GoDaddy Inc (GDDY, Financial), a leading software company, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 22.79%, from a market cap of $12.05 billion to its current price of $85.56. This impressive performance is a testament to the company's robust business model and strategic initiatives. Let's delve deeper into the factors driving this growth and what it means for investors.
Stock Performance Analysis
Over the past week, GoDaddy's stock price has seen a gain of 19.40%, contributing to the overall 22.79% increase over the past three months. The company's GF Value, a measure of intrinsic value defined by GuruFocus.com, currently stands at $93.34. This indicates that the stock is fairly valued at its current price. However, three months ago, the GF Value was $95.1, suggesting that the stock was modestly undervalued at that time. This shift from being undervalued to fairly valued indicates a positive market sentiment towards GoDaddy.
Introduction to GoDaddy Inc
GoDaddy Inc is a renowned software company that offers a wide array of services, including domain registration, website hosting, business productivity tools, and commerce solutions. The company primarily targets micro to small businesses, website design professionals, and domain investors. In 2021, GoDaddy acquired payment processing platform Poynt, expanding its offerings into omnicommerce solutions, including an online payment gateway and offline point-of-sale devices. This strategic move has broadened GoDaddy's market reach and bolstered its growth prospects.
Profitability Analysis
GoDaddy's Profitability Rank stands at 6/10, indicating a relatively high level of profitability. The company's Operating Margin is 12.77%, better than 78.33% of companies in the same industry. Its ROE is 10000.00%, ROA is 4.64%, and ROIC is 7.03%, all of which are better than the majority of its peers. Over the past 10 years, GoDaddy has achieved profitability for 5 years, better than 44.92% of companies in the same sector.
Growth Analysis
GoDaddy's Growth Rank is 6/10, indicating a relatively high level of growth. The company's 3-Year Revenue Growth Rate per Share is 15.50%, and its 5-Year Revenue Growth Rate per Share is 15.10%. The future total revenue growth rate estimate is 7.54%, and the 3-Year EPS without NRI Growth Rate is 41.20%. The future EPS without NRI Growth Rate is estimated at 19.62%. These figures suggest that GoDaddy has a strong growth trajectory.
Top Holders of GoDaddy Stock
Paul Tudor Jones (Trades, Portfolio) is the top holder of GoDaddy stock, with 183,766 shares, followed by Caxton Associates (Trades, Portfolio) with 21,890 shares, and Lee Ainslie (Trades, Portfolio) with 20,833 shares. Their investments underscore the confidence these market gurus have in GoDaddy's business model and growth prospects.
Competitive Landscape
GoDaddy operates in a competitive software industry, with key competitors including Gen Digital Inc (GEN, Financial) with a market cap of $11.27 billion, Okta Inc (OKTA, Financial) with a market cap of $11.46 billion, and Amdocs Ltd (DOX, Financial) with a market cap of $9.82 billion. Despite the intense competition, GoDaddy's robust growth and profitability metrics position it favorably in the market.
Conclusion
In conclusion, GoDaddy's impressive stock performance, high profitability, and robust growth prospects make it a compelling investment. The company's strategic initiatives, including its expansion into omnicommerce solutions, have bolstered its market position and growth prospects. While the competition in the software industry is intense, GoDaddy's strong fundamentals and positive market sentiment suggest a promising future for the stock.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
