UNIVERSAL INSURANCE HOLDINGS (UVE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UVE - US91359V1070 - Common Stock
33.02 USD
+0.26 (+0.79%)
33.02 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to UVE. UVE was compared to 147 industry peers in the Insurance industry. Both the profitability and the financial health of UVE get a neutral evaluation. Nothing too spectacular is happening here. UVE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
UVE had positive earnings in the past year.
UVE had a positive operating cash flow in the past year.
UVE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years UVE had a positive operating cash flow.
1.2 Ratios
UVE has a better Return On Assets (3.96%) than 74.83% of its industry peers.
The Return On Equity of UVE (24.72%) is better than 91.16% of its industry peers.
UVE has a better Return On Invested Capital (4.06%) than 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 24.72% | ||
| ROIC | 4.06% |
ROA(3y)1.4%
ROA(5y)1.25%
ROE(3y)9.21%
ROE(5y)7.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
UVE has a Profit Margin of 7.74%. This is comparable to the rest of the industry: UVE outperforms 47.62% of its industry peers.
In the last couple of years the Profit Margin of UVE has declined.
The Operating Margin of UVE (10.65%) is comparable to the rest of the industry.
UVE's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.65% | ||
| PM (TTM) | 7.74% | ||
| GM | N/A |
OM growth 3Y32.18%
OM growth 5Y-2.45%
PM growth 3Y28.68%
PM growth 5Y-4.78%
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.
The number of shares outstanding for UVE has been reduced compared to 5 years ago.
UVE has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of UVE is 0.44, which is an excellent value as it means it would take UVE, only 0.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UVE (0.44) is better than 83.67% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that UVE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, UVE is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.49
WACC8.31%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 119.49% over the past year.
UVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.18% yearly.
The Revenue has been growing slightly by 4.61% in the past year.
UVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.11% yearly.
EPS 1Y (TTM)119.49%
EPS 3Y44.23%
EPS 5Y10.18%
EPS Q2Q%286.3%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y10.67%
Revenue growth 5Y10.11%
Sales Q2Q%4.03%
3.2 Future
The Earnings Per Share is expected to grow by 28.86% on average over the next years. This is a very strong growth
Based on estimates for the next years, UVE will show a small growth in Revenue. The Revenue will grow by 6.44% on average per year.
EPS Next Y164.2%
EPS Next 2Y38.05%
EPS Next 3Y28.86%
EPS Next 5YN/A
Revenue Next Year14.4%
Revenue Next 2Y6.44%
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
Based on the Price/Earnings ratio of 7.71, the valuation of UVE can be described as very cheap.
UVE's Price/Earnings ratio is a bit cheaper when compared to the industry. UVE is cheaper than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of UVE to the average of the S&P500 Index (26.56), we can say UVE is valued rather cheaply.
The Price/Forward Earnings ratio is 9.79, which indicates a very decent valuation of UVE.
UVE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.79. UVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.71 | ||
| Fwd PE | 9.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UVE is valued cheaper than 85.03% of the companies in the same industry.
77.55% 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 | 3.76 | ||
| EV/EBITDA | 3.56 |
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.
UVE's earnings are expected to grow with 28.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)0.76
EPS Next 2Y38.05%
EPS Next 3Y28.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, UVE has a reasonable but not impressive dividend return.
UVE's Dividend Yield is comparable with the industry average which is at 2.64.
UVE's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
The dividend of UVE has a limited annual growth rate of 0.21%.
UVE has paid a dividend for at least 10 years, which is a reliable track record.
As UVE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
17.83% 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.
DP17.83%
EPS Next 2Y38.05%
EPS Next 3Y28.86%
33.02
+0.26 (+0.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.79%
Inst Owner Change-2.4%
Ins Owners6.39%
Ins Owner Change10.6%
Market Cap926.21M
Revenue(TTM)1.58B
Net Income(TTM)122.37M
Analysts80
Price Target35.7 (8.12%)
Short Float %1.8%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend0.78
Dividend Growth(5Y)0.21%
DP17.83%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.57%
Min EPS beat(2)8.73%
Max EPS beat(2)22.41%
EPS beat(4)4
Avg EPS beat(4)58.88%
Min EPS beat(4)8.73%
Max EPS beat(4)191.21%
EPS beat(8)8
Avg EPS beat(8)43.28%
EPS beat(12)12
Avg EPS beat(12)54.62%
EPS beat(16)16
Avg EPS beat(16)43.71%
Revenue beat(2)1
Avg Revenue beat(2)3.63%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)10.06%
Revenue beat(4)3
Avg Revenue beat(4)6.62%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)10.14%
Revenue beat(8)7
Avg Revenue beat(8)4.46%
Revenue beat(12)10
Avg Revenue beat(12)4.45%
Revenue beat(16)13
Avg Revenue beat(16)4.58%
PT rev (1m)0%
PT rev (3m)20.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.45%
EPS NY rev (1m)0%
EPS NY rev (3m)80.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.71 | ||
| Fwd PE | 9.79 | ||
| P/S | 0.59 | ||
| P/FCF | 3.76 | ||
| P/OCF | 3.65 | ||
| P/B | 1.87 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 3.56 |
EPS(TTM)4.28
EY12.96%
EPS(NY)3.37
Fwd EY10.22%
FCF(TTM)8.79
FCFY26.62%
OCF(TTM)9.03
OCFY27.36%
SpS56.36
BVpS17.65
TBVpS17.65
PEG (NY)0.05
PEG (5Y)0.76
Graham Number41.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 24.72% | ||
| ROCE | 5.6% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.69% | ||
| ROICexgc | 6.82% | ||
| OM | 10.65% | ||
| PM (TTM) | 7.74% | ||
| GM | N/A | ||
| FCFM | 15.6% |
ROA(3y)1.4%
ROA(5y)1.25%
ROE(3y)9.21%
ROE(5y)7.32%
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 3Y37.31%
ROICexgc growth 5Y0.06%
ROICexc growth 3Y30%
ROICexc growth 5Y-3.1%
OM growth 3Y32.18%
OM growth 5Y-2.45%
PM growth 3Y28.68%
PM growth 5Y-4.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 112.49% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 145.21% | ||
| Profit Quality | 201.46% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.31%
ROIC/WACC0.49
Cap/Depr(3y)95.91%
Cap/Depr(5y)145.86%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)119.49%
EPS 3Y44.23%
EPS 5Y10.18%
EPS Q2Q%286.3%
EPS Next Y164.2%
EPS Next 2Y38.05%
EPS Next 3Y28.86%
EPS Next 5YN/A
Revenue 1Y (TTM)4.61%
Revenue growth 3Y10.67%
Revenue growth 5Y10.11%
Sales Q2Q%4.03%
Revenue Next Year14.4%
Revenue Next 2Y6.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y53.4%
EBIT growth 3Y46.28%
EBIT growth 5Y7.41%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.31%
FCF growth 3Y-17.58%
FCF growth 5Y11.94%
OCF growth 1Y47.42%
OCF growth 3Y-16.32%
OCF growth 5Y10.18%
UNIVERSAL INSURANCE HOLDINGS / UVE FAQ
What is the fundamental rating for UVE stock?
ChartMill assigns a fundamental rating of 5 / 10 to UVE.
What is the valuation status of UNIVERSAL INSURANCE HOLDINGS (UVE) stock?
ChartMill assigns a valuation rating of 8 / 10 to UNIVERSAL INSURANCE HOLDINGS (UVE). This can be considered as Undervalued.
Can you provide the profitability details for UNIVERSAL INSURANCE HOLDINGS?
UNIVERSAL INSURANCE HOLDINGS (UVE) has a profitability rating of 4 / 10.
How financially healthy is UNIVERSAL INSURANCE HOLDINGS?
The financial health rating of UNIVERSAL INSURANCE HOLDINGS (UVE) is 4 / 10.
What is the expected EPS growth for UNIVERSAL INSURANCE HOLDINGS (UVE) stock?
The Earnings per Share (EPS) of UNIVERSAL INSURANCE HOLDINGS (UVE) is expected to grow by 164.2% in the next year.