Goosehead Insurance Inc. Class A Common Stock (GSHD)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $57 million in annual free cash flow (3.1% yield on market cap)
• Revenue growth of 23.1% demonstrates strong top-line momentum

Concerns

• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Goosehead Insurance Inc. Class A Common Stock is a micro-cap financial services company valued at $1.8 billion. The business generates $382 million in annual revenue with a 1.3% net margin and $57 million in free cash flow. From a quality standpoint, Goosehead shows distressed Altman Z-Score of 1.6 warrants caution. On valuation, the stock is trading at a premium 33.0x earnings, with PEG of 0.30 suggests growth is underpriced. Growth dynamics show revenue growing at 23.1% and profit growth of 108.8%. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Goosehead's 23% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $57 million in annual free cash flow (3.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 33x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer