HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
28.96 USD
-0.95 (-3.18%)
29 USD
+0.04 (+0.14%)
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 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 positive 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
Looking at the Return On Assets, with a value of 6.30%, HRTG belongs to the top of the industry, outperforming 88.44% of the companies in the same industry.
HRTG has a better Return On Equity (34.12%) than 97.96% of its industry peers.
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
HRTG has a Profit Margin of 17.72%. This is amongst the best in the industry. HRTG outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of HRTG has grown nicely.
HRTG's Operating Margin of 24.81% is amongst the best of the industry. HRTG outperforms 84.35% of its industry peers.
HRTG's Operating Margin has improved in the last couple of years.
| 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
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.
HRTG has a better debt/assets ratio than last year.
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.
HRTG's Debt to FCF ratio of 0.91 is fine compared to the rest of the industry. HRTG outperforms 72.79% of its industry peers.
HRTG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HRTG (0.22) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.34%
2.3 Liquidity
A Current Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
With a decent Current ratio value of 0.12, HRTG is doing good in the industry, outperforming 63.95% of the companies in the same industry.
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 63.95% of its industry peers.
| 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.
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.
Looking at the last year, HRTG shows a small growth in Revenue. The Revenue has grown by 6.12% 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)6.12%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%0.29%
3.2 Future
The Earnings Per Share is expected to grow by 19.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.95% on average over the next years.
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
With a Price/Earnings ratio of 6.00, the valuation of HRTG can be described as very cheap.
HRTG's Price/Earnings ratio is rather cheap when compared to the industry. HRTG is cheaper than 82.99% of the companies in the same industry.
When comparing the Price/Earnings ratio of HRTG to the average of the S&P500 Index (26.38), we can say HRTG is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.60, the valuation of HRTG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRTG indicates a somewhat cheap valuation: HRTG is cheaper than 78.91% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. HRTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6 | ||
| Fwd PE | 6.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRTG is valued cheaper than 91.84% of the companies in the same industry.
HRTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | 2.08 |
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 has a very decent profitability rating, which 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.
Compared to an average industry Dividend Yield of 2.64, HRTG pays a bit more dividend than its industry peers.
HRTG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| 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%
28.96
-0.95 (-3.18%)
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-8.17%
Market Cap895.15M
Revenue(TTM)842.28M
Net Income(TTM)149.21M
Analysts80
Price Target36.21 (25.03%)
Short Float %6.62%
Short Ratio3.65
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 | ||
| Fwd PE | 6.6 | ||
| P/S | 1.06 | ||
| P/FCF | 8.56 | ||
| P/OCF | 7.97 | ||
| P/B | 2.05 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 2.08 |
EPS(TTM)4.83
EY16.68%
EPS(NY)4.39
Fwd EY15.15%
FCF(TTM)3.38
FCFY11.68%
OCF(TTM)3.63
OCFY12.55%
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
WACC8.34%
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 and the Price/Book (PB) ratio is 2.05.
Can you provide the financial health for HRTG stock?
The financial health rating of HERITAGE INSURANCE HOLDINGS (HRTG) is 4 / 10.