SelectQuote, Inc.
$0.94
-2.7%SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance policies to consumers from various insurance carriers in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related policies, including prescription drugs, dental, vision, and hearing plans; term life policies; and non-commercial auto and home property, and casualty policies. The company was incorporated in 1999 and is headquartered in Overland Park, Kansas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 6.7).
Valuation inputs: P/E 6.7, earnings yield +14.8%, momentum -2.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +8.3%, ROIC +6.0%).
Profitability stack: net margin +3.1%, ROE +8.3%, ROIC +6.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +53.9%, momentum -2.7%, net margin +3.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
SelectQuote, Inc. Market vs Earnings Trajectory
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SelectQuote, Inc. Fair Value Envelope
SelectQuote, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
SelectQuote, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.
SelectQuote, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
SelectQuote, Inc. Street Expectations Map
Wall Street analysts project that SLQT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 3.00, with estimates ranging from a low of 3.00 to a high of 3.00.
The consensus 1-year price target stands at 3.00, with estimates ranging from a low of 3.00 to a high of 3.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
SelectQuote, Inc. Insider Positioning
During the last 12 months, insiders have purchased $35K and sold $1.37M worth of SLQT shares, resulting in $1.34M of net selling activity.
3 Months
0
0.00
4.0K
4.08K
-4K
-$4K
3-6 Months
40.0K
35.02K
0
0.00
+35K
+$35K
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
785.6K
1.37M
-1.4M
-$1.37M
Top Buyers
Grant Robert Clay
Officer: President
$35K
Top Sellers
Grant Robert Clay
Officer: President
$355K
Danker Timothy Robert
Director, Officer: Chief Executive Officer
$347K
Grant William Thomas Iii
Officer: Chief Operating Officer
$318K
Boulware Daniel Allen
Officer: General Counsel And Secretary
$163K
Clement Ryan Moore
Officer: Chief Financial Officer
$108K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $1.34M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
slqt Dividend History
Learning Layer
Related Guides
Build conviction on SLQT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.