HCI GROUP INC (HCI) Stock Fundamental Analysis
NYSE:HCI - US40416E1038 - Common Stock
174.76 USD
+0.38 (+0.22%)
174.76 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. While HCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HCI is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make HCI suitable 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.
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 Return On Assets of 5.86%. This is amongst the best in the industry. HCI outperforms 89.04% of its industry peers.
HCI has a better Return On Equity (18.16%) than 84.25% of its industry peers.
HCI has a better Return On Invested Capital (7.66%) than 91.78% of its industry peers.
| 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
With an excellent Profit Margin value of 17.74%, HCI belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
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.
The number of shares outstanding for HCI has been increased compared to 5 years ago.
The debt/assets ratio for HCI has been reduced compared to a year ago.
2.2 Solvency
HCI has an Altman-Z score of 1.70. This is a bad value and indicates that HCI is not financially healthy and even has some risk of bankruptcy.
HCI has a Altman-Z score of 1.70. This is amongst the best in the industry. HCI outperforms 89.73% of its industry peers.
The Debt to FCF ratio of HCI is 0.12, which is an excellent value as it means it would take HCI, only 0.12 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 0.07, HCI is in the better half of the industry, outperforming 78.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.92
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.05 indicates that HCI may have some problems paying its short term obligations.
HCI has a better Current ratio (0.05) than 62.33% of its industry peers.
A Quick Ratio of 0.05 indicates that HCI may have some problems paying its short term obligations.
The Quick ratio of HCI (0.05) is better 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.
HCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.22% yearly.
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.
HCI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.09% yearly.
EPS Next Y84.94%
EPS Next 2Y34.24%
EPS Next 3Y23.97%
EPS Next 5Y20.02%
Revenue Next Year17.35%
Revenue Next 2Y14.09%
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 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
A Price/Earnings ratio of 15.67 indicates a correct valuation of HCI.
HCI's Price/Earnings ratio is a bit more expensive when compared to the industry. HCI is more expensive than 60.27% of the companies in the same industry.
HCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.07.
The Price/Forward Earnings ratio is 11.22, which indicates a very decent valuation of HCI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of HCI to the average of the S&P500 Index (22.59), we can say HCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCI is valued a bit cheaper than 75.34% 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 73.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.7 | ||
| EV/EBITDA | 5.67 |
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 23.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)0.68
EPS Next 2Y34.24%
EPS Next 3Y23.97%
5. Dividend
5.1 Amount
HCI has a yearly dividend return of 0.92%, which is pretty low.
HCI's Dividend Yield is comparable with the industry average which is at 3.63.
With a Dividend Yield of 0.92, HCI pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 12.60% 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.
DP12.6%
EPS Next 2Y34.24%
EPS Next 3Y23.97%
174.76
+0.38 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.13%
Inst Owner Change2.89%
Ins Owners16.01%
Ins Owner Change0.76%
Market Cap2.26B
Analysts84
Price Target206.55 (18.19%)
Short Float %4.17%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)0%
EPS NQ rev (1m)-32.23%
EPS NQ rev (3m)-20.99%
EPS NY rev (1m)3.76%
EPS NY rev (3m)1.48%
Revenue NQ rev (1m)-1.21%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 11.22 | ||
| P/S | 2.92 | ||
| P/FCF | 4.7 | ||
| P/OCF | 4.66 | ||
| P/B | 2.99 | ||
| P/tB | 3 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)11.15
EY6.38%
EPS(NY)15.57
Fwd EY8.91%
FCF(TTM)37.16
FCFY21.26%
OCF(TTM)37.49
OCFY21.45%
SpS59.94
BVpS58.53
TBVpS58.23
PEG (NY)0.18
PEG (5Y)0.68
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 | 1.7 |
F-Score5
WACC8.31%
ROIC/WACC0.92
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 Y84.94%
EPS Next 2Y34.24%
EPS Next 3Y23.97%
EPS Next 5Y20.02%
Revenue 1Y (TTM)9.93%
Revenue growth 3Y22.37%
Revenue growth 5Y25.22%
Sales Q2Q%7.6%
Revenue Next Year17.35%
Revenue Next 2Y14.09%
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%