HCI GROUP INC (HCI)
US40416E1038 - Common Stock
Overall HCI gets a fundamental rating of 6 out of 10. We evaluated HCI against 140 industry peers in the Insurance industry. HCI has an excellent profitability rating, but there are some minor concerns on its financial health. HCI is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
HCI had positive earnings in the past year.
In the past year HCI had a positive cash flow from operations.
HCI had positive earnings in 4 of the past 5 years.
Of the past 5 years HCI 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.87%, HCI belongs to the top of the industry, outperforming 87.68% of the companies in the same industry.
HCI has a Return On Equity of 27.30%. This is amongst the best in the industry. HCI outperforms 96.38% of its industry peers.
With an excellent Return On Invested Capital value of 7.88%, HCI belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 27.3% | ||
| ROIC | 7.88% |
ROA(3y)0.44%
ROA(5y)1.44%
ROE(3y)-3.26%
ROE(5y)3.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HCI has a better Profit Margin (17.19%) than 80.43% of its industry peers.
In the last couple of years the Profit Margin of HCI has grown nicely.
With an excellent Operating Margin value of 29.19%, HCI belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Operating Margin of HCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.19% | ||
| PM (TTM) | 17.19% | ||
| GM | N/A |
OM growth 3Y75.16%
OM growth 5Y3.71%
PM growth 3Y13.29%
PM growth 5Y11.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HCI is destroying value.
The number of shares outstanding for HCI has been increased compared to 1 year ago.
The number of shares outstanding for HCI has been increased compared to 5 years ago.
The debt/assets ratio for HCI has been reduced compared to a year ago.
2.2 Solvency
HCI has an Altman-Z score of 1.24. This is a bad value and indicates that HCI is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.24, HCI belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
HCI has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
HCI has a Debt to FCF ratio of 0.76. This is in the better half of the industry: HCI outperforms 76.09% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that HCI is somewhat dependend on debt financing.
HCI's Debt to Equity ratio of 0.59 is on the low side compared to the rest of the industry. HCI is outperformed by 71.01% of its industry peers.
Although HCI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.99
WACC7.93%
2.3 Liquidity
HCI has a Current Ratio of 0.43. This is a bad value and indicates that HCI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.43, HCI is doing good in the industry, outperforming 73.91% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that HCI may have some problems paying its short term obligations.
HCI has a Quick ratio of 0.43. This is in the better half of the industry: HCI outperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 299.16% over the past year.
HCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.82% yearly.
The Revenue has decreased by -0.05% in the past year.
Measured over the past years, HCI shows a quite strong growth in Revenue. The Revenue has been growing by 18.93% on average per year.
EPS 1Y (TTM)299.16%
EPS 3Y31.67%
EPS 5Y22.82%
EPS Q2Q%143.33%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y26.27%
Revenue growth 5Y18.93%
Sales Q2Q%60.13%
3.2 Future
Based on estimates for the next years, HCI will show a very strong growth in Earnings Per Share. The EPS will grow by 22.09% on average per year.
Based on estimates for the next years, HCI will show a very strong growth in Revenue. The Revenue will grow by 22.01% on average per year.
EPS Next Y51.28%
EPS Next 2Y22.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year45.43%
Revenue Next 2Y22.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.70 indicates a reasonable valuation of HCI.
Compared to the rest of the industry, the Price/Earnings ratio of HCI indicates a somewhat cheap valuation: HCI is cheaper than 63.04% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HCI to the average of the S&P500 Index (28.35), we can say HCI is valued rather cheaply.
The Price/Forward Earnings ratio is 8.41, which indicates a very decent valuation of HCI.
Based on the Price/Forward Earnings ratio, HCI is valued a bit cheaper than 63.77% of the companies in the same industry.
HCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
88.41% of the companies in the same industry are more expensive than HCI, based on the Enterprise Value to EBITDA ratio.
HCI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCI is cheaper than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.14 | ||
| EV/EBITDA | 2.57 |
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.
HCI has a very decent profitability rating, which may justify a higher PE ratio.
HCI's earnings are expected to grow with 22.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)0.43
EPS Next 2Y22.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, HCI has a reasonable but not impressive dividend return.
In the last 3 months the price of HCI has falen by -20.60%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HCI's Dividend Yield is comparable with the industry average which is at 4.48.
HCI's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of HCI has a limited annual growth rate of 2.63%.
HCI has been paying a dividend for at least 10 years, so it has a reliable track record.
HCI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.63%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
HCI pays out 13.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of HCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.22%
EPS Next 2Y22.09%
EPS Next 3YN/A
HCI GROUP INC
NYSE:HCI (6/28/2024, 7:05:08 PM)
After market: 92.17 0 (0%)92.17
+0.66 (+0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap965.94M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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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 | 9.7 | ||
| Fwd PE | 8.41 | ||
| 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)0.19
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 27.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.19% | ||
| PM (TTM) | 17.19% | ||
| 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)299.16%
EPS 3Y31.67%
EPS 5Y
EPS Q2Q%
EPS Next Y51.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y26.27%
Revenue growth 5Y
Sales 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