14.67yrsUS$502.37kno data
Gerald Benjamin
Vice Chairman & Chief Administrative Officer6.67yrsUS$4.31m1.0%
$ 7.7m
Gregg Freishtat
Independent Director6.67yrsUS$585.30k0.085%
$ 651.5k
Arthur Bacci
Independent Director1.42yrsUS$245.00k0.090%
$ 688.8k
Robert Sheft
Independent Director6.67yrsUS$260.00k0.52%
$ 4.0m
Joel Babbit
Independent Director5.67yrsUS$564.96k0.21%
$ 1.6m

6.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: GSKY's board of directors are considered experienced (6.7 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

GreenSky, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GreenSky, Inc.
  • Ticker: GSKY
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: US$768.016m
  • Market Cap: US$285.524m
  • Shares outstanding: 177.37m
  • Website: https://www.greensky.com

Number of Employees


Location

  • GreenSky, Inc.
  • 5565 Glenridge Connector
  • Suite 700
  • Atlanta
  • Georgia
  • 30342
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSKYNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMay 2018

Biography

GreenSky, Inc., a technology company, provides point-of-sale financing and payment solutions to merchants, consumers, and banks. It offers a proprietary technology infrastructure that support the full tran ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 06:27
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
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.