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 143 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
In the past year HRTG was profitable.
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 (2.49%) which is in line with its industry peers.
HRTG has a Return On Equity of 21.16%. This is amongst the best in the industry. HRTG outperforms 86.71% of its industry peers.
With a decent Return On Invested Capital value of 3.13%, HRTG is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 21.16% | ||
| ROIC | 3.13% |
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 (7.53%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HRTG has grown nicely.
HRTG has a Operating Margin (11.46%) which is comparable to the rest of the industry.
HRTG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.46% | ||
| PM (TTM) | 7.53% | ||
| 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.
The number of shares outstanding for HRTG has been increased compared to 1 year ago.
Compared to 5 years ago, HRTG has more shares outstanding
The debt/assets ratio for HRTG has been reduced compared to a year ago.
2.2 Solvency
HRTG has an Altman-Z score of 0.64. This is a bad value and indicates that HRTG is not financially healthy and even has some risk of bankruptcy.
HRTG has a better Altman-Z score (0.64) than 76.22% of its industry peers.
The Debt to FCF ratio of HRTG is 1.70, which is an excellent value as it means it would take HRTG, only 1.70 years of fcf income to pay off all of its debts.
HRTG has a Debt to FCF ratio (1.70) which is in line with its industry peers.
A Debt/Equity ratio of 0.46 indicates that HRTG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.46, HRTG is not doing good in the industry: 62.94% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for HRTG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.37
WACC8.4%
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 66.43% of its industry peers.
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 66.43% 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 nice 16.86% 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 11.08% 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)16.86%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%-42.61%
Revenue 1Y (TTM)11.08%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%12.46%
3.2 Future
HRTG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.36% yearly.
HRTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.70% yearly.
EPS Next Y19.41%
EPS Next 2Y23.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.88%
Revenue Next 2Y7.7%
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 accelerating.
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 9.63.
Based on the Price/Earnings ratio, HRTG is valued a bit cheaper than 69.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.33. HRTG is valued rather cheaply when compared to this.
HRTG is valuated reasonably with a Price/Forward Earnings ratio of 8.06.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRTG indicates a somewhat cheap valuation: HRTG is cheaper than 74.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.37. HRTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.63 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRTG is valued cheaper than 88.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRTG indicates a somewhat cheap valuation: HRTG is cheaper than 60.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.51 | ||
| EV/EBITDA | 2.47 |
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.
A more expensive valuation may be justified as HRTG's earnings are expected to grow with 23.36% in the coming years.
PEG (NY)0.5
PEG (5Y)0.58
EPS Next 2Y23.36%
EPS Next 3YN/A
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 3.28.
HRTG's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| 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 2Y23.36%
EPS Next 3YN/A
19.35
+0.63 (+3.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners57.28%
Inst Owner Change-0.17%
Ins Owners26.71%
Ins Owner Change6.23%
Market Cap592.30M
Analysts80
Price Target19.89 (2.79%)
Short Float %2.92%
Short Ratio3.53
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)174.57%
Min EPS beat(2)15.2%
Max EPS beat(2)333.94%
EPS beat(4)3
Avg EPS beat(4)92.92%
Min EPS beat(4)-21.81%
Max EPS beat(4)333.94%
EPS beat(8)6
Avg EPS beat(8)132.26%
EPS beat(12)8
Avg EPS beat(12)133.17%
EPS beat(16)9
Avg EPS beat(16)91.86%
Revenue beat(2)1
Avg Revenue beat(2)1.04%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)3.14%
Revenue beat(4)2
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)3.14%
Revenue beat(8)5
Avg Revenue beat(8)2.23%
Revenue beat(12)8
Avg Revenue beat(12)1.79%
Revenue beat(16)11
Avg Revenue beat(16)1.94%
PT rev (1m)0%
PT rev (3m)21.88%
EPS NQ rev (1m)36.77%
EPS NQ rev (3m)-36.24%
EPS NY rev (1m)22.28%
EPS NY rev (3m)11.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.63 | ||
| Fwd PE | 8.06 | ||
| P/S | 0.72 | ||
| P/FCF | 7.51 | ||
| P/OCF | 6.8 | ||
| P/B | 2.04 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 2.47 |
EPS(TTM)2.01
EY10.39%
EPS(NY)2.4
Fwd EY12.4%
FCF(TTM)2.58
FCFY13.31%
OCF(TTM)2.85
OCFY14.7%
SpS26.69
BVpS9.5
TBVpS8.31
PEG (NY)0.5
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 21.16% | ||
| ROCE | 3.88% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.86% | ||
| ROICexgc | 8.76% | ||
| OM | 11.46% | ||
| PM (TTM) | 7.53% | ||
| GM | N/A | ||
| FCFM | 9.65% |
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 86.17% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 9.89 | ||
| Cash Conversion | 84.43% | ||
| Profit Quality | 128.16% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 0.64 |
F-Score8
WACC8.4%
ROIC/WACC0.37
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)16.86%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%-42.61%
EPS Next Y19.41%
EPS Next 2Y23.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.08%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%12.46%
Revenue Next Year7.88%
Revenue Next 2Y7.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y46.11%
EBIT growth 3YN/A
EBIT growth 5Y13.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.3%
FCF growth 3Y10.09%
FCF growth 5Y-7.22%
OCF growth 1Y23.69%
OCF growth 3Y13.16%
OCF growth 5Y-6.16%