Goosehead Insurance Inc (GSHD, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $1.83 billion, with a current price of $74.79 per share. Over the past week, the stock has experienced a 5.10% gain, and looking at the past three months, the shares have surged by 17.15%. This growth trajectory has brought the stock to a GF Value of $78.93, which is a shift from the past GF Value of $134.57. Currently, Goosehead Insurance is considered fairly valued, contrasting with its previous status as significantly undervalued.
Introduction to Goosehead Insurance Inc
Goosehead Insurance Inc operates within the insurance industry, providing a diverse range of products. The company's offerings include homeowner's insurance, auto insurance, and various personal lines products such as flood, wind, and earthquake insurance. Additionally, Goosehead Insurance caters to commercial clients with general liability, property, and auto insurance for small businesses, as well as life insurance. With operations spanning across Texas, California, Illinois, Florida, and other regions, the company has established a significant presence in the insurance market.
Assessing Profitability
Goosehead Insurance's financial health is reflected in its Profitability Rank of 7/10, indicating a strong position within the industry. The company's Return on Equity (ROE) is an impressive 49.89%, outperforming 96.92% of its industry peers. Its Return on Assets (ROA) stands at 3.38%, surpassing 69.04% of competitors, while the Return on Invested Capital (ROIC) is at 16.93%, better than 94.37% of industry counterparts. Over the past decade, Goosehead Insurance has maintained profitability for five years, showcasing its financial resilience.
Growth Prospects and Industry Standing
The company's Growth Rank is 6/10, reflecting its solid growth metrics. Goosehead Insurance's 3-Year Revenue Growth Rate per Share is at 26.00%, which is better than 91.65% of industry peers. The 5-Year Revenue Growth Rate per Share is even more impressive at 41.20%, outpacing 97.45% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 27.84%, surpassing 98.06% of industry peers. However, the 3-Year EPS without NRI Growth Rate shows a decline of 48.50%, which is a concern but still better than 5.07% of industry peers.
Notable Shareholders
Among the notable holders of Goosehead Insurance stock, Chuck Akre (Trades, Portfolio) leads with 243,672 shares, representing a 1% share percentage. Following him is Steven Cohen (Trades, Portfolio), who holds 37,208 shares, accounting for 0.16% of the company's shares.
Competitive Landscape
When compared to its competitors, Goosehead Insurance stands out in the market. Fidelis Insurance Holdings Ltd (FIHL, Financial) has a market cap of $1.63 billion, International General Insurance Holdings Ltd (IGIC, Financial) holds a market cap of $509.737 million, and Sundance Strategies Inc (SUND, Financial) has a market cap of $43.479 million. These figures highlight Goosehead Insurance's strong position within the industry.
Conclusion
In summary, Goosehead Insurance Inc's stock performance has been robust, with significant gains over the past three months. The company's profitability and growth prospects are solid, with high rankings in both ROE and revenue growth compared to industry peers. While the EPS growth rate shows some decline, the company's overall financial health remains strong. The current valuation suggests that the stock is fairly valued, and with its competitive edge in the market, Goosehead Insurance appears to be in a good position for future growth. Investors should keep an eye on this company as it continues to navigate the dynamic insurance industry landscape.
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.
