HARTFORD INSURANCE GROUP INC (HIG) Stock Fundamental Analysis
NYSE:HIG - New York Stock Exchange, Inc. - US4165151048 - Common Stock - Currency: USD
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 an average financial health and profitability rating. HIG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HIG was profitable.
HIG had a positive operating cash flow in the past year.
HIG had positive earnings in each of the past 5 years.
HIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HIG has a better Return On Assets (3.60%) than 76.55% of its industry peers.
HIG's Return On Equity of 17.61% is amongst the best of the industry. HIG outperforms 81.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 17.61% | ||
| 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 (11.03%) than 69.66% of its industry peers.
In the last couple of years the Profit Margin of HIG has grown nicely.
HIG has a Operating Margin of 14.48%. This is in the better half of the industry: HIG outperforms 66.21% 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 | 14.48% | ||
| PM (TTM) | 11.03% | ||
| 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.
HIG has less shares outstanding than it did 1 year ago.
HIG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HIG has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HIG is 0.77, which is an excellent value as it means it would take HIG, only 0.77 years of fcf income to pay off all of its debts.
HIG's Debt to FCF ratio of 0.77 is fine compared to the rest of the industry. HIG outperforms 72.41% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that HIG is not too dependend on debt financing.
HIG's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. HIG outperforms 63.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.42%
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 been growing slightly by 6.27% over the past year.
The Earnings Per Share has been growing by 12.78% on average over the past years. This is quite good.
Looking at the last year, HIG shows a small growth in Revenue. The Revenue has grown by 7.42% in the last year.
The Revenue has been growing slightly by 5.05% on average over the past years.
EPS 1Y (TTM)6.27%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%-5.98%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%6.09%
3.2 Future
Based on estimates for the next years, HIG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.28% on average per year.
The Revenue is expected to grow by 6.65% on average over the next years.
EPS Next Y8.46%
EPS Next 2Y12.55%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue Next Year8.71%
Revenue Next 2Y7.45%
Revenue Next 3Y6.65%
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
Based on the Price/Earnings ratio of 11.89, the valuation of HIG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HIG is on the same level as its industry peers.
HIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.47.
The Price/Forward Earnings ratio is 9.26, which indicates a very decent valuation of HIG.
HIG's Price/Forward Earnings is on the same level as the industry average.
HIG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
74.48% of the companies in the same industry are more expensive than HIG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HIG is valued a bit cheaper than 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.07 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
HIG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HIG's earnings are expected to grow with 12.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)0.93
EPS Next 2Y12.55%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
HIG has a Yearly Dividend Yield of 1.66%.
HIG's Dividend Yield is comparable with the industry average which is at 3.64.
Compared to the average S&P500 Dividend Yield of 2.37, HIG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of HIG grows each year by 9.29%, which is quite nice.
HIG has been paying a dividend for at least 10 years, so it has 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
19.75% of the earnings are spent on dividend by HIG. This is a low number and sustainable payout ratio.
The dividend of HIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.75%
EPS Next 2Y12.55%
EPS Next 3Y12.28%
120.94
-1.01 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.87%
Inst Owner Change0.04%
Ins Owners0.33%
Ins Owner Change7.85%
Market Cap34.36B
Analysts73.33
Price Target137.84 (13.97%)
Short Float %1.33%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend1.97
Dividend Growth(5Y)9.29%
DP19.75%
Div Incr Years12
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.14%
Min EPS beat(2)1.72%
Max EPS beat(2)10.56%
EPS beat(4)3
Avg EPS beat(4)5.31%
Min EPS beat(4)-1.43%
Max EPS beat(4)10.56%
EPS beat(8)6
Avg EPS beat(8)6.89%
EPS beat(12)9
Avg EPS beat(12)10.75%
EPS beat(16)13
Avg EPS beat(16)17.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-1.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.09%
Revenue beat(8)0
Avg Revenue beat(8)-1.49%
Revenue beat(12)1
Avg Revenue beat(12)-1.04%
Revenue beat(16)4
Avg Revenue beat(16)0.25%
PT rev (1m)1.81%
PT rev (3m)4.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.11%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 9.26 | ||
| P/S | 1.28 | ||
| P/FCF | 6.07 | ||
| P/OCF | 5.93 | ||
| P/B | 2.04 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)10.17
EY8.41%
EPS(NY)13.06
Fwd EY10.8%
FCF(TTM)19.94
FCFY16.48%
OCF(TTM)20.4
OCFY16.87%
SpS94.66
BVpS59.29
TBVpS50.38
PEG (NY)1.41
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 17.61% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.48% | ||
| PM (TTM) | 11.03% | ||
| GM | N/A | ||
| FCFM | 21.06% |
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 | 0.26 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 4.99% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 17.7 | ||
| Cash Conversion | 88.37% | ||
| Profit Quality | 190.9% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.42%
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)6.27%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%-5.98%
EPS Next Y8.46%
EPS Next 2Y12.55%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue 1Y (TTM)7.42%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%6.09%
Revenue Next Year8.71%
Revenue Next 2Y7.45%
Revenue Next 3Y6.65%
Revenue Next 5YN/A
EBIT growth 1Y11.13%
EBIT growth 3Y8.2%
EBIT growth 5Y5.7%
EBIT Next Year13.97%
EBIT Next 3Y7.06%
EBIT Next 5YN/A
FCF growth 1Y33.05%
FCF growth 3Y12.78%
FCF growth 5Y11.24%
OCF growth 1Y30.27%
OCF growth 3Y12.49%
OCF growth 5Y11.11%