GoDaddy (GDDY) Stock Analysis
This is a peer-relative look at GoDaddy (GDDY): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | GDDY |
|---|---|
| Name | GoDaddy Inc. Class A Common Stock |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | IT Services |
| GICS Sub-Industry | Internet Services & Infrastructure |
| Market Capitalization | 13.87 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 31, 2015 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: GDDY | Industry group median |
|---|---|---|
| Total Return (1Y) | -13.82% | -3.00% |
| Total Return (3Y, Annualized) | 9.45% | 8.28% |
| Total Return (5Y, Annualized) | 9.67% | -7.91% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: GDDY | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 51.12% | 61.69% |
| Beta (5Y) | 0.94 | 1.06 |
| Max Drawdown (5Y) | -65.02% | -76.52% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: GDDY | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.35 | -0.13 |
| Sortino Ratio (1Y) | -0.49 | -0.19 |
Profitability
ROE (TTM)
No usable ROE is available for GoDaddy (GDDY) this period, so the shareholder-equity return read is skipped.
GDDY
Software & Services industry group
--
Group distribution
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
- GDDY
- --
Largest peers
- ORCL
- 41.19%
- PLTR
- 40.91%
- IBM
- 34.77%
- MSFT
- 34.22%
- SAP
- 18.18%
- PANW
- 1.74%
- GDDY
- --
Net Margin (TTM)
GoDaddy (GDDY) keeps 18.56% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
GDDY
Software & Services industry group
18.56%
Group distribution
- Max
- 41.17%
- GDDY
- 18.56%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Largest peers
- PLTR
- 50.34%
- MSFT
- 41.17%
- ORCL
- 26.36%
- SAP
- 20.41%
- GDDY
- 18.56%
- IBM
- 15.99%
- PANW
- 2.67%
Operating Margin (TTM)
GoDaddy (GDDY) turns 27.24% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
GDDY
Software & Services industry group
27.24%
Group distribution
- Max
- 46.89%
- GDDY
- 27.24%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Largest peers
- MSFT
- 49.76%
- PLTR
- 46.89%
- ORCL
- 35.63%
- SAP
- 29.50%
- GDDY
- 27.24%
- IBM
- 16.97%
- PANW
- 5.40%
Profitability Metrics
| Metric | Current stock: GDDY | Industry group median |
|---|---|---|
| ROE (TTM) | -- | 6.59% |
| ROA (TTM) | 10.62% | 2.45% |
| Net Margin (TTM) | 18.56% | 4.63% |
| Operating Margin (TTM) | 27.24% | 8.73% |
| Gross Margin (TTM) | 63.75% | 70.07% |
Growth
Revenue Growth
GoDaddy (GDDY) grew revenue 8.26%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
GoDaddy (GDDY) grew earnings per share -3.57%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: GDDY | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 8.26% | 14.22% |
| Revenue Growth (3Y CAGR) | 6.56% | 13.52% |
| EPS Growth (YoY) | -3.57% | 7.85% |
| EPS Growth (3Y CAGR) | 41.62% | 18.19% |
Financial Strength
Current Ratio (MRQ)
GoDaddy (GDDY) has current ratio of 0.61, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
GDDY
Software & Services industry group
0.61
Group distribution
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- GDDY
- 0.61
- Min
- 0.03
Largest peers
- PLTR
- 7.10
- MSFT
- 1.23
- ORCL
- 1.17
- SAP
- 1.16
- PANW
- 0.87
- IBM
- 0.86
- GDDY
- 0.61
Debt / Equity (MRQ)
No usable debt-to-equity ratio is available for GoDaddy (GDDY) this period, so the balance-sheet leverage read is skipped.
GDDY
Software & Services industry group
--
Group distribution
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
- GDDY
- --
Largest peers
- ORCL
- 2.52
- IBM
- 1.85
- MSFT
- 0.28
- SAP
- 0.23
- PANW
- 0.09
- PLTR
- 0.02
- GDDY
- --
Financial Strength Metrics
| Metric | Current stock: GDDY | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.61 | 1.67 |
| Debt / Equity (MRQ) | -- | 0.40 |
| Net Debt / EBITDA | 1.88 | 0.17 |
Dividends
Dividend Yield (TTM)
GoDaddy (GDDY) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
GDDY
Software & Services industry group
0.00%
Group distribution
- GDDY
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 2.73%
- ORCL
- 1.74%
- SAP
- 1.03%
- MSFT
- 0.69%
- GDDY
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
Dividend Payout Ratio (TTM)
GoDaddy (GDDY) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
GDDY
Software & Services industry group
0.00%
Group distribution
- GDDY
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 57.51%
- SAP
- 36.45%
- ORCL
- 31.35%
- MSFT
- 19.00%
- GDDY
- 0.00%
- PLTR
- 0.00%
- PANW
- 0.00%
Dividend Metrics
| Metric | Current stock: GDDY | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
GoDaddy (GDDY) trades at P/E ratio of 15.73, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.
GDDY
Software & Services industry group
15.73
Group distribution
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- GDDY
- 15.73
- Min
- 6.69
Largest peers
- PANW
- 784.60
- PLTR
- 112.94
- SAP
- 29.07
- MSFT
- 27.69
- IBM
- 20.90
- ORCL
- 18.20
- GDDY
- 15.73
P/S Ratio (TTM)
GoDaddy (GDDY) trades at 2.68 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
GDDY
Software & Services industry group
2.68
Group distribution
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- GDDY
- 2.68
- Q1
- 2.23
- Min
- 0.02
Largest peers
- PLTR
- 53.02
- PANW
- 22.37
- MSFT
- 11.37
- SAP
- 6.84
- ORCL
- 5.04
- IBM
- 3.31
- GDDY
- 2.68
P/B Ratio (MRQ)
GoDaddy (GDDY) has negative P/B ratio of -100.78, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.
GDDY
Software & Services industry group
-100.78
Group distribution
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
- GDDY
- -100.78
Largest peers
- SAP
- 73.25
- PLTR
- 34.41
- PANW
- 9.30
- MSFT
- 8.38
- IBM
- 6.52
- ORCL
- 5.68
- GDDY
- -100.78
Valuation Metrics
| Metric | Current stock: GDDY | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 15.73 | 32.91 |
| P/S Ratio (TTM) | 2.68 | 4.25 |
| P/B Ratio (MRQ) | -100.78 | 4.30 |
| Free Cash Flow Yield (TTM) | 8.75% | 3.98% |