HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
29.05 USD
+0.43 (+1.5%)
29.05 USD
0 (0%)
HRTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. HRTG has only an average score on both its financial health and profitability. 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.
HRTG had a positive operating cash flow in the past year.
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 6.30%, HRTG belongs to the top of the industry, outperforming 88.44% of the companies in the same industry.
HRTG has a Return On Equity of 34.12%. This is amongst the best in the industry. HRTG outperforms 96.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.27%, HRTG belongs to the top of the industry, outperforming 89.12% 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 84.35% of the companies in the same industry.
In the last couple of years the Profit Margin of HRTG has grown nicely.
The Operating Margin of HRTG (24.81%) is better than 87.07% 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.
Compared to 1 year ago, HRTG has more shares outstanding
HRTG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HRTG has an improved debt to assets ratio.
2.2 Solvency
HRTG has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of 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 72.11% of the companies in the same industry.
HRTG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.22, HRTG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC8.25%
2.3 Liquidity
A Current Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
HRTG's Current ratio of 0.12 is fine compared to the rest of the industry. HRTG outperforms 64.63% of its industry peers.
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 64.63% 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 93.20%, which is quite impressive.
The Earnings Per Share has been growing by 16.67% on average over the past years. This is quite good.
HRTG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.12%.
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
The Earnings Per Share is expected to grow by 17.43% on average over the next years. This is quite good.
Based on estimates for the next years, HRTG will show a small growth in Revenue. The Revenue will grow by 5.60% on average per year.
EPS Next Y118.12%
EPS Next 2Y44.23%
EPS Next 3Y26.51%
EPS Next 5Y17.43%
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
Based on the Price/Earnings ratio of 6.01, the valuation of HRTG can be described as very cheap.
80.95% of the companies in the same industry are more expensive than HRTG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, HRTG is valued rather cheaply.
The Price/Forward Earnings ratio is 6.95, which 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 76.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HRTG to the average of the S&P500 Index (36.59), we can say HRTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 6.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRTG is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
HRTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.62 | ||
| EV/EBITDA | 1.91 |
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 26.51% in the coming years.
PEG (NY)0.05
PEG (5Y)0.36
EPS Next 2Y44.23%
EPS Next 3Y26.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, HRTG has a reasonable but not impressive dividend return.
HRTG's Dividend Yield is a higher than the industry average which is at 3.46.
Compared to an average S&P500 Dividend Yield of 2.40, HRTG has a dividend comparable with the average S&P500 company.
| 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%
29.05
+0.43 (+1.5%)
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-7.34%
Market Cap901.13M
Revenue(TTM)842.28M
Net Income(TTM)149.21M
Analysts80
Price Target36.21 (24.65%)
Short Float %5.22%
Short Ratio2.38
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 | 6.01 | ||
| Fwd PE | 6.95 | ||
| P/S | 1.07 | ||
| P/FCF | 8.62 | ||
| P/OCF | 8.02 | ||
| P/B | 2.06 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 1.91 |
EPS(TTM)4.83
EY16.63%
EPS(NY)4.18
Fwd EY14.39%
FCF(TTM)3.37
FCFY11.61%
OCF(TTM)3.62
OCFY12.47%
SpS27.15
BVpS14.1
TBVpS13.07
PEG (NY)0.05
PEG (5Y)0.36
Graham Number39.14
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
WACC8.25%
ROIC/WACC0.88
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 5Y17.43%
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 6.01 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.