Can Everquote’s (EVER) Strong Balance Sheet Propel It Upward in 2025?

Online marketplaces have become quite a profitable avenue of business following the widespread adoption of the internet and social media. However, this isn’t your typical online marketplace — EverQuote (NASDAQ: EVER) focuses on insurance, and the platform offers listings for home, renters, life, and health coverage.

EVER stock carries a Zen Rating of A — on average, stocks like these provide a 32.52% annual return. Since the start of 2024, EverQuote stock has seen prices go up by more than twice as much — 72.13%, to be exact.

On November 4, the company held its Q3 2024 earnings call, which marked its fourth consecutive earnings beat and fifth consecutive revenue beat. Earnings per share (EPS) came in at $0.31 — significantly outperforming consensus analyst estimates of $0.19.

EverQuote’s balance sheet is its primary strength. The business carries a Financials component grade rating of A. 

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Profit margins have seen a huge expansion in the last year — from -16.7% up to 3.3%. While the company’s debt-to-equity ratio of 0.53 is considered by some to be high, it’s relatively average for a tech company in its growth stage.

In a much more straightforward fashion, the company’s operating cash flow of $45.64 million is more than enough to service the company's debt of $4.09 million. EverQuote also has $59.98 million in short-term liabilities — which are overshadowed by the $139.89 million it maintains in the form of short-term assets.

The stock also carries a Value component grade rating of B. EVER stock has a price-to-earnings (P/E) ratio of 48.54x — significantly higher than the wider market average of 30.48x and the industry average of 20.24x.

However, no single facet of a stock exists in a vacuum — once we take into account that the stock’s price-to-earnings growth (PEG) ratio sits at 0.57x, it becomes clear that it is quite significantly undervalued — provided that its growth prospects come to fruition.

And speaking of growth prospects, that is EverQuote’s second strong suit — it carries a Growth component grade Rating of A. Revenues are forecast to grow at an exceptional rate of 41.62% per year — in contrast, the expectation for the industry is 6.81% and 18.58% for the wider market.

In terms of earnings, the bar is even higher — at a forecast annual growth rate of 105.97%, EverQuote is expected to outpace the industry’s 19.12% and the market’s 59.03% growth rates by significant margins. 

On March 3, EverQuote will hold its Q4 earnings call — investors should pay close attention, as the results will offer a clearer overview of whether or not the lofty ambitions surrounding the company are achievable.

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