10Y annualized return is
excellent
at 22.3% per year
GDDY has met or exceeded earnings expectations in
some
recent quarters (5/10)
Moderate Price-to-Earnings Ratio
Strong Gross Profit Margin
Healthy Net Profit Margin
Adequate Interest Coverage
🏆 Strong Revenue Growth
💰 High EBITDA Margin
🔄 Integrated Platform
🚀 Promising Growth Initiatives
🤖 Innovative AI Integration
📈 Strong Cash Flow Generation
High Price-to-Sales Ratio
Excessive Price-to-Book Ratio
Low Return on Equity
High Debt Levels
Low Liquidity Ratios
📉 Customer Base Decline
🔮 Uncertain Customer Growth Timeline
🌍 International Growth Challenges
Overall, GoDaddy exhibits strong business quality with significant revenue growth and profitability. However, challenges like customer base decline and uncertain growth timelines may impact future prospects. The company is well-positioned for innovation and cash flow generation, which supports its growth initiatives.
Analysis Date: February 13, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
GoDaddy Inc. helps people and businesses create and manage their online presence. They allow customers to buy domain names (web addresses) so they can have their own website. GoDaddy also offers tools for building websites, hosting them online, and making sure they are secure. Additionally, they provide services for online marketing and selling products, making it easier for small businesses to reach customers on the internet.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$254.57
Current Market Price: $164.03
IV/P Ratio: 1.55x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
36.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for GDDY
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (24.87)
P/B ratio ≤ 1.5 (33.66)
Current ratio ≥ 2.0 (0.72x)
Long-term debt < Net current assets (-5.16x)
Margin of safety (36.0%)
GDDY does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
231.25%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
61.59%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
20.50%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The gross profit margin of 61.59% indicates that the company retains a significant portion of revenue after direct costs, signaling a strong pricing strategy and cost control.
The net profit margin of 20.50% signifies that the company is effective in converting revenue into actual profit after all expenses, which is a positive indicator of profitability.
A return on equity (ROE) of 2.31% is quite low, suggesting that the company is not effectively generating profits from its shareholders' equity, which can be a red flag.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
5.59x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.72x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
An interest coverage ratio of 5.07 indicates that the company can comfortably cover its interest obligations, reflecting good financial health.
The debt-to-equity ratio of 5.59 is extremely high, indicating that the company is heavily reliant on debt financing, which can pose risks in economic downturns.
The current ratio of 0.72 and quick ratio of 0.72 suggest potential liquidity issues, indicating that the company may struggle to cover short-term obligations.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
GoDaddy achieved a notable 9% growth in top-line bookings and crossed $5 billion in annual bookings. This is a significant milestone that reflects the company's effective strategy and execution.
The company expanded its normalized EBITDA margin to 31%, indicating strong profitability and efficient cost management. The margin improvement of nearly 400 basis points shows effective operational discipline.
GoDaddy's integrated platform enhances customer retention and engagement, boasting an 85% retention rate. This integration creates a competitive advantage by providing a one-stop-shop for customers.
The company reported a decline in the overall customer base to 20.5 million, attributed to strategic divestitures and the cessation of deep discounting. This presents a risk to growth and market presence.
GoDaddy plans to focus on pricing and bundling, which delivered impactful results in 2024. The company is optimistic about meaningful contributions from this initiative in 2025.
The introduction of AI-driven tools, such as Aero and Aero Plus, shows potential for enhanced customer experience and engagement, setting the stage for future monetization and product expansion.
The company reported a 25% increase in free cash flow, reaching $1.4 billion. This solid cash flow position supports future investments and shareholder returns.
While there is confidence in returning to customer growth in 2025, the timeline remains uncertain due to previous headwinds affecting customer acquisition.
The company anticipates that revenue growth in the U.S. will outpace international growth, indicating potential challenges due to currency headwinds.