GoHealth (GOCO) AI Stock Analysis

• Market Cap: $240.21M
• Dividend Yield: N/A
• Average Volume (3M): 75.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 8.74%
• EPS Growth: 89.80%
• Country: US
• Employees: 2,261
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Brokers
• EPS (TTM): -1.77
• Shares Outstanding: 10,385,777
• 10 Day Avg. Volume: 87,896
• 30 Day Avg. Volume: 75,271
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.37
• Price to Cash Flow (P/CF): 5.10
• P/FCF Ratio: 5.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.50
• Price Target Upside: 118.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

GoHealth's overall stock score reflects a blend of strong revenue growth and operational improvements. These are offset by ongoing profitability issues, negative cash flow, and valuation concerns. The company's future potential is supported by strategic initiatives and leadership stability, but financial and technical challenges persist.

GoHealth Business Overview & Revenue Model

Company Description

GoHealth, Inc. operates as a health insurance marketplace and Medicare focused digital health company in the United States. It operates through four segments: Medicare—Internal; Medicare—External; Individual and Family Plans (IFP) and Other—Internal; and IFP and Other—External. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. Its products include Medicare Advantage, Medicare Supplement, Medicare prescription drug plans, and Medicare Special Needs Plans; and IFP, dental plans, vision plans, and other ancillary plans to individuals. The company sells its products through carriers and online platform, as well as independent and external agencies. GoHealth, Inc. was founded in 2001 and is headquartered in Chicago, Illinois with additional offices in Charlotte, North Carolina, Lindon, Utah, Bratislava, Slovakia, and Kosice, Slovakia.

How the Company Makes Money

GoHealth makes money primarily through commissions from insurance carriers when consumers enroll in policies via their platform. The company partners with a wide range of insurance providers, allowing them to offer a diverse selection of plans to their users. Key revenue streams include both initial commissions from new policy enrollments and recurring commissions earned on policy renewals. Additionally, GoHealth benefits from partnerships with insurance carriers that provide performance incentives based on enrollment volumes and consumer retention. The company's technology-driven approach enables efficient customer acquisition and engagement, further contributing to its revenue generation.

GoHealth Financial Statement Overview

Summary

GoHealth exhibits a mixed financial performance. Revenue and gross profit have shown positive growth, yet profitability and cash flow remain significant concerns, primarily due to operational inefficiencies and high liabilities. While debt management has improved, the company needs to focus on strengthening its balance sheet and enhancing cash flow generation to ensure sustainable growth and financial stability.

Income Statement

GoHealth's revenue has shown improvement with a growth rate of 8.74% for TTM compared to the previous year. The gross profit margin is strong at 80.2% for TTM, indicating effective cost management in generating revenue. However, the company struggles with profitability, as reflected by a negative EBIT margin of -0.88% and a low net profit margin of 4.77% for TTM. Despite the positive trajectory in revenue, the continuous negative EBIT over the years highlights ongoing challenges in achieving operational efficiency.

Balance Sheet

The debt-to-equity ratio significantly improved to 0.33 in TTM from 2.35 in the previous year, suggesting better leverage management. However, the equity ratio remains modest at 16.25% for TTM, indicating a lower proportion of assets funded by equity. While Return on Equity (ROE) improved to 15.77% for TTM, the overall financial stability is hindered by a high liability-to-asset ratio, which could pose long-term financial risks.

Cash Flow

GoHealth's cash flow situation is concerning, with negative free cash flow growth and operating cash flow. The operating cash flow to net income ratio is -1.19, indicating inefficiencies in converting earnings to cash. The free cash flow to net income ratio is also negative, further reflecting liquidity challenges. Despite past improvements, the recent downturn in cash flow metrics suggests a need for strategic adjustments to enhance cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
798.89M	734.67M	631.67M	1.06B	877.35M
	Gross Profit
704.84M	575.71M	444.00M	823.08M	678.15M
	EBIT
-7.05M	-81.68M	-281.14M	-102.22M	-44.49M
	EBITDA
173.71M	24.10M	-174.13M	-393.21M	34.36M
	Net Income Common Stockholders
-2.93M	-63.26M	-376.38M	-534.19M	-97.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.92M	90.81M	16.46M	84.36M	144.23M
	Total Assets
1.49B	1.50B	1.66B	2.07B	2.11B
	Total Debt
527.97M	543.05M	557.42M	696.29M	400.57M
	Net Debt
487.05M	452.24M	540.96M	611.93M	256.34M
	Total Liabilities
1.03B	1.09B	1.07B	1.18B	709.64M
	Stockholders Equity
294.80M	231.01M	318.06M	353.10M	378.75M
Cash Flow		Free Cash Flow
-35.34M	95.41M	47.39M	-318.81M	-128.74M
	Operating Cash Flow
-21.61M	109.14M	60.90M	-299.01M	-114.22M
	Investing Cash Flow
3.81M	-13.73M	-13.51M	-19.80M	-14.52M
	Financing Cash Flow
-32.03M	-21.11M	-115.05M	259.09M	260.66M

GoHealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOCO, the sentiment is Negative. The current price of 9.86 is below the 20-day moving average (MA) of 12.27, below the 50-day MA of 14.75, and below the 200-day MA of 12.08, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 37.26 is Neutral, neither overbought nor oversold. The STOCH value of 23.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOCO.

GoHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	69 Neutral	$30.74B	25.51	7.40%	1.25%	10.70%	-49.85%
UNH	65 Neutral	$479.95B	33.84	15.88%	1.52%	8.35%	-35.14%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%
SLQT	58 Neutral	$542.25M	―	-4.16%	―	25.67%	72.08%
EHTH	54 Neutral	$173.67M	―	1.10%	―	17.56%	48.73%
GOCO	49 Neutral	$240.21M	―	-1.24%	―	8.74%	89.80%

GoHealth Corporate Events

GoHealth Extends CEO Vijay Kotte’s Contract and Compensation

On April 1, 2025, GoHealth, Inc. announced an amendment to the employment agreement with CEO Vijay Kotte, extending his contract for three years and adjusting his compensation package. The amendment includes a $1,000,000 annual salary and eligibility for significant equity grants, with a 2025 grant valued at $5,000,000. Additionally, a Letter Agreement was established, granting Mr. Kotte 500,000 restricted stock units and a $3,000,000 cash payment, contingent on continued employment and company performance goals. These changes aim to secure leadership stability and align executive incentives with company performance, potentially impacting GoHealth’s market positioning and stakeholder interests.

Spark’s Take on GOCO Stock

According to Spark, TipRanks’ AI Analyst, GOCO is a Neutral.

GoHealth’s overall stock score reflects a balance of strengths and challenges. The company shows robust revenue and EBITDA growth, driven by operational improvements and strategic initiatives. However, ongoing issues with cash flow and profitability, along with a negative P/E ratio, weigh down the stock’s attractiveness. Technical indicators suggest moderate upward momentum, but the lack of a dividend yield limits its appeal to income investors.

To see Spark’s full report on GOCO stock, click here.