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. Both the profitability and the financial health of HG get a neutral evaluation. Nothing too spectacular is happening here. HG may be a bit undervalued, certainly considering the very reasonable score on growth This makes HG very considerable 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.
The reported net income has been mixed in the past 5 years: HG reported negative net income in multiple years.
HG 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 3.89%, HG belongs to the top of the industry, outperforming 81.38% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.51%, HG is in the better half of the industry, outperforming 66.21% of the companies in the same industry.
HG's Return On Invested Capital of 4.75% is amongst the best of the industry. HG outperforms 83.45% of its industry peers.
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 last Return On Invested Capital (4.75%) for HG is above the 3 year average (3.57%), which is a sign of increasing profitability.
| 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
The Profit Margin of HG (13.64%) is better than 78.62% of its industry peers.
With an excellent Operating Margin value of 20.48%, HG belongs to the best of the industry, outperforming 80.69% of the companies in the same industry.
HG's Operating Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HG is destroying value.
HG has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, HG has an improved debt to assets ratio.
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.
HG's Altman-Z score of 0.88 is amongst the best of the industry. HG outperforms 80.69% of its industry peers.
The Debt to FCF ratio of HG is 0.24, which is an excellent value as it means it would take HG, only 0.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HG (0.24) is better than 88.97% 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 has a better Debt to Equity ratio (0.06) than 81.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.51
WACC9.29%
2.3 Liquidity
HG has a Current 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's Current ratio of 0.18 is fine compared to the rest of the industry. HG outperforms 67.59% of its industry peers.
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 Quick ratio of 0.18. This is in the better half of the industry: HG outperforms 67.59% 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%.
Looking at the last year, HG shows a very strong growth in Revenue. The Revenue has grown by 31.23%.
The Revenue has been growing by 176.06% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, HG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.03% on average per year.
Based on estimates for the next years, HG will show a quite strong growth in Revenue. The Revenue will grow by 11.80% on average per year.
EPS Next Y-9.62%
EPS Next 2Y7.97%
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
A Price/Earnings ratio of 6.97 indicates a rather cheap valuation of HG.
Based on the Price/Earnings ratio, HG is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.50. HG is valued rather cheaply when compared to this.
HG is valuated cheaply with a Price/Forward Earnings ratio of 4.98.
Based on the Price/Forward Earnings ratio, HG is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HG to the average of the S&P500 Index (36.44), we can say HG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 4.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HG is valued cheaply inside the industry as 87.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HG is valued a bit cheaper than 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.41 | ||
| EV/EBITDA | 2.97 |
4.3 Compensation for Growth
HG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.97%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
HG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.12
-0.16 (-0.75%)
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 Cap2.17B
Analysts81.33
Price Target23.97 (13.49%)
Short Float %2.57%
Short Ratio3.05
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)0%
PT rev (3m)-1.4%
EPS NQ rev (1m)4.41%
EPS NQ rev (3m)2.56%
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)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 4.98 | ||
| P/S | 0.91 | ||
| P/FCF | 3.41 | ||
| P/OCF | 3.41 | ||
| P/B | 0.9 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 2.97 |
EPS(TTM)3.03
EY14.35%
EPS(NY)4.24
Fwd EY20.09%
FCF(TTM)6.19
FCFY29.32%
OCF(TTM)6.19
OCFY29.32%
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
WACC9.29%
ROIC/WACC0.51
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 2Y7.97%
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