Why Goosehead Insurance Inc's Stock Skyrocketed 11% in a Quarter
Goosehead Insurance Inc (NASDAQ:GSHD), a leading insurance agency, has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $1.79 billion, with a stock price of $73.4. Despite a slight dip of -1.16% over the past week, the stock has gained 11.43% over the past three months. According to the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is significantly undervalued. The current GF Value is $130.78, compared to the past GF Value of $154.24 three months ago. This indicates that the stock was significantly undervalued both currently and three months ago.
Company Overview
Goosehead Insurance Inc operates as an insurance agency, offering a wide range of insurance products. These include homeowner's insurance, auto insurance, specialty lines insurance, commercial lines insurance, and life insurance. The company operates in various regions, including Texas, California, Illinois, Florida, and other regions. With its diverse product portfolio and extensive geographical presence, Goosehead Insurance Inc has established itself as a key player in the insurance industry.
Profitability Analysis
Goosehead Insurance Inc has a Profitability Rank of 7/10, indicating a relatively high level of profitability. The company's ROE (Return on Equity) is 50.64%, which is better than 96.73% of the 490 companies in the same industry. The ROA (Return on Assets) is 1.92%, better than 54.86% of the 494 companies. The ROIC (Return on Invested Capital) is 6.36%, better than 81.92% of the 354 companies. The company has been profitable for 5 years over the past 10 years, which is better than 15.73% of the 483 companies.
Growth Prospects
The company's Growth Rank is 7/10, indicating a relatively high level of growth. The 3-Year Revenue Growth Rate per Share is 26.00%, better than 91.72% of the 459 companies. The 5-Year Revenue Growth Rate per Share is 41.20%, better than 97.7% of the 435 companies. The Total Revenue Growth Rate (Future 3Y To 5Y Est) is 30.49%, better than 98.13% of the 107 companies. However, the 3-Year EPS without NRI Growth Rate is -48.50%, which is only better than 4.61% of the 369 companies.
Major Shareholders
Chuck Akre (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) are the top two holders of the company's stock, holding 1.02% and 0.16% of the shares respectively. Akre holds 243,672 shares, while Cohen holds 37,208 shares.
Competitive Landscape
Goosehead Insurance Inc faces competition from several companies in the insurance industry. Its main competitors include International General Insurance Holdings Ltd (NASDAQ:IGIC) with a market cap of $506.475 million, Sundance Strategies Inc (SUND) with a market cap of $21.118 million, and FG Financial Group Inc (NASDAQ:FGF) with a market cap of $14.013 million.
Conclusion
In conclusion, Goosehead Insurance Inc has demonstrated strong performance in terms of stock price, profitability, and growth. Despite facing competition in the insurance industry, the company's diverse product portfolio and extensive geographical presence have contributed to its success. With a high profitability rank and growth rank, the company shows promising prospects for the future. However, investors should keep an eye on the company's EPS growth rate, which has been negative over the past three years.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
