HAMILTON INSURANCE GROU-CL B (HG) Stock Fundamental Analysis
NYSE:HG - New York Stock Exchange, Inc. - BMG427061046 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HG. HG was compared to 143 industry peers in the Insurance industry. HG has only an average score on both its financial health and profitability. HG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make HG suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year HG was profitable.
In the past year HG had a positive cash flow from operations.
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 3.89% is amongst the best of the industry. HG outperforms 80.42% of its industry peers.
Looking at the Return On Equity, with a value of 13.51%, HG is in the better half of the industry, outperforming 64.34% of the companies in the same industry.
HG has a better Return On Invested Capital (4.75%) than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HG is in line with the industry average of 4.27%.
The 3 year average ROIC (3.57%) for HG is below the current ROIC(4.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 13.51% | ||
| ROIC | 4.75% |
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
HG's Profit Margin of 13.64% is fine compared to the rest of the industry. HG outperforms 79.02% of its industry peers.
The Operating Margin of HG (20.48%) is better than 79.72% of its industry peers.
HG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.48% | ||
| PM (TTM) | 13.64% | ||
| 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
HG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HG has been reduced compared to 1 year ago.
HG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that HG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.87, HG is in the better half of the industry, outperforming 79.72% of the companies in the same industry.
HG has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
The Debt to FCF ratio of HG (0.24) is better than 88.81% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that HG is not too dependend on debt financing.
The Debt to Equity ratio of HG (0.06) is better than 83.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.51
WACC9.3%
2.3 Liquidity
A Current Ratio of 0.18 indicates that HG may have some problems paying its short term obligations.
With a decent Current ratio value of 0.18, HG is doing good in the industry, outperforming 68.53% of the companies in the same industry.
A Quick Ratio of 0.18 indicates that HG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.18, HG is in the better half of the industry, outperforming 68.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The earnings per share for HG have decreased by -7.82% in the last year.
Looking at the last year, HG shows a very strong growth in Revenue. The Revenue has grown by 31.23%.
The Revenue has been growing by 176.06% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-7.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-65.94%
Revenue 1Y (TTM)31.23%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%16.72%
3.2 Future
HG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
The Revenue is expected to grow by 14.03% on average over the next years. This is quite good.
EPS Next Y-15.39%
EPS Next 2Y9.53%
EPS Next 3Y11.51%
EPS Next 5Y9.5%
Revenue Next Year11.41%
Revenue Next 2Y14.03%
Revenue Next 3Y14.03%
Revenue Next 5YN/A
3.3 Evolution
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 7.76, which indicates a rather cheap valuation of HG.
HG's Price/Earnings ratio is a bit cheaper when compared to the industry. HG is cheaper than 78.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. HG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.85, the valuation of HG can be described as very cheap.
79.72% 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 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 4.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HG is valued cheaply inside the industry as 86.71% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HG indicates a somewhat cheap valuation: HG is cheaper than 77.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.39 | ||
| EV/EBITDA | 2.92 |
4.3 Compensation for Growth
The decent profitability rating of HG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.53%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
HG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.18
-0.08 (-0.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.09%
Inst Owner ChangeN/A
Ins Owners4.31%
Ins Owner Change8.51%
Market Cap2.16B
Analysts82.67
Price Target23.29 (9.96%)
Short Float %2.88%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)733.48%
Min EPS beat(2)-44.46%
Max EPS beat(2)1511.42%
EPS beat(4)3
Avg EPS beat(4)380.81%
Min EPS beat(4)-44.46%
Max EPS beat(4)1511.42%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)463.08%
Min Revenue beat(2)157.25%
Max Revenue beat(2)768.9%
Revenue beat(4)4
Avg Revenue beat(4)243.91%
Min Revenue beat(4)16.18%
Max Revenue beat(4)768.9%
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)-4.2%
PT rev (3m)0.73%
EPS NQ rev (1m)-3.03%
EPS NQ rev (3m)-3.28%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-19.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.22%
Revenue NY rev (3m)3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 4.85 | ||
| P/S | 0.91 | ||
| P/FCF | 3.39 | ||
| P/OCF | 3.39 | ||
| P/B | 0.9 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 2.92 |
EPS(TTM)2.73
EY12.89%
EPS(NY)4.37
Fwd EY20.62%
FCF(TTM)6.24
FCFY29.47%
OCF(TTM)6.24
OCFY29.47%
SpS23.32
BVpS23.55
TBVpS22.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 13.51% | ||
| ROCE | 6.02% | ||
| ROIC | 4.75% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 7.29% | ||
| OM | 20.48% | ||
| PM (TTM) | 13.64% | ||
| GM | N/A | ||
| FCFM | 26.77% |
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
ROICexcg growth 3Y222.81%
ROICexcg 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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 126.22% | ||
| Profit Quality | 196.22% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 0.87 |
F-Score7
WACC9.3%
ROIC/WACC0.51
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)-7.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-65.94%
EPS Next Y-15.39%
EPS Next 2Y9.53%
EPS Next 3Y11.51%
EPS Next 5Y9.5%
Revenue 1Y (TTM)31.23%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%16.72%
Revenue Next Year11.41%
Revenue Next 2Y14.03%
Revenue Next 3Y14.03%
Revenue Next 5YN/A
EBIT growth 1Y39.85%
EBIT growth 3Y276.51%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y185.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y188.7%
OCF growth 3YN/A
OCF growth 5YN/A