HCI GROUP INC (HCI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HCI - US40416E1038 - Common Stock
152.15 USD
-6.51 (-4.1%)
152.15 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. While HCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HCI 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, HCI could be worth investigating further 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
- HCI has a better Return On Assets (8.33%) than 95.27% of its industry peers.
- With an excellent Return On Equity value of 23.79%, HCI belongs to the best of the industry, outperforming 90.54% of the companies in the same industry.
- The Return On Invested Capital of HCI (10.13%) is better than 93.92% 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 has a better Profit Margin (23.92%) than 95.27% 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 97.30% of the companies in the same industry.
- In the last couple of years the Operating Margin of HCI has grown nicely.
| 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
- HCI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for HCI has been increased compared to 1 year ago.
- 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 1.82 indicates that HCI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 1.82, HCI belongs to the best of the industry, outperforming 89.86% of the companies in the same industry.
- The Debt to FCF ratio of HCI is 0.17, which is an excellent value as it means it would take HCI, only 0.17 years of fcf income to pay off all of its debts.
- HCI has a Debt to FCF ratio of 0.17. This is amongst the best in the industry. HCI outperforms 93.24% of its industry peers.
- HCI has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.09, HCI is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 1.82 |
ROIC/WACC1.2
WACC8.41%
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.
- With a decent Current ratio value of 0.06, HCI is doing good in the industry, outperforming 62.84% of the companies in the same industry.
- A Quick Ratio of 0.06 indicates that HCI may have some problems paying its short term obligations.
- The Quick ratio of HCI (0.06) is better than 62.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 37.40% over the past year.
- HCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.91% yearly.
- HCI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.02%.
- 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)37.4%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%1004.26%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%23.41%
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.
- HCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.64% yearly.
EPS Next Y135.04%
EPS Next 2Y38.08%
EPS Next 3Y27.45%
EPS Next 5Y20.02%
Revenue Next Year16.31%
Revenue Next 2Y13.64%
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.
- 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 9.59, the valuation of HCI can be described as very reasonable.
- HCI's Price/Earnings ratio is a bit cheaper when compared to the industry. HCI is cheaper than 63.51% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HCI to the average of the S&P500 Index (27.25), we can say HCI is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.24, which indicates a very decent valuation of HCI.
- The rest of the industry has a similar Price/Forward Earnings ratio as HCI.
- When comparing the Price/Forward Earnings ratio of HCI to the average of the S&P500 Index (25.98), we can say HCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HCI is valued cheaper than 84.46% of the companies in the same industry.
- 70.95% of the companies in the same industry are more expensive than HCI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.88 | ||
| EV/EBITDA | 3.5 |
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.
- HCI has a very decent profitability rating, which may justify a higher PE ratio.
- HCI's earnings are expected to grow with 27.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)0.42
EPS Next 2Y38.08%
EPS Next 3Y27.45%
5. Dividend
5.1 Amount
- HCI has a yearly dividend return of 1.00%, which is pretty low.
- In the last 3 months the price of HCI has falen by -25.42%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- HCI's Dividend Yield is comparable with the industry average which is at 2.41.
- Compared to an average S&P500 Dividend Yield of 1.82, HCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
- HCI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP9.39%
EPS Next 2Y38.08%
EPS Next 3Y27.45%
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 for HCI stock?
ChartMill assigns a valuation rating of 8 / 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 is the valuation of HCI GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HCI GROUP INC (HCI) is 9.59 and the Price/Book (PB) ratio is 2.4.
How financially healthy is HCI GROUP INC?
The financial health rating of HCI GROUP INC (HCI) is 6 / 10.