HAGERTY INC-A (HGTY) Stock Fundamental Analysis
NYSE:HGTY - New York Stock Exchange, Inc. - US4051661092 - Common Stock - Currency: USD
Taking everything into account, HGTY scores 4 out of 10 in our fundamental rating. HGTY was compared to 143 industry peers in the Insurance industry. While HGTY seems to be doing ok healthwise, there are quite some concerns on its profitability. HGTY is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
HGTY had positive earnings in the past year.
In the past year HGTY had a positive cash flow from operations.
Of the past 5 years HGTY 4 years were profitable.
In the past 5 years HGTY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HGTY (0.52%) is worse than 72.03% of its industry peers.
HGTY has a worse Return On Equity (3.79%) than 78.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.53%, HGTY is in the better half of the industry, outperforming 69.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 3.79% | ||
| ROIC | 3.53% |
ROA(3y)1.32%
ROA(5y)0.24%
ROE(3y)22.32%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HGTY's Profit Margin of 0.74% is on the low side compared to the rest of the industry. HGTY is outperformed by 81.12% of its industry peers.
In the last couple of years the Profit Margin of HGTY has declined.
HGTY's Operating Margin of 5.53% is on the low side compared to the rest of the industry. HGTY is outperformed by 72.03% of its industry peers.
HGTY's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.53% | ||
| PM (TTM) | 0.74% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y15.25%
PM growth 3YN/A
PM growth 5Y-6.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HGTY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HGTY has more shares outstanding
Compared to 5 years ago, HGTY has more shares outstanding
The debt/assets ratio for HGTY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that HGTY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.60, HGTY belongs to the top of the industry, outperforming 86.01% of the companies in the same industry.
HGTY has a debt to FCF ratio of 0.67. This is a very positive value and a sign of high solvency as it would only need 0.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.67, HGTY is in the better half of the industry, outperforming 75.52% of the companies in the same industry.
HGTY has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HGTY (0.45) is worse than 62.24% of its industry peers.
Even though the debt/equity ratio score it not favorable for HGTY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.39
WACC8.98%
2.3 Liquidity
HGTY has a Current Ratio of 0.23. This is a bad value and indicates that HGTY is not financially healthy enough and could expect problems in meeting its short term obligations.
HGTY's Current ratio of 0.23 is fine compared to the rest of the industry. HGTY outperforms 69.23% of its industry peers.
A Quick Ratio of 0.23 indicates that HGTY may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.23, HGTY is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
HGTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.86%, which is quite impressive.
Measured over the past years, HGTY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.01% on average per year.
HGTY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.98%.
HGTY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.74% yearly.
EPS 1Y (TTM)92.86%
EPS 3YN/A
EPS 5Y15.01%
EPS Q2Q%100%
Revenue 1Y (TTM)19.98%
Revenue growth 3Y24.68%
Revenue growth 5Y24.74%
Sales Q2Q%17.62%
3.2 Future
Based on estimates for the next years, HGTY will show a very strong growth in Earnings Per Share. The EPS will grow by 39.69% on average per year.
HGTY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.96% yearly.
EPS Next Y48.57%
EPS Next 2Y39.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.12%
Revenue Next 2Y15.96%
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 accelerating.
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 34.26, which means the current valuation is very expensive for HGTY.
Based on the Price/Earnings ratio, HGTY is valued a bit more expensive than 79.02% of the companies in the same industry.
When comparing the Price/Earnings ratio of HGTY to the average of the S&P500 Index (26.03), we can say HGTY is valued slightly more expensively.
A Price/Forward Earnings ratio of 20.61 indicates a rather expensive valuation of HGTY.
70.63% of the companies in the same industry are cheaper than HGTY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HGTY to the average of the S&P500 Index (21.94), we can say HGTY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.26 | ||
| Fwd PE | 20.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HGTY is valued a bit more expensive than the industry average as 67.13% of the companies are valued more cheaply.
HGTY's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HGTY is more expensive than 68.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.3 | ||
| EV/EBITDA | 30.94 |
4.3 Compensation for Growth
HGTY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HGTY's earnings are expected to grow with 39.69% in the coming years.
PEG (NY)0.71
PEG (5Y)2.28
EPS Next 2Y39.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HGTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.25
-0.28 (-2.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.79%
Inst Owner Change0.85%
Ins Owners8.98%
Ins Owner Change0.4%
Market Cap3.16B
Analysts45
Price Target11.22 (21.3%)
Short Float %0.42%
Short Ratio4.51
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)53.35%
Min EPS beat(2)-87.27%
Max EPS beat(2)193.97%
EPS beat(4)1
Avg EPS beat(4)-4.59%
Min EPS beat(4)-87.27%
Max EPS beat(4)193.97%
EPS beat(8)3
Avg EPS beat(8)24.49%
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)1.5%
Min Revenue beat(2)0.26%
Max Revenue beat(2)2.74%
Revenue beat(4)4
Avg Revenue beat(4)1.93%
Min Revenue beat(4)0.26%
Max Revenue beat(4)3.91%
Revenue beat(8)6
Avg Revenue beat(8)0.59%
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%
PT rev (3m)-4.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.83%
EPS NY rev (1m)9.24%
EPS NY rev (3m)-6.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)19.16%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.26 | ||
| Fwd PE | 20.61 | ||
| P/S | 2.63 | ||
| P/FCF | 20.3 | ||
| P/OCF | 17.85 | ||
| P/B | 13.45 | ||
| P/tB | 102.77 | ||
| EV/EBITDA | 30.94 |
EPS(TTM)0.27
EY2.92%
EPS(NY)0.45
Fwd EY4.85%
FCF(TTM)0.46
FCFY4.93%
OCF(TTM)0.52
OCFY5.6%
SpS3.51
BVpS0.69
TBVpS0.09
PEG (NY)0.71
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.52% | ||
| ROE | 3.79% | ||
| ROCE | 4.82% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.83% | ||
| ROICexgc | 4.98% | ||
| OM | 5.53% | ||
| PM (TTM) | 0.74% | ||
| GM | N/A | ||
| FCFM | 12.97% |
ROA(3y)1.32%
ROA(5y)0.24%
ROE(3y)22.32%
ROE(5y)N/A
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 3YN/A
ROICexcg growth 5Y12.2%
ROICexc growth 3YN/A
ROICexc growth 5Y8.77%
OM growth 3YN/A
OM growth 5Y15.25%
PM growth 3YN/A
PM growth 5Y-6.84%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 54.86% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 7.7 | ||
| Cash Conversion | 168.22% | ||
| Profit Quality | 1749.21% | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 1.6 |
F-Score6
WACC8.98%
ROIC/WACC0.39
Cap/Depr(3y)81.15%
Cap/Depr(5y)153.33%
Cap/Sales(3y)3.27%
Cap/Sales(5y)4.91%
Profit Quality(3y)819.67%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.86%
EPS 3YN/A
EPS 5Y15.01%
EPS Q2Q%100%
EPS Next Y48.57%
EPS Next 2Y39.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)19.98%
Revenue growth 3Y24.68%
Revenue growth 5Y24.74%
Sales Q2Q%17.62%
Revenue Next Year15.12%
Revenue Next 2Y15.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y186.12%
EBIT growth 3YN/A
EBIT growth 5Y43.77%
EBIT Next Year191.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y45.08%
FCF growth 3YN/A
FCF growth 5Y31.05%
OCF growth 1Y32.4%
OCF growth 3Y61.18%
OCF growth 5Y28.72%