HAMILTON INSURANCE GROUP-CL B (NYSE:HG) – A Balanced Growth and Value Pick

HAMILTON INSURANCE GROUP-CL B (NYSE:HG) stands out as an affordable growth candidate based on our screening criteria. The company combines strong growth metrics with reasonable valuation, while maintaining decent profitability and financial health.

Growth Highlights

• Revenue Growth: Over the past year, revenue increased by 45.20%, with a three-year average annual growth of 176.06%.
• Earnings Growth: EPS grew by 50.66% in the last year, with expected annual growth of 9.50% in the coming years.
• The company’s Growth Rating of 7/10 reflects its ability to expand faster than many industry peers.

Valuation Strengths

• Attractive P/E Ratio: Trading at a P/E of 7.50, HG is cheaper than 77.62% of its insurance industry peers.
• Forward P/E: At 4.62, the stock appears undervalued compared to both the industry and the S&P 500.
• Enterprise Value/EBITDA: More than 90% of competitors trade at higher multiples.

Profitability & Financial Health

• Strong Margins: Operating margin of 26.38% and profit margin of 17.49% rank in the top tier of the industry.
• ROIC Improvement: Return on invested capital rose to 6.45%, above its three-year average.
• Debt Management: A low debt-to-equity ratio of 0.06 indicates conservative leverage.
• Liquidity Concerns: Current and quick ratios of 0.18 are weak, though still better than many peers.

For a deeper look, review the full fundamental analysis of HG.

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Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.