HAMILTON INSURANCE GROU-CL B (HG) Stock Fundamental Analysis
NYSE:HG - New York Stock Exchange, Inc. - BMG427061046 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to HG. HG was compared to 145 industry peers in the Insurance industry. HG has an average financial health and profitability rating. HG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make HG suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year HG was profitable.
HG had a positive operating cash flow in the past year.
In multiple years HG reported negative net income over the last 5 years.
Of the past 5 years HG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HG (3.89%) is better than 81.51% of its industry peers.
With a decent Return On Equity value of 13.51%, HG is doing good in the industry, outperforming 66.44% of the companies in the same industry.
With an excellent Return On Invested Capital value of 4.75%, HG belongs to the best of the industry, outperforming 83.56% of the companies in the same industry.
HG had an Average Return On Invested Capital over the past 3 years of 3.57%. This is in line with the industry average of 4.07%.
The 3 year average ROIC (3.57%) for HG is below the current ROIC(4.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 13.51% | ||
| ROIC | 4.75% |
ROA(3y)2.44%
ROA(5y)N/A
ROE(3y)7.98%
ROE(5y)N/A
ROIC(3y)3.57%
ROIC(5y)N/A
1.3 Margins
HG has a better Profit Margin (13.64%) than 78.08% of its industry peers.
Looking at the Operating Margin, with a value of 20.48%, HG belongs to the top of the industry, outperforming 80.14% of the companies in the same industry.
In the last couple of years the Operating Margin of HG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.48% | ||
| PM (TTM) | 13.64% | ||
| GM | N/A |
OM growth 3Y36.39%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HG has been reduced compared to 1 year ago.
HG has a better debt/assets ratio than last year.
2.2 Solvency
HG has an Altman-Z score of 0.88. This is a bad value and indicates that HG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.88, HG belongs to the top of the industry, outperforming 80.82% of the companies in the same industry.
HG has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
The Debt to FCF ratio of HG (0.24) is better than 89.04% of its industry peers.
HG has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
HG's Debt to Equity ratio of 0.06 is amongst the best of the industry. HG outperforms 81.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.52
WACC9.17%
2.3 Liquidity
A Current Ratio of 0.18 indicates that HG may have some problems paying its short term obligations.
With a decent Current ratio value of 0.18, HG is doing good in the industry, outperforming 67.81% of the companies in the same industry.
HG has a Quick Ratio of 0.18. This is a bad value and indicates that HG is not financially healthy enough and could expect problems in meeting its short term obligations.
HG has a better Quick ratio (0.18) than 67.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
HG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.82%.
HG shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.23%.
Measured over the past years, HG shows a very strong growth in Revenue. The Revenue has been growing by 176.06% on average per year.
EPS 1Y (TTM)-7.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-44.2%
Revenue 1Y (TTM)31.23%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%16.72%
3.2 Future
HG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.03% yearly.
HG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.80% yearly.
EPS Next Y-9.62%
EPS Next 2Y8.21%
EPS Next 3Y11.49%
EPS Next 5Y8.03%
Revenue Next Year11.16%
Revenue Next 2Y11.43%
Revenue Next 3Y11.8%
Revenue Next 5YN/A
3.3 Evolution
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
HG is valuated cheaply with a Price/Earnings ratio of 7.06.
Based on the Price/Earnings ratio, HG is valued a bit cheaper than 79.45% of the companies in the same industry.
HG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 5.02, which indicates a rather cheap valuation of HG.
Based on the Price/Forward Earnings ratio, HG is valued a bit cheaper than 79.45% of the companies in the same industry.
HG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 5.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HG is valued cheaply inside the industry as 88.36% of the companies are valued more expensively.
76.71% of the companies in the same industry are more expensive than HG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.45 | ||
| EV/EBITDA | 2.99 |
4.3 Compensation for Growth
The decent profitability rating of HG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.21%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
HG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.39
+0.29 (+1.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners78.84%
Inst Owner ChangeN/A
Ins Owners4.88%
Ins Owner Change7.99%
Market Cap2.20B
Analysts81.33
Price Target23.97 (12.06%)
Short Float %2.34%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1183.93%
Min EPS beat(2)-44.46%
Max EPS beat(2)2412.32%
EPS beat(4)3
Avg EPS beat(4)606.04%
Min EPS beat(4)-44.46%
Max EPS beat(4)2412.32%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)463.08%
Min Revenue beat(2)157.25%
Max Revenue beat(2)768.9%
Revenue beat(4)4
Avg Revenue beat(4)243.91%
Min Revenue beat(4)16.18%
Max Revenue beat(4)768.9%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.92%
PT rev (3m)-1.4%
EPS NQ rev (1m)4.41%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)6.82%
EPS NY rev (3m)10.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 5.02 | ||
| P/S | 0.92 | ||
| P/FCF | 3.45 | ||
| P/OCF | 3.45 | ||
| P/B | 0.92 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 2.99 |
EPS(TTM)3.03
EY14.17%
EPS(NY)4.26
Fwd EY19.93%
FCF(TTM)6.19
FCFY28.95%
OCF(TTM)6.19
OCFY28.95%
SpS23.13
BVpS23.36
TBVpS22.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 13.51% | ||
| ROCE | 6.02% | ||
| ROIC | 4.75% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 7.29% | ||
| OM | 20.48% | ||
| PM (TTM) | 13.64% | ||
| GM | N/A | ||
| FCFM | 26.77% |
ROA(3y)2.44%
ROA(5y)N/A
ROE(3y)7.98%
ROE(5y)N/A
ROIC(3y)3.57%
ROIC(5y)N/A
ROICexc(3y)4.18%
ROICexc(5y)N/A
ROICexgc(3y)6.07%
ROICexgc(5y)N/A
ROCE(3y)4.52%
ROCE(5y)N/A
ROICexcg growth 3Y222.81%
ROICexcg growth 5YN/A
ROICexc growth 3Y233.68%
ROICexc growth 5YN/A
OM growth 3Y36.39%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 126.22% | ||
| Profit Quality | 196.22% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 0.88 |
F-Score7
WACC9.17%
ROIC/WACC0.52
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-44.2%
EPS Next Y-9.62%
EPS Next 2Y8.21%
EPS Next 3Y11.49%
EPS Next 5Y8.03%
Revenue 1Y (TTM)31.23%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%16.72%
Revenue Next Year11.16%
Revenue Next 2Y11.43%
Revenue Next 3Y11.8%
Revenue Next 5YN/A
EBIT growth 1Y39.85%
EBIT growth 3Y276.51%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y185.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y188.7%
OCF growth 3YN/A
OCF growth 5YN/A