HARTFORD INSURANCE GROUP INC (HIG) Stock Fundamental Analysis
NYSE:HIG - New York Stock Exchange, Inc. - US4165151048 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HIG. HIG was compared to 143 industry peers in the Insurance industry. Both the profitability and the financial health of HIG get a neutral evaluation. Nothing too spectacular is happening here. HIG has a decent growth rate and is not valued too expensively.
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.
HIG had positive earnings in each of the past 5 years.
Of the past 5 years HIG 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.70%, HIG is doing good in the industry, outperforming 68.31% of the companies in the same industry.
HIG has a better Return On Equity (17.69%) than 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 17.69% | ||
| 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
Looking at the Profit Margin, with a value of 11.56%, HIG is in the better half of the industry, outperforming 69.01% of the companies in the same industry.
In the last couple of years the Profit Margin of HIG has grown nicely.
HIG has a Operating Margin of 14.75%. This is in the better half of the industry: HIG outperforms 66.20% of its industry peers.
In the last couple of years the Operating Margin of HIG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.75% | ||
| PM (TTM) | 11.56% | ||
| GM | N/A |
OM growth 3Y2.96%
OM growth 5Y1.05%
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.
The debt/assets ratio for HIG has been reduced compared to a year ago.
2.2 Solvency
HIG has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.80, HIG is doing good in the industry, outperforming 70.42% of the companies in the same industry.
HIG has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, HIG is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.36%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.71%, which is quite good.
Measured over the past years, HIG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.78% on average per year.
HIG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.01%.
HIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.05% yearly.
EPS 1Y (TTM)15.71%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%-3.92%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%7.48%
3.2 Future
The Earnings Per Share is expected to grow by 11.82% on average over the next years. This is quite good.
Based on estimates for the next years, HIG will show a small growth in Revenue. The Revenue will grow by 6.34% on average per year.
EPS Next Y9.4%
EPS Next 2Y11.89%
EPS Next 3Y11.82%
EPS Next 5YN/A
Revenue Next Year9.47%
Revenue Next 2Y7.37%
Revenue Next 3Y6.34%
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 11.35, the valuation of HIG can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as HIG.
HIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.75.
Based on the Price/Forward Earnings ratio of 10.38, the valuation of HIG can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HIG indicates a somewhat cheap valuation: HIG is cheaper than 61.97% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. HIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
HIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIG is cheaper than 76.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HIG indicates a somewhat cheap valuation: HIG is cheaper than 64.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 5.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.21
PEG (5Y)0.89
EPS Next 2Y11.89%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
HIG has a Yearly Dividend Yield of 1.77%.
Compared to an average industry Dividend Yield of 3.06, HIG has a dividend in line with its industry peers.
HIG's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of HIG is nicely growing with an annual growth rate of 11.07%!
HIG has been paying a dividend for at least 10 years, so it has a reliable track record.
HIG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.07%
Div Incr Years12
Div Non Decr Years15
5.3 Sustainability
18.92% of the earnings are spent on dividend by HIG. This is a low number and sustainable payout ratio.
HIG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP18.92%
EPS Next 2Y11.89%
EPS Next 3Y11.82%
NYSE:HIG (3/4/2025, 3:59:01 PM)
117.065
-2.7 (-2.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change1.03%
Ins Owners0.28%
Ins Owner Change8.05%
Market Cap33.67B
Analysts72.8
Price Target131.28 (12.14%)
Short Float %1.55%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend1.79
Dividend Growth(5Y)11.07%
DP18.92%
Div Incr Years12
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.48%
Min EPS beat(2)-1.43%
Max EPS beat(2)10.4%
EPS beat(4)2
Avg EPS beat(4)6.96%
Min EPS beat(4)-5.51%
Max EPS beat(4)24.39%
EPS beat(8)5
Avg EPS beat(8)7.68%
EPS beat(12)9
Avg EPS beat(12)12.86%
EPS beat(16)12
Avg EPS beat(16)18.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-0.09%
Revenue beat(4)0
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)-0.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.48%
Revenue beat(12)2
Avg Revenue beat(12)-0.39%
Revenue beat(16)6
Avg Revenue beat(16)0.79%
PT rev (1m)-0.09%
PT rev (3m)3.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)-3.69%
EPS NY rev (3m)-3.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)1.42%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 10.38 | ||
| P/S | 1.29 | ||
| P/FCF | 6.2 | ||
| P/OCF | 5.95 | ||
| P/B | 1.98 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)10.31
EY8.81%
EPS(NY)11.28
Fwd EY9.63%
FCF(TTM)18.87
FCFY16.12%
OCF(TTM)19.69
OCFY16.82%
SpS90.45
BVpS59.14
TBVpS50.22
PEG (NY)1.21
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 17.69% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.75% | ||
| PM (TTM) | 11.56% | ||
| GM | N/A | ||
| FCFM | 20.86% |
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)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.96%
OM growth 5Y1.05%
PM growth 3Y3.61%
PM growth 5Y3.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 8.97% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 17.28 | ||
| Cash Conversion | 87.67% | ||
| Profit Quality | 180.42% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.36%
ROIC/WACCN/A
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)15.71%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%-3.92%
EPS Next Y9.4%
EPS Next 2Y11.89%
EPS Next 3Y11.82%
EPS Next 5YN/A
Revenue 1Y (TTM)8.01%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%7.48%
Revenue Next Year9.47%
Revenue Next 2Y7.37%
Revenue Next 3Y6.34%
Revenue Next 5YN/A
EBIT growth 1Y24.7%
EBIT growth 3Y8.96%
EBIT growth 5Y6.14%
EBIT Next Year35.21%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y53.98%
OCF growth 3YN/A
OCF growth 5YN/A