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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

Company profile fields for GoDaddy (GDDY)
Profile ItemGDDY
NameGoDaddy Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustryIT Services
GICS Sub-IndustryInternet Services & Infrastructure
Market Capitalization13.87 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 31, 2015
Security TypeCommon Stock

Price Performance

Cumulative Growth

GDDY
GSPC
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GoDaddy (GDDY) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for GoDaddy (GDDY) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for GoDaddy (GDDY) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

GoDaddy (GDDY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GDDYIndustry 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

GDDY
GSPC
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GoDaddy (GDDY) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for GoDaddy (GDDY) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

GoDaddy (GDDY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GDDYIndustry group median
Volatility (1Y, Annualized)51.12%61.69%
Beta (5Y)0.941.06
Max Drawdown (5Y)-65.02%-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. GDDY is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

GoDaddy (GDDY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GDDYIndustry 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
--
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GoDaddy (GDDY) doesn’t report ROE this period; the box shows the Software & Services group’s distribution and the dots its largest members.

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%
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Where GoDaddy (GDDY) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where GoDaddy (GDDY) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

GoDaddy (GDDY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GDDYIndustry 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.

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GoDaddy (GDDY): Revenue Growth across different time periods, set against Software & Services industry-group medians.

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.

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GoDaddy (GDDY): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

GoDaddy (GDDY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GDDYIndustry 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
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Where GoDaddy (GDDY) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

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
--
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GoDaddy (GDDY) doesn’t report debt-to-equity ratio this period; the box shows the Software & Services group’s distribution and the dots its largest members.

Financial Strength Metrics

GoDaddy (GDDY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GDDYIndustry group median
Current Ratio (MRQ)0.611.67
Debt / Equity (MRQ)--0.40
Net Debt / EBITDA1.880.17

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%
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Where GoDaddy (GDDY) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where GoDaddy (GDDY) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

GoDaddy (GDDY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GDDYIndustry 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
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Where GoDaddy (GDDY) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

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
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Where GoDaddy (GDDY) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

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
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Where GoDaddy (GDDY) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

GoDaddy (GDDY) metric values compared with Software & Services industry-group medians
MetricCurrent stock: GDDYIndustry group median
P/E Ratio (TTM)15.7332.91
P/S Ratio (TTM)2.684.25
P/B Ratio (MRQ)-100.784.30
Free Cash Flow Yield (TTM)8.75%3.98%