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Web.com Group

Nasdaq:WEB
Snowflake Description

Proven track record with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WEB
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Web.com Group, Inc. provides a range of Internet services to small businesses in North America, South America, and the United Kingdom. The last earnings update was 72 days ago. More info.


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WEB Share Price and Events
Price Volatility
WEB
Industry
5yr Volatility vs Market

Value

 Is Web.com Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Web.com Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Web.com Group.

NasdaqGS:WEB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:WEB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
IT Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.968 (1 + (1- 21%) (47.49%))
1.331
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.331 * 7.05%)
12.34%

Discounted Cash Flow Calculation for NasdaqGS:WEB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Web.com Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:WEB DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 134.82 131.10 135.37 139.96 155.24
Source Analyst x4 Analyst x1 Analyst x1 Analyst x1 Est @ 10.91%
Present Value
Discounted (@ 12.34%)
120.02 103.89 95.49 87.89 86.78
Present value of next 5 years cash flows $494.06
NasdaqGS:WEB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $155.24 × (1 + 2.95%) ÷ (12.34% – 2.95%)
$1,702.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $1,702.76 ÷ (1 + 12.34%)5
$951.84
NasdaqGS:WEB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $494.06 + $951.84
$1,445.90
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,445.90 / 48.37
$29.89
NasdaqGS:WEB Discount to Share Price
Calculation Result
Value per share (USD) From above. $29.89
Current discount Discount to share price of $27.99
= -1 x ($27.99 - $29.89) / $29.89
6.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Web.com Group is available for.
Intrinsic value
6%
Share price is $27.99 vs Future cash flow value of $29.89
Current Discount Checks
For Web.com Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Web.com Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Web.com Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Web.com Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Web.com Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WEB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $1.04
NasdaqGS:WEB Share Price ** NasdaqGS (2018-10-10) in USD $27.99
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 25.69x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 19.8x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Web.com Group.

NasdaqGS:WEB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WEB Share Price ÷ EPS (both in USD)

= 27.99 ÷ 1.04

26.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Web.com Group is overvalued based on earnings compared to the US IT industry average.
  • Web.com Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Web.com Group's expected growth come at a high price?
Raw Data
NasdaqGS:WEB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
7.4%per year
United States of America IT Industry PEG Ratio Median Figure of 64 Publicly-Listed IT Companies 1.78x
United States of America Market PEG Ratio Median Figure of 2,114 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

NasdaqGS:WEB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.88x ÷ 7.4%

3.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Web.com Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Web.com Group's assets?
Raw Data
NasdaqGS:WEB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $6.29
NasdaqGS:WEB Share Price * NasdaqGS (2018-10-10) in USD $27.99
United States of America IT Industry PB Ratio Median Figure of 129 Publicly-Listed IT Companies 3.89x
United States of America Market PB Ratio Median Figure of 5,287 Publicly-Listed Companies 1.9x
NasdaqGS:WEB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WEB Share Price ÷ Book Value per Share (both in USD)

= 27.99 ÷ 6.29

4.45x

* Primary Listing of Web.com Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Web.com Group is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Web.com Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Web.com Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Web.com Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Web.com Group expected to grow at an attractive rate?
  • Web.com Group's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Web.com Group's earnings growth is positive but not above the United States of America market average.
  • Web.com Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WEB Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WEB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 7.4%
NasdaqGS:WEB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 1.6%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 15.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:WEB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WEB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 805 148 58 1
2021-12-31 786 143 52 1
2020-12-31 777 139 49 2
2019-12-31 766 144 46 5
2018-12-31 750 138 38 5
NasdaqGS:WEB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 751 131 50
2018-03-31 751 144 52
2017-12-31 749 150 54
2017-09-30 748 154 25
2017-06-30 750 165 20
2017-03-31 751 152 10
2016-12-31 711 133 4
2016-09-30 662 130 79
2016-06-30 608 121 82
2016-03-31 556 135 88
2015-12-31 543 152 90
2015-09-30 540 149 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Web.com Group's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
  • Web.com Group's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:WEB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Web.com Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WEB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.27 1.27 1.27 1.00
2021-12-31 1.13 1.13 1.13 1.00
2020-12-31 1.02 1.02 1.01 2.00
2019-12-31 0.94 0.99 0.88 4.00
2018-12-31 0.77 0.82 0.73 3.00
NasdaqGS:WEB Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 1.04
2018-03-31 1.07
2017-12-31 1.10
2017-09-30 0.50
2017-06-30 0.40
2017-03-31 0.21
2016-12-31 0.08
2016-09-30 1.60
2016-06-30 1.65
2016-03-31 1.76
2015-12-31 1.79
2015-09-30 0.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Web.com Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Web.com Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Web.com Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Web.com Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Web.com Group's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Web.com Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Web.com Group's 1-year earnings growth exceeds its 5-year average (151.5% vs 63.3%)
  • Web.com Group's earnings growth has exceeded the US IT industry average in the past year (151.5% vs 32.4%).
Earnings and Revenue History
Web.com Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Web.com Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WEB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 750.84 49.86 280.36 72.82
2018-03-31 750.88 51.69 278.47 72.98
2017-12-31 749.26 53.63 281.04 69.98
2017-09-30 747.62 24.78 285.40 68.56
2017-06-30 749.74 19.82 288.60 67.77
2017-03-31 750.83 10.17 296.81 70.18
2016-12-31 710.51 3.99 281.31 65.80
2016-09-30 661.62 79.06 257.71 57.41
2016-06-30 607.76 81.80 231.68 56.23
2016-03-31 555.66 87.96 206.93 42.35
2015-12-31 543.46 89.96 204.56 35.53
2015-09-30 539.65 4.25 206.72 33.65
2015-06-30 540.24 -5.27 210.60 26.45
2015-03-31 542.69 -10.61 208.35 28.29
2014-12-31 543.94 -12.46 201.03 38.66
2014-09-30 540.55 -7.15 207.94 29.71
2014-06-30 528.34 -9.72 205.21 30.74
2014-03-31 510.61 -18.67 200.49 31.45
2013-12-31 492.32 -65.66 196.36 32.47
2013-09-30 472.62 -114.11 186.05 33.01
2013-06-30 453.18 -129.63 178.82 32.71
2013-03-31 431.68 -138.94 172.95 32.76
2012-12-31 407.65 -122.22 166.56 34.26
2012-09-30 369.79 -69.67 160.97 35.10
2012-06-30 307.94 -53.64 131.87 30.48
2012-03-31 251.24 -36.55 107.69 25.41
2011-12-31 199.21 -12.51 83.82 19.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Web.com Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Web.com Group used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • Web.com Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Web.com Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Web.com Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Web.com Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Web.com Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Web.com Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Web.com Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Web.com Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Web.com Group Company Filings, last reported 3 months ago.

NasdaqGS:WEB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 301.76 643.05 29.93
2018-03-31 285.81 650.35 9.66
2017-12-31 274.64 646.97 11.98
2017-09-30 236.69 665.64 7.74
2017-06-30 292.99 644.97 33.45
2017-03-31 275.11 672.04 24.47
2016-12-31 235.45 664.14 20.45
2016-09-30 238.52 685.84 21.82
2016-06-30 229.32 705.59 8.95
2016-03-31 231.61 722.38 11.99
2015-12-31 238.18 422.58 18.71
2015-09-30 165.19 448.13 18.39
2015-06-30 163.15 465.30 15.91
2015-03-31 164.68 492.53 16.73
2014-12-31 174.09 506.46 22.49
2014-09-30 189.59 520.83 15.90
2014-06-30 180.90 527.16 14.61
2014-03-31 174.21 559.60 15.23
2013-12-31 170.05 563.09 13.81
2013-09-30 165.36 593.56 10.36
2013-06-30 115.80 668.35 16.80
2013-03-31 116.90 699.75 13.59
2012-12-31 161.61 692.82 15.18
2012-09-30 210.37 682.20 11.49
2012-06-30 227.94 694.78 16.75
2012-03-31 242.97 709.41 12.33
2011-12-31 271.76 718.89 13.36
  • Web.com Group's level of debt (213.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (573.8% vs 213.1% today).
  • Debt is well covered by operating cash flow (20.4%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Web.com Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Web.com Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Web.com Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Web.com Group dividends.
If you bought $2,000 of Web.com Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Web.com Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Web.com Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:WEB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2038 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.3%
United States of America Top 25% Dividend Yield 75th Percentile 3.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:WEB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2019-12-31
2018-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Web.com Group has not reported any payouts.
  • Unable to verify if Web.com Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Web.com Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Web.com Group has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Web.com Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Web.com Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Web.com Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Web.com Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
David Brown, image provided by Google.
David Brown
COMPENSATION $5,563,928
AGE 64
TENURE AS CEO 18.2 years
CEO Bio

Mr. David L. Brown serves as the President at Register.com, Inc. Mr. Brown has been the Chairman of the Board at Web.com Group, Inc. (formerly, Website Pros, Inc.) since October 2000 and has been its Chief Executive Officer since August 2000. He has been the President at Web.com Group, Inc. since October 2009. He served as the President of Web.com Group, Inc., from August 1999 to September 2007. He founded ATS and served as its Chief Executive Officer. Mr. Brown was a managing partner at Atlantic Partners Group, a private equity firm, from March 2000 to August 2000. Mr. Brown founded Atlantic Teleservices, a technology services company, in 1997 and served as its Chief Executive Officer from 1997 until its acquisition by Website in August 1999. He was a Founding Partner at Carlyle International. He served as an Executive Vice President and the Chief Information Officer at Riggs National Bank and a Senior Vice President of Retail Operations at Barnett Banks. He also served at Florida National Bank. He has been a Director of Web.com Group, Inc., since August 1999. Mr. Brown holds a B.A. in General Studies from Harvard University.

CEO Compensation
  • David's compensation has increased by more than 20% in the past year.
  • David's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Web.com Group management team in years:

7.9
Average Tenure
59
Average Age
  • The average tenure for the Web.com Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Brown

TITLE
Chairman
COMPENSATION
$6M
AGE
64
TENURE
18.2 yrs

Roseann Duran

TITLE
Executive VP & Chief People Officer
COMPENSATION
$1M
AGE
66
TENURE
8.2 yrs

Kevin Carney

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
54
TENURE
0.3 yrs

Jennifer Lada

TITLE
Senior VP & CFO
TENURE
0.3 yrs

Jane Landon

TITLE
Chief Technology Officer
TENURE
7.9 yrs

Ira Berger

TITLE
Investor Relation
TENURE
3.8 yrs

Matthew McClure

TITLE
Chief Legal Officer & Secretary
AGE
48

Lisa Anteau

TITLE
Senior Vice President of Sales
AGE
46

Greg Wong

TITLE
Executive Vice President of Corporate Development
TENURE
10.4 yrs

Joel Williamson

TITLE
Senior Vice President of Operations & Customer Support
AGE
70
Board of Directors Tenure

Average tenure and age of the Web.com Group board of directors in years:

9.8
Average Tenure
61
Average Age
  • The tenure for the Web.com Group board of directors is about average.
Board of Directors

David Brown

TITLE
Chairman
COMPENSATION
$6M
AGE
64
TENURE
18 yrs

Tim Maudlin

TITLE
Lead Director
COMPENSATION
$305K
AGE
67
TENURE
11.8 yrs

Hugh Durden

TITLE
Director
COMPENSATION
$255K
AGE
75
TENURE
12.8 yrs

Phil Facchina

TITLE
Director
COMPENSATION
$257K
AGE
56
TENURE
7.9 yrs

Robert McCoy

TITLE
Director
COMPENSATION
$244K
AGE
80
TENURE
12.6 yrs

Deborah Quazzo

TITLE
Director
COMPENSATION
$244K
AGE
57
TENURE
7.8 yrs

Tim Cost

TITLE
Director
COMPENSATION
$239K
AGE
58
TENURE
3.8 yrs

John Giuliani

TITLE
Director
COMPENSATION
$235K
AGE
57
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • Web.com Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Value (USD)
23. Aug 18 Sell Deborah Quazzo Individual 22. Aug 18 22. Aug 18 -14,033 $-393,269.60
09. Aug 18 Sell John Giuliani Individual 08. Aug 18 09. Aug 18 -41,727 $-1,172,859.78
22. Jun 18 Sell Okumus Fund Management, Ltd. Company 21. Jun 18 21. Jun 18 -2,000,000 $-50,000,000.00
08. Jun 18 Buy Starboard Value LP Company 02. May 18 07. Jun 18 4,630,579 $96,980,068.23
04. Jun 18 Sell Roseann Duran Individual 01. Jun 18 01. Jun 18 -10,000 $-200,000.00
26. Oct 17 Sell Okumus Fund Management, Ltd. Company 24. Oct 17 24. Oct 17 -43,544 $-1,101,937.53
20. Oct 17 Sell Okumus Fund Management, Ltd. Company 18. Oct 17 20. Oct 17 -346,774 $-8,826,155.32
X
Management checks
We assess Web.com Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Web.com Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Where Webcom Group Inc's (NASDAQ:WEB) Earnings Growth Stands Against Its Industry

Examining Webcom Group Inc's (NASDAQ:WEB) past track record of performance is a useful exercise for investors. … Below, I will assess WEB's latest performance announced on 30 June 2018 and weight these figures against its longer term trend and industry movements. … How WEB fared against its long-term earnings performance and its industry

Simply Wall St -

Is Webcom Group Inc (NASDAQ:WEB) Attractive At This PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … While this makes WEB appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

Can Webcom Group Inc (NASDAQ:WEB) Continue To Outperform Its Industry?

and want to begin learning the link between company’s fundamentals and stock market performance. … This can be measured by looking at the company’s financial leverage. … Peeling the layers of ROE – trisecting a company’s profitability

Simply Wall St -

Webcom Group Inc (NASDAQ:WEB): What Are Investors Earning On Their Capital?

and want to begin learning the link between Webcom Group Inc (NASDAQ:WEB)’s return fundamentals and stock market performance. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock.

Simply Wall St -

A Look At The Fair Value Of Webcom Group Inc (NASDAQ:WEB)

How far off is Webcom Group Inc (NASDAQ:WEB) from its intrinsic value? … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should You Sell Webcom Group Inc (NASDAQ:WEB) At This PE Ratio?

But should the relatively competitive multiple be the final verdict of WEB’s undervaluation. … This is because multiples like PE tend to overlook key company-specific factors such as future growth and capital structure … In this article, I am going to take you through some key things to consider in order to identify which multiple is the most relevant for

Simply Wall St -

Why Did Webcom Group Inc's' (NASDAQ:WEB) Insiders Buy Up More Shares?

some insider buying over the past three months, with insiders investing in. … It is widely considered that insider buying stock in their own companies is potentially a bullish signal … A research published in The MIT Press (1998) concluded that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

What Do Analysts Think About Webcom Group Inc.'s (NASDAQ:WEB) Future?

Below, I've laid out key growth figures on how market analysts perceive Web.com Group's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … See our latest analysis for Web.com Group Market analysts' consensus outlook for the upcoming year seems pessimistic, with earnings declining by a double-digit -15.26%. … NasdaqGS:WEB Future Profit Mar 7th 18 Even though it is informative knowing the growth rate each year relative to today’s figure, it may be more valuable to gauge the rate at which the earnings are growing every year, on average.

Simply Wall St -

Want To Invest In Webcom Group Inc (WEB)? Here's How It Performed Lately

Setting WEB's past year EPS decline of -75.59% against the best fit version of five-year average growth of 38.09% only tells that while long-term average is positive, the earnings performance has recently deteriorated as the momentum swung to negative. … Not only was WEB's past 12 month EPS weak compared to the long-term trend, it also underperformed the Internet Software and Services industry average, an earnings growth of 4.50%. … NasdaqGS:WEB Past Future Earnings Oct 24th 17 Conclusion While Web.com Group didn't pass both of my checks for performance against its historical trend and industry averages, it’s important to keep in mind whether this impediment has already been priced into the stock’s valuation.

Simply Wall St -

Company Info

Map
Description

Web.com Group, Inc. provides a range of Internet services to small businesses in North America, South America, and the United Kingdom. The company offers a range of Web services and products that enable small businesses to establish, maintain, promote, and optimize their online presence. It provides domain name registration and services, such as .com and .net domains, as well as a suite of domain name services, including domain name registration, transfer, renewal, expiration protection, and privacy services. The company also offers Do-It-For-Me Web solutions, including Custom Websites with built in marketing, analytics, and hosting facilities; Local Business Listings that enables Websites to be promoted in various directories; Facebook, which designs or updates the business profile page on Facebook, including advertising and postings; and eCommerce that designs, setups, and configures the online store and shopping cart. In addition, it provides Do-It-Yourself Web solutions, such as Website building tools and hosting services. Further, the company offers online marketing services comprising search engine optimization; local and national search engine marketing services; Lighthouse, an automated communications service for dental practices; TORCHx, a CRM solution for real estate professionals; Centermark, a marketing and business intelligence platform; Lead Stream service to research relevant keywords in the customer’s industry; Renovation Experts service to contractors, homebuilders, and remodeling professionals; cloud-based local marketing solutions; and business software for online advertising management. Web.com Group, Inc. markets its products and services through online channels, outbound and inbound telesales, digital and television advertising, local direct sales, franchise networks, and branding, as well as through resellers, affiliate networks, and private label partners. The company was incorporated in 1999 and is headquartered in Jacksonville, Florida.

Details
Name: Web.com Group, Inc.
WEB
Exchange: NasdaqGS
Founded: 1999
$1,353,990,163
48,374,068
Website: http://www.web.com
Address: Web.com Group, Inc.
12808 Gran Bay Parkway, West,
Jacksonville,
Florida, 32258,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WEB Common Stock Nasdaq Global Select US USD 02. Nov 2005
DB W2P Common Stock Deutsche Boerse AG DE EUR 02. Nov 2005
Number of employees
Current staff
Staff numbers
3,600
Web.com Group employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/10/11 21:23
End of day share price update: 2018/10/10 00:00
Last estimates confirmation: 2018/09/16
Last earnings filing: 2018/07/31
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.