One-glance verdict
Undervalued
$147.81 our estimate vs market $22.74
Wall Street consensus: $29.50 (-80.0% lower than our fair-value estimate)
85% below our estimate, below the bear case
Fundamentals snapshot
EverQuote, Inc.
EVER · NGM · Communication Services · Internet Content & Information
Current price
$22.74
52-week range
$13.88 - $28.73
Market cap
$801.35M
Balance sheet
Healthy
18.63x Strong cushion
Net cash $190.38M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 9.1% last year.
- Reward Returns 53.6% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 5/10 years.
What this company does
EverQuote, Inc.
EverQuote runs an online shopping site for insurance, mainly auto, home, and renters insurance. The money they make comes from insurance companies and agents who pay to get potential customers from the site, which matters because it shows how well they are connecting people needing insurance with those selling it.
How the company got here
EverQuote was founded in 2011 by Seth Birnbaum and Tomas Revesz, who met while studying at MIT. Initially named AdHarmonics, the company began as an internet advertising business before pivoting to create its online insurance marketplace, focusing first on auto insurance. This strategic shift in 2014, when it officially changed its name to EverQuote, laid the foundation for its current business model. The company went public in 2018, offering investors a way to invest in the digital insurance distribution space. In recent years, EverQuote has navigated market volatility, particularly in the auto insurance sector, by focusing on profitability and expanding its offerings.
What it actually does
EverQuote operates an online marketplace that connects people looking for insurance with insurance companies. Think of it like a digital shopping mall specifically for insurance. Consumers use the platform for free to compare different insurance options. EverQuote then makes money by selling leads, which are essentially contact information for these interested shoppers, to insurance providers like carriers and agents. These providers then reach out to the consumers to offer them policies. The company uses data and technology to match shoppers with the providers most likely to meet their needs.
Automotive Insurance
This is EverQuote's largest and most established business line, making up a significant portion of its revenue. When you're looking to buy or switch car insurance, you might use EverQuote's platform. You'd provide details about yourself and your vehicle, and EverQuote would then connect you with various auto insurance companies that are looking for customers like you. These insurance companies pay EverQuote for the opportunity to quote you a policy, as they are looking for new customers to insure.
Home and Renters Insurance
EverQuote also facilitates shopping for home and renters insurance. If you're looking for coverage for your house or apartment, you can use EverQuote's service to find and compare policies from different providers. Similar to the auto insurance segment, insurance companies that offer home and renters policies pay EverQuote for the leads generated through the platform. This represents a growing area for the company beyond its core auto insurance business.
Life and Health Insurance
The company is also expanding its presence in the life and health insurance markets. This means that if you're in the market for life insurance to protect your loved ones or health insurance for medical needs, EverQuote's platform can help connect you with relevant insurance providers. These newer lines of business are part of EverQuote's strategy to diversify its revenue streams and offer a broader range of insurance products to consumers.
What management is betting on now
EverQuote's management is focused on several key strategies to drive future growth and profitability. A major priority is to aggressively expand its presence in the health insurance market to reduce its reliance on the more cyclical auto insurance sector. They are also focused on improving profitability by optimizing marketing spend and increasing operational efficiencies, partly through the use of artificial intelligence (AI). Building the EverQuote brand is another goal, aiming to lower the cost of acquiring new customers. Ultimately, the company aims to become a comprehensive growth partner for insurance providers by leveraging its data and technology.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$22.12M
FY2024 Q4
$19.13M
FY2025 Q1
$22.17M
FY2025 Q2
$23.84M
FY2025 Q3
$18.47M
FY2025 Q4
$25.85M
FY2026 Q1
$28.06M
FY2026 Q2
$22.76M
Revenue
$195.09M
Net income
$19.19M
Diluted EPS
0.53
Operating cash flow
$24.32M
Free cash flow
$22.76M
Fetching…
Sources
Revenue
$190.85M
Net income
$18.67M
Diluted EPS
0.51
Operating cash flow
$29.60M
Free cash flow
$28.06M
Fetching…
Sources
Revenue
$195.32M
Net income
$57.76M
Diluted EPS
1.53
Operating cash flow
$27.01M
Free cash flow
$25.85M
Fetching…
Sources
Revenue
$173.94M
Net income
$18.86M
Diluted EPS
0.50
Operating cash flow
$19.77M
Free cash flow
$18.47M
Fetching…
Sources
Revenue
$156.63M
Net income
$14.70M
Diluted EPS
0.39
Operating cash flow
$25.30M
Free cash flow
$23.84M
Fetching…
Sources
Revenue
$166.63M
Net income
$7.99M
Diluted EPS
0.21
Operating cash flow
$23.31M
Free cash flow
$22.17M
Fetching…
Sources
Revenue
$147.46M
Net income
$12.31M
Diluted EPS
0.35
Operating cash flow
$20.13M
Free cash flow
$19.13M
Fetching…
Sources
Revenue
$144.53M
Net income
$11.55M
Diluted EPS
0.31
Operating cash flow
$23.61M
Free cash flow
$22.12M
Fetching…
Sources
Is it cheap or expensive?
Fair value $147.81 vs current price $22.74
Wall Street consensus is the average analyst price target: $29.50 (-80.0% lower than our fair-value estimate).
Our most-likely fair value is $147.81 a share — about 550.0% above today's price of $22.74, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $190.4M - more cash than debt. Interest coverage 18.6x.
Net debt
$-190.38M
Interest coverage
18.63x
EverQuote, Inc.'s profit covers its interest bill about 18.6 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
EVER
BASELINE
EverQuote, Inc.
Total debt $1.94M Interest coverage 18.63x This is the baseline the peer rows are being compared against.
Total debt $398.02M Interest coverage 1.66x -91% vs EVER Carries about 11.2x less debt cushion than EVER.
Total debt $77.66M Interest coverage 8.06x -57% vs EVER Carries about 2.3x less debt cushion than EVER.
Total debt $176.71M Interest coverage 3.16x -83% vs EVER Carries about 5.9x less debt cushion than EVER.
Total debt $436.06M Interest coverage 3.16x -83% vs EVER Carries about 5.9x less debt cushion than EVER.
Total debt $372.84M Interest coverage 3.14x -83% vs EVER Carries about 5.9x less debt cushion than EVER.
What you should know
The case for and against EVER
3 Rewards
0 Risks
Rewards
-
Revenue grew 9.1% last year.
-
Returns 53.6% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
7.41x
Forward P/E
7.39x
P/B
3.12x
P/S
1.06x
EV/EBITDA
7.31x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
97.6%
Operating margin
12.0%
Net margin
15.2%
ROE
53.6%
ROA
17.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
3.33x
Quick ratio
3.22x
Total debt
$1.94M
Total cash
$192.32M
Growth
How the business has been compounding
Revenue TTM
$755.20M
Revenue 5Y CAGR
13.4%
EPS TTM
3.07
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$100.70M
Free CF TTM
$90.32M
FCF margin
12.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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