HERITAGE INSURANCE HOLDINGS (HRTG)
US42727J1025 - Common Stock
Taking everything into account, HRTG scores 5 out of 10 in our fundamental rating. HRTG was compared to 141 industry peers in the Insurance industry. There are concerns on the financial health of HRTG while its profitability can be described as average. HRTG is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
HRTG had positive earnings in the past year.
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.
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 3.04%, HRTG is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.84%, HRTG belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.68%, HRTG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.04% | ||
| ROE | 25.84% | ||
| ROIC | 3.68% |
ROA(3y)-2.71%
ROA(5y)-1.24%
ROE(3y)-39.69%
ROE(5y)-22.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 9.10%, HRTG is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of HRTG has grown nicely.
HRTG's Operating Margin of 12.38% is in line compared to the rest of the industry. HRTG outperforms 54.29% of its industry peers.
In the last couple of years the Operating Margin of HRTG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.38% | ||
| PM (TTM) | 9.1% | ||
| GM | N/A |
OM growth 3Y71.69%
OM growth 5Y-9.68%
PM growth 3Y57.82%
PM growth 5Y1.69%
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.
Compared to 5 years ago, HRTG has more shares outstanding
Compared to 1 year ago, HRTG has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HRTG is 0.58, which is an excellent value as it means it would take HRTG, only 0.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.58, HRTG is doing good in the industry, outperforming 76.43% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that HRTG is not too dependend on debt financing.
HRTG has a worse Debt to Equity ratio (0.49) than 66.43% of its industry peers.
Although HRTG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC8.17%
2.3 Liquidity
A Current Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.12, HRTG is in the better half of the industry, outperforming 66.43% 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.
The Quick ratio of HRTG (0.12) is better than 66.43% 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 138.10%, which is quite impressive.
Measured over the past 5 years, HRTG shows a small growth in Earnings Per Share. The EPS has been growing by 4.35% on average per year.
HRTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.76%.
HRTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.90% yearly.
EPS 1Y (TTM)138.1%
EPS 3Y75.17%
EPS 5Y4.35%
EPS Q2Q%196.43%
Revenue 1Y (TTM)9.76%
Revenue growth 3Y7.42%
Revenue growth 5Y8.9%
Sales Q2Q%13.71%
3.2 Future
HRTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.48% yearly.
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y-24.17%
EPS Next 2Y12.05%
EPS Next 3Y12.48%
EPS Next 5YN/A
Revenue Next Year11.1%
Revenue Next 2Y9.24%
Revenue Next 3Y8.19%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.73 indicates a rather cheap valuation of HRTG.
Compared to the rest of the industry, the Price/Earnings ratio of HRTG indicates a rather cheap valuation: HRTG is cheaper than 82.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HRTG to the average of the S&P500 Index (27.73), we can say HRTG is valued rather cheaply.
A Price/Forward Earnings ratio of 5.47 indicates a rather cheap valuation of HRTG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRTG indicates a somewhat cheap valuation: HRTG is cheaper than 79.29% of the companies listed in the same industry.
HRTG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.73 | ||
| Fwd PE | 5.47 |
4.2 Price Multiples
HRTG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRTG is cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.54 | ||
| EV/EBITDA | -0.18 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HRTG's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y12.05%
EPS Next 3Y12.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, HRTG has a reasonable but not impressive dividend return.
The stock price of HRTG dropped by -24.52% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HRTG's Dividend Yield is a higher than the industry average which is at 4.33.
Compared to an average S&P500 Dividend Yield of 2.34, 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
0.02% of the earnings are spent on dividend by HRTG. This is a low number and sustainable payout ratio.
DP0.02%
EPS Next 2Y12.05%
EPS Next 3Y12.48%
HERITAGE INSURANCE HOLDINGS
NYSE:HRTG (12/20/2024, 8:17:08 PM)
After market: 11.82 0 (0%)11.82
+0.3 (+2.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners48.81%
Inst Owner Change8.61%
Ins Owners26.95%
Ins Owner Change0.1%
Market Cap362.64M
Analysts80
Price Target16.32 (38.07%)
Short Float %3.76%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Dividend Growth(5Y)-73.43%
DP0.02%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)189.14%
Min EPS beat(2)44.34%
Max EPS beat(2)333.94%
EPS beat(4)3
Avg EPS beat(4)125.84%
Min EPS beat(4)-21.81%
Max EPS beat(4)333.94%
EPS beat(8)6
Avg EPS beat(8)179.63%
EPS beat(12)8
Avg EPS beat(12)147.84%
EPS beat(16)9
Avg EPS beat(16)98.73%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)1.41%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)1.41%
Revenue beat(8)5
Avg Revenue beat(8)2.05%
Revenue beat(12)7
Avg Revenue beat(12)1.43%
Revenue beat(16)11
Avg Revenue beat(16)2.16%
PT rev (1m)28%
PT rev (3m)28%
EPS NQ rev (1m)67.82%
EPS NQ rev (3m)-110.75%
EPS NY rev (1m)24.26%
EPS NY rev (3m)-29.02%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)5.92%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.73 | ||
| Fwd PE | 5.47 | ||
| P/S | 0.46 | ||
| P/FCF | 1.54 | ||
| P/OCF | 1.49 | ||
| P/B | 1.3 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | -0.18 |
EPS(TTM)2.5
EY21.15%
EPS(NY)2.16
Fwd EY18.27%
FCF(TTM)7.68
FCFY65%
OCF(TTM)7.92
OCFY66.98%
SpS25.87
BVpS9.11
TBVpS7.87
PEG (NY)N/A
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.04% | ||
| ROE | 25.84% | ||
| ROCE | 4.23% | ||
| ROIC | 3.68% | ||
| ROICexc | 4.71% | ||
| ROICexgc | 9.34% | ||
| OM | 12.38% | ||
| PM (TTM) | 9.1% | ||
| GM | N/A | ||
| FCFM | 29.7% |
ROA(3y)-2.71%
ROA(5y)-1.24%
ROE(3y)-39.69%
ROE(5y)-22.12%
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 3Y78.14%
ROICexcg growth 5Y-6.49%
ROICexc growth 3Y81.14%
ROICexc growth 5Y-4.34%
OM growth 3Y71.69%
OM growth 5Y-9.68%
PM growth 3Y57.82%
PM growth 5Y1.69%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 80.22% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 10.09 | ||
| Cash Conversion | 226.61% | ||
| Profit Quality | 326.54% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | N/A |
F-Score8
WACC8.17%
ROIC/WACC0.45
Cap/Depr(3y)48.66%
Cap/Depr(5y)40.78%
Cap/Sales(3y)0.59%
Cap/Sales(5y)0.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)138.1%
EPS 3Y75.17%
EPS 5Y4.35%
EPS Q2Q%196.43%
EPS Next Y-24.17%
EPS Next 2Y12.05%
EPS Next 3Y12.48%
EPS Next 5YN/A
Revenue 1Y (TTM)9.76%
Revenue growth 3Y7.42%
Revenue growth 5Y8.9%
Sales Q2Q%13.71%
Revenue Next Year11.1%
Revenue Next 2Y9.24%
Revenue Next 3Y8.19%
Revenue Next 5YN/A
EBIT growth 1Y129.58%
EBIT growth 3Y84.42%
EBIT growth 5Y-1.64%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y810.03%
FCF growth 3Y-29.04%
FCF growth 5Y-8.43%
OCF growth 1Y961.31%
OCF growth 3Y-25.49%
OCF growth 5Y-6.07%