HAGERTY INC-A (HGTY)
US4051661092 - Common Stock
We assign a fundamental rating of 4 out of 10 to HGTY. HGTY was compared to 140 industry peers in the Insurance industry. The financial health of HGTY is average, but there are quite some concerns on its profitability. HGTY shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
HGTY had positive earnings in the past year.
HGTY had a positive operating cash flow in the past year.
HGTY had positive earnings in 4 of the past 5 years.
HGTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HGTY has a Return On Assets (1.10%) which is comparable to the rest of the industry.
HGTY has a Return On Equity (8.62%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 2.76%, HGTY is doing good in the industry, outperforming 61.59% of the companies in the same 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 has a Profit Margin of 1.73%. This is in the lower half of the industry: HGTY underperforms 71.74% of its industry peers.
HGTY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.65%, HGTY is doing worse than 69.57% of the companies in the same industry.
In the last couple of years the Operating Margin of HGTY has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HGTY is destroying value.
Compared to 1 year ago, HGTY has more shares outstanding
HGTY has a better debt/assets ratio than last year.
2.2 Solvency
HGTY has an Altman-Z score of 1.49. This is a bad value and indicates that HGTY is not financially healthy and even has some risk of bankruptcy.
HGTY's Altman-Z score of 1.49 is amongst the best of the industry. HGTY outperforms 84.06% of its industry peers.
The Debt to FCF ratio of HGTY is 0.73, which is an excellent value as it means it would take HGTY, only 0.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.73, HGTY is in the better half of the industry, outperforming 72.46% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that HGTY is somewhat dependend on debt financing.
HGTY's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. HGTY is outperformed by 71.01% 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 | 1.49 |
ROIC/WACC0.31
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.26 indicates that HGTY may have some problems paying its short term obligations.
HGTY has a Current ratio of 0.26. This is in the better half of the industry: HGTY outperforms 71.01% 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.
Looking at the Quick ratio, with a value of 0.26, HGTY is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
| 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 900.00%, which is quite impressive.
Measured over the past years, HGTY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.24% on average per year.
HGTY shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.12%.
Measured over the past years, HGTY shows a very strong growth in Revenue. The Revenue has been growing by 27.09% on average per year.
EPS 1Y (TTM)900%
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%20.38%
3.2 Future
HGTY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 85.77% yearly.
HGTY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.85% yearly.
EPS Next Y235.14%
EPS Next 2Y123.67%
EPS Next 3Y85.77%
EPS Next 5YN/A
Revenue Next Year18.49%
Revenue Next 2Y16.54%
Revenue Next 3Y15.85%
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
The Price/Earnings ratio is 61.75, which means the current valuation is very expensive for HGTY.
Compared to the rest of the industry, the Price/Earnings ratio of HGTY indicates a rather expensive valuation: HGTY more expensive than 81.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.09. HGTY is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 28.21, which means the current valuation is very expensive for HGTY.
Based on the Price/Forward Earnings ratio, HGTY is valued a bit more expensive than 76.09% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.45, HGTY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.75 | ||
| Fwd PE | 28.21 |
4.2 Price Multiples
HGTY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HGTY is more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HGTY is valued a bit more expensive than 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.93 | ||
| EV/EBITDA | 34.63 |
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 85.77% in the coming years.
PEG (NY)0.26
PEG (5Y)6.69
EPS Next 2Y123.67%
EPS Next 3Y85.77%
5. Dividend
5.1 Amount
HGTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HAGERTY INC-A
NYSE:HGTY (1/2/2025, 8:04:00 PM)
After market: 9.88 0 (0%)9.88
+0.23 (+2.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners81.51%
Inst Owner Change4.09%
Ins Owners9.21%
Ins Owner Change3.3%
Market Cap3.37B
Analysts47.5
Price Target11.73 (18.72%)
Short Float %0.4%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-77.95%
Min EPS beat(2)-87.27%
Max EPS beat(2)-68.63%
EPS beat(4)1
Avg EPS beat(4)-18.35%
Min EPS beat(4)-143.57%
Max EPS beat(4)226.07%
EPS beat(8)3
Avg EPS beat(8)-7.34%
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)3.38%
Min Revenue beat(2)2.85%
Max Revenue beat(2)3.91%
Revenue beat(4)3
Avg Revenue beat(4)1.39%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)3.91%
Revenue beat(8)5
Avg Revenue beat(8)0.23%
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)4.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-87.87%
EPS NY rev (1m)-22.47%
EPS NY rev (3m)-51.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.75 | ||
| Fwd PE | 28.21 | ||
| P/S | 2.92 | ||
| P/FCF | 19.93 | ||
| P/OCF | 17.63 | ||
| P/B | 14.58 | ||
| P/tB | 135.64 | ||
| EV/EBITDA | 34.63 |
EPS(TTM)0.16
EY1.62%
EPS(NY)0.35
Fwd EY3.54%
FCF(TTM)0.5
FCFY5.02%
OCF(TTM)0.56
OCFY5.67%
SpS3.38
BVpS0.68
TBVpS0.07
PEG (NY)0.26
PEG (5Y)6.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 8.62% | ||
| ROCE | 3.5% | ||
| ROIC | 2.76% | ||
| ROICexc | 3.06% | ||
| ROICexgc | 3.84% | ||
| OM | 4.65% | ||
| PM (TTM) | 1.73% | ||
| GM | N/A | ||
| FCFM | 14.66% |
ROA(3y)-0.34%
ROA(5y)0.32%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-16.19%
ROICexcg growth 5YN/A
ROICexc growth 3Y-18.66%
ROICexc growth 5YN/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
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.73 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 54.3% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 7.17 | ||
| Cash Conversion | 202.61% | ||
| Profit Quality | 848.65% | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.49 |
F-Score7
WACC9.04%
ROIC/WACC0.31
Cap/Depr(3y)128.16%
Cap/Depr(5y)164.3%
Cap/Sales(3y)5.01%
Cap/Sales(5y)5.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)900%
EPS 3Y-27.01%
EPS 5Y9.24%
EPS Q2Q%25%
EPS Next Y235.14%
EPS Next 2Y123.67%
EPS Next 3Y85.77%
EPS Next 5YN/A
Revenue 1Y (TTM)21.12%
Revenue growth 3Y26.04%
Revenue growth 5Y27.09%
Sales Q2Q%20.38%
Revenue Next Year18.49%
Revenue Next 2Y16.54%
Revenue Next 3Y15.85%
Revenue Next 5YN/A
EBIT growth 1Y1009.76%
EBIT growth 3Y13.71%
EBIT growth 5Y21.99%
EBIT Next Year1610.15%
EBIT Next 3Y214.47%
EBIT Next 5YN/A
FCF growth 1Y3350.35%
FCF growth 3Y32.67%
FCF growth 5Y23.24%
OCF growth 1Y278.51%
OCF growth 3Y16.5%
OCF growth 5Y23.71%