HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
29.08 USD
+0.29 (+1.01%)
29.08 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HRTG. HRTG was compared to 147 industry peers in the Insurance industry. HRTG has an average financial health and profitability rating. 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.
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.
Of the past 5 years HRTG 4 years had a positive operating cash flow.
1.2 Ratios
HRTG has a better Return On Assets (6.30%) than 89.12% of its industry peers.
Looking at the Return On Equity, with a value of 34.12%, HRTG belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.27%, HRTG belongs to the top of the industry, outperforming 87.76% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 17.72%, HRTG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
HRTG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.81%, HRTG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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.
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.
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.
HRTG has a better Debt to FCF ratio (0.91) than 72.11% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that HRTG is not too dependend on debt financing.
HRTG's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. HRTG outperforms 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.36%
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 64.63% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.12, HRTG is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
| 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.
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 5.95% 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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.02 indicates a rather cheap valuation of HRTG.
80.95% of the companies in the same industry are more expensive than HRTG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.54. HRTG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.63 indicates a rather cheap valuation of HRTG.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than the industry average as 78.91% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.78. HRTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
91.84% of the companies in the same industry are more expensive than HRTG, based on the Enterprise Value to EBITDA ratio.
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 | 8.6 | ||
| EV/EBITDA | 1.92 |
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.
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.
HRTG's Dividend Yield is a higher than the industry average which is at 3.42.
Compared to an average S&P500 Dividend Yield of 2.27, 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%
29.08
+0.29 (+1.01%)
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-7.71%
Market Cap898.86M
Revenue(TTM)842.28M
Net Income(TTM)149.21M
Analysts80
Price Target36.21 (24.52%)
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)1.45%
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 | 6.02 | ||
| Fwd PE | 6.63 | ||
| P/S | 1.07 | ||
| P/FCF | 8.6 | ||
| P/OCF | 8 | ||
| P/B | 2.06 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 1.92 |
EPS(TTM)4.83
EY16.61%
EPS(NY)4.39
Fwd EY15.08%
FCF(TTM)3.38
FCFY11.63%
OCF(TTM)3.63
OCFY12.5%
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
WACC8.36%
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 6.02 and the Price/Book (PB) ratio is 2.06.
Can you provide the financial health for HRTG stock?
The financial health rating of HERITAGE INSURANCE HOLDINGS (HRTG) is 4 / 10.