# Godaddy (GDDY.US)

Canonical: https://gigainvestors.com/s/GDDY

Analysis as of: 2026-10-16T07:35:24.859Z. Financial observations: FY2011–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $107.29 per share; close as of 2026-10-15.

Estimated value: low $94.42 per share, central $106.29 per share, high $122.09 per share. Buy at or below the central value $106.29 per share. Valuation as of 2026-10-16T07:35:24.859Z; scenarios are not confidence intervals.

Expected annual return: 9.9% at the stated quote. About 9.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 1

- Operating margin variation: 0.57×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.06×

- FY2019: 0.07×

- FY2020: 0.08×

- FY2021: 0.10×

- FY2022: 0.12×

- FY2023: 0.13×

- FY2024: 0.20×

- FY2025: 0.23×

- LTM to Jun 2026: 0.25×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.2%

- ROIC, second-lowest year: 4.7%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 64.0%

- Recent gross margin (lower of latest and 3-year median): 63.8%

- Years with nonpositive capital: 10

- Capital spending / revenue: 2.1%

- ROIC including acquisitions, ten-year median: 10.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 2.3%

- FY2018: 4.7%

- FY2019: 6.0%

- FY2020: 6.5%

- FY2021: 8.8%

- FY2022: 13.5%

- FY2023: 13.7%

- FY2024: 19.5%

- FY2025: 23.7%

- LTM to Jun 2026: 26.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.11×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.2B

- Net income, five-year total: $3.8B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -2.0 pp

- Working capital / revenue, change between three-year averages: -15.9 pp

- Working capital / revenue, final three-year average: -1.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.38×

- FY2023: 1.07×

- FY2024: 1.12×

- FY2025: 1.11×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 2.5% vs 19.5%

- Per-share earnings: -0.21 to 6.45 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.1%

- Ordinary dilution, 5-year annual growth: -4.0%

- Market cap gain: $14B

- Cumulative retained earnings: -$2.7B

- Diluted shares, 10-year annual growth: 9.1%

- Diluted shares, 5-year annual growth: -4.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $6.66

- Per-share value, starting three-year median: -$0.21

- Per-share value, ending three-year median: $6.45

- Buybacks concentrated in cheaper years (correlation): 0.45

- Average buyback yield: 5.1%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.7B

- Cumulative net income, 10 years: $3.6B

- ROIC, first three-year median: 2.5%

- ROIC, last three-year median: 19.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.21

- FY2017: $0.77

- FY2018: $0.42

- FY2019: $0.77

- FY2020: -$2.87

- FY2021: $1.44

- FY2022: $2.24

- FY2023: $9.08

- FY2024: $6.45

- FY2025: $6.22

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -9.0%

- Receivables to sales index (DSRI): 0.84×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 19.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.83×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 21.48×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.6%

- FY2017: -5.9%

- FY2018: -7.9%

- FY2019: -9.3%

- FY2020: -19.6%

- FY2021: -7.9%

- FY2022: -9.0%

- FY2023: 4.3%

- FY2024: -4.3%

- FY2025: -9.0%

## Holders

## Price story

Down 50% since Jan 2025 · "Domain registrar GoDaddy narrows annual revenue forecast" (finance.yahoo.com, Jul 2026) · sales +3.1%

Story as of 2026-10-16T10:00:04.764Z; price observation 2026-10-15.

Price needs cash profits to grow 1% a year for ten years

- 2025-10-15: GoDaddy (GDDY): Assessing Valuation After .CO Registry Exit and Lowered Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/godaddy-gddy-assessing-valuation-co-120703534.html))

- 2026-02-24: GoDaddy forecasts annual revenue below estimates, shares fall ([finance.yahoo.com](https://finance.yahoo.com/news/godaddy-forecasts-annual-revenue-below-213359058.html))

- 2026-04-30: GoDaddy forecasts quarterly revenue above estimates on AI push ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/godaddy-forecasts-quarterly-revenue-above-230551926.html))

- 2026-06-28: GoDaddy (GDDY) Faces Slowing Billings Growth As Competition Tests Demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/godaddy-gddy-faces-slowing-billings-120603334.html))

- 2026-07-30: Domain registrar GoDaddy narrows annual revenue forecast ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/domain-registrar-godaddy-narrows-annual-222835156.html))

### Sales · FY2025–2026

sales +3.1%; source https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm; observed 2026-02-25.

- FY2017: $2.2B 

- FY2018: $2.7B 

- FY2019: $3.0B 

- FY2020: $3.3B 

- FY2021: $3.8B 

- FY2022: $4.1B 

- FY2023: $4.3B 

- FY2024: $4.6B 

- FY2025: $5.0B 

- FY2026: $5.1B 

### Gross margin · FY2026

gross margin 63.8%; source https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm; observed 2026-02-25.

- FY2017: 65.3% 

- FY2018: 66.4% 

- FY2019: 65.6% 

- FY2020: 65.1% 

- FY2021: 64.0% 

- FY2022: 63.7% 

- FY2023: 63.0% 

- FY2024: 63.9% 

- FY2025: 63.6% 

- FY2026: 63.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm (filed 2026-02-25); FY2025: revenue 4951100000; grossProfit 3149600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GDDY.US: GoDaddy Inc. engages in the design and development of cloud-based products in the United States and internationally. It operates in two segments: Applications and Commerce (A&C), and Core Platform (Core). The A&C segment offers applications products, including Websites + Marketing, a mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; and Managed WordPress, a streamlined and optimized website building that allows customers to build and manage a WordPress site; marketing tools and services, such as GoDaddy Studio and search engine optimization designed to help businesses acquire and engage customers and create content; and digital marketing services include email marketing, reputation management, and development of brand guides. This segment also offers Microsoft 365 that connects to customers' domains; email service plans with a multi-feature web interface; email backup, encryption, archiving, and other advanced e-mail security services; added security functionality services; GoDaddy Payments, a payment facilitator that enables customers to accept various forms of payments; Smart Terminal, a dual screen all-in-one point-of-sale system that allows customers to manage in-store inventory and product catalogs and accept payments; payment acceptance solutions; and online store capabilities. The Core segment offers domain products, including primary registrations, domain aftermarket platform, and domain name add-ons, as well as GoDaddy Registry, a provider of domain name registry services; and hosting and security services comprising shared website hosting and virtual private servers, as well as security products with a suite of tools designed to help secure customers' online presence; and SSL certificates. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was founded in 1997 and is headquartered in Tempe, Arizona.

### Why customers stay

Margins ranged from 63% to 63.9% during 2023–25; it earns 11.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 63%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 63.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 63.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2017,0.022769042270778028],[2018,0.04669892305291088],[2019,0.05959524649958819],[2020,0.06497205184759948],[2021,0.08828738356107234],[2022,0.13531090664904097],[2023,0.13692188398909427],[2024,0.19479811633382751],[2025,0.2371549080676487],[2026,0.2623598406783336]]; median 0.11179914510505665. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 64% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm (filed 2026-02-25); Gross margin observations: [[2021,0.6403805330607752],[2022,0.6371568938968054],[2023,0.6300980230836134]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 6 of 10 years; bought back USD 1.6 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 0; upkeep 62800000; owner earnings 80800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 0; upkeep 135200000; owner earnings 207000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 0; upkeep 97000000; owner earnings 214200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 0; upkeep 92300000; owner earnings 254400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 53600000; upkeep 199600000; owner earnings 242300000. Growth capex / owner earnings = 0.22121337185307471.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2022: growth capex 0; upkeep 60100000; owner earnings 486700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 0; upkeep 77400000; owner earnings 1468700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 26600000; owner earnings 1045600000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm (filed 2026-02-25); FY2025: growth capex 0; upkeep 23900000; owner earnings 967700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,18800000],[2017,2031600000],[2018,0],[2019,99200000],[2020,107300000],[2021,73400000],[2022,50000000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm (filed 2026-02-25); FY2025: cash repurchases 1601900000 USD.

### Are managers owners

Insiders own 1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GDDY.US SharesStats.PercentInsiders = 0.97 percentage points; cache date 2026-10-16.

### What could break it

"If we are unable to continue to increase sales to new and existing customers" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm (filed 2026-02-25); If we are unable to continue to increase sales to new and existing customers

### What the price says

The price assumes cash profits grow 1% yearly over ten years; actual growth was 59%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.0018139846623094202. Price 107.29; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.06646669847978731 → FY2025 6.881617966022144. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $35.79 per share

- 2016-11: $35.34 per share

- 2016-12: $34.95 per share

- 2017-01: $35.73 per share

- 2017-02: $36.85 per share

- 2017-03: $37.90 per share

- 2017-04: $38.92 per share

- 2017-05: $41.14 per share

- 2017-06: $42.42 per share

- 2017-07: $42.98 per share

- 2017-08: $44.82 per share

- 2017-09: $43.51 per share

- 2017-10: $46.70 per share

- 2017-11: $48.65 per share

- 2017-12: $50.28 per share

- 2018-01: $55.23 per share

- 2018-02: $59.81 per share

- 2018-03: $61.42 per share

- 2018-04: $64.56 per share

- 2018-05: $71.59 per share

- 2018-06: $70.60 per share

- 2018-07: $73.62 per share

- 2018-08: $81.46 per share

- 2018-09: $83.39 per share

- 2018-10: $73.17 per share

- 2018-11: $65.26 per share

- 2018-12: $65.62 per share

- 2019-01: $68.63 per share

- 2019-02: $74.65 per share

- 2019-03: $75.19 per share

- 2019-04: $81.50 per share

- 2019-05: $74.40 per share

- 2019-06: $70.15 per share

- 2019-07: $73.38 per share

- 2019-08: $63.34 per share

- 2019-09: $65.98 per share

- 2019-10: $65.03 per share

- 2019-11: $66.38 per share

- 2019-12: $67.92 per share

- 2020-01: $67.21 per share

- 2020-02: $69.98 per share

- 2020-03: $57.11 per share

- 2020-04: $69.43 per share

- 2020-05: $77.25 per share

- 2020-06: $73.33 per share

- 2020-07: $70.28 per share

- 2020-08: $83.68 per share

- 2020-09: $75.97 per share

- 2020-10: $70.74 per share

- 2020-11: $79.54 per share

- 2020-12: $82.95 per share

- 2021-01: $78.58 per share

- 2021-02: $81.12 per share

- 2021-03: $77.62 per share

- 2021-04: $86.82 per share

- 2021-05: $80.96 per share

- 2021-06: $86.96 per share

- 2021-07: $83.85 per share

- 2021-08: $73.31 per share

- 2021-09: $69.70 per share

- 2021-10: $69.17 per share

- 2021-11: $70.17 per share

- 2021-12: $84.86 per share

- 2022-01: $75.71 per share

- 2022-02: $83.41 per share

- 2022-03: $83.70 per share

- 2022-04: $80.81 per share

- 2022-05: $75.05 per share

- 2022-06: $69.56 per share

- 2022-07: $74.18 per share

- 2022-08: $75.82 per share

- 2022-09: $70.88 per share

- 2022-10: $80.40 per share

- 2022-11: $79.13 per share

- 2022-12: $74.82 per share

- 2023-01: $82.13 per share

- 2023-02: $75.71 per share

- 2023-03: $77.72 per share

- 2023-04: $75.68 per share

- 2023-05: $73.38 per share

- 2023-06: $75.13 per share

- 2023-07: $77.09 per share

- 2023-08: $72.51 per share

- 2023-09: $74.48 per share

- 2023-10: $73.23 per share

- 2023-11: $100.06 per share

- 2023-12: $106.16 per share

- 2024-01: $106.66 per share

- 2024-02: $114.15 per share

- 2024-03: $118.68 per share

- 2024-04: $122.38 per share

- 2024-05: $139.63 per share

- 2024-06: $139.71 per share

- 2024-07: $145.45 per share

- 2024-08: $167.41 per share

- 2024-09: $156.78 per share

- 2024-10: $166.80 per share

- 2024-11: $197.57 per share

- 2024-12: $197.37 per share

- 2025-01: $212.65 per share

- 2025-02: $179.50 per share

- 2025-03: $180.14 per share

- 2025-04: $188.33 per share

- 2025-05: $182.15 per share

- 2025-06: $180.06 per share

- 2025-07: $161.58 per share

- 2025-08: $148.31 per share

- 2025-09: $136.83 per share

- 2025-10: $133.13 per share

- 2025-11: $127.86 per share

- 2025-12: $124.08 per share

- 2026-01: $100.52 per share

- 2026-02: $87.16 per share

- 2026-03: $82.67 per share

- 2026-04: $86.79 per share

- 2026-05: $85.83 per share

- 2026-06: $84.88 per share

- 2026-07: $82.74 per share

- 2026-08: $97.88 per share

- 2026-09: $95.51 per share

- 2026-10: $107.29 per share

## Annual estimated value (USD per share)

- FY2017: low $3.11 per share, central $3.15 per share, high $3.21 per share

- FY2018: low $11.90 per share, central $12.87 per share, high $14.15 per share

- FY2019: low $20.58 per share, central $22.63 per share, high $25.34 per share

- FY2020: low $20.98 per share, central $23.32 per share, high $26.43 per share

- FY2021: low $31.83 per share, central $42.46 per share, high $48.65 per share

- FY2022: low $27.33 per share, central $30.49 per share, high $34.70 per share

- FY2023: low $28.87 per share, central $32.47 per share, high $37.27 per share

- FY2024: low $47.79 per share, central $53.44 per share, high $60.95 per share

- FY2025: low $82.20 per share, central $92.57 per share, high $106.38 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:07.098Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1609711/000160971126000010/gddy-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.