HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
28.99 USD
-0.79 (-2.65%)
28.99 USD
0 (0%)
Overall HRTG gets a fundamental rating of 5 out of 10. We evaluated HRTG against 148 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 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 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.
Of the past 5 years HRTG 4 years had a positive operating cash flow.
1.2 Ratios
HRTG has a Return On Assets of 6.30%. This is amongst the best in the industry. HRTG outperforms 88.51% of its industry peers.
HRTG has a Return On Equity of 34.12%. This is amongst the best in the industry. HRTG outperforms 97.97% of its industry peers.
The Return On Invested Capital of HRTG (7.27%) is better than 87.84% 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 better Profit Margin (17.72%) than 85.81% 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 84.46% 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.
The debt/assets ratio for HRTG has been reduced compared to a year ago.
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 72.97% 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 66.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.35%
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 Current ratio of 0.12. This is in the better half of the industry: HRTG outperforms 63.51% 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.
The Quick ratio of HRTG (0.12) is better than 63.51% 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.
HRTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.83% yearly.
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.
HRTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
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
HRTG is valuated cheaply with a Price/Earnings ratio of 6.00.
Based on the Price/Earnings ratio, HRTG is valued cheaply inside the industry as 83.11% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HRTG to the average of the S&P500 Index (26.92), we can say HRTG is valued rather cheaply.
The Price/Forward Earnings ratio is 6.61, which indicates a rather cheap valuation of HRTG.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than 79.05% of the companies in the same industry.
HRTG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6 | ||
| Fwd PE | 6.61 |
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.
HRTG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.57 | ||
| EV/EBITDA | 1.95 |
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.
The decent profitability rating of HRTG may justify a higher PE ratio.
A more expensive valuation may be justified as HRTG's earnings are expected to grow with 31.49% in the coming years.
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 2.42, HRTG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, 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 2Y47.72%
EPS Next 3Y31.49%
28.99
-0.79 (-2.65%)
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-10.04%
Market Cap896.08M
Revenue(TTM)842.28M
Net Income(TTM)149.21M
Analysts80
Price Target36.21 (24.91%)
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)0%
PT rev (3m)22.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)19.08%
EPS NY rev (3m)29.53%
Revenue NQ rev (1m)0%
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 | 6.61 | ||
| P/S | 1.06 | ||
| P/FCF | 8.57 | ||
| P/OCF | 7.98 | ||
| P/B | 2.05 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 1.95 |
EPS(TTM)4.83
EY16.66%
EPS(NY)4.39
Fwd EY15.13%
FCF(TTM)3.38
FCFY11.67%
OCF(TTM)3.63
OCFY12.54%
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
WACC8.35%
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.