Godaddy Profitability Analysis
GDDY Stock | USD 122.08 1.14 0.94% |
Net Income | First Reported 2012-03-31 | Previous Quarter 130.7 M | Current Value 1.1 B | Quarterly Volatility 194.7 M |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.5 | 0.5883 |
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For Godaddy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Godaddy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Godaddy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Godaddy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Godaddy over time as well as its relative position and ranking within its peers.
Godaddy |
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 11.863 | Earnings Share 9.08 | Revenue Per Share 28.687 | Quarterly Revenue Growth 0.058 | Return On Assets 0.0559 |
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.
Please note, there is a significant difference between Godaddy's value and its price as these two are different measures arrived at by different 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.
Godaddy Price To Earnings To Growth vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Godaddy's current stock value. Our valuation model uses many indicators to compare Godaddy value to that of its competitors to determine the firm's financial worth. Godaddy is rated # 5 in beta category among related companies. It is rated # 4 in price to earnings to growth category among related companies producing about 0.99 of Price To Earnings To Growth per Beta. The ratio of Beta to Price To Earnings To Growth for Godaddy is roughly 1.01 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Godaddy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Godaddy's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Godaddy's earnings, one of the primary drivers of an investment's value.Godaddy Price To Earnings To Growth vs. Beta
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Godaddy |
| = | 1.12 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
Godaddy |
| = | 1.10 X |
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.
Godaddy Price To Earnings To Growth Comparison
Godaddy is currently under evaluation in price to earnings to growth category among related companies.
Godaddy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Godaddy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Godaddy will eventually generate negative long term returns. The profitability progress is the general direction of Godaddy's change in net profit over the period of time. It can combine multiple indicators of Godaddy, 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 2024 | ||
Accumulated Other Comprehensive Income | 111.2 M | 116.8 M | |
Operating Income | 634 M | 665.7 M | |
Income Before Tax | 403.8 M | 424 M | |
Total Other Income Expense Net | -230.2 M | -218.7 M | |
Net Income | 1.4 B | 1.4 B | |
Income Tax Expense | -971.8 M | -923.2 M | |
Net Income From Continuing Ops | 355.3 M | 373.1 M | |
Net Income Applicable To Common Shares | 405 M | 425.3 M | |
Interest Income | 114.1 M | 92.2 M | |
Non Operating Income Net Other | 4.6 M | 4.8 M | |
Net Interest Income | -177.6 M | -168.7 M | |
Change To Netincome | 391.5 M | 411 M | |
Net Income Per E B T | 3.40 | 3.57 |
Godaddy Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Godaddy. 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 Godaddy 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 Godaddy's important profitability drivers and their relationship over time.
Godaddy Profitability Trends
Godaddy profitability trend refers to the progression of profit or loss within a business. An upward trend means that Godaddy's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Godaddy's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Godaddy Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Godaddy different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Godaddy in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Godaddy's future profitability.
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Use Godaddy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Godaddy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Godaddy will appreciate offsetting losses from the drop in the long position's value.Godaddy Pair Trading
Godaddy Pair Trading Analysis
The ability to find closely correlated positions to Godaddy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Godaddy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Godaddy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Godaddy to buy it.
The correlation of Godaddy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Godaddy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Godaddy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Godaddy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Godaddy position
In addition to having Godaddy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Small Blend Funds Thematic Idea Now
Small Blend Funds
Fund or Etfs that invest in stocks of small to mid-sized entities that have characteristics of both growth and value companies. The Small Blend Funds theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Blend Funds Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis. 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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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To fully project Godaddy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Godaddy 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 Godaddy's income statement, its balance sheet, and the statement of cash flows.