Investment Thesis
EverQuote demonstrates exceptional fundamental strength with 38.5% revenue growth, 12.3% operating margins, and impressive 198.9% EPS growth, coupled with a fortress balance sheet of $178.5M cash against minimal $7M debt. The company generates substantial free cash flow of $28.1M (14.7% FCF margin) while maintaining excellent liquidity ratios, indicating a financially healthy and sustainably profitable business.
Strengths
- Exceptional revenue growth of 38.5% YoY with strong operating profitability (12.3% margin)
- Fortress balance sheet with $178.5M cash, $7M debt, and 0.03x debt-to-equity ratio providing financial flexibility
- Strong free cash flow generation of $28.1M with 14.7% FCF margin, demonstrating quality earnings and capital efficiency
Risks
- Sustainability of 38.5% revenue growth rate in a potentially maturing insurance quote comparison market
- Low return metrics (7.8% ROE, 5.8% ROA) suggest capital may be inefficiently deployed or underutilized despite strong cash position
- Business model concentration in insurance quote/comparison vertical creates sector-specific cyclical and competitive risks
Key Metrics to Watch
- Revenue growth rate trajectory and gross margin maintenance
- Return on equity and asset turnover improvements indicating capital deployment efficiency
- Operating cash flow sustainability and capital allocation strategy for $178.5M cash reserve
Financial Metrics
Revenue
190.9M
Net Income
18.7M
EPS (Diluted)
$0.51
Free Cash Flow
28.1M
Total Assets
324.0M
Cash
178.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
12.3%
Net Margin
9.8%
ROE
7.8%
ROA
5.8%
FCF Margin
14.7%
Balance Sheet & Liquidity
Current Ratio
3.14x
Quick Ratio
3.14x
Debt/Equity
0.03x
Debt/Assets
25.7%
Interest Coverage
117.67x
Long-term Debt
7.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T20:20:59.235085 |
Data as of: 2026-03-31 |
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