HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - NYSE:HRTG - US42727J1025 - Common Stock
26.96 USD
-0.87 (-3.13%)
27.9 USD
+0.94 (+3.49%)
HRTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. There are concerns on the financial health of HRTG while its profitability can be described as average. HRTG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
HRTG had positive earnings in the past year.
HRTG had a negative operating cash flow in the past year.
In multiple years HRTG reported negative net income over the last 5 years.
Of the past 5 years HRTG 4 years had a positive operating cash flow.
1.2 Ratios
HRTG's Return On Assets of 4.22% is fine compared to the rest of the industry. HRTG outperforms 80.00% of its industry peers.
HRTG has a better Return On Equity (27.90%) than 94.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.89%, HRTG belongs to the top of the industry, outperforming 80.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.22% | ||
| ROE | 27.9% | ||
| ROIC | 4.89% |
ROA(3y)-0.61%
ROA(5y)-1.03%
ROE(3y)-25.38%
ROE(5y)-19.16%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HRTG's Profit Margin of 12.71% is fine compared to the rest of the industry. HRTG outperforms 75.17% of its industry peers.
HRTG's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.89%, HRTG is doing good in the industry, outperforming 73.79% of the companies in the same industry.
HRTG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.89% | ||
| PM (TTM) | 12.71% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y3.39%
PM growth 3YN/A
PM growth 5Y6.13%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HRTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HRTG has more shares outstanding
HRTG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HRTG has been reduced compared to a year ago.
2.2 Solvency
HRTG has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HRTG (0.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC8.23%
2.3 Liquidity
HRTG has a Current Ratio of 0.12. This is a bad value and indicates that HRTG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.12, HRTG is in the better half of the industry, outperforming 64.83% of the companies in the same industry.
HRTG has a Quick Ratio of 0.12. This is a bad value and indicates that HRTG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HRTG (0.12) is better than 64.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
HRTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.95%, which is quite impressive.
The Earnings Per Share has been growing by 16.67% on average over the past years. This is quite good.
HRTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.57%.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
EPS 1Y (TTM)77.95%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%154.1%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%2.19%
3.2 Future
HRTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.43% yearly.
HRTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y100.52%
EPS Next 2Y43.06%
EPS Next 3Y26.51%
EPS Next 5Y17.43%
Revenue Next Year4.42%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.77, which indicates a rather cheap valuation of HRTG.
Based on the Price/Earnings ratio, HRTG is valued a bit cheaper than the industry average as 73.79% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.53. HRTG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.55, the valuation of HRTG can be described as very cheap.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than the industry average as 77.93% of the companies are valued more expensively.
HRTG 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 | 7.77 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRTG is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.92 |
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.
HRTG's earnings are expected to grow with 26.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)0.47
EPS Next 2Y43.06%
EPS Next 3Y26.51%
5. Dividend
5.1 Amount
HRTG has a Yearly Dividend Yield of 2.84%.
Compared to an average industry Dividend Yield of 3.54, HRTG pays a bit more dividend than its industry peers.
HRTG's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
The dividend of HRTG decreases each year by -73.43%.
HRTG has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-73.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y43.06%
EPS Next 3Y26.51%
26.96
-0.87 (-3.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.37%
Inst Owner Change1.78%
Ins Owners20.99%
Ins Owner Change-3.95%
Market Cap836.30M
Analysts80
Price Target32.13 (19.18%)
Short Float %8.48%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend0
Dividend Growth(5Y)-73.43%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)83.93%
Min EPS beat(2)50.41%
Max EPS beat(2)117.46%
EPS beat(4)4
Avg EPS beat(4)129.25%
Min EPS beat(4)15.2%
Max EPS beat(4)333.94%
EPS beat(8)6
Avg EPS beat(8)82.22%
EPS beat(12)9
Avg EPS beat(12)127.48%
EPS beat(16)11
Avg EPS beat(16)120.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.4%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-2.95%
Revenue beat(4)1
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)3.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)6
Avg Revenue beat(12)1.04%
Revenue beat(16)9
Avg Revenue beat(16)1.27%
PT rev (1m)8.62%
PT rev (3m)8.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)65.03%
EPS NY rev (1m)0%
EPS NY rev (3m)24.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.77 | ||
| Fwd PE | 6.55 | ||
| P/S | 0.99 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.18 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | 2.92 |
EPS(TTM)3.47
EY12.87%
EPS(NY)4.11
Fwd EY15.26%
FCF(TTM)-1.11
FCFYN/A
OCF(TTM)-0.82
OCFYN/A
SpS27.13
BVpS12.36
TBVpS11.28
PEG (NY)0.08
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.22% | ||
| ROE | 27.9% | ||
| ROCE | 6.05% | ||
| ROIC | 4.89% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 13.57% | ||
| OM | 17.89% | ||
| PM (TTM) | 12.71% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)-0.61%
ROA(5y)-1.03%
ROE(3y)-25.38%
ROE(5y)-19.16%
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 5Y9.04%
ROICexc growth 3YN/A
ROICexc growth 5Y8.96%
OM growth 3YN/A
OM growth 5Y3.39%
PM growth 3YN/A
PM growth 5Y6.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 84% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 17.01 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | N/A |
F-Score6
WACC8.23%
ROIC/WACC0.59
Cap/Depr(3y)73.41%
Cap/Depr(5y)48.4%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)77.95%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%154.1%
EPS Next Y100.52%
EPS Next 2Y43.06%
EPS Next 3Y26.51%
EPS Next 5Y17.43%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%2.19%
Revenue Next Year4.42%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y95.27%
EBIT growth 3YN/A
EBIT growth 5Y13.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-211.59%
FCF growth 3Y10.09%
FCF growth 5Y-7.22%
OCF growth 1Y-167.87%
OCF growth 3Y13.16%
OCF growth 5Y-6.16%