HCI GROUP INC (HCI) Stock Fundamental Analysis
NYSE:HCI - New York Stock Exchange, Inc. - US40416E1038 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to HCI. HCI was compared to 143 industry peers in the Insurance industry. While HCI has a great profitability rating, there are some minor concerns on its financial health. HCI is growing strongly while it also seems undervalued. This is an interesting 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.
HCI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HCI's Return On Assets of 6.83% is amongst the best of the industry. HCI outperforms 93.01% of its industry peers.
The Return On Equity of HCI (33.59%) is better than 97.20% of its industry peers.
With an excellent Return On Invested Capital value of 8.95%, HCI belongs to the best of the industry, outperforming 93.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 33.59% | ||
| ROIC | 8.95% |
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
Looking at the Profit Margin, with a value of 20.30%, HCI belongs to the top of the industry, outperforming 89.51% of the companies in the same industry.
In the last couple of years the Profit Margin of HCI has grown nicely.
With an excellent Operating Margin value of 34.94%, HCI belongs to the best of the industry, outperforming 95.10% of the companies in the same industry.
HCI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.94% | ||
| PM (TTM) | 20.3% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HCI is still 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
HCI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that HCI is in the distress zone and has some risk of bankruptcy.
HCI's Altman-Z score of 1.42 is amongst the best of the industry. HCI outperforms 83.22% of its industry peers.
HCI has a debt to FCF ratio of 0.70. This is a very positive value and a sign of high solvency as it would only need 0.70 years to pay back of all of its debts.
The Debt to FCF ratio of HCI (0.70) is better than 72.03% of its industry peers.
HCI has a Debt/Equity ratio of 0.51. This is a neutral value indicating HCI is somewhat dependend on debt financing.
HCI has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: HCI underperforms 65.73% of its industry peers.
Even though the debt/equity ratio score it not favorable for HCI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.08
WACC8.28%
2.3 Liquidity
HCI has a Current Ratio of 0.07. 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 Current ratio, with a value of 0.07, HCI is in the better half of the industry, outperforming 64.34% of the companies in the same industry.
A Quick Ratio of 0.07 indicates that HCI may have some problems paying its short term obligations.
The Quick ratio of HCI (0.07) is better than 64.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.55% over the past year.
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.
Looking at the last year, HCI shows a very strong growth in Revenue. The Revenue has grown by 36.21%.
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)17.55%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%-90.37%
Revenue 1Y (TTM)36.21%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%-0.49%
3.2 Future
Based on estimates for the next years, HCI will show a very strong growth in Earnings Per Share. The EPS will grow by 20.02% on average per year.
Based on estimates for the next years, HCI will show a quite strong growth in Revenue. The Revenue will grow by 9.11% on average per year.
EPS Next Y76.13%
EPS Next 2Y28.98%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue Next Year16.58%
Revenue Next 2Y9.11%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.93, HCI is valued correctly.
Based on the Price/Earnings ratio, HCI is valued a bit more expensive than the industry average as 60.14% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.88. HCI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.61, the valuation of HCI can be described as very reasonable.
HCI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HCI is cheaper than 61.54% of the companies in the same industry.
HCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCI is valued cheaper than 81.82% of the companies in the same industry.
HCI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HCI is cheaper than 71.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.81 | ||
| EV/EBITDA | 4.59 |
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 27.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)0.74
EPS Next 2Y28.98%
EPS Next 3Y27.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, HCI has a reasonable but not impressive dividend return.
HCI's Dividend Yield is slightly below the industry average, which is at 3.22.
With a Dividend Yield of 1.12, HCI pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 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
HCI pays out 10.90% 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.
DP10.9%
EPS Next 2Y28.98%
EPS Next 3Y27.19%
146.3
+0.47 (+0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.68%
Inst Owner Change0.46%
Ins Owners17.54%
Ins Owner Change0%
Market Cap1.58B
Analysts80
Price Target161.42 (10.33%)
Short Float %13.98%
Short Ratio8.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend1.62
Dividend Growth(5Y)0.17%
DP10.9%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)92.67%
Min EPS beat(2)73.42%
Max EPS beat(2)111.92%
EPS beat(4)4
Avg EPS beat(4)58.49%
Min EPS beat(4)19.69%
Max EPS beat(4)111.92%
EPS beat(8)8
Avg EPS beat(8)319.78%
EPS beat(12)11
Avg EPS beat(12)200.58%
EPS beat(16)13
Avg EPS beat(16)108.14%
Revenue beat(2)0
Avg Revenue beat(2)-5.53%
Min Revenue beat(2)-8.88%
Max Revenue beat(2)-2.17%
Revenue beat(4)2
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-8.88%
Max Revenue beat(4)6.92%
Revenue beat(8)6
Avg Revenue beat(8)2.91%
Revenue beat(12)8
Avg Revenue beat(12)9.44%
Revenue beat(16)12
Avg Revenue beat(16)15.38%
PT rev (1m)3.6%
PT rev (3m)12.83%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)34.85%
EPS NY rev (1m)0%
EPS NY rev (3m)16.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 9.61 | ||
| P/S | 2.1 | ||
| P/FCF | 4.81 | ||
| P/OCF | 4.75 | ||
| P/B | 3.48 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 4.59 |
EPS(TTM)8.64
EY5.91%
EPS(NY)15.22
Fwd EY10.4%
FCF(TTM)30.43
FCFY20.8%
OCF(TTM)30.81
OCFY21.06%
SpS69.64
BVpS42.09
TBVpS41.61
PEG (NY)0.22
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 33.59% | ||
| ROCE | 12.23% | ||
| ROIC | 8.95% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 19.8% | ||
| OM | 34.94% | ||
| PM (TTM) | 20.3% | ||
| GM | N/A | ||
| FCFM | 43.7% |
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-Score8
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 0.7 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 94.25% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 20.69 | ||
| Cash Conversion | 124.57% | ||
| Profit Quality | 215.26% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 | ||
| Altman-Z | 1.42 |
F-Score8
WACC8.28%
ROIC/WACC1.08
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)17.55%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%-90.37%
EPS Next Y76.13%
EPS Next 2Y28.98%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue 1Y (TTM)36.21%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%-0.49%
Revenue Next Year16.58%
Revenue Next 2Y9.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y108.1%
EBIT growth 3Y124.51%
EBIT growth 5Y30.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.22%
FCF growth 3Y52.08%
FCF growth 5Y45.02%
OCF growth 1Y43.86%
OCF growth 3Y50.93%
OCF growth 5Y43.78%