HCI GROUP INC (HCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HCI - US40416E1038 - Common Stock
170.17 USD
-2.84 (-1.64%)
170.17 USD
0 (0%)
HCI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. HCI has an excellent profitability rating, but there are some minor concerns on its financial health. HCI is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make HCI a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
HCI had positive earnings in the past year.
In the past year HCI had a positive cash flow from operations.
HCI had positive earnings in 4 of the past 5 years.
HCI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.33%, HCI belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
With an excellent Return On Equity value of 23.79%, HCI belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
The Return On Invested Capital of HCI (10.13%) is better than 94.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 23.79% | ||
| ROIC | 10.13% |
ROA(3y)1.97%
ROA(5y)1.77%
ROE(3y)4.34%
ROE(5y)5.31%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HCI's Profit Margin of 23.92% is amongst the best of the industry. HCI outperforms 93.92% of its industry peers.
In the last couple of years the Profit Margin of HCI has grown nicely.
Looking at the Operating Margin, with a value of 37.12%, HCI belongs to the top of the industry, outperforming 97.97% of the companies in the same industry.
HCI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.12% | ||
| PM (TTM) | 23.92% | ||
| GM | N/A |
OM growth 3Y83.48%
OM growth 5Y3.9%
PM growth 3Y215.92%
PM growth 5Y6.5%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HCI is creating some value.
Compared to 1 year ago, HCI has more shares outstanding
Compared to 5 years ago, HCI has more shares outstanding
Compared to 1 year ago, HCI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.90 indicates that HCI is not a great score, but indicates only limited risk for bankruptcy at the moment.
HCI has a better Altman-Z score (1.90) than 88.51% of its industry peers.
HCI has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.17, HCI belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that HCI is not too dependend on debt financing.
HCI's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. HCI outperforms 77.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.21
WACC8.35%
2.3 Liquidity
HCI has a Current Ratio of 0.06. This is a bad value and indicates that HCI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HCI (0.06) is better than 61.49% of its industry peers.
A Quick Ratio of 0.06 indicates that HCI may have some problems paying its short term obligations.
HCI has a better Quick ratio (0.06) than 61.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
HCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.89%, which is quite impressive.
Measured over the past years, HCI shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.91% on average per year.
The Revenue has grown by 9.02% in the past year. This is quite good.
HCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.22% yearly.
EPS 1Y (TTM)34.89%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%942.55%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%23.41%
3.2 Future
The Earnings Per Share is expected to grow by 20.02% on average over the next years. This is a very strong growth
Based on estimates for the next years, HCI will show a quite strong growth in Revenue. The Revenue will grow by 12.90% on average per year.
EPS Next Y87.43%
EPS Next 2Y35.73%
EPS Next 3Y24.67%
EPS Next 5Y20.02%
Revenue Next Year17.76%
Revenue Next 2Y12.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.92, the valuation of HCI can be described as very reasonable.
HCI's Price/Earnings is on the same level as the industry average.
HCI is valuated cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.69, which indicates a very decent valuation of HCI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCI is on the same level as its industry peers.
HCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 10.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCI is valued cheaper than 81.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HCI is valued a bit cheaper than 68.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.46 | ||
| EV/EBITDA | 4.09 |
4.3 Compensation for Growth
HCI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HCI may justify a higher PE ratio.
HCI's earnings are expected to grow with 24.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)0.48
EPS Next 2Y35.73%
EPS Next 3Y24.67%
5. Dividend
5.1 Amount
HCI has a yearly dividend return of 0.91%, which is pretty low.
HCI's Dividend Yield is comparable with the industry average which is at 3.32.
With a Dividend Yield of 0.91, HCI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of HCI has a limited annual growth rate of 0.17%.
HCI has been paying a dividend for at least 10 years, so it has a reliable track record.
HCI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.17%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
9.39% of the earnings are spent on dividend by HCI. This is a low number and sustainable payout ratio.
The dividend of HCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP9.39%
EPS Next 2Y35.73%
EPS Next 3Y24.67%
170.17
-2.84 (-1.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners79.38%
Inst Owner Change1.23%
Ins Owners14.26%
Ins Owner Change0.76%
Market Cap2.21B
Revenue(TTM)817.27M
Net Income(TTM)195.47M
Analysts86.67
Price Target225.68 (32.62%)
Short Float %6.18%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend1.62
Dividend Growth(5Y)0.17%
DP9.39%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.61%
Min EPS beat(2)10.96%
Max EPS beat(2)102.27%
EPS beat(4)4
Avg EPS beat(4)58.23%
Min EPS beat(4)7.78%
Max EPS beat(4)111.92%
EPS beat(8)8
Avg EPS beat(8)60.13%
EPS beat(12)12
Avg EPS beat(12)232.57%
EPS beat(16)15
Avg EPS beat(16)161.97%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)0.34%
Revenue beat(8)4
Avg Revenue beat(8)1.08%
Revenue beat(12)7
Avg Revenue beat(12)1.71%
Revenue beat(16)10
Avg Revenue beat(16)7.26%
PT rev (1m)9.26%
PT rev (3m)9.26%
EPS NQ rev (1m)17.41%
EPS NQ rev (3m)17.63%
EPS NY rev (1m)0%
EPS NY rev (3m)1.35%
Revenue NQ rev (1m)-2.82%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 10.69 | ||
| P/S | 2.7 | ||
| P/FCF | 5.46 | ||
| P/OCF | 5.4 | ||
| P/B | 2.68 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 4.09 |
EPS(TTM)15.58
EY9.16%
EPS(NY)15.92
Fwd EY9.35%
FCF(TTM)31.19
FCFY18.33%
OCF(TTM)31.51
OCFY18.52%
SpS63.06
BVpS63.41
TBVpS63.15
PEG (NY)0.12
PEG (5Y)0.48
Graham Number149.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 23.79% | ||
| ROCE | 13.8% | ||
| ROIC | 10.13% | ||
| ROICexc | 18.15% | ||
| ROICexgc | 27.09% | ||
| OM | 37.12% | ||
| PM (TTM) | 23.92% | ||
| GM | N/A | ||
| FCFM | 49.46% |
ROA(3y)1.97%
ROA(5y)1.77%
ROE(3y)4.34%
ROE(5y)5.31%
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 3Y65.67%
ROICexgc growth 5Y7.68%
ROICexc growth 3Y52.3%
ROICexc growth 5Y4.65%
OM growth 3Y83.48%
OM growth 5Y3.9%
PM growth 3Y215.92%
PM growth 5Y6.5%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.17 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 37.14% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 28.81 | ||
| Cash Conversion | 129.87% | ||
| Profit Quality | 206.82% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 1.9 |
F-Score5
WACC8.35%
ROIC/WACC1.21
Cap/Depr(3y)84.29%
Cap/Depr(5y)77.24%
Cap/Sales(3y)1%
Cap/Sales(5y)1.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.89%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%942.55%
EPS Next Y87.43%
EPS Next 2Y35.73%
EPS Next 3Y24.67%
EPS Next 5Y20.02%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%23.41%
Revenue Next Year17.76%
Revenue Next 2Y12.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-0.8%
EBIT growth 3Y124.51%
EBIT growth 5Y30.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y351.81%
FCF growth 3Y52.08%
FCF growth 5Y45.02%
OCF growth 1Y327.3%
OCF growth 3Y50.93%
OCF growth 5Y43.78%
HCI GROUP INC / HCI FAQ
Can you provide the ChartMill fundamental rating for HCI GROUP INC?
ChartMill assigns a fundamental rating of 7 / 10 to HCI.
What is the valuation status of HCI GROUP INC (HCI) stock?
ChartMill assigns a valuation rating of 7 / 10 to HCI GROUP INC (HCI). This can be considered as Undervalued.
How profitable is HCI GROUP INC (HCI) stock?
HCI GROUP INC (HCI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of HCI GROUP INC (HCI) stock?
The Price/Earnings (PE) ratio for HCI GROUP INC (HCI) is 10.92 and the Price/Book (PB) ratio is 2.68.
What is the expected EPS growth for HCI GROUP INC (HCI) stock?
The Earnings per Share (EPS) of HCI GROUP INC (HCI) is expected to grow by 87.43% in the next year.