UNIVERSAL INSURANCE HOLDINGS (UVE)
US91359V1070 - Common Stock
We assign a fundamental rating of 4 out of 10 to UVE. UVE was compared to 141 industry peers in the Insurance industry. While UVE seems to be doing ok healthwise, there are quite some concerns on its profitability. UVE is not valued too expensively and it also shows a decent growth rate. Finally UVE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UVE was profitable.
In the past year UVE had a positive cash flow from operations.
Of the past 5 years UVE 4 years were profitable.
In the past 5 years UVE always reported a positive cash flow from operatings.
1.2 Ratios
UVE has a better Return On Assets (2.75%) than 62.14% of its industry peers.
UVE has a Return On Equity of 18.21%. This is in the better half of the industry: UVE outperforms 75.71% of its industry peers.
With a decent Return On Invested Capital value of 3.24%, UVE is doing good in the industry, outperforming 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 18.21% | ||
| ROIC | 3.24% |
ROA(3y)1.03%
ROA(5y)1.38%
ROE(3y)5.53%
ROE(5y)6.05%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
UVE has a worse Profit Margin (4.82%) than 60.71% of its industry peers.
In the last couple of years the Profit Margin of UVE has declined.
UVE has a worse Operating Margin (7.26%) than 60.00% of its industry peers.
In the last couple of years the Operating Margin of UVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.26% | ||
| PM (TTM) | 4.82% | ||
| GM | N/A |
OM growth 3Y44.39%
OM growth 5Y-18.15%
PM growth 3Y39.19%
PM growth 5Y-19.5%
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 UVE is destroying value.
The number of shares outstanding for UVE has been reduced compared to 1 year ago.
Compared to 5 years ago, UVE has less shares outstanding
UVE has a worse debt/assets ratio than last year.
2.2 Solvency
UVE has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.44, UVE belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
UVE has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.25, UVE is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.39
WACC8.35%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for UVE have decreased strongly by -12.16% in the last year.
UVE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.71% yearly.
The Revenue has grown by 12.23% in the past year. This is quite good.
The Revenue has been growing by 11.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.16%
EPS 3Y54.58%
EPS 5Y-10.71%
EPS Q2Q%-356.25%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y9.06%
Revenue growth 5Y11.05%
Sales Q2Q%-3.98%
3.2 Future
UVE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.16% yearly.
UVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.10% yearly.
EPS Next Y-18.62%
EPS Next 2Y9.11%
EPS Next 3Y11.16%
EPS Next 5YN/A
Revenue Next Year-0.29%
Revenue Next 2Y-2.08%
Revenue Next 3Y-0.1%
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
A Price/Earnings ratio of 10.65 indicates a reasonable valuation of UVE.
Based on the Price/Earnings ratio, UVE is valued a bit cheaper than 61.43% of the companies in the same industry.
UVE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
UVE is valuated reasonably with a Price/Forward Earnings ratio of 9.04.
Based on the Price/Forward Earnings ratio, UVE is valued a bit cheaper than 65.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, UVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
UVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UVE is cheaper than 88.57% of the companies in the same industry.
83.57% of the companies in the same industry are more expensive than UVE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.54 | ||
| EV/EBITDA | 3.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.11%
EPS Next 3Y11.16%
5. Dividend
5.1 Amount
UVE has a Yearly Dividend Yield of 3.11%.
Compared to an average industry Dividend Yield of 4.35, UVE pays a bit more dividend than its industry peers.
UVE's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of UVE has a limited annual growth rate of 1.35%.
UVE has paid a dividend for at least 10 years, which is a reliable track record.
UVE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.35%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
30.71% of the earnings are spent on dividend by UVE. This is a low number and sustainable payout ratio.
The dividend of UVE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.71%
EPS Next 2Y9.11%
EPS Next 3Y11.16%
UNIVERSAL INSURANCE HOLDINGS
NYSE:UVE (12/23/2024, 8:04:00 PM)
After market: 20.77 0 (0%)20.77
+0.13 (+0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners69.42%
Inst Owner Change0.89%
Ins Owners6.01%
Ins Owner Change-3.96%
Market Cap587.58M
Analysts76.67
Price Target27.54 (32.6%)
Short Float %1.06%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Dividend Growth(5Y)1.35%
DP30.71%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.54%
Min EPS beat(2)13.98%
Max EPS beat(2)25.1%
EPS beat(4)4
Avg EPS beat(4)27.69%
Min EPS beat(4)1.38%
Max EPS beat(4)70.3%
EPS beat(8)8
Avg EPS beat(8)52.49%
EPS beat(12)12
Avg EPS beat(12)38.65%
EPS beat(16)16
Avg EPS beat(16)33.83%
Revenue beat(2)2
Avg Revenue beat(2)0.26%
Min Revenue beat(2)0.1%
Max Revenue beat(2)0.43%
Revenue beat(4)4
Avg Revenue beat(4)2.31%
Min Revenue beat(4)0.1%
Max Revenue beat(4)7.51%
Revenue beat(8)7
Avg Revenue beat(8)3.36%
Revenue beat(12)10
Avg Revenue beat(12)3.9%
Revenue beat(16)14
Avg Revenue beat(16)4.02%
PT rev (1m)8%
PT rev (3m)8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-83.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 9.04 | ||
| P/S | 0.39 | ||
| P/FCF | 2.54 | ||
| P/OCF | 2.46 | ||
| P/B | 1.47 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 3.04 |
EPS(TTM)1.95
EY9.39%
EPS(NY)2.3
Fwd EY11.06%
FCF(TTM)8.18
FCFY39.39%
OCF(TTM)8.45
OCFY40.69%
SpS53.42
BVpS14.15
TBVpS14.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 18.21% | ||
| ROCE | 4.28% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.72% | ||
| ROICexgc | 5.02% | ||
| OM | 7.26% | ||
| PM (TTM) | 4.82% | ||
| GM | N/A | ||
| FCFM | 15.32% |
ROA(3y)1.03%
ROA(5y)1.38%
ROE(3y)5.53%
ROE(5y)6.05%
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 3Y49.12%
ROICexcg growth 5Y-12.93%
ROICexc growth 3Y48.63%
ROICexc growth 5Y-10.76%
OM growth 3Y44.39%
OM growth 5Y-18.15%
PM growth 3Y39.19%
PM growth 5Y-19.5%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 103.87% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 204.38% | ||
| Profit Quality | 317.52% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.35%
ROIC/WACC0.39
Cap/Depr(3y)75.48%
Cap/Depr(5y)161.54%
Cap/Sales(3y)0.44%
Cap/Sales(5y)0.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.16%
EPS 3Y54.58%
EPS 5Y-10.71%
EPS Q2Q%-356.25%
EPS Next Y-18.62%
EPS Next 2Y9.11%
EPS Next 3Y11.16%
EPS Next 5YN/A
Revenue 1Y (TTM)12.23%
Revenue growth 3Y9.06%
Revenue growth 5Y11.05%
Sales Q2Q%-3.98%
Revenue Next Year-0.29%
Revenue Next 2Y-2.08%
Revenue Next 3Y-0.1%
Revenue Next 5YN/A
EBIT growth 1Y7.93%
EBIT growth 3Y57.47%
EBIT growth 5Y-9.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y30.85%
FCF growth 3Y76.87%
FCF growth 5Y-20.96%
OCF growth 1Y30.21%
OCF growth 3Y34.3%
OCF growth 5Y-20.96%