HCI GROUP INC (HCI) Stock Fundamental Analysis
USA - NYSE:HCI - US40416E1038 - Common Stock
186.86 USD
-5.07 (-2.64%)
186.86 USD
0 (0%)
Overall HCI gets a fundamental rating of 6 out of 10. We evaluated HCI against 146 industry peers in the Insurance industry. HCI scores excellent on profitability, but there are some minor concerns on its financial health. HCI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make HCI suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year HCI was profitable.
In the past year HCI had a positive cash flow from operations.
Of the past 5 years HCI 4 years were profitable.
HCI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HCI has a better Return On Assets (5.86%) than 89.04% of its industry peers.
With an excellent Return On Equity value of 18.16%, HCI belongs to the best of the industry, outperforming 84.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.66%, HCI belongs to the top of the industry, outperforming 91.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 18.16% | ||
| ROIC | 7.66% |
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 (17.74%) than 87.67% of its industry peers.
In the last couple of years the Profit Margin of HCI has grown nicely.
HCI's Operating Margin of 29.59% is amongst the best of the industry. HCI outperforms 95.89% of its industry peers.
HCI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.59% | ||
| PM (TTM) | 17.74% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HCI is destroying value.
HCI has more shares outstanding than it did 1 year ago.
HCI has more shares outstanding than it did 5 years ago.
HCI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that HCI is in the distress zone and has some risk of bankruptcy.
HCI has a better Altman-Z score (1.79) than 88.36% of its industry peers.
HCI has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
HCI has a Debt to FCF ratio of 0.12. This is amongst the best in the industry. HCI outperforms 91.10% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that HCI is not too dependend on debt financing.
The Debt to Equity ratio of HCI (0.07) is better than 78.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.91
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.05 indicates that HCI may have some problems paying its short term obligations.
HCI has a Current ratio of 0.05. This is in the better half of the industry: HCI outperforms 62.33% of its industry peers.
A Quick Ratio of 0.05 indicates that HCI may have some problems paying its short term obligations.
HCI has a better Quick ratio (0.05) than 62.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
HCI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.73%.
HCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.91% yearly.
The Revenue has grown by 9.93% in the past year. This is quite good.
The Revenue has been growing by 25.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-10.73%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%20.9%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%7.6%
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.
Based on estimates for the next years, HCI will show a quite strong growth in Revenue. The Revenue will grow by 12.90% on average per year.
EPS Next Y90.26%
EPS Next 2Y35.56%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue Next Year17.76%
Revenue Next 2Y12.9%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.76, HCI is valued correctly.
HCI's Price/Earnings ratio is a bit more expensive when compared to the industry. HCI is more expensive than 61.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.79, HCI is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.77, which indicates a very decent valuation of HCI.
HCI's Price/Forward Earnings ratio is in line with the industry average.
HCI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 11.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCI is valued a bit cheaper than 68.49% 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 73.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.03 | ||
| EV/EBITDA | 6.65 |
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.
The decent profitability rating of HCI 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)0.19
PEG (5Y)0.73
EPS Next 2Y35.56%
EPS Next 3Y27.19%
5. Dividend
5.1 Amount
HCI has a yearly dividend return of 0.89%, which is pretty low.
HCI's Dividend Yield is comparable with the industry average which is at 3.60.
With a Dividend Yield of 0.89, HCI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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 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
12.60% 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.
DP12.6%
EPS Next 2Y35.56%
EPS Next 3Y27.19%
186.86
-5.07 (-2.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners79.38%
Inst Owner Change3.59%
Ins Owners14.26%
Ins Owner Change0.76%
Market Cap2.42B
Analysts84
Price Target206.55 (10.54%)
Short Float %4.67%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend1.62
Dividend Growth(5Y)0.17%
DP12.6%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.37%
Min EPS beat(2)7.78%
Max EPS beat(2)10.96%
EPS beat(4)4
Avg EPS beat(4)51.02%
Min EPS beat(4)7.78%
Max EPS beat(4)111.92%
EPS beat(8)8
Avg EPS beat(8)114.31%
EPS beat(12)12
Avg EPS beat(12)224.92%
EPS beat(16)14
Avg EPS beat(16)112.32%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-8.88%
Max Revenue beat(4)0.34%
Revenue beat(8)5
Avg Revenue beat(8)1.88%
Revenue beat(12)7
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)7.54%
PT rev (1m)0%
PT rev (3m)3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.23%
EPS NY rev (1m)2.88%
EPS NY rev (3m)6.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 11.77 | ||
| P/S | 3.12 | ||
| P/FCF | 5.03 | ||
| P/OCF | 4.98 | ||
| P/B | 3.19 | ||
| P/tB | 3.21 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)11.15
EY5.97%
EPS(NY)15.88
Fwd EY8.5%
FCF(TTM)37.16
FCFY19.89%
OCF(TTM)37.49
OCFY20.06%
SpS59.94
BVpS58.53
TBVpS58.23
PEG (NY)0.19
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 18.16% | ||
| ROCE | 10.44% | ||
| ROIC | 7.66% | ||
| ROICexc | 13.26% | ||
| ROICexgc | 20.67% | ||
| OM | 29.59% | ||
| PM (TTM) | 17.74% | ||
| GM | N/A | ||
| FCFM | 61.99% |
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-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 99.26% | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 21.51 | ||
| Cash Conversion | 207.51% | ||
| Profit Quality | 349.48% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 1.79 |
F-Score5
WACC8.42%
ROIC/WACC0.91
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)-10.73%
EPS 3Y342.08%
EPS 5Y22.91%
EPS Q2Q%20.9%
EPS Next Y90.26%
EPS Next 2Y35.56%
EPS Next 3Y27.19%
EPS Next 5Y20.02%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%7.6%
Revenue Next Year17.76%
Revenue Next 2Y12.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-26.32%
EBIT growth 3Y124.51%
EBIT growth 5Y30.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2441.01%
FCF growth 3Y52.08%
FCF growth 5Y45.02%
OCF growth 1Y3195.09%
OCF growth 3Y50.93%
OCF growth 5Y43.78%