We assign a fundamental rating of 6 out of 10 to HG. HG was compared to 148 industry peers in the Insurance industry. HG has only an average score on both its financial health and profitability. HG may be a bit undervalued, certainly considering the very reasonable score on growth This makes HG very considerable for value investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
HG had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 4.76%, HG belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
HG has a Return On Equity of 16.47%. This is in the better half of the industry: HG outperforms 73.65% of its industry peers.
HG has a better Return On Invested Capital (5.42%) than 81.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HG is significantly below the industry average of 14.94%.
The 3 year average ROIC (3.57%) for HG is below the current ROIC(5.42%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	4.76%
ROE	16.47%
ROIC	5.42%

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 Profit Margin of 16.62%. This is amongst the best in the industry. HG outperforms 84.46% of its industry peers.
HG has a Operating Margin of 23.18%. This is amongst the best in the industry. HG outperforms 81.76% of its industry peers.
In the last couple of years the Operating Margin of HG has grown nicely.

		Industry Rank	Sector Rank
OM	23.18%
PM (TTM)	16.62%
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

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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 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

Based on the Altman-Z score of 0.95, we must say that HG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HG (0.95) is better than 79.73% of its industry peers.
The Debt to FCF ratio of HG is 0.18, which is an excellent value as it means it would take HG, only 0.18 years of fcf income to pay off all of its debts.
HG has a Debt to FCF ratio of 0.18. This is amongst the best in the industry. HG outperforms 91.89% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that HG is not too dependend on debt financing.
HG's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. HG outperforms 79.73% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.06
Debt/FCF	0.18
Altman-Z	0.95

ROIC/WACC0.6

WACC9.03%

2.3 Liquidity

A Current Ratio of 0.15 indicates that HG may have some problems paying its short term obligations.
HG has a better Current ratio (0.15) than 65.54% of its industry peers.
A Quick Ratio of 0.15 indicates that HG may have some problems paying its short term obligations.
HG has a Quick ratio of 0.15. This is in the better half of the industry: HG outperforms 65.54% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.15
Quick Ratio	0.15

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for HG have decreased by -6.04% in the last year.
Looking at the last year, HG shows a very strong growth in Revenue. The Revenue has grown by 20.24%.
HG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 176.06% yearly.

EPS 1Y (TTM)-6.04%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%78.38%

Revenue 1Y (TTM)20.24%

Revenue growth 3Y176.06%

Revenue growth 5YN/A

Sales Q2Q%4.7%

3.2 Future

The Earnings Per Share is expected to grow by 9.88% on average over the next years. This is quite good.
Based on estimates for the next years, HG will show a quite strong growth in Revenue. The Revenue will grow by 11.41% on average per year.

EPS Next Y25.59%

EPS Next 2Y10.29%

EPS Next 3Y12.09%

EPS Next 5Y9.88%

Revenue Next Year21.82%

Revenue Next 2Y10.79%

Revenue Next 3Y11.41%

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

HG is valuated cheaply with a Price/Earnings ratio of 6.61.
Compared to the rest of the industry, the Price/Earnings ratio of HG indicates a rather cheap valuation: HG is cheaper than 80.41% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.30. HG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.27 indicates a rather cheap valuation of HG.
HG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HG is cheaper than 77.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HG to the average of the S&P500 Index (25.57), we can say HG is valued rather cheaply.

		Industry Rank	Sector Rank
PE	6.61
Fwd PE	6.27

4.2 Price Multiples

HG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HG is cheaper than 87.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HG is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	3.28
EV/EBITDA	3.05

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 has a very decent profitability rating, which may justify a higher PE ratio.
HG's earnings are expected to grow with 12.09% in the coming years. This may justify a more expensive valuation.