GDDYGDDY
US • —
$93.16
P/E
14.74
PEG
0.69
FCF Yield
13.4%
Rev Growth YoY
+7.8% YoY
Gross Margin
63.8%
Health Score
7/10
D/E Ratio
17.57
Confidence
MEDIUM
Business Snapshot
GoDaddy is a leading provider of domain registration, web hosting, and cloud-based productivity tools tailored for small-to-medium businesses (SMBs) and independent entrepreneurs. The company generates the bulk of its revenue through domain services, hosting subscriptions, and a growing suite of online presence and marketing applications like Websites + Marketing and GoDaddy Studio. Operates in the highly competitive web services and digital infrastructure market, where it holds a dominant position as the world's largest domain registrar by market share, benefiting from strong brand recognition and a vast customer base. It is a large-cap company with a market capitalisation of $12.24 billion, and its subscription-based model provides recurring revenue streams and high free cash flow generation. A defining characteristic of GoDaddy is its massive scale in domains and a strong focus on serving the SMB segment, creating a competitive moat via customer lock-in and an extensive distribution network.
Financial Health
Gross margin stands at a healthy 63.8%, while the net margin (TTM) is 17.3%, demonstrating the company's ability to translate revenue into profit. The balance sheet, however, is a point of caution: the Debt/Equity ratio is very high at 17.57x, indicating significant leverage, and the current ratio of 0.61x suggests potential near-term liquidity risk as current liabilities exceed current assets...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 17.57x is extraordinarily high and, combined with a current ratio of 0.61x, leaves the balance sheet with limited flexibility to service obligations in a downturn.
- VALUATION — Price/Book of 77.96x is extreme and reflects a very small tangible equity base, making asset-based valuations unreliable.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER — Over the last 90 days, there have been 2 insider sell transactions and 0 buys, a net selling signal that typically warrants close attention....
Gross margin stands at a healthy 63.8%, while the net margin (TTM) is 17.3%, demonstrating the company's ability to translate revenue into profit. The balance sheet, however, is a point of caution: the Debt/Equity ratio is very high at 17.57x, indicating significant leverage, and the current ratio of 0.61x suggests potential near-term liquidity risk as current liabilities exceed current assets. Free cash flow is a standout figure at $1.64 billion, and the FCF yield of 13.4% is exceptionally high, signalling that the company generates substantial cash relative to its market value. Overall, GoDaddy’s financial health is characterised by a powerful cash-generation engine that offsets a heavily leveraged and low-liquidity balance sheet, enabling continued reinvestment and debt servicing but leaving limited headroom for a major downturn.
- DEBT / LIQUIDITY — Debt/equity of 17.57x is extraordinarily high and, combined with a current ratio of 0.61x, leaves the balance sheet with limited flexibility to service obligations in a downturn. - VALUATION — Price/Book of 77.96x is extreme and reflects a very small tangible equity base, making asset-based valuations unreliable. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER — Over the last 90 days, there have been 2 insider sell transactions and 0 buys, a net selling signal that typically warrants close attention.
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