EverQuote, Inc. (NASDAQ: EVER)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001640428
Market Cap 870.83 Mn
P/B 4.98
P/E 16.17
P/S 1.35
ROIC (Qtr) 30.01
Div Yield % 0.00
Rev 1y % (Qtr) 20.35
Total Debt (Qtr) 2.87 Mn
Debt/Equity (Qtr) 0.02

About

EverQuote, Inc., symbolized as EVER, is a prominent player in the online insurance shopping marketplace. The company operates by connecting consumers with insurance provider customers, including both carriers and agents. EverQuote aspires to become the primary online source of insurance policies, leveraging data, technology, and knowledgeable advisors to make insurance simpler, more affordable, and personalized. EverQuote's business model is centered on generating revenue through two primary sources: consumer inquiries sold as referrals to insurance...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 88.50M provides robust 30.88x coverage of total debt 2.87M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 145.77M provide 117.65x coverage of short-term debt 1.24M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 234.55M provides 81.84x coverage of total debt 2.87M, indicating robust asset backing and low credit risk.
  • Tangible assets of 234.55M provide exceptional 168.86x coverage of deferred revenue 1.39M, showing strong service capability backing.
  • Robust free cash flow of 83.61M exceeds capital expenditure of 4.90M by 17.07x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 88.50M barely covers its investment activities of (4.90M), with a coverage ratio of -18.07, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.90M) provide weak support for R&D spending of 30.84M, which is -0.16x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 88.50M shows concerning coverage of stock compensation expenses of 24.02M, with a 3.68 ratio indicating potential earnings quality issues.
  • Retained earnings of (139.62M) provide limited buffer against comprehensive income items of 126000, which is -1108.12x, indicating elevated exposure to market risks.
  • R&D investment of 30.84M represents just 0.06x of SG&A expenses of 533.50M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.83 1.10
EV to Cash from Ops. EV/CFO 8.20 -3.08
EV to Debt EV to Debt 253.25 28.98
EV to EBIT EV/EBIT 13.20 -26.54
EV to EBITDA EV/EBITDA 12.91 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 8.68 -67.01
EV to Market Cap EV to Market Cap 0.83 0.90
EV to Revenue EV/Rev 1.13 61.25
Price to Book Value [P/B] P/B 4.98 1.56
Price to Earnings [P/E] P/E 16.17 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) 0.00 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -23.62 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 75.96 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 298.53 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 209.78 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 269.00 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 269.00 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 282.05 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 100.60 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 60.92 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.52 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.83 1.54
Current Ratio Curr Ratio (Qtr) 2.82 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -0.39
Interest Cover Ratio Int Coverage (Qtr) 0.00 -202.56
Times Interest Earned Times Interest Earned (Qtr) 0.00 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.20 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) 8.53 -4,786.62
EBT Margin % EBT Margin % (Qtr) 8.53 -5,002.12
Gross Margin % Gross Margin % (Qtr) 96.80 58.65
Net Profit Margin % Net Margin % (Qtr) 8.40 -5,003.08