HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - NYSE:HRTG - US42727J1025 - Common Stock
31.14 USD
+0.3 (+0.97%)
31.2 USD
+0.06 (+0.19%)
We assign a fundamental rating of 5 out of 10 to HRTG. HRTG was compared to 146 industry peers in the Insurance industry. There are concerns on the financial health of HRTG while its profitability can be described as average. HRTG is valued quite cheap, while showing a decent growth score. This is a good 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.
HRTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HRTG has a Return On Assets of 4.22%. This is in the better half of the industry: HRTG outperforms 78.77% of its industry peers.
Looking at the Return On Equity, with a value of 27.90%, HRTG belongs to the top of the industry, outperforming 93.15% of the companies in the same industry.
HRTG's Return On Invested Capital of 4.89% is fine compared to the rest of the industry. HRTG outperforms 79.45% of its industry peers.
| 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 has a better Profit Margin (12.71%) than 73.97% of its industry peers.
In the last couple of years the Profit Margin of HRTG has grown nicely.
The Operating Margin of HRTG (17.89%) is better than 72.60% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRTG is destroying value.
HRTG has more shares outstanding than it did 1 year ago.
HRTG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HRTG has an improved debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.28 indicates that HRTG is not too dependend on debt financing.
HRTG has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: HRTG outperforms 58.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.12 indicates that HRTG may have some problems paying 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 65.07% 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.
Looking at the Quick ratio, with a value of 0.12, HRTG is in the better half of the industry, outperforming 65.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 93.20% over the past year.
HRTG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.67% yearly.
Looking at the last year, HRTG shows a quite strong growth in Revenue. The Revenue has grown by 11.08% in the last year.
Measured over the past years, HRTG shows a quite strong growth in Revenue. The Revenue has been growing by 9.83% on average per year.
EPS 1Y (TTM)93.2%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%503.7%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%0.29%
3.2 Future
Based on estimates for the next years, HRTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.43% on average per year.
The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y118.12%
EPS Next 2Y44.23%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.45, the valuation of HRTG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of HRTG indicates a somewhat cheap valuation: HRTG is cheaper than 78.08% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HRTG to the average of the S&P500 Index (25.89), we can say HRTG is valued rather cheaply.
A Price/Forward Earnings ratio of 7.45 indicates a rather cheap valuation of HRTG.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than 73.97% of the companies in the same industry.
HRTG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
84.25% of the companies in the same industry are more expensive than HRTG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.67 |
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 HRTG's earnings are expected to grow with 26.51% in the coming years.
PEG (NY)0.05
PEG (5Y)0.39
EPS Next 2Y44.23%
EPS Next 3Y26.51%
5. Dividend
5.1 Amount
HRTG has a Yearly Dividend Yield of 2.84%.
HRTG's Dividend Yield is a higher than the industry average which is at 3.47.
HRTG's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| 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 2Y44.23%
EPS Next 3Y26.51%
31.14
+0.3 (+0.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.37%
Inst Owner Change2.6%
Ins Owners20.99%
Ins Owner Change-6.13%
Market Cap965.96M
Revenue(TTM)816.99M
Net Income(TTM)106.94M
Analysts80
Price Target32.13 (3.18%)
Short Float %4.95%
Short Ratio2.47
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)0%
PT rev (3m)8.62%
EPS NQ rev (1m)12.69%
EPS NQ rev (3m)85.96%
EPS NY rev (1m)8.78%
EPS NY rev (3m)35.21%
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 | 6.45 | ||
| Fwd PE | 7.45 | ||
| P/S | 1.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.52 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 3.67 |
EPS(TTM)4.83
EY15.51%
EPS(NY)4.18
Fwd EY13.43%
FCF(TTM)-1.11
FCFYN/A
OCF(TTM)-0.82
OCFYN/A
SpS27.13
BVpS12.36
TBVpS11.28
PEG (NY)0.05
PEG (5Y)0.39
Graham Number36.65
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
ROICexgc growth 3YN/A
ROICexgc 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
WACC8.35%
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)93.2%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%503.7%
EPS Next Y118.12%
EPS Next 2Y44.23%
EPS Next 3Y26.51%
EPS Next 5Y17.43%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%0.29%
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%
HERITAGE INSURANCE HOLDINGS / HRTG FAQ
What is the ChartMill fundamental rating of HERITAGE INSURANCE HOLDINGS (HRTG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HRTG.
Can you provide the valuation status for HERITAGE INSURANCE HOLDINGS?
ChartMill assigns a valuation rating of 7 / 10 to HERITAGE INSURANCE HOLDINGS (HRTG). This can be considered as Undervalued.
How profitable is HERITAGE INSURANCE HOLDINGS (HRTG) stock?
HERITAGE INSURANCE HOLDINGS (HRTG) has a profitability rating of 5 / 10.
What is the valuation of HERITAGE INSURANCE HOLDINGS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HERITAGE INSURANCE HOLDINGS (HRTG) is 6.45 and the Price/Book (PB) ratio is 2.52.
Can you provide the financial health for HRTG stock?
The financial health rating of HERITAGE INSURANCE HOLDINGS (HRTG) is 2 / 10.