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Gohealth Inc (GOCO)
:GOCO
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GoHealth
(NASDAQ:GOCO)
Rating:48Neutral
Price Target:
$6.00
▲(4.17%Upside)
Positive Factors
Product Diversification
Diversifying product mix should improve cash flow.
Revenue Growth
First-quarter revenue grew 19%, driven by submission growth.
Negative Factors
Cash Flow Performance
First-quarter operating cash flow was weaker than expected.
Operating Cash Flow
Full year 2024 operating cash flow was -$22 million, reflecting mix shift toward GoHealth’s independent agency model.
GoHealth (GOCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$64.02M
Dividend YieldN/A
Average Volume (3M)60.16K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth13.18%
EPS Growth97.01%
CountryUS
Employees2,261
SectorFinancial
Sector Strength82
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-0.52
Shares Outstanding11,115,125
10 Day Avg. Volume46,794
30 Day Avg. Volume60,161
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.52
Price to Sales (P/S)0.00
P/FCF Ratio-2.90
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 Upside273.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
GoHealth Business Overview & Revenue Model
Company DescriptionGoHealth, Inc. operates as a health insurance marketplace and Medicare focused digital health company in the United States. It operates through four segments: Medicare—Internal; Medicare—External; Individual and Family Plans (IFP) and Other—Internal; and IFP and Other—External. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. Its products include Medicare Advantage, Medicare Supplement, Medicare prescription drug plans, and Medicare Special Needs Plans; and IFP, dental plans, vision plans, and other ancillary plans to individuals. The company sells its products through carriers and online platform, as well as independent and external agencies. GoHealth, Inc. was founded in 2001 and is headquartered in Chicago, Illinois with additional offices in Charlotte, North Carolina, Lindon, Utah, Bratislava, Slovakia, and Kosice, Slovakia.
How the Company Makes MoneyGoHealth makes money primarily through commissions earned on the sale of health insurance policies. The company partners with a network of insurance carriers and receives a commission for each policy sold through its platform. Revenue is generated when consumers purchase insurance plans after being connected through GoHealth's marketplace. Additionally, GoHealth may earn recurring commissions for policies that are renewed. Key revenue streams include direct sales through its licensed agents and online sales via its digital platform. Significant partnerships with major insurance providers play a crucial role in expanding its product offerings and customer reach, thereby contributing to its revenue.
GoHealth Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -29.15%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong growth trajectory with significant improvements in revenue, EBITDA, and agent productivity. However, challenges such as decreased cash flow, lower sales per submission, and ongoing legal issues were noted. The launch of GoHealth Protect and technological advancements indicate strategic growth initiatives.Q1-2025 Updates
Positive Updates
Significant Revenue and EBITDA Growth
Q1 2025 revenue increased to $221 million, a 19% increase compared to Q1 2024. Adjusted EBITDA grew to $42 million, a 56% year-over-year improvement.
Agent Productivity Improvement
Submission volume increased with a 64% year-over-year growth in the captive Medicare team, despite only a 24% increase in agent headcount.
Launch of GoHealth Protect
Introduced a new suite of products, including guaranteed acceptance life insurance, aimed at reducing revenue seasonality and leveraging existing consumer relationships.
Technological Advancements
Launch of MyGoHealth platform and other AI-driven tools like PlanGPT and PlanFit, improving consumer engagement and agent efficiency.
Regulatory Tailwinds
CMS announced a 5.06% average increase in Medicare Advantage revenue and a 10.72% increase in the Broker Commission Schedule.
Negative Updates
Decrease in Cash Flow from Operations
Reported negative cash flow from operations of $12.4 million compared to a positive $12.5 million in the prior year period.
Sales Per Submission Decline
A 15% year-over-year decrease in sales per submission due to a higher mix of agency versus non-agency submissions.
Legal Challenges
The United States Attorney's Office decided to intervene in a qui tam lawsuit against GoHealth, alleging violations of the False Claims Act and the Anti-Kickback Statute.
Company Guidance
During the Q1 2025 earnings call, GoHealth provided several key financial metrics and strategic updates. The company reported a 19% year-over-year increase in revenue, reaching $221 million, and a significant 56% rise in adjusted EBITDA to $42 million. Submission volume grew, driven by a 64% year-over-year increase from the captive Medicare team, although agent headcount only increased by 24%. The company also launched GoHealth Protect, a suite of life insurance products aimed at diversifying their offerings and reducing revenue seasonality. Despite a 15% decrease in sales per submission due to a higher mix of agency versus non-agency submissions, GoHealth's operating model showed strong adaptability with a reduction in customer acquisition costs by 18%. The company highlighted the importance of its AI-driven tools in enhancing agent productivity and consumer engagement, which contributed to the improved financial performance. Additionally, GoHealth remains focused on maintaining capital discipline and is actively exploring opportunities to optimize its capital structure amidst evolving market dynamics.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 798.89M | 734.67M | 631.67M | 1.06B | 877.35M | Gross Profit |
| 704.84M | 575.71M | 444.00M | 823.08M | 678.15M | EBIT |
| -7.05M | -81.68M | -281.14M | -102.22M | -44.49M | EBITDA |
| 173.71M | 24.10M | -174.13M | -393.21M | 34.36M | Net Income Common Stockholders |
| -2.93M | -63.26M | -376.38M | -534.19M | -97.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 40.92M | 90.81M | 16.46M | 84.36M | 144.23M | Total Assets |
| 1.49B | 1.50B | 1.66B | 2.07B | 2.11B | Total Debt |
| 527.97M | 543.05M | 557.42M | 696.29M | 400.57M | Net Debt |
| 487.05M | 452.24M | 540.96M | 611.93M | 256.34M | Total Liabilities |
| 1.03B | 1.09B | 1.07B | 1.18B | 709.64M | Stockholders Equity |
| 294.80M | 231.01M | 318.06M | 353.10M | 378.75M |
| Cash Flow | Free Cash Flow | |||
| -35.34M | 95.41M | 47.39M | -318.81M | -128.74M | Operating Cash Flow |
| -21.61M | 109.14M | 60.90M | -299.01M | -114.22M | Investing Cash Flow |
| 3.81M | -13.73M | -13.51M | -19.80M | -14.52M | Financing Cash Flow |
| -32.03M | -21.11M | -115.05M | 259.09M | 260.66M |
GoHealth Technical Analysis
Negative
5.76
Price Trends
8.83
Negative
12.20
Negative
11.50
Negative
Market Momentum
-0.93
Negative
37.60
Neutral
40.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOCO, the sentiment is Negative. The current price of 5.76 is below the 20-day moving average (MA) of 6.49, below the 50-day MA of 8.83, and below the 200-day MA of 11.50, indicating a bearish trend. The MACD of -0.93 indicates Negative momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 40.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOCO.
GoHealth Risk Analysis
GoHealth disclosed 64 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 1 New Risks
1.
Our liquidity position raises substantial doubt about our ability to continue as a going concern. Q1, 2025
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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.76B | 9.77 | 7.59% | 16985.66% | 12.30% | -7.71% | |
59 Neutral | $133.44M | ― | 3.19% | ― | 17.04% | 74.07% | |
58 Neutral | $371.35M | ― | 0.82% | ― | 20.41% | 93.09% | |
53 Neutral | $4.02M | ― | -238.61% | ― | 2.40% | 94.65% | |
52 Neutral | $13.02M | ― | -12.03% | ― | 158.74% | 14.86% | |
48 Neutral | $64.02M | ― | 0.80% | ― | 13.18% | 97.01% | |
48 Neutral | $19.07M | 11.44 | -3.92% | ― | 2.63% | -101.10% |
* Financial Sector Average
Performance Comparison
GOCO
GoHealth
6.15
-3.90
-38.81%
EHTH
Ehealth
4.30
-0.84
-16.34%
RELI
Reliance Global Group
1.51
-2.43
-61.68%
HUIZ
Huize Holding
2.03
-2.97
-59.40%
TIRX
Tian Ruixiang Holdings
1.29
-1.00
-43.67%
SLQT
SelectQuote
2.20
-0.63
-22.26%
GoHealth Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
GoHealth Extends CEO Vijay Kotte’s Contract and Compensation
Positive
Apr 7, 2025
On April 1, 2025, GoHealth, Inc. announced an amendment to the employment agreement with CEO Vijay Kotte, extending his contract for three years and adjusting his compensation package. The amendment includes a $1,000,000 annual salary and eligibility for significant equity grants, with a 2025 grant valued at $5,000,000. Additionally, a Letter Agreement was established, granting Mr. Kotte 500,000 restricted stock units and a $3,000,000 cash payment, contingent on continued employment and company performance goals. These changes aim to secure leadership stability and align executive incentives with company performance, potentially impacting GoHealth’s market positioning and stakeholder interests.
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.