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HCI GROUP INC (HCI) Stock Fundamental Analysis

NYSE:HCI - New York Stock Exchange, Inc. - US40416E1038 - Common Stock - Currency: USD

138.235  -0.06 (-0.05%)

Fundamental Rating

7

Taking everything into account, HCI scores 7 out of 10 in our fundamental rating. 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. An interesting combination arises when we look at growth and value: HCI is growing strongly while it also seems undervalued. These ratings would make HCI suitable for value and growth investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year HCI was profitable.
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.
HCI Yearly Net Income VS EBIT VS OCF VS FCFHCI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

1.2 Ratios

The Return On Assets of HCI (7.48%) is better than 95.10% of its industry peers.
With an excellent Return On Equity value of 32.99%, HCI belongs to the best of the industry, outperforming 97.90% of the companies in the same industry.
HCI has a Return On Invested Capital of 9.82%. This is amongst the best in the industry. HCI outperforms 94.41% of its industry peers.
Industry RankSector 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
HCI Yearly ROA, ROE, ROICHCI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

1.3 Margins

The Profit Margin of HCI (22.63%) is better than 95.10% of its industry peers.
HCI's Profit Margin has improved in the last couple of years.
The Operating Margin of HCI (38.04%) is better than 98.60% of its industry peers.
In the last couple of years the Operating Margin of HCI has grown nicely.
Industry RankSector 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
HCI Yearly Profit, Operating, Gross MarginsHCI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

5

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
The number of shares outstanding for HCI has been increased compared to 5 years ago.
Compared to 1 year ago, HCI has an improved debt to assets ratio.
HCI Yearly Shares OutstandingHCI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
HCI Yearly Total Debt VS Total AssetsHCI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

HCI has an Altman-Z score of 1.45. 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 1.45 is amongst the best of the industry. HCI outperforms 84.62% 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 has a Debt to FCF ratio of 0.74. This is in the better half of the industry: HCI outperforms 74.83% of its industry peers.
HCI has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HCI (0.43) is worse than 60.84% 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 RankSector Rank
Debt/Equity 0.43
Debt/FCF 0.74
Altman-Z 1.45
ROIC/WACC1.16
WACC8.47%
HCI Yearly LT Debt VS Equity VS FCFHCI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 0.03 indicates that HCI may have some problems paying its short term obligations.
The Current ratio of HCI (0.03) is better than 63.64% of its industry peers.
A Quick Ratio of 0.03 indicates that HCI may have some problems paying 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 63.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.03
Quick Ratio 0.03
HCI Yearly Current Assets VS Current LiabilitesHCI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.11% 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 a strong growth in Revenue. In the last year, the Revenue has grown by 21.25%.
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)8.11%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%44.66%
Revenue 1Y (TTM)21.25%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%4.75%

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
The Revenue is expected to grow by 10.48% on average over the next years. This is quite good.
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

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.
HCI Yearly Revenue VS EstimatesHCI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
HCI Yearly EPS VS EstimatesHCI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 5 -5 10 15 20

7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.46 indicates a correct valuation of HCI.
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 (28.05), we can say HCI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.84, the valuation of HCI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCI indicates a somewhat cheap valuation: HCI is cheaper than 62.94% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HCI to the average of the S&P500 Index (37.67), we can say HCI is valued rather cheaply.
Industry RankSector Rank
PE 13.46
Fwd PE 8.84
HCI Price Earnings VS Forward Price EarningsHCI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HCI is valued cheaply inside the industry as 85.31% of the companies are valued more expensively.
69.93% of the companies in the same industry are more expensive than HCI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 5.2
EV/EBITDA 3.48
HCI Per share dataHCI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The 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.
A more expensive valuation may be justified as HCI's earnings are expected to grow with 27.19% in the coming years.
PEG (NY)0.17
PEG (5Y)0.59
EPS Next 2Y34.57%
EPS Next 3Y27.19%

6

5. Dividend

5.1 Amount

HCI has a Yearly Dividend Yield of 1.15%.
HCI's Dividend Yield is comparable with the industry average which is at 3.29.
Compared to an average S&P500 Dividend Yield of 2.32, HCI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.15%

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
HCI Yearly Dividends per shareHCI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

9.81% 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.
DP9.81%
EPS Next 2Y34.57%
EPS Next 3Y27.19%
HCI Yearly Income VS Free CF VS DividendHCI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M
HCI Dividend Payout.HCI Dividend Payout, showing the Payout Ratio.HCI Dividend Payout.PayoutRetained Earnings

HCI GROUP INC

NYSE:HCI (7/28/2025, 2:50:49 PM)

138.235

-0.06 (-0.05%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-07 2025-08-07/amc
Inst Owners85.54%
Inst Owner Change-0.46%
Ins Owners15.97%
Ins Owner Change0.76%
Market Cap1.60B
Analysts84
Price Target206.55 (49.42%)
Short Float %4.38%
Short Ratio2.83
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
Yearly Dividend1.62
Dividend Growth(5Y)0.17%
DP9.81%
Div Incr Years0
Div Non Decr Years14
Ex-Date08-15 2025-08-15 (0.4)
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)-5.69%
EPS NY rev (1m)0%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
Industry RankSector Rank
PE 13.46
Fwd PE 8.84
P/S 2.1
P/FCF 5.2
P/OCF 5.12
P/B 3.05
P/tB 3.08
EV/EBITDA 3.48
EPS(TTM)10.27
EY7.43%
EPS(NY)15.65
Fwd EY11.32%
FCF(TTM)26.58
FCFY19.23%
OCF(TTM)27
OCFY19.53%
SpS65.95
BVpS45.25
TBVpS44.86
PEG (NY)0.17
PEG (5Y)0.59
Profitability
Industry RankSector 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 RankSector 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 1.45
F-Score7
WACC8.47%
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)8.11%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%44.66%
EPS Next Y78.23%
EPS Next 2Y34.57%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue 1Y (TTM)21.25%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%4.75%
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%