Goosehead Insurance Return On Equity vs. Revenue

GSHD Stock  USD 117.26  0.07  0.06%   
Based on the measurements of profitability obtained from Goosehead Insurance's financial statements, Goosehead Insurance's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Goosehead Insurance's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.25003537
Current Value
0.26
Quarterly Volatility
1.00543279
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Goosehead Insurance's EV To Sales is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.23, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.23. At present, Goosehead Insurance's Operating Income is projected to decrease significantly based on the last few years of reporting. The current year's Net Income From Continuing Ops is expected to grow to about 24.9 M, whereas Interest Income is forecasted to decline to about 851.6 K.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.290.4159
Way Down
Very volatile
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.
  

Goosehead Insurance's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
For information on how to trade Goosehead Stock refer to our How to Trade Goosehead Stock guide.
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
11.444
Quarterly Revenue Growth
0.1
Return On Assets
0.0637
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 Revenue 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 revenue category among its peers totaling about  340,513,489  of Revenue 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 Revenue 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

Return On Equity

 = 

Net Income

Total Equity

 = 
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.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Goosehead Insurance

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
261.28 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Goosehead Revenue vs Competition

Goosehead Insurance is rated below average in revenue category among its peers. Market size based on revenue of Financials industry is currently estimated at about 123.68 Billion. Goosehead Insurance adds roughly 261.28 Million in revenue claiming only tiny portion of equities under Financials industry.

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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income16.8 M17.6 M
Net Interest Income-6.6 M-6.2 M
Interest Income1.4 M851.6 K
Operating Income33 M34.6 M
Net Income From Continuing Ops23.7 M24.9 M
Income Before Tax26.4 M27.7 M
Total Other Income Expense Net-6.6 M-6.2 M
Net Income Applicable To Common Shares649.8 K901.8 K
Net Income14.1 M14.8 M
Income Tax Expense2.7 M3.2 M
Non Operating Income Net Other212.8 K223.4 K
Change To Netincome36.9 M38.8 M
Net Income Per Share 0.59  0.34 
Income Quality 3.59  2.67 
Net Income Per E B T 0.54  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.

Use Goosehead Insurance 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 Goosehead Insurance 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 Goosehead Insurance will appreciate offsetting losses from the drop in the long position's value.

Goosehead Insurance Pair Trading

Goosehead Insurance Pair Trading Analysis

The ability to find closely correlated positions to Goosehead Insurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Goosehead Insurance 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 Goosehead Insurance - 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 Goosehead Insurance to buy it.
The correlation of Goosehead Insurance 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 Goosehead Insurance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Goosehead Insurance 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 Goosehead Insurance 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Goosehead Insurance position

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When determining whether Goosehead Insurance is a strong investment it is important to analyze Goosehead Insurance's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Goosehead Insurance's future performance. For an informed investment choice regarding Goosehead Stock, refer to the following important reports:
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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.
Potential Goosehead Insurance investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Goosehead Insurance investors may work on each financial statement separately, they are all related. The changes in Goosehead Insurance's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Goosehead Insurance's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.