Is Godaddy Stock a Good Investment?
Godaddy Investment Advice | GDDY |
- Examine Godaddy's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Godaddy's leadership team and their track record. Good management can help Godaddy navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Internet Services & Infrastructure space and any emerging trends that could impact Godaddy's business and its evolving consumer preferences.
- Compare Godaddy's performance and market position to its competitors. Analyze how Godaddy is positioned in terms of product offerings, innovation, and market share.
- Check if Godaddy pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Godaddy's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Godaddy stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Godaddy is a good investment.
Sell | Buy |
Examine Godaddy Stock
Researching Godaddy's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 96.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.56. Godaddy had not issued any dividends in recent years.
To determine if Godaddy is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Godaddy's research are outlined below:
| Godaddy generated a negative expected return over the last 90 days | |
| The company currently holds 3.95 B in liabilities. Godaddy has a current ratio of 0.62, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Godaddy until it has trouble settling it off, either with new capital or with free cash flow. So, Godaddy's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Godaddy sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Godaddy to invest in growth at high rates of return. When we think about Godaddy's use of debt, we should always consider it together with cash and equity. | |
| Godaddy has a very strong financial position based on the latest SEC filings | |
| Over 96.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: GoDaddy Inc. Position Lessened by Macquarie ... - MarketBeat |
Godaddy Quarterly Interest Expense |
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Godaddy uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Godaddy. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Godaddy's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 2nd of November 2023 Upcoming Quarterly Report | View | |
| 13th of February 2024 Next Financial Report | View | |
| 30th of September 2023 Next Fiscal Quarter End | View | |
| 13th of February 2024 Next Fiscal Year End | View | |
| 30th of June 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Godaddy's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Godaddy's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-05-08 | 2018-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2016-11-02 | 2016-09-30 | 0.03 | 0.05 | 0.02 | 66 | ||
2016-05-04 | 2016-03-31 | -0.17 | -0.15 | 0.02 | 11 | ||
2019-05-02 | 2019-03-31 | 0.1 | 0.07 | -0.03 | 30 | ||
2018-08-02 | 2018-06-30 | 0.08 | 0.11 | 0.03 | 37 | ||
2015-11-04 | 2015-09-30 | -0.07 | -0.04 | 0.03 | 42 | ||
2016-08-03 | 2016-06-30 | -0.07 | -0.11 | -0.04 | 57 | ||
2021-08-04 | 2021-06-30 | 0.32 | 0.27 | -0.05 | 15 |
Godaddy's SEC filings
Before you invest in Godaddy, make sure you check Godaddy'srecent SEC filings. These artifacts are important regulatory documents required of all public companies to provide to potential investors. Godaddy prospectus issued under the guidelines of the SEC is a legal declaration of facts and statements to ensure that Godaddy investors are not misled. SEC filings are required by law to meet strict transparency standards and other important legal constraints. Although many companies may choose careful wording to disguise some material information, SEC filings make crucial Godaddy's specific information freely available to individual and institutional investors to make a timely investment decision.
| 12th of September 2023 Unclassified Corporate Event | View | |
| 3rd of August 2023 Financial Statements and Exhibits. Results of Operations and Financial Condition | View | |
| 8th of June 2023 Submission of Matters to a Vote of Security Holders. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers | View |
Godaddy Target Price Consensus
We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Godaddy target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Godaddy's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| Buy |
Most Godaddy analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Godaddy stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Godaddy, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationGodaddy Target Price Projection
Godaddy's current and average target prices are 71.65 and 92.27, respectively. The current price of Godaddy is the price at which Godaddy is currently trading. On the other hand, Godaddy's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Godaddy Market Quote on 27th of September 2023
Target Price
Analyst Consensus On Godaddy Target Price
Godaddy Analyst Ratings
Godaddy's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Godaddy stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Godaddy's financials, market performance, and future outlook by experienced professionals. Godaddy's historical ratings below, therefore, can serve as a valuable tool for investors.Godaddy's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 10.72 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Godaddy's market, we take the total number of its shares issued and multiply it by Godaddy's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.Market Cap |
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Godaddy's profitablity analysis
Godaddy's profitability indicators refer to fundamental financial ratios that showcase Godaddy's ability to generate income relative to its revenue or operating costs. If, let's say, Godaddy is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Godaddy's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Godaddy's profitability requires more research than a typical breakdown of Godaddy's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
| Last Reported | Projected for 2023 | ||
| Return on Investment | 13.37 | 14.42 | |
| Return on Average Assets | 0.05 | 0.06 | |
| Return on Average Equity | (0.92) | (1.00) | |
| Return on Invested Capital | 0.17 | 0.19 | |
| Return on Sales | 0.12 | 0.13 |
Determining Godaddy's profitability involves analyzing its financial statements and using various financial metrics to determine if Godaddy is a good buy. For example, gross profit margin measures Godaddy's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Godaddy's profitability and make more informed investment decisions.
The data published in Godaddy's official financial statements usually reflect Godaddy's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Godaddy. For example, before you start analyzing numbers published by Godaddy accountants, it's critical to develop an understanding of what Godaddy's liquidity, profitability, and earnings quality are in the context of the IT Services space in which it operates.
Please note, the presentation of Godaddy's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Godaddy's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Godaddy's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Godaddy. Please utilize our Beneish M Score to check the likelihood of Godaddy's management manipulating its earnings.
Evaluate Godaddy's management efficiency
Godaddy has return on total asset (ROA) of 0.0477 % which means that it generated a profit of $0.0477 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.6801 %, meaning that it created $0.6801 on every $100 dollars invested by stockholders. Godaddy's management efficiency ratios could be used to measure how well Godaddy manages its routine affairs as well as how well it operates its assets and liabilities. Godaddy Return on Investment is fairly stable at the moment as compared to the past year. Godaddy reported Return on Investment of 13.37 in 2022. Return on Average Assets is likely to rise to 0.06 in 2023, whereas Return on Average Equity is likely to drop (1.00) in 2023. Godaddy Asset Turnover is fairly stable at the moment as compared to the past year. Godaddy reported Asset Turnover of 0.59 in 2022. Return on Average Assets is likely to rise to 0.06 in 2023, whereas Total Assets are likely to drop slightly above 6.7 B in 2023.| Last Reported | Projected for 2023 | ||
| Book Value per Share | (2.09) | (2.15) | |
| Enterprise Value over EBIT | 29.00 | 31.29 | |
| Enterprise Value over EBITDA | 21.22 | 17.80 | |
| Price to Book Value | (35.04) | (37.80) | |
| Tangible Assets Book Value per Share | 13.76 | 13.82 | |
| Enterprise Value | 14.8 B | 14.8 B | |
| Tangible Asset Value | 2.2 B | 2.1 B |
The analysis of Godaddy's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Godaddy's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Godaddy Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Long Term Debt Total 3.8 B | Short Long Term Debt Total 3.9 B | Interest Expense 146.3 M | Total Operating Expenses 2.1 B | Beta 0.955 |
Basic technical analysis of Godaddy Stock
As of the 27th of September, Godaddy retains the Standard Deviation of 1.51, market risk adjusted performance of (0.008708), and Risk Adjusted Performance of 0.0045. Godaddy technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down thirteen technical drivers for Godaddy, which can be compared to its competitors. Please check out Godaddy market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Godaddy is priced fairly, providing market reflects its last-minute price of 71.65 per share. Given that Godaddy has information ratio of 0.0023, we strongly advise you to confirm Godaddy's regular market performance to make sure the company can sustain itself at a future point.Godaddy's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Godaddy insiders, such as employees or executives, is commonly permitted as long as it does not rely on Godaddy's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Godaddy insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ray Winborne over three months ago Exercise or conversion by Ray Winborne of 15000 shares of Godaddy subject to Rule 16b-3 | ||
Ray Winborne over three months ago Sale by Ray Winborne of 68900 shares of Godaddy |
Understand Godaddy's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Godaddy's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0045 | |||
| Market Risk Adjusted Performance | (0.008708) | |||
| Mean Deviation | 0.9486 | |||
| Coefficient Of Variation | (45,343) | |||
| Standard Deviation | 1.51 | |||
| Variance | 2.27 | |||
| Information Ratio | 0.0023 | |||
| Jensen Alpha | (0.001406) | |||
| Total Risk Alpha | 0.0274 | |||
| Treynor Ratio | (0.018708) | |||
| Maximum Drawdown | 11.47 | |||
| Value At Risk | (1.77) | |||
| Potential Upside | 1.92 | |||
| Skewness | (2.00) | |||
| Kurtosis | 11.54 |
| Risk Adjusted Performance | 0.0045 | |||
| Market Risk Adjusted Performance | (0.008708) | |||
| Mean Deviation | 0.9486 | |||
| Coefficient Of Variation | (45,343) | |||
| Standard Deviation | 1.51 | |||
| Variance | 2.27 | |||
| Information Ratio | 0.0023 | |||
| Jensen Alpha | (0.001406) | |||
| Total Risk Alpha | 0.0274 | |||
| Treynor Ratio | (0.018708) | |||
| Maximum Drawdown | 11.47 | |||
| Value At Risk | (1.77) | |||
| Potential Upside | 1.92 | |||
| Skewness | (2.00) | |||
| Kurtosis | 11.54 |
Godaddy Stock media impact
Far too much social signal, news, headlines, and media speculation about Godaddy that are available to investors today. That information is available publicly through Godaddy media outlets and privately through word of mouth or via Godaddy internal channels. However, regardless of the origin, that massive amount of Godaddy data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Godaddy news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Godaddy relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Godaddy's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Godaddy alpha.
Godaddy Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Godaddy can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Godaddy Historical Investor Sentiment
Investor biases related to Godaddy's public news can be used to forecast risks associated with an investment in Godaddy. The trend in average sentiment can be used to explain how an investor holding Godaddy can time the market purely based on public headlines and social activities around Godaddy. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Godaddy's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Godaddy and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Godaddy news discussions. The higher the estimate score, the more favorable the investor's outlook on Godaddy.
Godaddy Maximum Pain Price across 2023-09-29 Option Contracts
Godaddy's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Godaddy close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Godaddy's options.
Be your own money manager
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Becoming a Better Investor with Macroaxis
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Godaddy using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
Align your risk with return expectations
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Godaddy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. For more information on how to buy Godaddy Stock please use our How to Invest in Godaddy guide. Note that the Godaddy information on this page should be used as a complementary analysis to other Godaddy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Complementary Tools for Godaddy Stock analysis
When running Godaddy's price analysis, check to measure Godaddy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Godaddy is operating at the current time. Most of Godaddy's value examination focuses on studying past and present price action to predict the probability of Godaddy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Godaddy's price. Additionally, you may evaluate how the addition of Godaddy to your portfolios can decrease your overall portfolio volatility.
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Is Godaddy's industry 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 Godaddy. If investors know Godaddy 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 Godaddy 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 (0.036) | Earnings Share 2.03 | Revenue Per Share 26.93 | Quarterly Revenue Growth 0.032 | Return On Assets 0.0477 |
The market value of Godaddy is measured differently than its book value, which is the value of Godaddy that is recorded on the company's balance sheet. Investors also form their own opinion of Godaddy's value that differs from its market value or its book value, called intrinsic value, which is Godaddy'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 Godaddy's market value can be influenced by many factors that don't directly affect Godaddy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Godaddy's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Godaddy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Godaddy'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.