HAMILTON INSURANCE GROU-CL B (HG) Stock Fundamental Analysis
NYSE:HG - New York Stock Exchange, Inc. - BMG427061046 - Common Stock - Currency: USD
Overall HG gets a fundamental rating of 6 out of 10. We evaluated HG against 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes HG very considerable for value investing!
1. Profitability
1.1 Basic Checks
HG had positive earnings in the past year.
In the past year HG had a positive cash flow from operations.
In multiple years HG reported negative net income over the last 5 years.
HG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HG's Return On Assets of 3.89% is amongst the best of the industry. HG outperforms 82.07% of its industry peers.
HG has a better Return On Equity (13.51%) than 66.90% of its industry peers.
HG has a better Return On Invested Capital (4.75%) than 83.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HG 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
HG has a better Profit Margin (13.64%) than 78.62% of its industry peers.
With a decent Operating Margin value of 20.48%, HG is doing good in the industry, outperforming 80.00% 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
HG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HG has less shares outstanding
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.
HG's Altman-Z score of 0.88 is amongst the best of the industry. HG outperforms 80.69% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.24, HG belongs to the best of the industry, outperforming 88.97% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that HG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, HG belongs to the top of the industry, outperforming 81.38% of the companies in the same industry.
| 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.
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 better Quick ratio (0.18) than 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%.
The Revenue has grown by 31.23% in the past year. This is a very strong growth!
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.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.99, the valuation of HG can be described as very cheap.
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.
HG is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.97, the valuation of HG can be described as very cheap.
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 (21.74), we can say HG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 4.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HG is valued cheaper than 88.28% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HG is valued a bit cheaper than 76.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.42 | ||
| EV/EBITDA | 2.95 |
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 |
21.19
-0.2 (-0.94%)
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 Cap2.18B
Analysts81.33
Price Target23.97 (13.12%)
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 | 6.99 | ||
| Fwd PE | 4.97 | ||
| P/S | 0.92 | ||
| P/FCF | 3.42 | ||
| P/OCF | 3.42 | ||
| P/B | 0.91 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 2.95 |
EPS(TTM)3.03
EY14.3%
EPS(NY)4.26
Fwd EY20.11%
FCF(TTM)6.19
FCFY29.22%
OCF(TTM)6.19
OCFY29.22%
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