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GoDaddy

GDDY
62
Software - Infrastructure · Technology
Price
$94.35
-1.86 (-1.93%)
Market Cap
$12.49B
Winston Score
62
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

20.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 171.1M (2021) → 136.2M (2025)

GoDaddy helps small businesses and individuals build a presence on the internet. Its main products include domain name registration (buying a web address like "mystore.com"), website building tools, and web hosting services that keep websites running online. GoDaddy is one of the largest domain registrars in the world, managing over 80 million domain names for tens of millions of customers.

The company makes money through subscriptions and renewals — customers pay annually for domains, hosting plans, and add-on tools like email, security, and payment processing. GoDaddy operates primarily in the United States but serves customers in dozens of countries worldwide. Its large installed base of small business customers creates switching costs, since moving a domain and website to a competitor is inconvenient. The key growth driver is expanding revenue per customer by selling more software tools and commerce features, while the main risk is slowing small business formation and intense price competition from rivals like Squarespace and Wix.

Winston Score History

Politician Trades

29 trades / 12mo

11 Congressional buys and 18 sells on GDDY in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+3.9% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$842M/ year

Flat (+3% vs prior year)

17.0% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

0.8%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$1.3B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

GoDaddy is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
56.0%
Premium pricing power — 56.0% gross margin
Operating Margin
24.7%
Excellent — 24.7% operating margin
ROCE
7.8%
Weak — 7.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+7.8%
Steady sales growth (7.8% YoY)
EPS YoY
+19.4%
Earnings growing fast (19.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
191%
Turns 191% of profit into real cash
FCF Margin
32.7%
Converts sales into free cash efficiently (32.7%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
15.92
Heavy debt load (15.92)
Interest Cover
7.89x
Adequate interest coverage (7.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
14.8x
Attractive valuation — P/E 14.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+6.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (14.8 → 8.1)

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Dividends

Not applicable for this business.
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