Fundamental Analysis of HAMILTON INSURANCE GROU-CL B(NYSE:HG) stock

Fundamental Rating

Taking everything into account, HG scores 6 out of 10 in our fundamental rating. HG was compared to 141 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. An interesting combination arises when we look at growth and value: HG is growing strongly while it also seems undervalued. These ratings would make HG suitable for value and growth investing!

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1. Profitability

1.1 Basic Checks

In the past year HG was profitable.

In the past year HG had a positive cash flow from operations.

1.2 Ratios

HG's Return On Assets of 6.02% is amongst the best of the industry. HG outperforms 89.21% of its industry peers.

HG has a Return On Equity of 20.49%. This is amongst the best in the industry. HG outperforms 85.61% of its industry peers.

Looking at the Return On Invested Capital, with a value of 5.25%, HG belongs to the top of the industry, outperforming 87.05% of the companies in the same industry.

HG had an Average Return On Invested Capital over the past 3 years of 1.47%. This is below the industry average of 4.02%.

The 3 year average ROIC (1.47%) for HG is below the current ROIC(5.25%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	6.02%
ROE	20.49%
ROIC	5.25%

ROA(3y)0.52%

ROA(5y)N/A

ROE(3y)1.58%

ROE(5y)N/A

ROIC(3y)1.47%

ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 22.71%, HG belongs to the best of the industry, outperforming 91.37% of the companies in the same industry.

HG has a better Operating Margin (24.06%) than 84.17% of its industry peers.

		Industry Rank	Sector Rank
OM	24.06%
PM (TTM)	22.71%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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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 more shares outstanding than it did 1 year ago.

The debt/assets ratio for HG has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.86, we must say that HG is in the distress zone and has some risk of bankruptcy.

HG has a Altman-Z score of 0.86. This is amongst the best in the industry. HG outperforms 81.30% of its industry peers.

HG has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.

The Debt to FCF ratio of HG (0.29) is better than 92.81% of its industry peers.

A Debt/Equity ratio of 0.07 indicates that HG is not too dependend on debt financing.

HG has a better Debt to Equity ratio (0.07) than 85.61% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.07
Debt/FCF	0.29
Altman-Z	0.86

ROIC/WACC0.61

WACC8.63%

2.3 Liquidity

HG has a Current Ratio of 0.04. 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 Current ratio (0.04) than 64.75% of its industry peers.

A Quick Ratio of 0.04 indicates that HG may have some problems paying its short term obligations.

Looking at the Quick ratio, with a value of 0.04, HG is in the better half of the industry, outperforming 64.75% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.04
Quick Ratio	0.04

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 373.73% over the past year.

The Revenue has grown by 13.87% in the past year. This is quite good.

Measured over the past years, HG shows a very strong growth in Revenue. The Revenue has been growing by 33.34% on average per year.

EPS 1Y (TTM)373.73%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%262.42%

Revenue 1Y (TTM)13.87%

Revenue growth 3Y33.34%

Revenue growth 5YN/A

Sales Q2Q%59.42%

3.2 Future

Based on estimates for the next years, HG will show a very strong growth in Earnings Per Share. The EPS will grow by 30.62% on average per year.

The Revenue is expected to grow by 23.82% on average over the next years. This is a very strong growth

EPS Next Y99.15%

EPS Next 2Y38.52%

EPS Next 3Y30.62%

EPS Next 5YN/A

Revenue Next Year52.54%

Revenue Next 2Y28.55%

Revenue Next 3Y23.82%

Revenue Next 5YN/A

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 4.79, the valuation of HG can be described as very cheap.

HG's Price/Earnings ratio is rather cheap when compared to the industry. HG is cheaper than 81.30% 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 30.91.

Based on the Price/Forward Earnings ratio of 5.10, the valuation of HG can be described as very cheap.

Based on the Price/Forward Earnings ratio, HG is valued a bit cheaper than 79.86% 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 22.30.

		Industry Rank	Sector Rank
PE	4.79
Fwd PE	5.1

4.2 Price Multiples

89.93% of the companies in the same industry are more expensive than HG, based on the Enterprise Value to EBITDA ratio.

HG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HG is cheaper than 78.42% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	4.03
EV/EBITDA	2.58

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.

HG's earnings are expected to grow with 30.62% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.05

PEG (5Y)N/A

EPS Next 2Y38.52%

EPS Next 3Y30.62%

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5. Dividend

5.1 Amount

No dividends for HG!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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HAMILTON INSURANCE GROU-CL B

NYSE:HG (9/26/2024, 7:59:35 PM)

After market: 20.555 +0.7 (+3.55%)

19.85

-0.51 (-2.5%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupInsurance

GICS IndustryInsurance

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap2.10B

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

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)

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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	4.79
Fwd PE	5.1
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)0.05

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	6.02%
ROE	20.49%
ROCE
ROIC
ROICexc
ROICexgc
OM	24.06%
PM (TTM)	22.71%
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 Turnover0.26

Health

		Industry Rank	Sector Rank
Debt/Equity	0.07
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	0.04
Quick Ratio	0.04
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)373.73%

EPS 3YN/A

EPS 5Y

EPS Q2Q%

EPS Next Y99.15%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)13.87%

Revenue growth 3Y33.34%

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

HAMILTON INSURANCE GROU-CL B (HG)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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