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 144 industry peers in the Insurance industry. HCI has an excellent profitability rating, but 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
In the past year HCI was profitable.
HCI had a positive operating cash flow in the past year.
Of the past 5 years HCI 4 years were profitable.
Of the past 5 years HCI 4 years had a positive operating cash flow.
1.2 Ratios
HCI has a better Return On Assets (7.48%) than 94.44% of its industry peers.
HCI has a better Return On Equity (32.99%) than 97.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.82%, HCI belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
| 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 better Profit Margin (22.63%) than 93.06% of its industry peers.
HCI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 38.04%, HCI belongs to the top of the industry, outperforming 96.53% 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 | 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
HCI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HCI has more shares outstanding
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
Based on the Altman-Z score of 1.48, 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 1.48, HCI belongs to the top of the industry, outperforming 84.72% of the companies in the same industry.
The Debt to FCF ratio of HCI is 0.74, which is an excellent value as it means it would take HCI, only 0.74 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.74, HCI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
HCI has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, HCI is doing worse than 62.50% of the companies in the same industry.
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 | 1.48 |
ROIC/WACC1.05
WACC9.33%
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 63.89% 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.
With a decent Quick ratio value of 0.03, HCI is doing good in the industry, outperforming 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
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.
The Earnings Per Share has been growing by 22.91% on average over the past years. This is a very strong growth
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
HCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.48% yearly.
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.
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
The Price/Earnings ratio is 14.29, which 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 (27.45), we can say HCI is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.38 indicates a reasonable valuation of HCI.
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 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCI is valued cheaper than 85.42% of the companies in the same industry.
68.06% 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 | 5.52 | ||
| EV/EBITDA | 3.82 |
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)0.18
PEG (5Y)0.62
EPS Next 2Y34.57%
EPS Next 3Y27.19%
5. Dividend
5.1 Amount
HCI has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.51, HCI is paying slightly less dividend.
With a Dividend Yield of 1.06, HCI pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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 9.81% 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.
DP9.81%
EPS Next 2Y34.57%
EPS Next 3Y27.19%
NYSE:HCI (7/3/2025, 7:33:20 PM)
146.76
+1.33 (+0.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.54%
Inst Owner Change2.99%
Ins Owners15.97%
Ins Owner Change0%
Market Cap1.70B
Analysts84
Price Target198.9 (35.53%)
Short Float %4.07%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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)23.22%
PT rev (3m)23.22%
EPS NQ rev (1m)-4.61%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)-2.2%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 9.38 | ||
| P/S | 2.23 | ||
| P/FCF | 5.52 | ||
| P/OCF | 5.44 | ||
| P/B | 3.24 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 3.82 |
EPS(TTM)10.27
EY7%
EPS(NY)15.65
Fwd EY10.66%
FCF(TTM)26.58
FCFY18.11%
OCF(TTM)27
OCFY18.4%
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 | 1.48 |
F-Score7
WACC9.33%
ROIC/WACC1.05
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%