HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
NYSE:HRTG - New York Stock Exchange, Inc. - US42727J1025 - Common Stock - Currency: USD
HRTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
HRTG had positive earnings in the past year.
HRTG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HRTG reported negative net income in multiple 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 3.51%. This is in the better half of the industry: HRTG outperforms 75.00% of its industry peers.
With an excellent Return On Equity value of 23.64%, HRTG belongs to the best of the industry, outperforming 92.36% of the companies in the same industry.
The Return On Invested Capital of HRTG (4.28%) is better than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 23.64% | ||
| ROIC | 4.28% |
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
Looking at the Profit Margin, with a value of 9.29%, HRTG is in line with its industry, outperforming 59.72% of the companies in the same industry.
HRTG's Profit Margin has improved in the last couple of years.
The Operating Margin of HRTG (13.54%) is better than 63.19% of its industry peers.
HRTG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.54% | ||
| PM (TTM) | 9.29% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
HRTG has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
HRTG has a Debt to FCF ratio (1.53) which is in line with its industry peers.
HRTG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, HRTG perfoms like the industry average, outperforming 45.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.51
WACC8.44%
2.3 Liquidity
A Current Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
HRTG has a Current ratio of 0.12. This is in the better half of the industry: HRTG outperforms 65.97% of its industry peers.
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 65.97% 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 54.27% over the past year.
The Earnings Per Share has been growing by 16.67% on average over the past years. This is quite good.
Looking at the last year, HRTG shows a quite strong growth in Revenue. The Revenue has grown by 11.65% in the last year.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
EPS 1Y (TTM)54.27%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%110.64%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%10.57%
3.2 Future
Based on estimates for the next years, HRTG will show a very strong growth in Earnings Per Share. The EPS will grow by 32.66% on average per year.
Based on estimates for the next years, HRTG will show a small growth in Revenue. The Revenue will grow by 6.64% on average per year.
EPS Next Y59.65%
EPS Next 2Y32.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.99%
Revenue Next 2Y6.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
HRTG is valuated reasonably with a Price/Earnings ratio of 9.11.
Based on the Price/Earnings ratio, HRTG is valued a bit cheaper than the industry average as 71.53% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. HRTG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.52, 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 73.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, HRTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 6.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRTG is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
HRTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.72 | ||
| EV/EBITDA | 3.24 |
4.3 Compensation for Growth
HRTG's 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 32.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)0.55
EPS Next 2Y32.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HRTG has a Yearly Dividend Yield of 2.84%.
Compared to an average industry Dividend Yield of 3.71, HRTG pays a bit more dividend than its industry peers.
HRTG's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| 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 2Y32.66%
EPS Next 3YN/A
23.05
+0.39 (+1.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners58.01%
Inst Owner Change-1.71%
Ins Owners26.42%
Ins Owner Change7.49%
Market Cap714.32M
Analysts80
Price Target29.58 (28.33%)
Short Float %8.27%
Short Ratio3.49
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)66.33%
Min EPS beat(2)15.2%
Max EPS beat(2)117.46%
EPS beat(4)4
Avg EPS beat(4)127.74%
Min EPS beat(4)15.2%
Max EPS beat(4)333.94%
EPS beat(8)6
Avg EPS beat(8)95.86%
EPS beat(12)9
Avg EPS beat(12)156.57%
EPS beat(16)10
Avg EPS beat(16)102.34%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)3.14%
Revenue beat(4)2
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)3.14%
Revenue beat(8)4
Avg Revenue beat(8)1.29%
Revenue beat(12)7
Avg Revenue beat(12)1.45%
Revenue beat(16)10
Avg Revenue beat(16)1.69%
PT rev (1m)48.72%
PT rev (3m)48.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)30.09%
EPS NY rev (1m)1.04%
EPS NY rev (3m)40.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 6.52 | ||
| P/S | 0.85 | ||
| P/FCF | 9.72 | ||
| P/OCF | 8.54 | ||
| P/B | 2.17 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 3.24 |
EPS(TTM)2.53
EY10.98%
EPS(NY)3.54
Fwd EY15.35%
FCF(TTM)2.37
FCFY10.29%
OCF(TTM)2.7
OCFY11.71%
SpS27.02
BVpS10.62
TBVpS9.49
PEG (NY)0.15
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 23.64% | ||
| ROCE | 5.3% | ||
| ROIC | 4.28% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 10.55% | ||
| OM | 13.54% | ||
| PM (TTM) | 9.29% | ||
| GM | N/A | ||
| FCFM | 8.78% |
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-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 98.95% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 12.38 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | 94.52% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | N/A |
F-Score8
WACC8.44%
ROIC/WACC0.51
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)54.27%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%110.64%
EPS Next Y59.65%
EPS Next 2Y32.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.65%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%10.57%
Revenue Next Year5.99%
Revenue Next 2Y6.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y70%
EBIT growth 3YN/A
EBIT growth 5Y13.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y301.79%
FCF growth 3Y10.09%
FCF growth 5Y-7.22%
OCF growth 1Y322.34%
OCF growth 3Y13.16%
OCF growth 5Y-6.16%