HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
26.73 USD
-1.59 (-5.61%)
26.73 USD
0 (0%)
Taking everything into account, HRTG scores 5 out of 10 in our fundamental rating. HRTG was compared to 148 industry peers in the Insurance industry. HRTG has an average financial health and profitability rating. HRTG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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 better Return On Assets (6.30%) than 88.51% of its industry peers.
HRTG has a better Return On Equity (34.12%) than 96.62% of its industry peers.
HRTG has a better Return On Invested Capital (7.27%) than 88.51% 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's Profit Margin of 17.72% is amongst the best of the industry. HRTG outperforms 84.46% of its industry peers.
HRTG's Profit Margin has improved in the last couple of years.
HRTG has a better Operating Margin (24.81%) than 87.16% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRTG 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.
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.
The Debt to FCF ratio of HRTG (0.91) is better than 72.30% of its industry peers.
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 66.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.32%
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.
With a decent Current ratio value of 0.12, HRTG is doing good in the industry, outperforming 64.19% 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's Quick ratio of 0.12 is fine compared to the rest of the industry. HRTG outperforms 64.19% 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.
HRTG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.67% yearly.
The Revenue has been growing slightly by 6.12% in the past year.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
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.
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 5Y19.24%
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.
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
A Price/Earnings ratio of 5.53 indicates a rather cheap valuation of HRTG.
Based on the Price/Earnings ratio, HRTG is valued cheaper than 81.08% of the companies in the same industry.
HRTG is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.39, 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 76.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, HRTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.53 | ||
| Fwd PE | 6.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRTG indicates a rather cheap valuation: HRTG is cheaper than 91.89% of the companies listed in the same industry.
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 | 7.9 | ||
| EV/EBITDA | 1.86 |
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 26.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)0.33
EPS Next 2Y44.23%
EPS Next 3Y26.51%
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 3.32, HRTG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, HRTG pays a bit more dividend than the S&P500 average.
| 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%
26.73
-1.59 (-5.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.37%
Inst Owner Change3.44%
Ins Owners20.99%
Ins Owner Change-7.52%
Market Cap826.22M
Revenue(TTM)842.28M
Net Income(TTM)149.21M
Analysts80
Price Target36.21 (35.47%)
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)1.81%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0%
EPS NY rev (3m)8.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.53 | ||
| Fwd PE | 6.39 | ||
| P/S | 0.98 | ||
| P/FCF | 7.9 | ||
| P/OCF | 7.35 | ||
| P/B | 1.89 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 1.86 |
EPS(TTM)4.83
EY18.07%
EPS(NY)4.18
Fwd EY15.64%
FCF(TTM)3.38
FCFY12.66%
OCF(TTM)3.63
OCFY13.6%
SpS27.25
BVpS14.15
TBVpS13.12
PEG (NY)0.05
PEG (5Y)0.33
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
WACC8.32%
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 Y118.12%
EPS Next 2Y44.23%
EPS Next 3Y26.51%
EPS Next 5Y19.24%
Revenue 1Y (TTM)6.12%
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 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 5.53 and the Price/Book (PB) ratio is 1.89.
Can you provide the financial health for HRTG stock?
The financial health rating of HERITAGE INSURANCE HOLDINGS (HRTG) is 4 / 10.