HCI GROUP INC (HCI) Stock Fundamental Analysis
NYSE:HCI - New York Stock Exchange, Inc. - US40416E1038 - Common Stock - Currency: USD
HCI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 143 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 is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, HCI could be worth investigating further for 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 93.71% of its industry peers.
With an excellent Return On Equity value of 33.59%, HCI belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
The Return On Invested Capital of HCI (8.95%) is better than 93.71% of its industry peers.
| 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
With an excellent Profit Margin value of 20.30%, HCI belongs to the best of the industry, outperforming 89.51% of the companies in the same industry.
HCI's Profit Margin has improved in the last couple of years.
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
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.
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.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that HCI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.49, HCI belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Debt to FCF ratio of HCI is 0.70, which is an excellent value as it means it would take HCI, only 0.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.70, HCI is in the better half of the industry, outperforming 74.83% of the companies in the same industry.
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 66.43% 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 | 0.51 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 1.49 |
ROIC/WACC1.04
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.07 indicates that HCI may have some problems paying its short term obligations.
HCI's Current ratio of 0.07 is fine compared to the rest of the industry. HCI outperforms 64.34% of its industry peers.
A Quick Ratio of 0.07 indicates that HCI may have some problems paying its short term obligations.
Looking at the Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
HCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
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.
HCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.73%.
The Revenue has been growing by 25.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)8.11%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%44.66%
Revenue 1Y (TTM)35.73%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%4.75%
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.
HCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
EPS Next Y82.25%
EPS Next 2Y33.04%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue Next Year17.23%
Revenue Next 2Y9.51%
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 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 16.13, HCI is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as HCI.
The average S&P500 Price/Earnings ratio is at 26.60. HCI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.83, which indicates a very decent valuation of HCI.
HCI's Price/Forward Earnings is on the same level as the industry average.
HCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
HCI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HCI is cheaper than 78.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HCI is valued a bit cheaper than the industry average as 66.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.44 | ||
| EV/EBITDA | 5.43 |
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.
A more expensive valuation may be justified as HCI's earnings are expected to grow with 27.19% in the coming years.
PEG (NY)0.2
PEG (5Y)0.7
EPS Next 2Y33.04%
EPS Next 3Y27.19%
5. Dividend
5.1 Amount
HCI has a yearly dividend return of 0.97%, which is pretty low.
Compared to an average industry Dividend Yield of 3.17, HCI is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, HCI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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
HCI pays out 10.90% of its income as dividend. This is a sustainable payout ratio.
The dividend of HCI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP10.9%
EPS Next 2Y33.04%
EPS Next 3Y27.19%
NYSE:HCI (5/21/2025, 12:58:39 PM)
165.69
-0.97 (-0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.68%
Inst Owner Change3.06%
Ins Owners17.54%
Ins Owner Change0%
Market Cap1.78B
Analysts80
Price Target161.42 (-2.58%)
Short Float %14.05%
Short Ratio8.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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)0%
PT rev (3m)10.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.32%
EPS NY rev (1m)3.47%
EPS NY rev (3m)17.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)-2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 10.83 | ||
| P/S | 2.38 | ||
| P/FCF | 5.44 | ||
| P/OCF | 5.37 | ||
| P/B | 3.93 | ||
| P/tB | 3.98 | ||
| EV/EBITDA | 5.43 |
EPS(TTM)10.27
EY6.2%
EPS(NY)15.29
Fwd EY9.23%
FCF(TTM)30.46
FCFY18.38%
OCF(TTM)30.84
OCFY18.61%
SpS69.71
BVpS42.13
TBVpS41.65
PEG (NY)0.2
PEG (5Y)0.7
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 | 1.49 |
F-Score8
WACC8.58%
ROIC/WACC1.04
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 Y82.25%
EPS Next 2Y33.04%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue 1Y (TTM)35.73%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%4.75%
Revenue Next Year17.23%
Revenue Next 2Y9.51%
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%