HAMILTON INSURANCE GROU-CL B (HG) Stock Fundamental Analysis
NYSE:HG - New York Stock Exchange, Inc. - BMG427061046 - Common Stock - Currency: USD
HG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. HG has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on HG. These ratings could make HG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
HG had positive earnings in the past year.
In the past year HG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HG reported negative net income in multiple years.
Of the past 5 years HG 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.89%, HG belongs to the best of the industry, outperforming 81.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.51%, HG is in the better half of the industry, outperforming 66.43% of the companies in the same industry.
HG's Return On Invested Capital of 4.75% is amongst the best of the industry. HG outperforms 83.22% of its industry peers.
HG had an Average Return On Invested Capital over the past 3 years of 3.57%. This is in line with the industry average of 4.07%.
The last Return On Invested Capital (4.75%) for HG is above the 3 year average (3.57%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 13.64%, HG is in the better half of the industry, outperforming 79.02% of the companies in the same industry.
HG's Operating Margin of 20.48% is amongst the best of the industry. HG outperforms 80.42% 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
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.
Compared to 1 year ago, HG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that HG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HG (0.88) is better than 80.42% of its industry peers.
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.
Looking at the Debt to Equity ratio, with a value of 0.06, HG belongs to the top of the industry, outperforming 82.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.47
WACC10.05%
2.3 Liquidity
A Current Ratio of 0.18 indicates that HG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.18, HG is in the better half of the industry, outperforming 67.13% 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.
The Quick ratio of HG (0.18) is better than 67.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
HG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.82%.
The Revenue has grown by 31.23% in the past year. This is a very strong growth!
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%-44.2%
Revenue 1Y (TTM)31.23%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%16.72%
3.2 Future
The Earnings Per Share is expected to grow by 8.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.80% 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 5Y8.03%
Revenue Next Year11.16%
Revenue Next 2Y11.43%
Revenue Next 3Y11.8%
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
HG is valuated cheaply with a Price/Earnings ratio of 6.88.
79.02% of the companies in the same industry are more expensive than HG, based on the Price/Earnings ratio.
HG is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
HG is valuated cheaply with a Price/Forward Earnings ratio of 4.77.
Based on the Price/Forward Earnings ratio, HG is valued cheaply inside the industry as 80.42% of the companies are valued more expensively.
HG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 4.77 |
4.2 Price Multiples
88.11% of the companies in the same industry are more expensive than HG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HG indicates a somewhat cheap valuation: HG is cheaper than 75.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.37 | ||
| EV/EBITDA | 3 |
4.3 Compensation for Growth
HG has a very decent profitability rating, which 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
No dividends for HG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.85
-0.55 (-2.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners78.84%
Inst Owner ChangeN/A
Ins Owners4.88%
Ins Owner Change9.4%
Market Cap2.14B
Analysts82.67
Price Target23.97 (14.96%)
Short Float %2.75%
Short Ratio3.14
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)1183.93%
Min EPS beat(2)-44.46%
Max EPS beat(2)2412.32%
EPS beat(4)3
Avg EPS beat(4)606.04%
Min EPS beat(4)-44.46%
Max EPS beat(4)2412.32%
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)2.92%
PT rev (3m)1.44%
EPS NQ rev (1m)1.31%
EPS NQ rev (3m)-2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.88 | ||
| Fwd PE | 4.77 | ||
| P/S | 0.9 | ||
| P/FCF | 3.37 | ||
| P/OCF | 3.37 | ||
| P/B | 0.89 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 3 |
EPS(TTM)3.03
EY14.53%
EPS(NY)4.37
Fwd EY20.94%
FCF(TTM)6.19
FCFY29.7%
OCF(TTM)6.19
OCFY29.7%
SpS23.13
BVpS23.36
TBVpS22.47
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 | 0.88 |
F-Score7
WACC10.05%
ROIC/WACC0.47
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%-44.2%
EPS Next Y-15.39%
EPS Next 2Y9.53%
EPS Next 3Y11.51%
EPS Next 5Y8.03%
Revenue 1Y (TTM)31.23%
Revenue growth 3Y176.06%
Revenue growth 5YN/A
Sales Q2Q%16.72%
Revenue Next Year11.16%
Revenue Next 2Y11.43%
Revenue Next 3Y11.8%
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