Selectquote Intrinsic Value Calculation – SelectQuote Climbs 26.17% Despite Lack of Analyst Support

May 10, 2023

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SELECTQUOTE ($NYSE:SLQT): SelectQuote Inc. experienced a surge on Friday, 05/05/23, closing at $1.35, with an increase of 26.17% from the previous day’s price. Despite this significant climb, analysts remain unconvinced of any potential success for the company. SelectQuote Inc. is a publicly traded company that provides life and health insurance services to clients in the United States. SelectQuote provides customers with unbiased advice to help them find the perfect policy to fit their needs.

In addition to their insurance services, SelectQuote also provides a variety of financial products including investments, retirement plans, and estate planning. Despite the company’s success and customer satisfaction, analysts remain uncertain whether or not SelectQuote will continue to experience growth in the near future.

Analysis – Selectquote Intrinsic Value Calculation

At GoodWhale, we have conducted an analysis of SELECTQUOTE’s financials and have determined its fair value to be around $13.4, based on our proprietary Valuation Line. This means that the current trading price of SELECTQUOTE stock at $1.4 is undervalued by a staggering 89.6%. We believe that this presents a great opportunity for investors to capitalize on this mispricing. SelectQuote_Climbs_26.17_Despite_Lack_of_Analyst_Support”>More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • About the Company

  • SelectQuote_Climbs_26.17_Despite_Lack_of_Analyst_Support”>Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Selectquote. More…

    Total Revenues Net Income Net Margin
    895.4 -131.68 -10.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Selectquote. More…

    Operations Investing Financing
    -108.15 -15.98 -33.13
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Selectquote. More…

    Total Assets Total Liabilities Book Value Per Share
    1.3k 916.15 2.14
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Selectquote are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    30.5% 66.7% -11.5%
    FCF Margin ROE ROA
    -13.9% -17.4% -5.0%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Peers

    The company has been in operation for more than 10 years and has a strong presence in the United States. The company offers a wide range of insurance products and services, including life, health, and auto insurance. The company has a strong customer base and a large number of satisfied customers. The company’s competitors include Transilvania Broker De Asigurare, Sabre Insurance Group PLC, and Fanhua Inc.

    – Transilvania Broker De Asigurare ($LTS:0TCR)

    Sabre Insurance Group PLC is a United Kingdom-based holding company engaged in the provision of general insurance products. The Company offers a range of personal and commercial insurance products through a network of intermediaries, including brokers and price comparison websites. It operates through three segments: Motor, Household and Commercial.

    – Sabre Insurance Group PLC ($LSE:SBRE)

    Founded in 2001, Fanhua Inc. is a leading provider of financial services in China. The company offers a wide range of services including loans, insurance, and investments. As of 2022, Fanhua Inc. had a market capitalization of 272.87 million and a return on equity of 6.21%. The company is headquartered in Guangzhou, China.

    Summary

    SelectQuote Inc. has seen a positive reaction from investors over the last few days, with a 26.17% increase in stock price from its close on Friday, 05/05/23. Despite this, analysts remain skeptical of the company’s prospects. Industry experts note that while SelectQuote’s services in providing customers with direct access to life insurance quotes may be useful, there are plenty of other established competitors providing similar services and marketshare is likely to be limited.

    Further, the company’s financials could be improved, with a recent balance sheet showing a significant amount of long-term debt and weak cash flow. Investors should proceed with caution when considering this stock and do their own research before investing.

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