Goosehead Insurance Return On Equity vs. Cash And Equivalents
| GSHD Stock | USD 107.61 1.46 1.38% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.23 | Current Value 0.24 | Quarterly Volatility 0.98454906 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.29 | 0.37 |
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For Goosehead Insurance profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Goosehead Insurance to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Goosehead Insurance utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Goosehead Insurance's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Goosehead Insurance over time as well as its relative position and ranking within its peers.
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Goosehead Insurance's Revenue Breakdown by Earning Segment
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Is Insurance Brokers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Goosehead Insurance. If investors know Goosehead will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Goosehead Insurance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.051 | Earnings Share 0.7 | Revenue Per Share | Quarterly Revenue Growth 0.1 | Return On Assets |
The market value of Goosehead Insurance is measured differently than its book value, which is the value of Goosehead that is recorded on the company's balance sheet. Investors also form their own opinion of Goosehead Insurance's value that differs from its market value or its book value, called intrinsic value, which is Goosehead Insurance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Goosehead Insurance's market value can be influenced by many factors that don't directly affect Goosehead Insurance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Goosehead Insurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Goosehead Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Goosehead Insurance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Goosehead Insurance Cash And Equivalents vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Goosehead Insurance's current stock value. Our valuation model uses many indicators to compare Goosehead Insurance value to that of its competitors to determine the firm's financial worth. Goosehead Insurance is one of the top stocks in return on equity category among its peers. It is rated below average in cash and equivalents category among its peers creating about 60,093,836 of Cash And Equivalents per Return On Equity. At present, Goosehead Insurance's Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Goosehead Insurance by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Goosehead Cash And Equivalents vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Goosehead Insurance |
| = | 0.77 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Goosehead Insurance |
| = | 46.11 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Goosehead Cash And Equivalents Comparison
Goosehead Insurance is currently under evaluation in cash and equivalents category among its peers.
Goosehead Insurance Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Goosehead Insurance, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Goosehead Insurance will eventually generate negative long term returns. The profitability progress is the general direction of Goosehead Insurance's change in net profit over the period of time. It can combine multiple indicators of Goosehead Insurance, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 19.3 M | 20.3 M | |
| Net Interest Income | -5.9 M | -5.6 M | |
| Interest Income | 1.7 M | 851.6 K | |
| Operating Income | 29.7 M | 31.1 M | |
| Net Income From Continuing Ops | 27.3 M | 28.6 M | |
| Income Before Tax | 30.3 M | 31.9 M | |
| Total Other Income Expense Net | -5.9 M | -5.6 M | |
| Net Income Applicable To Common Shares | 649.8 K | 901.8 K | |
| Net Income | 16.3 M | 17.1 M | |
| Income Tax Expense | 2.4 M | 3.2 M | |
| Non Operating Income Net Other | 212.8 K | 223.4 K | |
| Change To Netincome | 36.9 M | 38.8 M | |
| Net Income Per Share | 0.53 | 0.34 | |
| Income Quality | 3.23 | 2.67 | |
| Net Income Per E B T | 0.62 | 0.89 |
Goosehead Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Goosehead Insurance. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Goosehead Insurance position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Goosehead Insurance's important profitability drivers and their relationship over time.
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Check out Risk vs Return Analysis. For information on how to trade Goosehead Stock refer to our How to Trade Goosehead Stock guide.You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
To fully project Goosehead Insurance's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Goosehead Insurance at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Goosehead Insurance's income statement, its balance sheet, and the statement of cash flows.