Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


HAMILTON INSURANCE GROU-CL B

New York Stock Exchange, Inc. / Financials / Insurance

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to HG. HG was compared to 143 industry peers in the Insurance industry. HG has only an average score on both its financial health and profitability. HG has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, HG could be worth investigating further for value and growth investing!.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

HG had positive earnings in the past year.
In the past year HG had a positive cash flow from operations.
In multiple years HG reported negative net income over the last 5 years.
Of the past 5 years HG 4 years had a positive operating cash flow.
HG Yearly Net Income VS EBIT VS OCF VS FCFHG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 0 200M -200M 400M 600M

1.2 Ratios

HG has a better Return On Assets (5.14%) than 88.81% of its industry peers.
With a decent Return On Equity value of 17.20%, HG is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Return On Invested Capital of HG (6.45%) is better than 87.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HG is in line with the industry average of 4.35%.
The last Return On Invested Capital (6.45%) for HG is above the 3 year average (3.57%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.14%
ROE 17.2%
ROIC 6.45%
ROA(3y)2.44%
ROA(5y)N/A
ROE(3y)7.98%
ROE(5y)N/A
ROIC(3y)3.57%
ROIC(5y)N/A
HG Yearly ROA, ROE, ROICHG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 17.49%, HG belongs to the top of the industry, outperforming 85.31% of the companies in the same industry.
HG has a Operating Margin of 26.38%. This is amongst the best in the industry. HG outperforms 90.91% of its industry peers.
In the last couple of years the Operating Margin of HG has grown nicely.
Industry RankSector Rank
OM 26.38%
PM (TTM) 17.49%
GM N/A
OM growth 3Y36.39%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
HG Yearly Profit, Operating, Gross MarginsHG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 10 -10 20 -20 -30

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5

2. Health

2.1 Basic Checks

HG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HG has less shares outstanding
The debt/assets ratio for HG has been reduced compared to a year ago.
HG Yearly Shares OutstandingHG Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 2024 20M 40M 60M 80M 100M
HG Yearly Total Debt VS Total AssetsHG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

HG has an Altman-Z score of 0.94. This is a bad value and indicates that HG is not financially healthy and even has some risk of bankruptcy.
HG has a better Altman-Z score (0.94) than 79.72% of its industry peers.
HG has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
HG's Debt to FCF ratio of 0.20 is amongst the best of the industry. HG outperforms 90.21% of its industry peers.
HG has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
HG's Debt to Equity ratio of 0.06 is amongst the best of the industry. HG outperforms 82.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.2
Altman-Z 0.94
ROIC/WACC0.7
WACC9.2%
HG Yearly LT Debt VS Equity VS FCFHG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 0.18 indicates that HG may have some problems paying its short term obligations.
HG has a better Current ratio (0.18) than 68.53% of its industry peers.
HG has a Quick Ratio of 0.18. This is a bad value and indicates that HG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.18, HG is doing good in the industry, outperforming 68.53% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.18
Quick Ratio 0.18
HG Yearly Current Assets VS Current LiabilitesHG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 2024 100M 200M 300M 400M

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7

3. Growth

3.1 Past

HG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.66%, which is quite impressive.
Looking at the last year, HG shows a very strong growth in Revenue. The Revenue has grown by 45.20%.
Measured over the past years, HG shows a very strong growth in Revenue. The Revenue has been growing by 176.06% on average per year.
EPS 1Y (TTM)50.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-65.94%
Revenue 1Y (TTM)45.2%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%16.72%

3.2 Future

The Earnings Per Share is expected to grow by 9.50% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.59% on average over the next years. This is quite good.
EPS Next Y-14.97%
EPS Next 2Y10.32%
EPS Next 3Y11.03%
EPS Next 5Y9.5%
Revenue Next Year9%
Revenue Next 2Y11.31%
Revenue Next 3Y11.59%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
HG Yearly Revenue VS EstimatesHG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
HG Yearly EPS VS EstimatesHG Yearly EPS VS EstimatesYearly EPS VS Estimates 2023 2024 2025 2026 2027 2028 1 2 3 4 5

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.56 indicates a rather cheap valuation of HG.
Based on the Price/Earnings ratio, HG is valued a bit cheaper than the industry average as 77.62% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.21. HG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.66 indicates a rather cheap valuation of HG.
80.42% of the companies in the same industry are more expensive than HG, based on the Price/Forward Earnings ratio.
HG is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.56
Fwd PE 4.66
HG Price Earnings VS Forward Price EarningsHG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HG is valued cheaply inside the industry as 91.61% of the companies are valued more expensively.
84.62% of the companies in the same industry are more expensive than HG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 2.77
EV/EBITDA 2.03
HG Per share dataHG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

HG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.32%
EPS Next 3Y11.03%

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0

5. Dividend

5.1 Amount

No dividends for HG!.
Industry RankSector Rank
Dividend Yield N/A

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