HAMILTON INSURANCE GROU-CL B (HG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HG - BMG427061046 - Common Stock
26.75 USD
+0.54 (+2.06%)
26.75 USD
0 (0%)
Taking everything into account, HG scores 6 out of 10 in our fundamental rating. HG was compared to 146 industry peers in the Insurance industry. Both the profitability and the financial health of HG get a neutral evaluation. Nothing too spectacular is happening here. HG may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, HG could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year HG was profitable.
HG had a positive operating cash flow in the past year.
In multiple years HG reported negative net income over the last 5 years.
HG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HG's Return On Assets of 4.76% is amongst the best of the industry. HG outperforms 80.82% of its industry peers.
The Return On Equity of HG (16.47%) is better than 73.29% of its industry peers.
With an excellent Return On Invested Capital value of 5.42%, HG belongs to the best of the industry, outperforming 82.19% of the companies in the same industry.
HG had an Average Return On Invested Capital over the past 3 years of 3.57%. This is significantly below the industry average of 15.11%.
The last Return On Invested Capital (5.42%) for HG is above the 3 year average (3.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 16.47% | ||
| ROIC | 5.42% |
ROA(3y)2.44%
ROA(5y)N/A
ROE(3y)7.98%
ROE(5y)N/A
ROIC(3y)3.57%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HG (16.62%) is better than 84.25% of its industry peers.
HG has a better Operating Margin (23.18%) than 82.88% of its industry peers.
HG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.18% | ||
| PM (TTM) | 16.62% | ||
| GM | N/A |
OM growth 3Y36.39%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
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), HG is destroying value.
The number of shares outstanding for HG has been reduced compared to 1 year ago.
The debt/assets ratio for HG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that HG is in the distress zone and has some risk of bankruptcy.
HG has a better Altman-Z score (0.94) than 79.45% of its industry peers.
HG has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.18, HG belongs to the top of the industry, outperforming 91.78% of the companies in the same industry.
HG has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
HG has a Debt to Equity ratio of 0.06. This is in the better half of the industry: HG outperforms 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.6
WACC8.98%
2.3 Liquidity
HG has a Current Ratio of 0.15. This is a bad value and indicates that HG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.15, HG is in the better half of the industry, outperforming 66.44% of the companies in the same industry.
A Quick Ratio of 0.15 indicates that HG may have some problems paying its short term obligations.
The Quick ratio of HG (0.15) is better than 66.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
HG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.04%.
HG shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.24%.
The Revenue has been growing by 176.06% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-6.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.38%
Revenue 1Y (TTM)20.24%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%4.7%
3.2 Future
The Earnings Per Share is expected to grow by 9.88% on average over the next years. This is quite good.
Based on estimates for the next years, HG will show a quite strong growth in Revenue. The Revenue will grow by 11.41% on average per year.
EPS Next Y25.59%
EPS Next 2Y10.53%
EPS Next 3Y12.28%
EPS Next 5Y9.88%
Revenue Next Year21.82%
Revenue Next 2Y10.79%
Revenue Next 3Y11.41%
Revenue Next 5YN/A
3.3 Evolution
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 6.37, the valuation of HG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of HG indicates a rather cheap valuation: HG is cheaper than 82.19% of the companies listed in the same industry.
HG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
HG is valuated cheaply with a Price/Forward Earnings ratio of 6.02.
79.45% of the companies in the same industry are more expensive than HG, based on the Price/Forward Earnings ratio.
HG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 6.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HG is valued cheaply inside the industry as 89.04% of the companies are valued more expensively.
82.19% of the companies in the same industry are more expensive than HG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.16 | ||
| EV/EBITDA | 2.82 |
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 HG may justify a higher PE ratio.
A more expensive valuation may be justified as HG's earnings are expected to grow with 12.28% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y10.53%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
HG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
26.75
+0.54 (+2.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.56%
Inst Owner ChangeN/A
Ins Owners4.54%
Ins Owner Change-5.16%
Market Cap2.63B
Revenue(TTM)2.64B
Net Income(TTM)438.41M
Analysts78.67
Price Target29.36 (9.76%)
Short Float %2.07%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.28%
Min EPS beat(2)64.93%
Max EPS beat(2)71.64%
EPS beat(4)3
Avg EPS beat(4)626.11%
Min EPS beat(4)-44.46%
Max EPS beat(4)2412.32%
EPS beat(8)7
Avg EPS beat(8)332.26%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2467.51%
Min Revenue beat(2)1222.05%
Max Revenue beat(2)3712.96%
Revenue beat(4)4
Avg Revenue beat(4)1465.29%
Min Revenue beat(4)157.25%
Max Revenue beat(4)3712.96%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.5%
PT rev (3m)11.43%
EPS NQ rev (1m)-1.66%
EPS NQ rev (3m)14.97%
EPS NY rev (1m)2.11%
EPS NY rev (3m)11.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 6.02 | ||
| P/S | 1 | ||
| P/FCF | 3.16 | ||
| P/OCF | 3.16 | ||
| P/B | 0.99 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 2.82 |
EPS(TTM)4.2
EY15.7%
EPS(NY)4.45
Fwd EY16.62%
FCF(TTM)8.47
FCFY31.66%
OCF(TTM)8.47
OCFY31.66%
SpS26.82
BVpS27.06
TBVpS26.16
PEG (NY)0.25
PEG (5Y)N/A
Graham Number50.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 16.47% | ||
| ROCE | 6.86% | ||
| ROIC | 5.42% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 8.19% | ||
| OM | 23.18% | ||
| PM (TTM) | 16.62% | ||
| GM | N/A | ||
| FCFM | 31.57% |
ROA(3y)2.44%
ROA(5y)N/A
ROE(3y)7.98%
ROE(5y)N/A
ROIC(3y)3.57%
ROIC(5y)N/A
ROICexc(3y)4.18%
ROICexc(5y)N/A
ROICexgc(3y)6.07%
ROICexgc(5y)N/A
ROCE(3y)4.52%
ROCE(5y)N/A
ROICexgc growth 3Y222.81%
ROICexgc growth 5YN/A
ROICexc growth 3Y233.68%
ROICexc growth 5YN/A
OM growth 3Y36.39%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.67% | ||
| Profit Quality | 190.01% | ||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 0.94 |
F-Score7
WACC8.98%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%78.38%
EPS Next Y25.59%
EPS Next 2Y10.53%
EPS Next 3Y12.28%
EPS Next 5Y9.88%
Revenue 1Y (TTM)20.24%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%4.7%
Revenue Next Year21.82%
Revenue Next 2Y10.79%
Revenue Next 3Y11.41%
Revenue Next 5YN/A
EBIT growth 1Y10.61%
EBIT growth 3Y276.51%
EBIT growth 5YN/A
EBIT Next Year-11.06%
EBIT Next 3Y0.28%
EBIT Next 5YN/A
FCF growth 1Y168.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y168.16%
OCF growth 3YN/A
OCF growth 5YN/A
HAMILTON INSURANCE GROU-CL B / HG FAQ
What is the fundamental rating for HG stock?
ChartMill assigns a fundamental rating of 6 / 10 to HG.
What is the valuation status for HG stock?
ChartMill assigns a valuation rating of 9 / 10 to HAMILTON INSURANCE GROU-CL B (HG). This can be considered as Undervalued.
Can you provide the profitability details for HAMILTON INSURANCE GROU-CL B?
HAMILTON INSURANCE GROU-CL B (HG) has a profitability rating of 6 / 10.
What is the earnings growth outlook for HAMILTON INSURANCE GROU-CL B?
The Earnings per Share (EPS) of HAMILTON INSURANCE GROU-CL B (HG) is expected to grow by 25.59% in the next year.