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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Godaddy Inc. (XNYS:GDDY) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
GDDY
Name:
GODADDY INC. (XNYS:GDDY)
Sector:
238.60M
Industry:
Software�Infrastructure
CEO:
Mr. Amanpal Bhutani
Total Employees:
6,611
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 38.81% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF GODADDY INC.(GDDY) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SOFTWARE�INFRASTRUCTURE INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
75.07
One Month Price Target:
$75.46
Six Month Price Target :
$77.43
Likely Price in One Year's Time:
Ticker:
$79.8
Likely Trading Range Today Under (Normal Volatility)
$74.77
Price Upper limit ($) :
$75.45
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$70.98
This week:
$65.92
This month :
$56.77
Other Primary facts
Market Cap:
11.62B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
156.68M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
17.51%
-19.16%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$94.05
$85.33
$56.09
$64.81
Medium risk (<10%) entry points
Buy Call
Sell Call
$82.49
Buy Put:
Sell Put:
$80.63
$67.62
$69.51
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
GDDY
Sharpe Ratio:
1.70%
Comparison:
GDDY, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 3.95% higher than the industry
& is -25.44% lower than the market/S&P 500 average
Average Returns/Yield of
GDDY
Daily returns:
0.05%
Weekly returns:
0.27%
Monthly returns:
1.09%
Yearly returns:
14.38%
Comparison of returns:
Average annual returns/yield (last 3 years) is -9.23% below industry average
Classification:
GDDY, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.54
Statistical test of Returns:
GDDY has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.68%
Weekly Volatility:
5.99%
Monthly Volatility:
11.99%
Yearly Volatility:
41.52%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.72%
Volatility in last five trading days has been -73.09% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.45%
Weekly VaR:
-12.19%
Monthly VaR:
-24.37%
How Much Can the price of
GDDY
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-21%
Worst case (decline):
-84.43%
This translates to price declining to:
$59.36
This translates to price declining to:
$11.69
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
GDDY is a 72.02% riskier investment compared to the market/S&P 500 & is 47.37% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -19.56% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
GDDY
Beta in relation to market/S&P 500--0.94
Expected beta in 1 year's time:
0.798
Expected beta in 3 year's time:
1.129
Unlevered (debt free) Beta:
-0.134
Beta in relation to Nasdaq (XNAS):
1.01
Beta in relation to all global stocks::
0.831
Beta Comparison & Analysis
Beta of competitors/peers::
1.269
Beta is -26.15% lower than peers
Average Industry Beta:
1.112
Beta is -15.73% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.035
Alpha is -3.61% below industry average alpha yield
Alpha is 222% higher than market/& is unsustainably high
Analysis of Cost of Capital of
GDDY
Equity cost of capital:
0.096
Equity cost of capital is -11.13% below industry mean WACC
Unlevered (without debt) cost of capital:
-1.37%
Before-tax cost of debt:
3.23%
After-tax cost of debt:
2.56%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.56%
WACC is -27.59% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$25.00
Revenue growth rate per share of (3Y):
-25.09
Annual revenue growth rate is -55.27% below industry average
EPS:
$1.77
Expected Annual growth rate of EPS (3Y):
21.59%
Expected future EPS growth rate is -28.34% lower than the Software�Infrastructure industry
Free cash flow (FCF) per share:
$3.59
-
-
Debt per share
$25.46
EBITDA per share
$4.13
Valuation Analysis Today of
GDDY
P/E Ratio:
36.47
P/E Ratio of Competitors/Peers:
9.09
P/E ratio is 301.26% higher than main peers & is -44.09% lower than the industry
Stock price/value with industry average P/E ratio: $115.47
GDDY is -34.99% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
3
Price to sales ratio is -72.66% below the industry mean
P/B (Price to book value ratio):
-25.09
Price to free cash flow: 20.89
Price to free cash flow ratio is -63.96% lower than the industry
Net income growth rate (3Y):
190.55%
Net income growth rate is -97.75% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
-847.89%
Net debt to equity ratio:
-702.19%
Debt to assets ratio:
57.81%
Net debt to assets ratio:
47.87%
Debt-to-asset ratio is -17.10% below industry average
Ability to repay debt:
Interest coverage ratio:
4.95
Interest coverage ratio is -102.34% less than industry average
Looking forward:
Debt growth rate:
22.25%
Annual debt growth is -79% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.20%
Analysis of Key Statistics
Correlation of price movement with the market:
0.643
Statistical significance of correlation:
GDDY has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.48
Stock price is 34.12% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.48
Correlation of price movement with Nasdaq (^IXIC):
0.002
Covariance of price movement with the market:
0.003
Kurtosis
9.823
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.032
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
GDDY
Gross Profit Margin Ratio:
255%
Operating Profit Margin Ratio:
11.58%
Operating profit margin is -197.58% lower than the industry
Net Profit Margin Ratio:
255%
Effective Tax Rate:
5.62%
Effective tax rate is -82.06% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-63.74%
Return on equity (ROE) is -159.71% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
4.35%
Return on assets (ROA) is -214.75% lower than the industry
Financial Leverage:
2.4x
Current Ratio:
0.58
Current ratio is -74.93% below industry average
Cash Conversion Cycle (days):
-16.6
Cash conversion cycle is -114.73% below industry average
The remaining useful life of property plant & equipment is: 5.4 years
Stock based compensation to net income ratio:
20.41%
In-depth Efficiency Analysis
Revenue generated per employee:
592.5K
Each employee generates 50% more revenue than industry average revenue per employee
EBITDA generated per employee:
97.9K
Each employee generates 50% more EBITDA than industry average revenue per employee
Profit generated per employee:
45.4K
Each employee generates 117% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
36.1K
Each employee generates 82% more free cash flow than industry average revenue per employee
Assets/Capital per employee
825.5K
Each employee generates 82% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 26.03%
Growth rate in R&D investment/expenditure is -1104.02% lower than the industry
Competitors/Peer firms of
GDDY
LEIDOS HOLDINGS, INC. (XNYS:LDOS)
Wolfspeed, Inc. (XNYS:WOLF)
BLACK KNIGHT, INC. (XNYS:BKI)
CERIDIAN HCM HOLDING INC. (XNYS:CDAY)
ZENDESK, INC. (XNYS:ZEN)
SAMSARA INC. (XNYS:IOT)
ASANA, INC. (XNYS:ASAN)
CIENA CORPORATION (XNYS:CIEN)
-
Current Analyst Ratings
Strong buy�13%
Buy�42%
Hold�17%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
3.92B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.42B
2.50B
710.00M
341.20M
828.70M
487.50M
504.00M
2.04B
-
130.90M
198.80M
647.50M
453.70M
299.90M
318.50M
17.90M
299.90M
Statement of Cash Flow
Date:
Period:
48.20M
Differed Income Tax :
-
Stock Based Compensation :
61.20M
Change in Working Capital :
55.30M
Accounts Receivables:
-
Other Working Capital:
75.10M
Other Non-Cash Items:
17.60M
Net Cash Provided by Operating Activities:
250.90M
Investments in PP&E:
- 12300.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
742.70M
-
742.70M
59.70M
-
641.30M
1.44B
323.40M
3.51B
1.34B
-
-
276.00M
5.46B
-
6.90B
114.20M
57.20M
45.40M
1.96B
341.00M
2.47B
3.99B
74.70M
4.90B
-
7.37B
200.00K
- 2156400.00K
20.1M
1.67B
March 31, 2022 at 6:00:00 AM
3.46B
- 470500.00K
6.90B
-
4.05B
3.3B
-
- 200.00K
- 12500.00K
- 8100.00K
-
- 750100.00K
-
7.60M
- 750600.00K
- 800.00K
- 513000.00K
742.70M
1.26B
250.90M
- 12300.00K
238.60M
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
GDDY
2023
2024
2025
2026
2027
$74.39
$79.07
$84.05
$89.34
$94.97