HCI GROUP INC (HCI) Stock Fundamental Analysis
NYSE:HCI - New York Stock Exchange, Inc. - US40416E1038 - Common Stock - Currency: USD
Taking everything into account, HCI scores 7 out of 10 in our fundamental rating. HCI was compared to 141 industry peers in the Insurance industry. While HCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: HCI is growing strongly while it also seems undervalued. This makes HCI very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
HCI had positive earnings in the past year.
HCI had a positive operating cash flow in the past year.
HCI had positive earnings in 4 of the past 5 years.
Of the past 5 years HCI 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HCI (7.48%) is better than 94.33% of its industry peers.
With an excellent Return On Equity value of 32.99%, HCI belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
The Return On Invested Capital of HCI (9.82%) is better than 95.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.48% | ||
| ROE | 32.99% | ||
| ROIC | 9.82% |
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 has a Profit Margin of 22.63%. This is amongst the best in the industry. HCI outperforms 93.62% of its industry peers.
In the last couple of years the Profit Margin of HCI has grown nicely.
HCI has a Operating Margin of 38.04%. This is amongst the best in the industry. HCI outperforms 99.29% of its industry peers.
In the last couple of years the Operating Margin of HCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.04% | ||
| PM (TTM) | 22.63% | ||
| 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.
The number of shares outstanding for HCI has been increased compared to 1 year ago.
HCI has more shares outstanding than it did 5 years ago.
HCI has a better debt/assets ratio than last year.
2.2 Solvency
HCI has an Altman-Z score of 1.51. This is a bad value and indicates that HCI is not financially healthy and even has some risk of bankruptcy.
HCI's Altman-Z score of 1.51 is amongst the best of the industry. HCI outperforms 87.23% of its industry peers.
HCI has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
HCI's Debt to FCF ratio of 0.74 is fine compared to the rest of the industry. HCI outperforms 75.18% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that HCI is not too dependend on debt financing.
HCI has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: HCI underperforms 60.99% of its industry peers.
Although HCI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.16
WACC8.48%
2.3 Liquidity
A Current Ratio of 0.03 indicates that HCI may have some problems paying its short term obligations.
HCI has a Current ratio of 0.03. This is in the better half of the industry: HCI outperforms 63.12% of its industry peers.
HCI has a Quick Ratio of 0.03. This is a bad value and indicates that HCI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.03, HCI is in the better half of the industry, outperforming 63.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
The earnings per share for HCI have decreased strongly by -10.73% in the last year.
HCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.91% yearly.
The Revenue has grown by 35.73% in the past year. This is a very strong growth!
Measured over the past years, HCI shows a very strong growth in Revenue. The Revenue has been growing by 25.22% on average per year.
EPS 1Y (TTM)-10.73%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%20.9%
Revenue 1Y (TTM)35.73%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%7.6%
3.2 Future
HCI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.02% yearly.
Based on estimates for the next years, HCI will show a quite strong growth in Revenue. The Revenue will grow by 10.48% on average per year.
EPS Next Y78.23%
EPS Next 2Y34.57%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue Next Year17.27%
Revenue Next 2Y10.48%
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 stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.17, HCI is valued correctly.
HCI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of HCI to the average of the S&P500 Index (26.85), we can say HCI is valued slightly cheaper.
HCI is valuated reasonably with a Price/Forward Earnings ratio of 10.10.
The rest of the industry has a similar Price/Forward Earnings ratio as HCI.
HCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCI is valued cheaply inside the industry as 84.40% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HCI is valued a bit cheaper than 67.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.95 | ||
| EV/EBITDA | 4.12 |
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 27.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)0.62
EPS Next 2Y34.57%
EPS Next 3Y27.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, HCI has a reasonable but not impressive dividend return.
HCI's Dividend Yield is comparable with the industry average which is at 3.59.
With a Dividend Yield of 1.02, HCI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of HCI has a limited annual growth rate of 0.17%.
HCI has paid a dividend for at least 10 years, which is 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
HCI pays out 9.81% of its income as dividend. This is a sustainable payout ratio.
HCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.81%
EPS Next 2Y34.57%
EPS Next 3Y27.19%
158.04
+3.58 (+2.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.13%
Inst Owner Change2.48%
Ins Owners16.01%
Ins Owner Change0.76%
Market Cap1.83B
Analysts84
Price Target206.55 (30.69%)
Short Float %4.09%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend1.62
Dividend Growth(5Y)0.17%
DP9.81%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.85%
Min EPS beat(2)7.78%
Max EPS beat(2)111.92%
EPS beat(4)4
Avg EPS beat(4)53.2%
Min EPS beat(4)7.78%
Max EPS beat(4)111.92%
EPS beat(8)8
Avg EPS beat(8)137.84%
EPS beat(12)11
Avg EPS beat(12)191.27%
EPS beat(16)13
Avg EPS beat(16)107.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-8.88%
Max Revenue beat(4)3.48%
Revenue beat(8)5
Avg Revenue beat(8)2.19%
Revenue beat(12)7
Avg Revenue beat(12)8.53%
Revenue beat(16)11
Avg Revenue beat(16)14.34%
PT rev (1m)3.85%
PT rev (3m)27.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 10.1 | ||
| P/S | 2.4 | ||
| P/FCF | 5.95 | ||
| P/OCF | 5.85 | ||
| P/B | 3.49 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 4.12 |
EPS(TTM)11.15
EY7.06%
EPS(NY)15.65
Fwd EY9.9%
FCF(TTM)26.58
FCFY16.82%
OCF(TTM)27
OCFY17.08%
SpS65.95
BVpS45.25
TBVpS44.86
PEG (NY)0.18
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.48% | ||
| ROE | 32.99% | ||
| ROCE | 13.39% | ||
| ROIC | 9.82% | ||
| ROICexc | 14.92% | ||
| ROICexgc | 24.94% | ||
| OM | 38.04% | ||
| PM (TTM) | 22.63% | ||
| GM | N/A | ||
| FCFM | 40.3% |
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
ROICexcg growth 3Y65.67%
ROICexcg 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-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.74 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 91.03% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 24.5 | ||
| Cash Conversion | 105.68% | ||
| Profit Quality | 178.05% | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | 1.51 |
F-Score7
WACC8.48%
ROIC/WACC1.16
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)-10.73%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%20.9%
EPS Next Y78.23%
EPS Next 2Y34.57%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue 1Y (TTM)35.73%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%7.6%
Revenue Next Year17.27%
Revenue Next 2Y10.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y62.84%
EBIT growth 3Y124.51%
EBIT growth 5Y30.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y757.55%
FCF growth 3Y52.08%
FCF growth 5Y45.02%
OCF growth 1Y646.94%
OCF growth 3Y50.93%
OCF growth 5Y43.78%