[Qiltrack AI] GoDaddy Inc (GDDY) 3-Minute Overview

This report is auto-generated by an AI stock research platform for informational purposes only. The content is for general information and research reference, and does not constitute financial advice. Data may lag or be incomplete. Always conduct your own research and consult qualified professionals before making any financial decisions. # [Qiltrack AI] GoDaddy Inc (GDDY) 3-Minute Overview > **💡 One-Sentence Summary** > > Simply put, GoDaddy is a subscription-heavy digital storefront for small businesses—domains, websites, hosting, and related tools—and the story right now is a profitable, cash-generating business that the market has recently marked down after weaker sentiment. > **📍 Basic Profile** > > Market Cap **$10.98 billion** · Technology / Internet Services · NEW YORK STOCK EXCHANGE, INC. · Price **$82.33** > **⚡ 3 Things You Should Know** > > 1. 💰 Quietly high-quality economics: GoDaddy’s gross margin is **63.61%** and net margin is **17.67%**, which tells you this is not a low-value commodity hosting business—it has real pricing power and recurring revenue characteristics. > > 2. 📈 Growth isn’t flashy, but earnings are scaling faster than sales: revenue growth has been only mid-single-digit over 3 years (**6.56%**), yet 3-year EPS growth is **41.83%**, which usually means the company is getting more efficient and returning more value per share. > > 3. ⚠️ Balance sheet optics need context: debt-to-equity is extremely high (**17.57x**) and current ratio is weak (**0.61**), so this is not a “fortress balance sheet” name; the business can handle it for now thanks to profitability and interest coverage, but if growth slows further, leverage becomes a much bigger talking point. > **🎯 Quick Health Check** > > | Dimension | Rating | Details | > |-----------|--------|---------| > | Profitability | Strong💪 | Net margin 17.67%, strong for a software-enabled internet platform | > | Growth Rate | Steady📈 | Revenue growth 6.56% (3Y), not explosive but still positive | > | Financial Health | Moderate💛 | Current ratio 0.61 and very high leverage, partly offset by solid earnings | > | Valuation | Fair | PE 12.60x, not demanding relative to profitability | --- ### 📋 Layer 2: 2-Minute Deep Dive #### 📊 How Does This Company Make Money? **Business Model in One Sentence:** GoDaddy sells domains, website-building, hosting, and commerce tools to small businesses and entrepreneurs, making money mainly through recurring subscriptions and renewals. **Revenue Breakdown:** | Business | Share | Trend | Comment | |----------|-------|-------|---------| | Domains & registrations | [Data unavailable] | → | Likely the sticky base business; customers tend to renew once their web identity is established | | Hosting / websites / productivity tools | [Data unavailable] | ↑ | Higher-value tools are where upsell and margin expansion usually come from | **Profitability Metrics:** | Metric | Value | Ranking | Interpretation | |--------|-------|---------|----------------| | Gross Margin | 63.61% | Top tier / above average | Strong gross profit suggests decent pricing power and software-like economics | | Net Margin | 17.67% | Above Average | Shows GoDaddy converts a meaningful share of revenue into bottom-line profit | | ROE | 384.19% | Excellent>20% | Looks extraordinary, but this is heavily distorted by a very small or reduced equity base, so don’t read it as pure business strength | --- #### 📈 How's the Growth? **Growth Assessment:** Steady Growth | Metric | Latest | vs Last Year | Trend | |--------|--------|--------------|-------| | Revenue Growth | [Latest annual data unavailable] | 3Y CAGR 6.56% | Stable | | Profit Growth | [Latest annual data unavailable] | EPS 3Y CAGR 41.83% | Accelerating vs revenue | **Growth Quality:** > What’s interesting is that earnings have grown much faster than revenue. In other words, this does not look like a pure “more customers, more sales” story—it looks more like a mix of operating efficiency, pricing, product mix improvement, and possibly share count benefits. That can be good, but it also means future upside may depend on execution staying tight rather than demand suddenly re-accelerating. --- #### 💰 Financial Health Check **One Sentence:** Think of it like someone with a solid paycheck and good cash generation, but also a pretty heavy debt load and not much short-term liquidity cushion. | Metric | Value | Safe Zone | Assessment | |--------|-------|-----------|------------| | Debt Ratio | Debt-to-equity 1757.46% | <60% safe | 🚨Dangerous | | Current Ratio | 0.61 | >1.5 healthy | 🚨Dangerous | | Cash Flow | Cash flow/share $3.49 | >0 | ✅Positive | **Worth noting:** > The leverage numbers are the main thing to watch here. Interest coverage of **7.76x** says debt is still serviceable today, so this is not an immediate distress case. But the margin for error is clearly smaller than for a cash-rich tech company. --- #### 🏷️ Is It Expensive Now? **Price Position (based on 52-week range):** - 52-Week Low: $73.06 - 52-Week High: $193.55 - Current: $82.33, Near the low | Position Range | Cheap Zone | Fair Zone | Pricey Zone | |----------------|------------|-----------|-------------| | Criteria | 0-33% | 33-66% | 66-100% | | **Current** | ●(7.7% position) | | | **Valuation Comparison:** | Comparison | Current | Reference | Assessment | |------------|---------|-----------|------------| | vs Own History | PE 12.60x | 5-year avg [Data unavailable] | [Data unavailable] | | vs Peers | PE 12.60x | Industry avg [Data unavailable] | [Data unavailable] | **What the Current Valuation is Betting On:** > Basically, the market is no longer pricing GoDaddy like a premium growth tech name. At **12.6x** trailing earnings and with the stock sitting near its 52-week low, the current setup suggests investors are betting that growth stays modest and recent earnings disappointment was not just a one-quarter hiccup. If the company proves margins and cash flow remain resilient, this multiple leaves room for rerating. --- #### 📰 Any Recent News? | Date | Event | Impact | |------|-------|--------| | 2026-02-19 | GoDaddy integrated with Salesforce’s AI agents discovery software | Positive — shows management is leaning into AI as a product and workflow enhancer, which could help customer retention and efficiency | | 2026-02-25 / 2026-02-26 | Multiple firms cut price targets after Q4 2025 results | Negative — this usually means sentiment reset; not necessarily broken fundamentals, but expectations have clearly come down | | 2026-02-27 | Stock hit a 2-year low after dismal earnings reaction | Negative — the market is signaling lower confidence in near-term execution | | 2026-03 to 2026-04 | Follow-up articles focused on valuation after share weakness | Neutral — when coverage shifts from “growth story” to “is it cheap now?”, sentiment has cooled materially | --- ### 📊 Layer 3: Want More? 3-Minute Complete Analysis #### I. Detailed Financial Data **Profitability Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Gross Margin | 63.61% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Net Margin | 17.67% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | ROE | 384.19% | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Revenue Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | ↑ | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | ↑ | | EPS Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | ↑ | --- #### II. Earnings Track Record **Last 4 Quarters vs Expectations:** | Quarter | EPS Expected | EPS Actual | Surprise | |---------|--------------|------------|----------| | 2025-12-31 | $1.61 | $1.80 | +11.79% Beat 😀 | | 2025-09-30 | $1.49 | $1.51 | +1.25% Beat 😀 | | 2025-06-30 | $1.36 | $1.41 | +3.84% Beat 😀 | | 2025-03-31 | $1.40 | $1.51 | +7.55% Beat 😀 | **Earnings Trend Interpretation:** GoDaddy has beaten EPS estimates for four straight quarters, which usually tells you management is executing at least slightly better than Wall Street modeled. What’s interesting, though, is that the stock still sold off after the latest period, which means the issue may be less about reported EPS and more about guidance, growth expectations, or investor confidence in what comes next. --- #### III. What the Market Thinks **Analyst Ratings:** | Rating | Count | Percentage | |--------|-------|------------| | Strong Buy/Buy | 15 firms | 62.5% | | Hold | 9 firms | 37.5% | | Sell | 0 firms | 0.0% | **Target Price:** $95 ~ $215 ([Median data unavailable]) **vs Current Price:** implies upside based on published targets, but the range is unusually wide **Insider Activity:** Net selling in past 3 months > There were multiple insider sales reported, with no clear pattern of open-market insider buying in the provided data. That doesn’t automatically mean trouble—executives sell for many reasons—but after a sharp stock decline, the lack of visible buying is not a strong confidence signal either. --- #### IV. Key Risk Alerts **3 Risks to Watch:** 1. **Leverage Risk:** Debt-to-equity is extremely high and liquidity is thin → If operating performance softens, the stock could face renewed pressure because investors may stop giving management the benefit of the doubt 2. **Growth Ceiling Risk:** Revenue growth is only mid-single-digit → If upsell, pricing, or customer expansion slows, earnings momentum could fade faster than bulls expect 3. **Sentiment Reset Risk:** Several analysts cut price targets after earnings and the stock touched a 2-year low → If the next few quarters are merely “fine” instead of clearly improving, valuation may stay cheap for a while --- ### 🎬 Summary & Next Steps > **📝 Three-Sentence Summary** > > **What it is:** GoDaddy is a sticky digital infrastructure platform for small businesses, built around domains, websites, hosting, and recurring subscriptions. > > **Key strength:** Its margins and cash generation are better than many people assume, and EPS has grown much faster than revenue, which suggests disciplined execution. > > **Key risk:** The big watchout is leverage plus modest top-line growth—if the business loses momentum, the balance sheet becomes much harder for the market to ignore. --- > **🔍 Want to Learn More?** > > • Want to know if this company has a strong moat? → Try【Buffett Mode】for deeper analysis > > • Want to check for hidden landmines? → Try【Muddy Mode】for risk screening > > • Is this a growth stock? Want to calculate if it's worth the bet? → Try【Musk Mode】for analysis