HAMILTON INSURANCE GROU-CL B (HG) Stock Fundamental Analysis
USA - NYSE:HG - BMG427061046 - Common Stock
23.74 USD
+0.21 (+0.89%)
23.74 USD
0 (0%)
Taking everything into account, HG scores 6 out of 10 in our fundamental rating. HG was compared to 145 industry peers in the Insurance industry. HG has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on HG. With these ratings, HG could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
HG had positive earnings in the past year.
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.
Of the past 5 years HG 4 years had a positive operating cash flow.
1.2 Ratios
HG's Return On Assets of 4.27% is amongst the best of the industry. HG outperforms 80.27% of its industry peers.
HG has a better Return On Equity (14.87%) than 73.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.11%, HG belongs to the top of the industry, outperforming 81.63% 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 4.40%.
The last Return On Invested Capital (5.11%) for HG is above the 3 year average (3.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 14.87% | ||
| ROIC | 5.11% |
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
Looking at the Profit Margin, with a value of 14.96%, HG belongs to the top of the industry, outperforming 80.27% of the companies in the same industry.
HG has a Operating Margin of 21.84%. This is amongst the best in the industry. HG outperforms 85.03% of its industry peers.
HG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.84% | ||
| PM (TTM) | 14.96% | ||
| 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 0.90. 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 0.90 is fine compared to the rest of the industry. HG outperforms 78.23% of its industry peers.
HG has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
HG has a Debt to FCF ratio of 0.21. This is amongst the best in the industry. HG outperforms 90.48% 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 fine compared to the rest of the industry. HG outperforms 78.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.58
WACC8.85%
2.3 Liquidity
A Current Ratio of 0.12 indicates that HG may have some problems paying its short term obligations.
HG's Current ratio of 0.12 is fine compared to the rest of the industry. HG outperforms 63.95% of its industry peers.
A Quick Ratio of 0.12 indicates that HG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.12, HG is in the better half of the industry, outperforming 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The earnings per share for HG have decreased strongly by -12.56% in the last year.
Looking at the last year, HG shows a very strong growth in Revenue. The Revenue has grown by 25.92%.
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)-12.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%49.17%
Revenue 1Y (TTM)25.92%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%25.99%
3.2 Future
The Earnings Per Share is expected to grow by 9.37% on average over the next years. This is quite good.
HG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.23% yearly.
EPS Next Y12.24%
EPS Next 2Y8.36%
EPS Next 3Y10.84%
EPS Next 5Y9.37%
Revenue Next Year18.49%
Revenue Next 2Y10.47%
Revenue Next 3Y11.23%
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 6.56 indicates a rather cheap valuation of HG.
Based on the Price/Earnings ratio, HG is valued a bit cheaper than the industry average as 78.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.40, HG is valued rather cheaply.
The Price/Forward Earnings ratio is 5.55, which indicates a rather cheap valuation of HG.
Based on the Price/Forward Earnings ratio, HG is valued cheaper than 80.95% of the companies in the same industry.
HG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 5.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HG is valued cheaper than 89.80% of the companies in the same industry.
80.27% 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 | 3.38 | ||
| EV/EBITDA | 2.66 |
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.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y8.36%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
HG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.74
+0.21 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.15%
Inst Owner ChangeN/A
Ins Owners4.72%
Ins Owner Change-1.69%
Market Cap2.36B
Analysts78.67
Price Target26.35 (10.99%)
Short Float %2.37%
Short Ratio3.17
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)2
Avg EPS beat(2)1238.62%
Min EPS beat(2)64.93%
Max EPS beat(2)2412.32%
EPS beat(4)3
Avg EPS beat(4)608.54%
Min EPS beat(4)-44.46%
Max EPS beat(4)2412.32%
EPS beat(8)6
Avg EPS beat(8)320.76%
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)995.48%
Min Revenue beat(2)768.9%
Max Revenue beat(2)1222.05%
Revenue beat(4)4
Avg Revenue beat(4)545.38%
Min Revenue beat(4)33.32%
Max Revenue beat(4)1222.05%
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)9.93%
EPS NQ rev (1m)5.15%
EPS NQ rev (3m)-0.95%
EPS NY rev (1m)0%
EPS NY rev (3m)24.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 5.55 | ||
| P/S | 0.93 | ||
| P/FCF | 3.38 | ||
| P/OCF | 3.38 | ||
| P/B | 0.92 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 2.66 |
EPS(TTM)3.62
EY15.25%
EPS(NY)4.27
Fwd EY18%
FCF(TTM)7.02
FCFY29.57%
OCF(TTM)7.02
OCFY29.57%
SpS25.58
BVpS25.73
TBVpS24.83
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 14.87% | ||
| ROCE | 6.47% | ||
| ROIC | 5.11% | ||
| ROICexc | 5.77% | ||
| ROICexgc | 7.89% | ||
| OM | 21.84% | ||
| PM (TTM) | 14.96% | ||
| GM | N/A | ||
| FCFM | 27.44% |
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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 121.76% | ||
| Profit Quality | 183.46% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 0.9 |
F-Score7
WACC8.85%
ROIC/WACC0.58
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)-12.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%49.17%
EPS Next Y12.24%
EPS Next 2Y8.36%
EPS Next 3Y10.84%
EPS Next 5Y9.37%
Revenue 1Y (TTM)25.92%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%25.99%
Revenue Next Year18.49%
Revenue Next 2Y10.47%
Revenue Next 3Y11.23%
Revenue Next 5YN/A
EBIT growth 1Y14.33%
EBIT growth 3Y276.51%
EBIT growth 5YN/A
EBIT Next Year-11.06%
EBIT Next 3Y0.28%
EBIT Next 5YN/A
FCF growth 1Y434.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y434.44%
OCF growth 3YN/A
OCF growth 5YN/A