HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
29.08 USD
+0.29 (+1.01%)
29.08 USD
0 (0%)
Taking everything into account, HRTG scores 5 out of 10 in our fundamental rating. HRTG was compared to 147 industry peers in the Insurance industry. Both the profitability and the financial health of HRTG get a neutral evaluation. Nothing too spectacular is happening here. HRTG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year HRTG was profitable.
In the past year HRTG had a positive cash flow from operations.
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 6.30% is amongst the best of the industry. HRTG outperforms 89.12% of its industry peers.
Looking at the Return On Equity, with a value of 34.12%, HRTG belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
HRTG has a better Return On Invested Capital (7.27%) than 87.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 34.12% | ||
| ROIC | 7.27% |
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
With an excellent Profit Margin value of 17.72%, HRTG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of HRTG has grown nicely.
HRTG has a better Operating Margin (24.81%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of HRTG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.81% | ||
| PM (TTM) | 17.72% | ||
| 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.
The number of shares outstanding for HRTG has been increased compared to 1 year ago.
The number of shares outstanding for HRTG has been increased compared to 5 years ago.
Compared to 1 year ago, HRTG has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HRTG is 0.91, which is an excellent value as it means it would take HRTG, only 0.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.91, HRTG is in the better half of the industry, outperforming 72.11% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that HRTG is not too dependend on debt financing.
HRTG has a Debt to Equity ratio of 0.22. This is in the better half of the industry: HRTG outperforms 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.4%
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.
HRTG has a better Current ratio (0.12) than 64.63% of its industry peers.
A Quick Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
HRTG has a Quick ratio of 0.12. This is in the better half of the industry: HRTG outperforms 64.63% 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 93.20%, which is quite impressive.
Measured over the past years, HRTG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.67% on average per year.
HRTG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.12%.
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)6.12%
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 19.24% on average per year.
Based on estimates for the next years, HRTG will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y159.74%
EPS Next 2Y47.72%
EPS Next 3Y31.49%
EPS Next 5Y19.24%
Revenue Next Year4.71%
Revenue Next 2Y5.99%
Revenue Next 3Y5.95%
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 6.02, which indicates a rather cheap valuation of HRTG.
HRTG's Price/Earnings ratio is rather cheap when compared to the industry. HRTG is cheaper than 80.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, HRTG is valued rather cheaply.
HRTG is valuated cheaply with a Price/Forward Earnings ratio of 6.63.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than 78.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. HRTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
91.84% of the companies in the same industry are more expensive than HRTG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRTG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| EV/EBITDA | 1.92 |
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.
The decent profitability rating of HRTG may justify a higher PE ratio.
HRTG's earnings are expected to grow with 31.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)0.36
EPS Next 2Y47.72%
EPS Next 3Y31.49%
5. Dividend
5.1 Amount
HRTG has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
HRTG's Dividend Yield is a higher than the industry average which is at 2.74.
HRTG's Dividend Yield is a higher than the S&P500 average which is at 1.96.
| 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 2Y47.72%
EPS Next 3Y31.49%
29.08
+0.29 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners63.14%
Inst Owner Change3.45%
Ins Owners17.6%
Ins Owner Change-7.71%
Market Cap898.86M
Revenue(TTM)842.28M
Net Income(TTM)149.21M
Analysts80
Price Target36.21 (24.52%)
Short Float %6.18%
Short Ratio3.01
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)125.96%
Min EPS beat(2)50.41%
Max EPS beat(2)201.52%
EPS beat(4)4
Avg EPS beat(4)96.15%
Min EPS beat(4)15.2%
Max EPS beat(4)201.52%
EPS beat(8)7
Avg EPS beat(8)110.99%
EPS beat(12)10
Avg EPS beat(12)151.8%
EPS beat(16)12
Avg EPS beat(16)134.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)3.14%
Revenue beat(8)2
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)0.99%
Revenue beat(16)8
Avg Revenue beat(16)0.79%
PT rev (1m)12.7%
PT rev (3m)22.41%
EPS NQ rev (1m)1.45%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)19.08%
EPS NY rev (3m)29.53%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 6.63 | ||
| P/S | 1.07 | ||
| P/FCF | 8.6 | ||
| P/OCF | 8 | ||
| P/B | 2.06 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 1.92 |
EPS(TTM)4.83
EY16.61%
EPS(NY)4.39
Fwd EY15.08%
FCF(TTM)3.38
FCFY11.63%
OCF(TTM)3.63
OCFY12.5%
SpS27.25
BVpS14.15
TBVpS13.12
PEG (NY)0.04
PEG (5Y)0.36
Graham Number39.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 34.12% | ||
| ROCE | 9% | ||
| ROIC | 7.27% | ||
| ROICexc | 9.59% | ||
| ROICexgc | 19.09% | ||
| OM | 24.81% | ||
| PM (TTM) | 17.72% | ||
| GM | N/A | ||
| FCFM | 12.42% |
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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 64.94% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | 27.02 | ||
| Cash Conversion | 50.85% | ||
| Profit Quality | 70.09% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | N/A |
F-Score7
WACC8.4%
ROIC/WACC0.87
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 Y159.74%
EPS Next 2Y47.72%
EPS Next 3Y31.49%
EPS Next 5Y19.24%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%0.29%
Revenue Next Year4.71%
Revenue Next 2Y5.99%
Revenue Next 3Y5.95%
Revenue Next 5YN/A
EBIT growth 1Y112.69%
EBIT growth 3YN/A
EBIT growth 5Y13.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y296.2%
FCF growth 3Y10.09%
FCF growth 5Y-7.22%
OCF growth 1Y333.58%
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 8 / 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 6 / 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 6.02 and the Price/Book (PB) ratio is 2.06.
Can you provide the financial health for HRTG stock?
The financial health rating of HERITAGE INSURANCE HOLDINGS (HRTG) is 4 / 10.