HAGERTY INC-A (HGTY)
US4051661092 - Common Stock
We assign a fundamental rating of 5 out of 10 to HGTY. HGTY was compared to 140 industry peers in the Insurance industry. While HGTY seems to be doing ok healthwise, there are quite some concerns on its profitability. HGTY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year HGTY was profitable.
HGTY had a positive operating cash flow in the past year.
Of the past 5 years HGTY 4 years were profitable.
In the past 5 years HGTY always reported a positive cash flow from operatings.
1.2 Ratios
HGTY's Return On Assets of 0.94% is in line compared to the rest of the industry. HGTY outperforms 46.04% of its industry peers.
Looking at the Return On Equity, with a value of 8.29%, HGTY is in line with its industry, outperforming 43.17% of the companies in the same industry.
HGTY has a better Return On Invested Capital (2.85%) than 61.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 8.29% | ||
| ROIC | 2.85% |
ROA(3y)-0.34%
ROA(5y)0.32%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.40%, HGTY is doing worse than 69.06% of the companies in the same industry.
In the last couple of years the Profit Margin of HGTY has declined.
HGTY's Operating Margin of 4.40% is on the low side compared to the rest of the industry. HGTY is outperformed by 66.91% of its industry peers.
HGTY's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.4% | ||
| PM (TTM) | 1.4% | ||
| GM | N/A |
OM growth 3Y-9.78%
OM growth 5Y-4.01%
PM growth 3Y-8.05%
PM growth 5Y-10.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HGTY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HGTY has more shares outstanding than it did 1 year ago.
The debt/assets ratio for HGTY has been reduced compared to a year ago.
2.2 Solvency
HGTY has an Altman-Z score of 1.44. This is a bad value and indicates that HGTY is not financially healthy and even has some risk of bankruptcy.
HGTY has a Altman-Z score of 1.44. This is amongst the best in the industry. HGTY outperforms 87.77% of its industry peers.
The Debt to FCF ratio of HGTY is 0.58, which is an excellent value as it means it would take HGTY, only 0.58 years of fcf income to pay off all of its debts.
HGTY has a Debt to FCF ratio of 0.58. This is amongst the best in the industry. HGTY outperforms 84.17% of its industry peers.
HGTY has a Debt/Equity ratio of 0.51. This is a neutral value indicating HGTY is somewhat dependend on debt financing.
HGTY has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: HGTY underperforms 64.03% of its industry peers.
Even though the debt/equity ratio score it not favorable for HGTY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.32
WACC8.83%
2.3 Liquidity
HGTY has a Current Ratio of 0.22. This is a bad value and indicates that HGTY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HGTY (0.22) is better than 69.06% of its industry peers.
A Quick Ratio of 0.22 indicates that HGTY may have some problems paying its short term obligations.
HGTY's Quick ratio of 0.22 is fine compared to the rest of the industry. HGTY outperforms 69.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
HGTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 208.25%, which is quite impressive.
The Earnings Per Share has been growing by 9.24% on average over the past years. This is quite good.
Looking at the last year, HGTY shows a very strong growth in Revenue. The Revenue has grown by 20.70%.
Measured over the past years, HGTY shows a very strong growth in Revenue. The Revenue has been growing by 27.09% on average per year.
EPS 1Y (TTM)208.25%
EPS 3Y-27.01%
EPS 5Y9.24%
EPS growth Q2Q-33.33%
Revenue 1Y (TTM)20.7%
Revenue growth 3Y26.04%
Revenue growth 5Y27.09%
Revenue growth Q2Q24.44%
3.2 Future
HGTY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 79.68% yearly.
The Revenue is expected to grow by 14.76% on average over the next years. This is quite good.
EPS Next Y1247.86%
EPS Next 2Y320.76%
EPS Next 3Y79.68%
EPS Next 5YN/A
Revenue Next Year16.93%
Revenue Next 2Y14.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 145.00, HGTY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, HGTY is valued expensively inside the industry as 80.58% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 28.60, HGTY is valued quite expensively.
The Price/Forward Earnings ratio is 7.02, which indicates a rather cheap valuation of HGTY.
73.38% of the companies in the same industry are more expensive than HGTY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HGTY to the average of the S&P500 Index (20.15), we can say HGTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 145 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HGTY is valued a bit more expensive than the industry average as 61.87% of the companies are valued more cheaply.
63.31% of the companies in the same industry are cheaper than HGTY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 32.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HGTY's earnings are expected to grow with 79.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)15.7
EPS Next 2Y320.76%
EPS Next 3Y79.68%
5. Dividend
5.1 Amount
HGTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HAGERTY INC-A
NYSE:HGTY (5/17/2024, 7:04:01 PM)
After market: 8.7 0 (0%)8.7
+0.13 (+1.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 145 | ||
| Fwd PE | 7.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.12
PEG (5Y)15.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.94% | ||
| ROE | 8.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.4% | ||
| PM (TTM) | 1.4% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)208.25%
EPS 3Y-27.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y1247.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.7%
Revenue growth 3Y26.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y