NasdaqGS:GSKY

Stock Analysis Report

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Market Cap

US$1.1b

Last Updated

2021/07/31 06:44 UTC

Data Sources

Company Financials +

Executive Summary

GreenSky, Inc., a technology company, that enables promotional financing at the point of sale for merchants, consumers, and bank partners. 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GSKY's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

10.6%

GSKY

-2.7%

US IT

-0.5%

US Market


1 Year Return

16.4%

GSKY

30.7%

US IT

35.9%

US Market

Return vs Industry: GSKY underperformed the US IT industry which returned 30.7% over the past year.

Return vs Market: GSKY underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

GSKYIndustryMarket
7 Day10.6%-2.7%-0.5%
30 Day18.4%2.2%0.3%
90 Day7.9%4.0%3.1%
1 Year16.4%16.4%31.9%30.7%38.0%35.9%
3 Year-63.2%-63.2%100.1%93.5%62.9%52.7%
5 Yearn/a219.8%197.3%121.7%97.3%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GSKY ($6.57) is trading below our estimate of fair value ($17.37)

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 (16x) compared to the US IT industry average (35.8x).

PE vs Market: GSKY is good value based on its PE Ratio (16x) compared to the US market (18x).


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 is overvalued based on its PB Ratio (27.5x) compared to the US IT industry average (5.2x).


Future Growth

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

48.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSKY's forecast earnings growth (48.5% per year) is above the savings rate (2%).

Earnings vs Market: GSKY's earnings (48.5% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: GSKY's revenue (12.7% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: GSKY's revenue (12.7% 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


Past Performance

How has GreenSky performed over the past 5 years?

-49.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSKY has high quality earnings.

Growing Profit Margin: GSKY's current net profit margins (5.5%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: GSKY's earnings have declined by 49.4% per year over the past 5 years.

Accelerating Growth: GSKY's earnings growth over the past year (66.8%) exceeds its 5-year average (-49.4% per year).

Earnings vs Industry: GSKY earnings growth over the past year (66.8%) exceeded the IT industry 19.3%.


Return on Equity

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


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 debt is well covered by operating cash flow (32.1%).

Interest Coverage: GSKY's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


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?

3.0yrs

Average management tenure


CEO

David Zalik (46 yo)

15.5yrs

Tenure

US$502,365

Compensation

Mr. David Zalik Co-Founded GreenSky, LLC in 2006 and serves as its Chief Executive Officer since 2006. Mr. Zalik Co-Founded GreenSky, Inc. in 2006 and serves as its Chief Executive Officer since 2006. Mr. ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD502.37K) is below average for companies of similar size in the US market ($USD2.42M).

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


Leadership Team

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


Board Members

Experienced Board: GSKY's board of directors are considered experienced (7.5 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

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$1.139b
  • Market Cap: US$476.690m
  • Shares outstanding: 178.01m
  • Website: https://www.greensky.com

Number of Employees


Location

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

Listings


Biography

GreenSky, Inc., a technology company, that enables promotional financing at the point of sale for merchants, consumers, and bank partners. It offers a proprietary technology infrastructure that supports th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 06:44
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.