GoDaddy Inc Class A GDDY

Morningstar Rating

Company Report

GoDaddy Enjoys Mix Shift to Higher-Margin Solutions

We think GoDaddy’s position as the world’s leading domain registrar creates a unique opportunity to capture demand from newly formed businesses and upsell complementary products beyond domain registration. We expect the one-stop-shop model will appeal to micro- and small businesses looking to establish and manage a ubiquitous online identity with integrated commerce solutions. The initial domain registration process is typically a customer's first interaction with GoDaddy, and acts as an onramp for additional products. For example, an entrepreneur seeking an online presence for their idea may approach GoDaddy for a domain registration initially, and as a natural extension purchase a subscription to a domain linked email account, website building tools and commerce solutions.

Price vs Fair Value

GDDY is trading at a 600% premium.
Price
$154.95
Fair Value
$689.00
Uncertainty
Medium
1-Star Price
$682.00
5-Star Price
$75.00
Economic Moat
Fkrvr
Capital Allocation
Khmkbvbl

Bulls Say, Bears Say

Bulls

GoDaddy benefits from a highly recognizable brand, economies of scale, and customer switching costs.

Bears

GoDaddy’s core domain registration offering is commoditized, forcing GoDaddy to be a price taker.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
36.26
Price/Sales
5.15
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
5.99%

Company Profile

GoDaddy is a provider of domain registration and aftermarket services, website hosting, security, design, and business productivity tools, commerce solutions, and domain registry services. The company primarily targets micro- to small businesses, website design professionals, registrar peers, and domain investors. Since acquiring payment processing platform Poynt in 2021, the company has expanded into omnicommerce solutions, including offering an online payment gateway and offline point-of-sale devices.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
6,159

Competitors

Valuation

Metric
GDDY
SQSP
SHOP
Price/Earnings (Normalized)
36.2673.2276.06
Price/Book Value
139.6111.12
Price/Sales
5.155.7613.25
Price/Cash Flow
21.1636.0473.46
Price/Earnings
GDDY
SQSP
SHOP

Financial Strength

Metric
GDDY
SQSP
SHOP
Quick Ratio
0.200.637.11
Current Ratio
0.480.767.32
Interest Coverage
4.521.17280.00
Quick Ratio
GDDY
SQSP
SHOP

Profitability

Metric
GDDY
SQSP
SHOP
Return on Assets (Normalized)
28.30%9.60%12.59%
Return on Equity (Normalized)
15.84%
Return on Invested Capital (Normalized)
58.91%28.75%11.69%
Return on Assets
GDDY
SQSP
SHOP

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