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. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GDDY's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

GDDY

2.8%

US IT

1.8%

US Market


1 Year Return

12.2%

GDDY

27.4%

US IT

20.4%

US Market

Return vs Industry: GDDY underperformed the US IT industry which returned 27.4% over the past year.

Return vs Market: GDDY underperformed the US Market which returned 20.4% over the past year.


Shareholder returns

GDDYIndustryMarket
7 Day0.6%2.8%1.8%
30 Day2.6%5.7%6.0%
90 Day-8.2%3.2%6.8%
1 Year12.2%12.2%28.7%27.4%23.2%20.4%
3 Year52.2%52.2%95.5%87.9%47.4%37.6%
5 Year145.5%145.5%172.7%153.7%91.9%70.8%

Long-Term 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?

31.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GDDY ($76.8) is trading below our estimate of fair value ($112.83)

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


Price To Earnings Ratio

PE vs Industry: GDDY is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: GDDY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GDDY's PEG Ratio to determine if it is good value.


Price to Book Ratio

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


Next Steps

Future Growth

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

71.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDDY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: GDDY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GDDY's is expected to become profitable in the next 3 years.

Revenue vs Market: GDDY's revenue (9.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: GDDY's revenue (9.6% 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 GDDY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GoDaddy performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDDY is currently unprofitable.

Growing Profit Margin: GDDY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GDDY is unprofitable, and losses have increased over the past 5 years at a rate of 17.3% per year.

Accelerating Growth: Unable to compare GDDY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GDDY is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (3.2%).


Return on Equity

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


Next Steps

Financial Health

How is GoDaddy's financial position?


Financial Position Analysis

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

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

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GDDY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GDDY is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 27.1% per year.


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?

3.1yrs

Average management tenure


CEO

Aman Bhutani (44 yo)

1.17yrs

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 ($USD14.31M) is above average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Amanpal Bhutani
CEO & Director1.17yrsUS$14.31m0.053%
$ 6.9m
Raymond Winborne
Chief Financial Officer4.25yrsUS$6.58m0.055%
$ 7.1m
Nima Kelly
Chief Legal Officer8.08yrsUS$4.17m0.020%
$ 2.6m
James Carroll
President of International Independents Business7.58yrsUS$7.06m0.028%
$ 3.7m
Nick Daddario
Chief Accounting Officer & Principal Accounting Officer0.92yrno data0.0034%
$ 437.3k
Charles Beadnall
Chief Technology Officer3.08yrsno 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 Officer1.75yrsno datano data
Auguste Goldman
Senior VP & Head of Customer Care3.25yrsno datano data
Lauren Antonoff
Senior Vice President of Presence & Commerceno datano datano data
Mike McLaughlin
Chief Customer Officer3.08yrsno datano data

3.1yrs

Average Tenure

50yo

Average Age

Experienced Management: GDDY's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amanpal Bhutani
CEO & Director1.17yrsUS$14.31m0.053%
$ 6.9m
Herald Chen
Independent Non-Employee Director6.5yrsUS$277.00kno data
Charles Robel
Independent Chairman of the Board5.67yrsUS$414.15k0.036%
$ 4.6m
Mark Garrett
Independent Director2.75yrsUS$284.63k0.0040%
$ 527.3k
Brian Sharples
Independent Director4.67yrsUS$270.60k0.0050%
$ 652.6k
Caroline Donahue
Independent Director2.33yrsUS$283.40k0.0035%
$ 451.6k
Ryan Roslansky
Independent Director2.33yrsUS$254.60k0.0035%
$ 451.6k
Lee Wittlinger
Independent Non-Employee Director6.5yrsUS$262.00kno data
Leah Sweet
Independent Director0.75yrno data0.000050%
$ 6.5k

2.8yrs

Average Tenure

51yo

Average Age

Experienced Board: GDDY's board of directors are not considered experienced ( 2.8 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$13.052b
  • Market Cap: US$12.895b
  • Shares outstanding: 168.90m
  • 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 ini...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:03
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.