HCI GROUP INC (HCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HCI - US40416E1038 - Common Stock
160.4 USD
+4.9 (+3.15%)
160.4 USD
0 (0%)
HCI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 148 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare 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.
- 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
- The Return On Assets of HCI (8.33%) is better than 95.27% of its industry peers.
- HCI has a better Return On Equity (23.79%) than 90.54% of its industry peers.
- With an excellent Return On Invested Capital value of 10.13%, HCI belongs to the best of the industry, outperforming 93.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 23.79% | ||
| ROIC | 10.13% |
ROA(3y)1.97%
ROA(5y)1.77%
ROE(3y)4.34%
ROE(5y)5.31%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- HCI's Profit Margin of 23.92% is amongst the best of the industry. HCI outperforms 95.27% of its industry peers.
- HCI's Profit Margin has improved in the last couple of years.
- HCI's Operating Margin of 37.12% is amongst the best of the industry. HCI outperforms 97.30% of its industry peers.
- In the last couple of years the Operating Margin of HCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.12% | ||
| PM (TTM) | 23.92% | ||
| GM | N/A |
OM growth 3Y83.48%
OM growth 5Y3.9%
PM growth 3Y215.92%
PM growth 5Y6.5%
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.
- Compared to 1 year ago, HCI has more shares outstanding
- Compared to 5 years ago, HCI has more shares outstanding
- Compared to 1 year ago, HCI has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.81, we must say that HCI is in the distress zone and has some risk of bankruptcy.
- HCI has a better Altman-Z score (1.81) than 89.86% of its industry peers.
- HCI has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
- HCI has a better Debt to FCF ratio (0.17) than 93.24% of its industry peers.
- HCI has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
- HCI's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. HCI outperforms 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.2
WACC8.46%
2.3 Liquidity
- HCI has a Current Ratio of 0.06. 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 0.06, HCI is doing good in the industry, outperforming 62.84% of the companies in the same industry.
- A Quick Ratio of 0.06 indicates that HCI may have some problems paying its short term obligations.
- The Quick ratio of HCI (0.06) is better than 62.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
- HCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.40%, which is quite impressive.
- The Earnings Per Share has been growing by 22.91% on average over the past years. This is a very strong growth
- HCI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.02%.
- HCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.22% yearly.
EPS 1Y (TTM)37.4%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%1004.26%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%23.41%
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 20.02% 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 13.64% on average per year.
EPS Next Y135.04%
EPS Next 2Y38.08%
EPS Next 3Y27.45%
EPS Next 5Y20.02%
Revenue Next Year16.31%
Revenue Next 2Y13.64%
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 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
- A Price/Earnings ratio of 10.11 indicates a reasonable valuation of HCI.
- Based on the Price/Earnings ratio, HCI is valued a bit cheaper than the industry average as 63.51% of the companies are valued more expensively.
- HCI is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 9.74, the valuation of HCI can be described as very reasonable.
- HCI's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. HCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.11 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
- HCI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HCI is cheaper than 85.14% of the companies in the same industry.
- HCI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HCI is cheaper than 71.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.14 | ||
| EV/EBITDA | 3.37 |
4.3 Compensation for Growth
- HCI's 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 27.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)0.44
EPS Next 2Y38.08%
EPS Next 3Y27.45%
5. Dividend
5.1 Amount
- HCI has a yearly dividend return of 1.00%, which is pretty low.
- In the last 3 months the price of HCI has falen by -21.38%. 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 2.41.
- With a Dividend Yield of 1.00, HCI pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
- The dividend of HCI has a limited annual growth rate of 0.17%.
- 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)0.17%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
- HCI pays out 9.39% of its income as dividend. This is a sustainable payout ratio.
- HCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.39%
EPS Next 2Y38.08%
EPS Next 3Y27.45%
HCI GROUP INC / HCI FAQ
Can you provide the ChartMill fundamental rating for HCI GROUP INC?
ChartMill assigns a fundamental rating of 7 / 10 to HCI.
What is the valuation status for HCI stock?
ChartMill assigns a valuation rating of 8 / 10 to HCI GROUP INC (HCI). This can be considered as Undervalued.
How profitable is HCI GROUP INC (HCI) stock?
HCI GROUP INC (HCI) has a profitability rating of 7 / 10.
What is the valuation of HCI GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HCI GROUP INC (HCI) is 10.11 and the Price/Book (PB) ratio is 2.53.
How financially healthy is HCI GROUP INC?
The financial health rating of HCI GROUP INC (HCI) is 5 / 10.