NYSE:GDDY

Stock Analysis Report

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Executive Summary

GoDaddy Inc. designs and develops cloud-based technology products in the United States and internationally.


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

GDDY

2.4%

US IT

1.6%

US Market


1 Year Return

-0.6%

GDDY

15.3%

US IT

4.8%

US Market

Return vs Industry: GDDY underperformed the US IT industry which returned 15.3% over the past year.

Return vs Market: GDDY underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

GDDYIndustryMarket
7 Day-0.4%2.4%1.6%
30 Day-12.5%3.7%2.3%
90 Day36.9%42.1%29.5%
1 Year-0.6%-0.6%16.5%15.3%7.1%4.8%
3 Year69.4%69.4%102.8%94.5%37.1%28.1%
5 Year164.3%164.3%152.7%131.3%67.2%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GDDY ($71.3) is trading below our estimate of fair value ($96.65)

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


Price To Earnings Ratio

PE vs Industry: GDDY is poor value based on its PE Ratio (74.3x) compared to the IT industry average (28.5x).

PE vs Market: GDDY is poor value based on its PE Ratio (74.3x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: GDDY is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: GDDY is overvalued based on its PB Ratio (24.9x) compared to the US IT industry average (3.5x).


Next Steps

Future Growth

How is GoDaddy forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDDY's forecast earnings growth (28.6% per year) is above the savings rate (2.2%).

Earnings vs Market: GDDY's earnings (28.6% per year) are forecast to grow faster than the US market (22.8% per year).

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

Revenue vs Market: GDDY's revenue (8.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: GDDY's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDDY's Return on Equity is forecast to be very high in 3 years time (46.7%).


Next Steps

Past Performance

How has GoDaddy performed over the past 5 years?

62.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDDY has high quality earnings.

Growing Profit Margin: GDDY's current net profit margins (5.4%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: GDDY has become profitable over the past 5 years, growing earnings by 62.4% per year.

Accelerating Growth: GDDY's earnings growth over the past year (93.4%) exceeds its 5-year average (62.4% per year).

Earnings vs Industry: GDDY earnings growth over the past year (93.4%) exceeded the IT industry 14.5%.


Return on Equity

High ROE: Whilst GDDY's Return on Equity (34.43%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is GoDaddy's financial position?


Financial Position Analysis

Short Term Liabilities: GDDY's short term assets ($1.4B) do not cover its short term liabilities ($2.1B).

Long Term Liabilities: GDDY's short term assets ($1.4B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: GDDY's debt to equity ratio (499.9%) is considered high.

Reducing Debt: GDDY's debt to equity ratio has increased from 360.4% to 499.9% over the past 5 years.

Debt Coverage: GDDY's debt is well covered by operating cash flow (31%).

Interest Coverage: GDDY's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

2.1yrs

Average management tenure


CEO

Aman Bhutani (44yo)

0.83

Tenure

US$14,310,581

Compensation

Mr. Amanpal Singh Bhutani, also known as Aman, serves as Chief Executive Officer of GoDaddy Inc. since September 4, 2019 and has been its Director since 2019. Mr. Bhutani has been a Director of New York Ti ...


CEO Compensation Analysis

Compensation vs Market: Aman's total compensation ($USD14.31M) is about average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Insufficient data to compare Aman's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Amanpal Bhutani
CEO & Director0.83yrUS$14.31mno data
Raymond Winborne
Chief Financial Officer3.92yrsUS$6.58m0.055% $6.5m
Andrew Low Ah Kee
Chief Operating Officer1.42yrsUS$9.05m0.073% $8.7m
Nima Kelly
Chief Legal Officer7.75yrsUS$4.17m0.027% $3.2m
James Carroll
President of International Independents Business7.25yrsUS$7.06m0.029% $3.4m
Nick Daddario
Chief Accounting Officer & Principal Accounting Officer0.58yrno datano data
Charles Beadnall
Chief Technology Officer2.75yrsno datano data
Mark Grant
Vice President of Investor Relationsno datano datano data
Karen Tillman
Senior VP & Chief Communications Officerno datano datano data
Fara Howard
Chief Marketing Officer1.42yrsno datano data

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: GDDY's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amanpal Bhutani
CEO & Director0.83yrUS$14.31mno data
Herald Chen
Independent Non-Employee Director6.17yrsUS$277.00kno data
Charles Robel
Independent Chairman of the Board5.33yrsUS$414.15k0.036% $4.3m
Mark Garrett
Independent Director2.42yrsUS$284.63k0.0041% $488.0k
Brian Sharples
Independent Director4.33yrsUS$270.60k0.0051% $603.2k
Caroline Donahue
Independent Director2yrsUS$283.40k0.0035% $416.8k
Ryan Roslansky
Independent Director2yrsUS$254.60k0.0035% $416.8k
Lee Wittlinger
Independent Non-Employee Director6.17yrsUS$262.00kno data
Leah Sweet
Independent Director0.42yrno data0.000050% $5.9k

2.4yrs

Average Tenure

51yo

Average Age

Experienced Board: GDDY's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GDDY insiders have only sold shares 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

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


Key Information

  • Name: GoDaddy Inc.
  • Ticker: GDDY
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Implied Market Cap: US$11.875b
  • Market Cap: US$11.783b
  • Shares outstanding: 166.55m
  • Website: https://www.godaddy.com

Number of Employees


Location

  • GoDaddy Inc.
  • 14455 North Hayden Road
  • Scottsdale
  • Arizona
  • 85260
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDDYNYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2015
38DDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2015
GDDY *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNApr 2015

Biography

GoDaddy Inc. designs and develops cloud-based technology products in the United States and internationally. The company provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity. It also offers shared Website hosting products that provide various applications and products such as web analytics, SSL certificates, and WordPress; Website hosting on virtual private servers and virtual dedicated servers products, which allows customers to select the server configuration suited for their applications, requirements, and growth; managed hosting products to set up, monitor, maintain, secure, and patch software and servers for customers; and security products, a suite of tools designed to help secure customers' online presence. In addition, the company provides presence products, such as Websites + Marketing, a mobile-optimized online tool that enables customers to build Websites and online stores; a range of marketing tools and services designed to help businesses acquire and engage customers, as well as search engine optimization that helps customers get their Websites found on search sites; and social media management services. Further, it offers business application products, such as Microsoft Office 365, email accounts, email marketing, and telephony services. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was incorporated in 2014 and is headquartered in Scottsdale, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 23:56
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.