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GoDaddy

GDDY
65
Software - Infrastructure · Technology
Winston Score
65
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Exceptional
Growth
Good
Cash Flow
Exceptional
Stability
Good
Valuation
Strong

Winston Score History

The full picture

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.

Politician Trades

31 trades / 12mo

12 Congressional buys and 19 sells on GDDY in the last 12 months.

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Score breakdown

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Quality

Profit per sale
Gross Margin
63.8%
Premium pricing power — 63.8% gross margin
Profit after running costs
Operating Margin
26.4%
Excellent — 26.4% operating margin
Return on the money invested
ROCE
1051.0%
Exceptional — 1051.0% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
-19.9%
Shrinking sales (-19.9% YoY)
Profit growth
EPS YoY
+17.9%
Earnings growing fast (+17.9% YoY)

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

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
258%
Turns 258% of profit into real cash
Spare cash per sale
FCF Margin
44.7%
Converts sales into free cash efficiently (44.7%)

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

What it owes vs what it owns
Debt / Equity
12.24
Heavy debt load (12.24)
Covers its interest
Interest Cover
1553.74x
Comfortably covers interest (1553.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
14.3x
no trend
Attractive valuation — P/E 14.3

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

Cheaper or dearer next year
P/E vs Forward
+4.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (14.3 → 9.4)

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Dividends

Not applicable for this business.
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