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Goosehead Insurance (GSHD) has drawn attention after a series of weak recent returns, including an almost 58% decline over the past year, prompting investors to reassess the business and its financial profile.
The company reports annual revenue of US$353.231 million and net income of US$30.255 million. This points to a business model that is currently profitable while still being relatively small compared with larger insurance broker peers.
Goosehead Insurance operates as a holding company for Goosehead Financial. It focuses on personal lines insurance agency services such as homeowners, auto, flood, wind, earthquake and liability policies, distributed through a mix of corporate and franchise locations.
Over the past month and past 3 months, the stock has recorded declines of 32% and 29% respectively. Year to date performance has also been weaker, which may lead some investors to look more closely at business fundamentals rather than recent price action alone.
See our latest analysis for Goosehead Insurance.
At a share price of US$48.69, Goosehead Insurance has seen sharp near term weakness, with a 1 month share price return of 32% decline and a 1 year total shareholder return of 57.73% decline, even though the 3 year total shareholder return remains positive.
If this kind of volatility has you looking around the market, it could be a good moment to broaden your search with our screener of 23 top founder-led companies and see what else fits your criteria.
With revenue of US$353.231 million, net income of US$30.255 million and a share price of US$48.69 that sits below some valuation estimates, is Goosehead Insurance now a potential opportunity, or is the market already pricing in future growth?
The most followed narrative puts Goosehead Insurance’s fair value at $91.55 per share, compared with the last close of $48.69. This sets up a wide gap investors will want to understand.
Rapid adoption of Goosehead’s proprietary AI and digital platforms is driving lower servicing costs and improved client experience, positioning the company to benefit from rising consumer demand for seamless, tech-enabled insurance solutions. This is expected to expand operating leverage and boost net margins over time.
Want to see what sits behind that earnings power story? The narrative leans on faster revenue growth, rising margins and a rich future earnings multiple. Curious how those ingredients add up to that fair value gap and why the market price is still well below it?
