GDDY

GoDaddyNYSE:GDDY Stock Report

Market Cap

US$12.3b

7D

-3.8%

1Y

0.8%

Updated

19 Sep, 2021

Data

Company Financials +
GDDY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health1/6
Dividends0/6

GDDY Overview

GoDaddy Inc. engages in the design and development of cloud-based technology products in the United States and internationally.

GoDaddy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GoDaddy
Historical stock prices
Current Share PriceUS$72.41
52 Week HighUS$68.66
52 Week LowUS$93.75
Beta0.98
1 Month Change2.77%
3 Month Change-14.65%
1 Year Change0.75%
3 Year Change-9.94%
5 Year Change111.17%
Change since IPO176.90%

Recent News & Updates

Jul 30

Buy GoDaddy: Its New Payments Platform Could Be A Game Changer

GoDaddy is set to report Q2 earnings after the market closes on August 4th. The stock has been range bound over the last 3 years, after more than quadrupling from its IPO price of $20 in April 2015. GoDaddy's recent acquisition of Poynt has enabled the company to build a competitive payments platform for its users. This new E-commerce feature should help the company continue to grow its customer base and ARPU. GoDaddy has grown primarily through acquisition, and its purchase of Poynt may be a catalyst for faster revenue growth in the future.

Shareholder Returns

GDDYUS ITUS Market
7D-3.8%-0.9%-0.6%
1Y0.8%25.7%33.8%

Return vs Industry: GDDY underperformed the US IT industry which returned 25.7% over the past year.

Return vs Market: GDDY underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is GDDY's price volatile compared to industry and market?
GDDY volatility
GDDY Beta0.98
Industry Beta1.18
Market Beta1

Stable Share Price: GDDY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GDDY's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20146,621Aman Bhutanihttps://www.godaddy.com

GoDaddy Inc. engages in the design and development of 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.

GoDaddy Fundamentals Summary

How do GoDaddy's earnings and revenue compare to its market cap?
GDDY fundamental statistics
Market CapUS$12.25b
Earnings (TTM)US$192.80m
Revenue (TTM)US$3.55b

63.6x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GDDY income statement (TTM)
RevenueUS$3.55b
Cost of RevenueUS$1.25b
Gross ProfitUS$2.31b
ExpensesUS$2.11b
EarningsUS$192.80m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.15
Gross Margin64.93%
Net Profit Margin5.43%
Debt/Equity Ratio-12,880.3%

How did GDDY perform over the long term?

See historical performance and comparison

Valuation

Is GoDaddy 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: GDDY ($72.41) is trading below our estimate of fair value ($167.03)

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 (63.6x) compared to the US IT industry average (34.4x).

PE vs Market: GDDY is poor value based on its PE Ratio (63.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GDDY is poor value based on its PEG Ratio (2x)


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.


Future Growth

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

31.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDDY's forecast earnings growth (31% per year) is above the savings rate (2%).

Earnings vs Market: GDDY's earnings (31% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: GDDY's revenue (9.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: GDDY's revenue (9.7% 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 (40.8%).


Past Performance

How has GoDaddy performed over the past 5 years?

-38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDDY has a large one-off loss of $702.9M impacting its June 30 2021 financial results.

Growing Profit Margin: GDDY became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GDDY has become profitable over the past 5 years, growing earnings by -38.8% per year.

Accelerating Growth: GDDY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GDDY has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (28%).


Return on Equity

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


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.

Debt Coverage: GDDY's debt is not well covered by operating cash flow (19.6%).

Interest Coverage: GDDY's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


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?

2.0yrs

Average management tenure


CEO

Aman Bhutani (45 yo)

2yrs

Tenure

US$3,670,928

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 ($USD3.67M) is below average for companies of similar size in the US market ($USD11.33M).

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


Leadership Team

Experienced Management: GDDY's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: GDDY's board of directors are considered experienced (3.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GoDaddy Inc.'s 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$12.252b
  • Market Cap: US$12.225b
  • Shares outstanding: 169.21m
  • Website: https://www.godaddy.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:09
End of Day Share Price2021/09/17 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.