HCI GROUP INC (HCI)
US40416E1038 - Common Stock
HCI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. While HCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HCI is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make HCI a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year HCI was profitable.
HCI had a positive operating cash flow in the past year.
Of the past 5 years HCI 4 years were profitable.
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 9.40%, HCI belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
The Return On Equity of HCI (41.05%) is better than 97.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.14%, HCI belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 41.05% | ||
| ROIC | 12.14% |
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 Profit Margin of 24.93%. This is amongst the best in the industry. HCI outperforms 89.29% of its industry peers.
HCI's Profit Margin has improved in the last couple of years.
HCI has a Operating Margin of 40.80%. This is amongst the best in the industry. HCI outperforms 95.71% of its industry peers.
HCI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.8% | ||
| PM (TTM) | 24.93% | ||
| GM | N/A |
OM growth 3Y73.69%
OM growth 5Y3.19%
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) just above the Cost of Capital (WACC), HCI is creating some value.
HCI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HCI has been increased compared to 5 years ago.
Compared to 1 year ago, HCI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that HCI is in the distress zone and has some risk of bankruptcy.
HCI has a better Altman-Z score (1.55) than 85.71% of its industry peers.
HCI has a debt to FCF ratio of 0.57. This is a very positive value and a sign of high solvency as it would only need 0.57 years to pay back of all of its debts.
HCI's Debt to FCF ratio of 0.57 is fine compared to the rest of the industry. HCI outperforms 77.14% of its industry peers.
HCI has a Debt/Equity ratio of 0.51. This is a neutral value indicating HCI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, HCI is doing worse than 67.14% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for HCI, 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 | 0.57 | ||
| Altman-Z | 1.55 |
ROIC/WACC1.46
WACC8.33%
2.3 Liquidity
A Current Ratio of 0.45 indicates that HCI may have some problems paying its short term obligations.
HCI's Current ratio of 0.45 is fine compared to the rest of the industry. HCI outperforms 73.57% of its industry peers.
HCI has a Quick Ratio of 0.45. This is a bad value and indicates that HCI is not financially healthy enough and could expect problems in meeting its short term obligations.
HCI has a Quick ratio of 0.45. This is in the better half of the industry: HCI outperforms 73.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 175.66% over the past year.
The Earnings Per Share has been growing by 22.82% on average over the past years. This is a very strong growth
HCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.59%.
The Revenue has been growing by 18.93% on average over the past years. This is quite good.
EPS 1Y (TTM)175.66%
EPS 3Y31.67%
EPS 5Y22.82%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)47.59%
Revenue growth 3Y26.27%
Revenue growth 5Y18.93%
Sales Q2Q%33.18%
3.2 Future
The Earnings Per Share is expected to grow by 22.36% on average over the next years. This is a very strong growth
Based on estimates for the next years, HCI will show a quite strong growth in Revenue. The Revenue will grow by 16.38% on average per year.
EPS Next Y-12.39%
EPS Next 2Y33.18%
EPS Next 3Y21.6%
EPS Next 5Y22.36%
Revenue Next Year40.98%
Revenue Next 2Y27.06%
Revenue Next 3Y16.38%
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 9.82 indicates a reasonable valuation of HCI.
64.29% of the companies in the same industry are more expensive than HCI, based on the Price/Earnings ratio.
HCI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
HCI is valuated reasonably with a Price/Forward Earnings ratio of 8.70.
Based on the Price/Forward Earnings ratio, HCI is valued a bit cheaper than 67.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. HCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
90.71% of the companies in the same industry are more expensive than HCI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HCI indicates a rather cheap valuation: HCI is cheaper than 82.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.94 | ||
| EV/EBITDA | 2.78 |
4.3 Compensation for Growth
HCI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HCI's earnings are expected to grow with 21.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y33.18%
EPS Next 3Y21.6%
5. Dividend
5.1 Amount
HCI has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.33, HCI has a dividend in line with its industry peers.
HCI's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of HCI has a limited annual growth rate of 2.63%.
HCI has paid a dividend for at least 10 years, which is a reliable track record.
HCI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.63%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
HCI pays out 8.44% 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.
DP8.44%
EPS Next 2Y33.18%
EPS Next 3Y21.6%
HCI GROUP INC
NYSE:HCI (12/20/2024, 8:16:16 PM)
After market: 113.37 0 (0%)113.37
+2.12 (+1.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners78.13%
Inst Owner Change6.95%
Ins Owners17.65%
Ins Owner Change0%
Market Cap1.19B
Analysts80
Price Target143.06 (26.19%)
Short Float %12.16%
Short Ratio6.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Dividend Growth(5Y)2.63%
DP8.44%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.56%
Min EPS beat(2)19.69%
Max EPS beat(2)73.42%
EPS beat(4)4
Avg EPS beat(4)62.03%
Min EPS beat(4)19.69%
Max EPS beat(4)126.11%
EPS beat(8)8
Avg EPS beat(8)319.74%
EPS beat(12)11
Avg EPS beat(12)196.55%
EPS beat(16)13
Avg EPS beat(16)111.4%
Revenue beat(2)1
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-8.88%
Max Revenue beat(2)3.48%
Revenue beat(4)3
Avg Revenue beat(4)3.06%
Min Revenue beat(4)-8.88%
Max Revenue beat(4)10.74%
Revenue beat(8)6
Avg Revenue beat(8)3.01%
Revenue beat(12)9
Avg Revenue beat(12)9.98%
Revenue beat(16)13
Avg Revenue beat(16)15.57%
PT rev (1m)2.94%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-203.12%
EPS NY rev (1m)8.94%
EPS NY rev (3m)-46.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-4.06%
Revenue NY rev (3m)-5.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 8.7 | ||
| P/S | 1.59 | ||
| P/FCF | 2.94 | ||
| P/OCF | 2.91 | ||
| P/B | 2.62 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 2.78 |
EPS(TTM)11.55
EY10.19%
EPS(NY)13.04
Fwd EY11.5%
FCF(TTM)38.53
FCFY33.99%
OCF(TTM)38.94
OCFY34.35%
SpS71.12
BVpS43.2
TBVpS42.65
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 41.05% | ||
| ROCE | 16.4% | ||
| ROIC | 12.14% | ||
| ROICexc | 16.66% | ||
| ROICexgc | 23.88% | ||
| OM | 40.8% | ||
| PM (TTM) | 24.93% | ||
| GM | N/A | ||
| FCFM | 54.18% |
ROA(3y)0.44%
ROA(5y)1.44%
ROE(3y)-3.26%
ROE(5y)3.35%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y67.11%
ROICexcg growth 5Y9.17%
ROICexc growth 3Y60.76%
ROICexc growth 5Y5.62%
OM growth 3Y73.69%
OM growth 5Y3.19%
PM growth 3Y13.29%
PM growth 5Y11.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 0.57 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 105.18% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 27.59 | ||
| Cash Conversion | 132.44% | ||
| Profit Quality | 217.3% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.55 |
F-Score7
WACC8.33%
ROIC/WACC1.46
Cap/Depr(3y)72.8%
Cap/Depr(5y)64.91%
Cap/Sales(3y)1.09%
Cap/Sales(5y)1.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)175.66%
EPS 3Y31.67%
EPS 5Y22.82%
EPS Q2Q%-66.67%
EPS Next Y-12.39%
EPS Next 2Y33.18%
EPS Next 3Y21.6%
EPS Next 5Y22.36%
Revenue 1Y (TTM)47.59%
Revenue growth 3Y26.27%
Revenue growth 5Y18.93%
Sales Q2Q%33.18%
Revenue Next Year40.98%
Revenue Next 2Y27.06%
Revenue Next 3Y16.38%
Revenue Next 5YN/A
EBIT growth 1Y283.96%
EBIT growth 3Y119.33%
EBIT growth 5Y22.72%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1635.34%
FCF growth 3Y46.77%
FCF growth 5Y53.86%
OCF growth 1Y1288.07%
OCF growth 3Y43.97%
OCF growth 5Y51.82%