NYSE:GDDY

Stock Analysis Report

Executive Summary

GoDaddy Inc. designs and develops cloud-based technology products for small businesses, Web design professionals, and individuals in the United States and internationally.

Rewards

Trading at 33.8% below its fair value

Earnings are forecast to grow 25.97% per year

Earnings grew by 77.7% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Proven 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.6%

GDDY

2.0%

US IT

0.5%

US Market


1 Year Return

0.6%

GDDY

39.2%

US IT

20.3%

US Market

Return vs Industry: GDDY underperformed the US IT industry which returned 39.2% over the past year.

Return vs Market: GDDY underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

GDDYIndustryMarket
7 Day7.6%2.0%0.5%
30 Day6.1%5.3%2.0%
90 Day10.4%16.6%9.4%
1 Year0.6%0.6%40.7%39.2%22.8%20.3%
3 Year108.8%108.8%112.1%102.9%50.1%40.4%
5 Yearn/a151.0%128.7%73.1%54.1%

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?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GDDY ($76.29) is trading below our estimate of fair value ($115.31)

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 (96.6x) compared to the IT industry average (33.5x).

PE vs Market: GDDY is poor value based on its PE Ratio (96.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: GDDY is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: GDDY is overvalued based on its PB Ratio (17.1x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is GoDaddy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDDY's forecast earnings growth (26% per year) is above the savings rate (1.7%).

Earnings vs Market: GDDY's earnings (26% per year) are forecast to grow faster than the US market (14.2% 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 faster than the US market (7.6% 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 low in 3 years time (19.7%).


Next Steps

Past Performance

How has GoDaddy performed over the past 5 years?

63.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDDY has a large one-off loss of $42.3M impacting its December 31 2019 financial results.

Growing Profit Margin: GDDY's current net profit margins (4.6%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: GDDY has become profitable over the past 5 years, growing earnings by 63.9% per year.

Accelerating Growth: GDDY's earnings growth over the past year (77.7%) exceeds its 5-year average (63.9% per year).

Earnings vs Industry: GDDY earnings growth over the past year (77.7%) exceeded the IT industry 12%.


Return on Equity

High ROE: GDDY's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GoDaddy's financial position?


Financial Position Analysis

Short Term Liabilities: GDDY's short term assets ($1.6B) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: GDDY's short term assets ($1.6B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: GDDY's debt to equity ratio (301.6%) is considered high.

Reducing Debt: GDDY's debt to equity ratio has reduced from 344.1% to 301.6% over the past 5 years.

Debt Coverage: GDDY's debt is well covered by operating cash flow (30.7%).

Interest Coverage: GDDY's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: GDDY has a low level of unsold assets or inventory.

Debt Coverage by Assets: GDDY's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GDDY's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?

1.7yrs

Average management tenure


CEO

Aman Bhutani (43yo)

0.4yrs

Tenure

0

Mr. Amanpal Singh Bhutani, also known as Aman, serves as Chief Executive Officer of GoDaddy Inc. since September 4, 2019. Mr. Bhutani has been a Director of New York Times Company since September 21, 2018. ...


Leadership Team

NamePositionTenureCompensationOwnership
Raymond Winborne
Chief Financial Officer3.5yrsUS$4.13m0.036% $4.8m
Andrew Low Ah Kee
Chief Operating Officer1yrsUS$6.97m0.011% $1.5m
Nima Kelly
Chief Legal Officer7.3yrsUS$6.65m0.072% $9.7m
James Carroll
Chief Platform & Globalization Officer and Executive VP of Global Platform Development6.8yrsUS$3.43m0.011% $1.4m
Amanpal Bhutani
Chief Executive Officer0.4yrsno datano data
Nick Daddario
Chief Accounting Officer & Principal Accounting Officer0.2yrsno datano data
Charles Beadnall
Chief Technology Officer2.3yrsno datano data
Samuel Kemp
Vice President of Investor Relations & Strategy0yrsno datano data
Karen Tillman
Senior VP & Chief Communications Officer0yrsno datano data
Fara Howard
Chief Marketing Officer1yrsno datano data

1.7yrs

Average Tenure

49yo

Average Age

Experienced Management: GDDY's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Herald Chen
Non-Employee Director5.8yrsno datano data
Charles Robel
Chairman4.9yrsUS$451.64k0.026% $3.6m
Mark Garrett
Independent Director2yrsUS$294.95k0.0039% $531.9k
Brian Sharples
Independent Director3.9yrsUS$310.58k0.0053% $724.1k
Caroline Donahue
Independent Director1.6yrsUS$249.00kno data
Ryan Roslansky
Independent Director1.6yrsUS$237.00kno data
Lee Wittlinger
Non-Employee Director5.8yrsno datano data
Leah Sweet
Director0yrsno data0.000050% $6.8k

3.9yrs

Average Tenure

58yo

Average Age

Experienced Board: GDDY's board of directors are considered experienced (3.9 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 11.7%.


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$13.535b
  • Market Cap: US$13.188b
  • Shares outstanding: 174.36m
  • 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 for small businesses, Web design professionals, and individuals 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; and hosting products, including shared Website hosting, Website hosting on virtual private servers and virtual dedicated servers, managed hosting, and security. It also offers presence products, such as GoCentral, an online tool that enables customers to build Websites and online stores; a range of marketing tools 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. In addition, the company offers business application products, such as Microsoft Office 365, email accounts, email marketing, and telephony services. 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 Analysis2020/02/20 02:24
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
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.