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GoHealth (GOCO)
NASDAQ:GOCO
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GoHealth
(NASDAQ:GOCO)
52Neutral
GoHealth (GOCO) vs. S&P 500 (SPY)
Market Cap
$297.95M
Dividend YieldN/A
Average Volume (3M)62.35K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth8.74%
EPS Growth89.80%
CountryUS
Employees2,530
SectorFinancial
Sector Strength81
IndustryInsurance
Share Statistics
EPS (TTM)-1.77
Shares Outstanding10,385,777
10 Day Avg. Volume54,591
30 Day Avg. Volume62,346
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.37
Price to Cash Flow (P/CF)5.10
P/FCF Ratio5.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.50Price Target Upside58.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
GoHealth Business Overview & Revenue Model
Company DescriptionGoHealth Inc is a health insurance marketplace in America. Its technology platform leverages modern machine-learning algorithms and helps individuals find the best health insurance plan for their specific needs. The company operates in four segments: Medicare-Internal; Medicare-External, IFP and Other-Internal; and IFP and Other-External. The Medicare segments sales Medicare Advantage, Medicare Supplement, Medicare prescription drug plans, and Medicare Special Needs Plans.
How the Company Makes MoneyGoHealth makes money primarily through commissions from insurance carriers when consumers enroll in policies via their platform. The company partners with a wide range of insurance providers, allowing them to offer a diverse selection of plans to their users. Key revenue streams include both initial commissions from new policy enrollments and recurring commissions earned on policy renewals. Additionally, GoHealth benefits from partnerships with insurance carriers that provide performance incentives based on enrollment volumes and consumer retention. The company's technology-driven approach enables efficient customer acquisition and engagement, further contributing to its revenue generation.
GoHealth Financial Statement Overview
Summary
GoHealth exhibits a mixed financial performance. Revenue and gross profit have shown positive growth, yet profitability and cash flow remain significant concerns, primarily due to operational inefficiencies and high liabilities. While debt management has improved, the company needs to focus on strengthening its balance sheet and enhancing cash flow generation to ensure sustainable growth and financial stability.Income Statement
GoHealth's revenue has shown improvement with a growth rate of 8.74% for TTM compared to the previous year. The gross profit margin is strong at 80.2% for TTM, indicating effective cost management in generating revenue. However, the company struggles with profitability, as reflected by a negative EBIT margin of -0.88% and a low net profit margin of 4.77% for TTM. Despite the positive trajectory in revenue, the continuous negative EBIT over the years highlights ongoing challenges in achieving operational efficiency.45
Neutral
Balance Sheet
The debt-to-equity ratio significantly improved to 0.33 in TTM from 2.35 in the previous year, suggesting better leverage management. However, the equity ratio remains modest at 16.25% for TTM, indicating a lower proportion of assets funded by equity. While Return on Equity (ROE) improved to 15.77% for TTM, the overall financial stability is hindered by a high liability-to-asset ratio, which could pose long-term financial risks.50
Neutral
Cash Flow
GoHealth's cash flow situation is concerning, with negative free cash flow growth and operating cash flow. The operating cash flow to net income ratio is -1.19, indicating inefficiencies in converting earnings to cash. The free cash flow to net income ratio is also negative, further reflecting liquidity challenges. Despite past improvements, the recent downturn in cash flow metrics suggests a need for strategic adjustments to enhance cash generation.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.09B | 798.89M | 734.67M | 631.67M | 1.06B | 877.35M |
| Gross Profit | |||||
| 818.07M | 704.84M | 575.71M | 444.00M | 823.08M | 678.15M |
| EBIT | |||||
| -573.32M | -7.05M | -81.68M | -281.14M | -102.22M | -44.49M |
| EBITDA | |||||
| -488.78M | 173.71M | 24.10M | -174.13M | -393.21M | 34.36M |
| Net Income Common Stockholders | |||||
| -256.34M | -2.93M | -63.26M | -376.38M | -534.19M | -97.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 40.92M | 40.92M | 90.81M | 16.46M | 84.36M | 144.23M |
| Total Assets | |||||
| 1.49B | 1.49B | 1.50B | 1.66B | 2.07B | 2.11B |
| Total Debt | |||||
| 80.11M | 527.97M | 543.05M | 557.42M | 696.29M | 400.57M |
| Net Debt | |||||
| 39.18M | 487.05M | 452.24M | 540.96M | 611.93M | 256.34M |
| Total Liabilities | |||||
| 1.03B | 1.03B | 1.09B | 1.07B | 1.18B | 709.64M |
| Stockholders Equity | |||||
| 241.84M | 294.80M | 231.01M | 318.06M | 353.10M | 378.75M |
| Cash Flow | Free Cash Flow | ||||
| -281.93M | -35.34M | 95.41M | 47.39M | -318.81M | -128.74M |
| Operating Cash Flow | |||||
| -260.38M | -21.61M | 109.14M | 60.90M | -299.01M | -114.22M |
| Investing Cash Flow | |||||
| -21.55M | 3.81M | -13.73M | -13.51M | -19.80M | -14.52M |
| Financing Cash Flow | |||||
| 245.74M | -32.03M | -21.11M | -115.05M | 259.09M | 260.66M |
GoHealth Technical Analysis
Neutral
13.57
Price Trends
15.71
Negative
13.80
Negative
11.89
Positive
Market Momentum
-0.84
Positive
40.95
Neutral
16.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOCO, the sentiment is Neutral. The current price of 13.57 is below the 20-day moving average (MA) of 15.61, below the 50-day MA of 15.71, and above the 200-day MA of 11.89, indicating a neutral trend. The MACD of -0.84 indicates Positive momentum. The RSI at 40.95 is Neutral, neither overbought nor oversold. The STOCH value of 16.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GOCO.
GoHealth Risk Analysis
GoHealth disclosed 62 risk factors in its most recent earnings report. GoHealth reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GoHealth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $30.52B | 25.32 | 7.40% | 1.40% | 10.70% | -49.85% | |
65 Neutral | $446.97B | 31.51 | 15.88% | 1.67% | 8.35% | -35.14% | |
64 Neutral | $626.61M | ― | -4.16% | ― | 25.67% | 72.08% | |
64 Neutral | $14.06B | 10.69 | 8.82% | 4.23% | 17.03% | -8.23% | |
54 Neutral | $234.45M | ― | 1.10% | ― | 17.56% | 48.73% | |
52 Neutral | $297.95M | ― | -1.24% | ― | 8.74% | 89.80% |
* Financial Sector Average
Performance Comparison
GOCO
GoHealth
13.57
3.86
39.75%
MDRX
Veradigm
5.02
-3.18
-38.78%
EHTH
Ehealth
7.68
2.16
39.13%
HUM
Humana
264.41
-83.25
-23.95%
UNH
UnitedHealth
499.02
13.47
2.77%
SLQT
SelectQuote
3.60
1.86
106.90%
GoHealth Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -26.29% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
GoHealth demonstrated strong financial performance with significant growth in revenue and adjusted EBITDA, driven by increased operational efficiency and successful integration of e-TeleQuote. However, the company faced challenges with negative cash flow from operations. The sentiment is largely positive due to the outweighing highlights of operational success and strategic growth initiatives.Highlights
Significant Revenue and EBITDA Growth
Q4 2024 revenue increased to $389 million compared to $277 million in Q4 2023, representing a 41% improvement. Adjusted EBITDA grew to $118 million, a 107% year-over-year improvement.
Operational Efficiency and Submission Volume Increase
Submission volume increased in Q4 2024 by 67% year-over-year, with the captive Medicare team seeing an 82% increase in submissions and external agents showing a 25% increase.
Reduced Customer Acquisition Costs
Direct operating cost per submission decreased by 27% year-over-year in Q4 to $501.
e-TeleQuote Integration Success
e-TeleQuote business delivered 54,000 submissions during AEP, a 170% improvement year-over-year.
PlanFit Technology Platform Expansion
PlanFit CheckUp grew 72% in Q4 2024 compared to the same period in 2023, demonstrating strong consumer engagement.
Lowlights
Negative Cash Flow from Operations
For the full year 2024, GoHealth reported a negative cash flow from operations of $21.6 million compared to $130.7 million in the prior-year period.
Company Guidance
In the GoHealth Fourth Quarter and Full Year 2024 earnings call, the company reported significant growth and operational improvements. Key metrics highlighted include a 41% increase in Q4 2024 revenue to $389 million compared to the previous year, driven by a 67% year-over-year increase in submission volume. The adjusted EBITDA for Q4 2024 more than doubled to $118 million, reflecting a 107% improvement. Additionally, the direct operating cost per submission decreased by 27% year-over-year to $501, showcasing enhanced marketing and agent efficiencies. The company supported nearly 3 million consumers in 2024, with over 481,000 submissions in Q4 alone. Looking ahead to 2025, GoHealth anticipates continued revenue growth and profit expansion, underpinned by ongoing operational refinements and favorable market dynamics.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.