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 scores excellent on profitability, but there are some minor concerns on its financial health. HCI is evaluated to be cheap and growing strongly. This does not happen too often! This makes HCI very considerable 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.
HCI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.75%, HCI belongs to the top of the industry, outperforming 96.40% of the companies in the same industry.
HCI's Return On Equity of 33.10% is amongst the best of the industry. HCI outperforms 97.12% of its industry peers.
With an excellent Return On Invested Capital value of 9.60%, HCI belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 33.1% | ||
| ROIC | 9.6% |
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
Looking at the Profit Margin, with a value of 20.95%, HCI belongs to the top of the industry, outperforming 87.05% of the companies in the same industry.
HCI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 33.11%, HCI belongs to the best of the industry, outperforming 94.96% 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 | 33.11% | ||
| PM (TTM) | 20.95% | ||
| 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.
The number of shares outstanding for HCI has been increased compared to 1 year ago.
Compared to 5 years ago, HCI has more shares outstanding
The debt/assets ratio for HCI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that HCI is in the distress zone and has some risk of bankruptcy.
HCI's Altman-Z score of 1.45 is amongst the best of the industry. HCI outperforms 87.05% of its industry peers.
The Debt to FCF ratio of HCI is 0.63, which is an excellent value as it means it would take HCI, only 0.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.63, HCI is in the better half of the industry, outperforming 76.26% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that HCI is somewhat dependend on debt financing.
HCI has a worse Debt to Equity ratio (0.52) than 64.75% 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 | 0.52 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 1.45 |
ROIC/WACC1.17
WACC8.17%
2.3 Liquidity
HCI has a Current Ratio of 0.57. 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 Current ratio of 0.57. This is in the better half of the industry: HCI outperforms 76.98% of its industry peers.
A Quick Ratio of 0.57 indicates that HCI may have some problems paying its short term obligations.
HCI has a better Quick ratio (0.57) than 76.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 175.66% over the past year.
Measured over the past years, HCI shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.82% on average per year.
The Revenue has grown by 10.23% in the past year. This is quite good.
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)175.66%
EPS 3Y31.67%
EPS 5Y22.82%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y26.27%
Revenue growth 5Y18.93%
Sales Q2Q%33.18%
3.2 Future
The Earnings Per Share is expected to grow by 19.70% on average over the next years. This is quite good.
Based on estimates for the next years, HCI will show a quite strong growth in Revenue. The Revenue will grow by 17.86% on average per year.
EPS Next Y-19.58%
EPS Next 2Y31.02%
EPS Next 3Y19.7%
EPS Next 5YN/A
Revenue Next Year46.94%
Revenue Next 2Y27.86%
Revenue Next 3Y17.86%
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 stable.
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
HCI is valuated reasonably with a Price/Earnings ratio of 9.55.
Based on the Price/Earnings ratio, HCI is valued a bit cheaper than the industry average as 69.06% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HCI to the average of the S&P500 Index (28.96), we can say HCI is valued rather cheaply.
HCI is valuated reasonably with a Price/Forward Earnings ratio of 8.74.
68.35% of the companies in the same industry are more expensive than HCI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, HCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 8.74 |
4.2 Price Multiples
87.77% 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 84.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.11 | ||
| EV/EBITDA | 3.6 |
4.3 Compensation for Growth
HCI has a very decent profitability rating, which may justify a higher PE ratio.
HCI's earnings are expected to grow with 19.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y31.02%
EPS Next 3Y19.7%
5. Dividend
5.1 Amount
HCI has a Yearly Dividend Yield of 1.39%.
Compared to an average industry Dividend Yield of 4.25, HCI has a dividend in line with its industry peers.
HCI's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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 Years13
5.3 Sustainability
10.14% 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.
DP10.14%
EPS Next 2Y31.02%
EPS Next 3Y19.7%
HCI GROUP INC
NYSE:HCI (11/21/2024, 8:04:00 PM)
After market: 110.26 0 (0%)110.26
+2.26 (+2.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 9.55 | ||
| Fwd PE | 8.74 | ||
| 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)N/A
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.75% | ||
| ROE | 33.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.11% | ||
| PM (TTM) | 20.95% | ||
| 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| 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)175.66%
EPS 3Y31.67%
EPS 5Y
EPS Q2Q%
EPS Next Y-19.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.23%
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