HARTFORD INSURANCE GROUP INC (HIG) Stock Fundamental Analysis
USA - NYSE:HIG - US4165151048 - Common Stock
128.66 USD
-2.52 (-1.92%)
128.66 USD
0 (0%)
Taking everything into account, HIG scores 5 out of 10 in our fundamental rating. HIG was compared to 145 industry peers in the Insurance industry. HIG has only an average score on both its financial health and profitability. HIG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HIG had positive earnings in the past year.
HIG had a positive operating cash flow in the past year.
In the past 5 years HIG has always been profitable.
Each year in the past 5 years HIG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.85%, HIG is in the better half of the industry, outperforming 77.24% of the companies in the same industry.
The Return On Equity of HIG (18.40%) is better than 85.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 18.4% | ||
| ROIC | N/A |
ROA(3y)3.17%
ROA(5y)2.98%
ROE(3y)16.04%
ROE(5y)14.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HIG has a better Profit Margin (11.77%) than 72.41% of its industry peers.
HIG's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 15.39%, HIG is doing good in the industry, outperforming 68.28% of the companies in the same industry.
HIG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.39% | ||
| PM (TTM) | 11.77% | ||
| GM | N/A |
OM growth 3Y2.24%
OM growth 5Y0.62%
PM growth 3Y3.61%
PM growth 5Y3.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HIG does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for HIG has been reduced compared to 1 year ago.
The number of shares outstanding for HIG has been reduced compared to 5 years ago.
Compared to 1 year ago, HIG has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HIG is 0.76, which is an excellent value as it means it would take HIG, only 0.76 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.76, HIG is in the better half of the industry, outperforming 76.55% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that HIG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.25, HIG is doing good in the industry, outperforming 63.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.16%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.73% over the past year.
HIG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.78% yearly.
Looking at the last year, HIG shows a small growth in Revenue. The Revenue has grown by 7.56% in the last year.
The Revenue has been growing slightly by 5.05% on average over the past years.
EPS 1Y (TTM)8.73%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%36.4%
Revenue 1Y (TTM)7.56%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%7.72%
3.2 Future
HIG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.13% yearly.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y15.11%
EPS Next 2Y13.66%
EPS Next 3Y12.13%
EPS Next 5YN/A
Revenue Next Year8.33%
Revenue Next 2Y7.1%
Revenue Next 3Y6.3%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.61, the valuation of HIG can be described as very reasonable.
HIG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.55, HIG is valued rather cheaply.
HIG is valuated reasonably with a Price/Forward Earnings ratio of 9.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HIG is on the same level as its industry peers.
HIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HIG is valued a bit cheaper than the industry average as 74.48% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HIG is valued a bit cheaper than the industry average as 67.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.33 | ||
| EV/EBITDA | 5.89 |
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.
A more expensive valuation may be justified as HIG's earnings are expected to grow with 12.13% in the coming years.
PEG (NY)0.77
PEG (5Y)0.91
EPS Next 2Y13.66%
EPS Next 3Y12.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, HIG has a reasonable but not impressive dividend return.
HIG's Dividend Yield is comparable with the industry average which is at 3.54.
HIG's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
On average, the dividend of HIG grows each year by 9.29%, which is quite nice.
HIG has paid a dividend for at least 10 years, which is a reliable track record.
HIG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.29%
Div Incr Years12
Div Non Decr Years15
5.3 Sustainability
18.46% of the earnings are spent on dividend by HIG. This is a low number and sustainable payout ratio.
HIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.46%
EPS Next 2Y13.66%
EPS Next 3Y12.13%
128.66
-2.52 (-1.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.97%
Inst Owner Change0.05%
Ins Owners0.34%
Ins Owner Change-0.66%
Market Cap36.18B
Analysts72.31
Price Target141.42 (9.92%)
Short Float %1.29%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend1.97
Dividend Growth(5Y)9.29%
DP18.46%
Div Incr Years12
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.43%
Min EPS beat(2)1.72%
Max EPS beat(2)19.15%
EPS beat(4)3
Avg EPS beat(4)7.5%
Min EPS beat(4)-1.43%
Max EPS beat(4)19.15%
EPS beat(8)6
Avg EPS beat(8)9.2%
EPS beat(12)9
Avg EPS beat(12)8.97%
EPS beat(16)13
Avg EPS beat(16)14.38%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-1.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.09%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)1
Avg Revenue beat(12)-0.86%
Revenue beat(16)3
Avg Revenue beat(16)-0.24%
PT rev (1m)0.21%
PT rev (3m)2.6%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)6.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 9.66 | ||
| P/S | 1.32 | ||
| P/FCF | 6.33 | ||
| P/OCF | 6.21 | ||
| P/B | 2.07 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 5.89 |
EPS(TTM)11.08
EY8.61%
EPS(NY)13.32
Fwd EY10.35%
FCF(TTM)20.33
FCFY15.8%
OCF(TTM)20.73
OCFY16.11%
SpS97.38
BVpS62.3
TBVpS53.37
PEG (NY)0.77
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.85% | ||
| ROE | 18.4% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 15.39% | ||
| PM (TTM) | 11.77% | ||
| GM | N/A | ||
| FCFM | 20.88% |
ROA(3y)3.17%
ROA(5y)2.98%
ROE(3y)16.04%
ROE(5y)14.1%
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)4.21%
ROCE(5y)4.01%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.24%
OM growth 5Y0.62%
PM growth 3Y3.61%
PM growth 5Y3.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 4.05% | ||
| Cap/Sales | 0.41% | ||
| Interest Coverage | 20.26 | ||
| Cash Conversion | 83.52% | ||
| Profit Quality | 177.3% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.16%
ROIC/WACCN/A
Cap/Depr(3y)7.01%
Cap/Depr(5y)6.34%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.67%
Profit Quality(3y)187.16%
Profit Quality(5y)189.69%
High Growth Momentum
Growth
EPS 1Y (TTM)8.73%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%36.4%
EPS Next Y15.11%
EPS Next 2Y13.66%
EPS Next 3Y12.13%
EPS Next 5YN/A
Revenue 1Y (TTM)7.56%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%7.72%
Revenue Next Year8.33%
Revenue Next 2Y7.1%
Revenue Next 3Y6.3%
Revenue Next 5YN/A
EBIT growth 1Y13.15%
EBIT growth 3Y8.2%
EBIT growth 5Y5.7%
EBIT Next Year13.97%
EBIT Next 3Y7.06%
EBIT Next 5YN/A
FCF growth 1Y76.97%
FCF growth 3Y12.78%
FCF growth 5Y11.24%
OCF growth 1Y70.06%
OCF growth 3Y12.49%
OCF growth 5Y11.11%