HAGERTY INC-A (HGTY)
US4051661092 - Common Stock
HGTY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. While HGTY seems to be doing ok healthwise, there are quite some concerns on its profitability. HGTY is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year HGTY was profitable.
In the past year HGTY had a positive cash flow from operations.
HGTY had positive earnings in 4 of the past 5 years.
In the past 5 years HGTY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.10%, HGTY is in line with its industry, outperforming 42.45% of the companies in the same industry.
HGTY has a Return On Equity of 8.62%. This is comparable to the rest of the industry: HGTY outperforms 41.73% of its industry peers.
HGTY has a Return On Invested Capital (2.76%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 8.62% | ||
| ROIC | 2.76% |
ROA(3y)-0.34%
ROA(5y)0.32%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HGTY's Profit Margin of 1.73% is on the low side compared to the rest of the industry. HGTY is outperformed by 71.94% of its industry peers.
In the last couple of years the Profit Margin of HGTY has declined.
HGTY has a worse Operating Margin (4.65%) than 69.06% of its industry peers.
HGTY's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.65% | ||
| PM (TTM) | 1.73% | ||
| GM | N/A |
OM growth 3Y-9.78%
OM growth 5Y-4.01%
PM growth 3Y-8.05%
PM growth 5Y-10.84%
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 HGTY is destroying value.
Compared to 1 year ago, HGTY has more shares outstanding
The debt/assets ratio for HGTY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that HGTY is in the distress zone and has some risk of bankruptcy.
HGTY has a better Altman-Z score (1.73) than 90.65% of its industry peers.
HGTY has a debt to FCF ratio of 0.73. This is a very positive value and a sign of high solvency as it would only need 0.73 years to pay back of all of its debts.
The Debt to FCF ratio of HGTY (0.73) is better than 74.10% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that HGTY is somewhat dependend on debt financing.
The Debt to Equity ratio of HGTY (0.53) is worse than 66.19% of its industry peers.
Although HGTY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.31
WACC8.92%
2.3 Liquidity
HGTY has a Current Ratio of 0.26. This is a bad value and indicates that HGTY is not financially healthy enough and could expect problems in meeting its short term obligations.
HGTY has a better Current ratio (0.26) than 71.22% of its industry peers.
HGTY has a Quick Ratio of 0.26. This is a bad value and indicates that HGTY is not financially healthy enough and could expect problems in meeting its short term obligations.
HGTY's Quick ratio of 0.26 is fine compared to the rest of the industry. HGTY outperforms 71.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
HGTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 750.00%, which is quite impressive.
HGTY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.24% yearly.
HGTY shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.12%.
HGTY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.09% yearly.
EPS 1Y (TTM)750%
EPS 3Y-27.01%
EPS 5Y9.24%
EPS Q2Q%25%
Revenue 1Y (TTM)21.12%
Revenue growth 3Y26.04%
Revenue growth 5Y27.09%
Sales Q2Q%17.35%
3.2 Future
The Earnings Per Share is expected to grow by 204.10% on average over the next years. This is a very strong growth
HGTY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.40% yearly.
EPS Next Y373.57%
EPS Next 2Y362.82%
EPS Next 3Y204.1%
EPS Next 5YN/A
Revenue Next Year17.71%
Revenue Next 2Y16.92%
Revenue Next 3Y16.4%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
HGTY is valuated quite expensively with a Price/Earnings ratio of 88.54.
Compared to the rest of the industry, the Price/Earnings ratio of HGTY indicates a rather expensive valuation: HGTY more expensive than 82.01% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.20, HGTY is valued quite expensively.
A Price/Forward Earnings ratio of 7.68 indicates a rather cheap valuation of HGTY.
Based on the Price/Forward Earnings ratio, HGTY is valued a bit cheaper than the industry average as 76.26% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HGTY to the average of the S&P500 Index (24.00), we can say HGTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.54 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
66.91% of the companies in the same industry are cheaper than HGTY, based on the Enterprise Value to EBITDA ratio.
67.63% of the companies in the same industry are cheaper than HGTY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.22 | ||
| EV/EBITDA | 41.35 |
4.3 Compensation for Growth
HGTY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HGTY's earnings are expected to grow with 204.10% in the coming years.
PEG (NY)0.24
PEG (5Y)9.59
EPS Next 2Y362.82%
EPS Next 3Y204.1%
5. Dividend
5.1 Amount
No dividends for HGTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HAGERTY INC-A
NYSE:HGTY (11/22/2024, 8:04:00 PM)
11.51
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
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)
Max Revenue beat(4)
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 | 88.54 | ||
| Fwd PE | 7.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.24
PEG (5Y)9.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 8.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.65% | ||
| PM (TTM) | 1.73% | ||
| 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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| 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)750%
EPS 3Y-27.01%
EPS 5Y
EPS Q2Q%
EPS Next Y373.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.12%
Revenue growth 3Y26.04%
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