HCI GROUP INC (HCI) Stock Fundamental Analysis
NYSE:HCI - New York Stock Exchange, Inc. - US40416E1038 - Common Stock - Currency: USD
HCI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. Both the profitability and the financial health of HCI get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on HCI. These ratings could make HCI a good candidate for value investing.
1. Profitability
1.1 Basic Checks
HCI had positive earnings in the past year.
HCI had a positive operating cash flow in the past year.
In multiple years HCI reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: HCI reported negative operating cash flow in multiple years.
1.2 Ratios
HCI's Return On Assets of 9.40% is amongst the best of the industry. HCI outperforms 96.50% of its industry peers.
HCI has a better Return On Equity (41.05%) than 97.90% 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 95.80% 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 91.61% of its industry peers.
HCI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 40.80%, HCI belongs to the best of the industry, outperforming 95.80% of the companies in the same industry.
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
HCI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HCI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that HCI is in the distress zone and has some risk of bankruptcy.
HCI's Altman-Z score of 1.63 is amongst the best of the industry. HCI outperforms 86.01% of its industry peers.
The Debt to FCF ratio of HCI is 0.57, which is an excellent value as it means it would take HCI, only 0.57 years of fcf income to pay off all of its debts.
HCI has a Debt to FCF ratio of 0.57. This is in the better half of the industry: HCI outperforms 76.92% 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.
HCI's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. HCI is outperformed by 68.53% of its industry peers.
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 | 1.63 |
ROIC/WACC1.5
WACC8.09%
2.3 Liquidity
A Current Ratio of 0.45 indicates that HCI may have some problems paying its short term obligations.
The Current ratio of HCI (0.45) is better than 74.13% 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 better Quick ratio (0.45) than 74.13% 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 nice 17.55% over the past year.
HCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.91% yearly.
EPS 1Y (TTM)17.55%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%-90.37%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.49%
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 20.75% on average per year.
Based on estimates for the next years, HCI will show a quite strong growth in Revenue. The Revenue will grow by 9.21% on average per year.
EPS Next Y54.97%
EPS Next 2Y22.38%
EPS Next 3Y28.47%
EPS Next 5Y20.75%
Revenue Next Year16.35%
Revenue Next 2Y9.21%
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.
4. Valuation
4.1 Price/Earnings Ratio
HCI is valuated correctly with a Price/Earnings ratio of 15.92.
60.84% of the companies in the same industry are cheaper than HCI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HCI to the average of the S&P500 Index (29.41), we can say HCI is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.27, which indicates a very decent valuation of HCI.
HCI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HCI is cheaper than 63.64% 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 22.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
HCI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HCI is cheaper than 85.31% of the companies in the same industry.
77.62% of the companies in the same industry are more expensive than HCI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.57 | ||
| EV/EBITDA | 3.49 |
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.
The decent profitability rating of HCI may justify a higher PE ratio.
A more expensive valuation may be justified as HCI's earnings are expected to grow with 28.47% in the coming years.
PEG (NY)0.29
PEG (5Y)0.69
EPS Next 2Y22.38%
EPS Next 3Y28.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, HCI has a reasonable but not impressive dividend return.
HCI's Dividend Yield is comparable with the industry average which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.30, HCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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 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
8.44% of the earnings are spent on dividend by HCI. This is a low number and sustainable payout ratio.
HCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.44%
EPS Next 2Y22.38%
EPS Next 3Y28.47%
NYSE:HCI (3/5/2025, 2:46:02 PM)
137.55
+3.24 (+2.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.68%
Inst Owner Change11.08%
Ins Owners17.54%
Ins Owner Change0%
Market Cap1.45B
Analysts80
Price Target155.81 (13.28%)
Short Float %16.24%
Short Ratio12.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend1.5
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)0%
PT rev (3m)2.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.12%
EPS NY rev (1m)0%
EPS NY rev (3m)6.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.81%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)-6.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 10.27 | ||
| P/S | 1.93 | ||
| P/FCF | 3.57 | ||
| P/OCF | 3.53 | ||
| P/B | 3.18 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 3.49 |
EPS(TTM)8.64
EY6.28%
EPS(NY)13.39
Fwd EY9.73%
FCF(TTM)38.53
FCFY28.02%
OCF(TTM)38.94
OCFY28.31%
SpS71.12
BVpS43.2
TBVpS42.65
PEG (NY)0.29
PEG (5Y)0.69
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 | 1.63 |
F-Score7
WACC8.09%
ROIC/WACC1.5
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)17.55%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%-90.37%
EPS Next Y54.97%
EPS Next 2Y22.38%
EPS Next 3Y28.47%
EPS Next 5Y20.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.49%
Revenue Next Year16.35%
Revenue Next 2Y9.21%
Revenue Next 3YN/A
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%