HAGERTY INC-A (HGTY) Stock Fundamental Analysis
NYSE:HGTY - US4051661092 - Common Stock
10.83 USD
-0.1 (-0.91%)
10.83 USD
0 (0%)
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 expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year HGTY was profitable.
In the past year HGTY had a positive cash flow from operations.
HGTY had positive earnings in 4 of the past 5 years.
In the past 5 years HGTY always reported a positive cash flow from operatings.
1.2 Ratios
HGTY has a Return On Assets (0.90%) which is comparable to the rest of the industry.
With a Return On Equity value of 7.23%, HGTY is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
HGTY's Return On Invested Capital of 4.31% is fine compared to the rest of the industry. HGTY outperforms 77.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.23% | ||
| ROIC | 4.31% |
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 has a worse Profit Margin (1.42%) than 77.62% of its industry peers.
HGTY's Profit Margin has declined in the last couple of years.
HGTY has a Operating Margin of 6.87%. This is in the lower half of the industry: HGTY underperforms 67.83% of its industry peers.
In the last couple of years the Operating Margin of HGTY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.87% | ||
| PM (TTM) | 1.42% | ||
| 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.
HGTY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HGTY has more shares outstanding
HGTY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.49, 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 1.49, HGTY belongs to the top of the industry, outperforming 86.71% of the companies in the same industry.
HGTY has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
The Debt to FCF ratio of HGTY (1.17) is better than 61.54% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that HGTY is somewhat dependend on debt financing.
The Debt to Equity ratio of HGTY (0.60) is worse than 78.32% 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 | 0.6 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.49
WACC8.79%
2.3 Liquidity
A Current Ratio of 0.18 indicates that HGTY may have some problems paying its short term obligations.
The Current ratio of HGTY (0.18) is better than 66.43% of its industry peers.
A Quick Ratio of 0.18 indicates that HGTY may have some problems paying its short term obligations.
HGTY has a Quick ratio of 0.18. This is in the better half of the industry: HGTY outperforms 66.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.74% over the past year.
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.
The Revenue has grown by 17.89% in the past year. This is quite good.
The Revenue has been growing by 24.74% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)21.74%
EPS 3YN/A
EPS 5Y15.01%
EPS Q2Q%8.33%
Revenue 1Y (TTM)17.89%
Revenue growth 3Y24.68%
Revenue growth 5Y24.74%
Sales Q2Q%13.25%
3.2 Future
HGTY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.53% yearly.
HGTY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.45% yearly.
EPS Next Y44.87%
EPS Next 2Y36.48%
EPS Next 3Y5.53%
EPS Next 5YN/A
Revenue Next Year14.46%
Revenue Next 2Y15.17%
Revenue Next 3Y13.45%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 38.68, HGTY can be considered very expensive at the moment.
Based on the Price/Earnings ratio, HGTY is valued expensively inside the industry as 80.42% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of HGTY to the average of the S&P500 Index (27.03), we can say HGTY is valued slightly more expensively.
A Price/Forward Earnings ratio of 25.28 indicates a quite expensive valuation of HGTY.
76.22% of the companies in the same industry are cheaper than HGTY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.63. HGTY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 25.28 |
4.2 Price Multiples
67.13% of the companies in the same industry are cheaper than HGTY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HGTY is valued a bit more expensive than 67.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.16 | ||
| EV/EBITDA | 29.72 |
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.
PEG (NY)0.86
PEG (5Y)2.58
EPS Next 2Y36.48%
EPS Next 3Y5.53%
5. Dividend
5.1 Amount
HGTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.83
-0.1 (-0.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.38%
Inst Owner Change0.06%
Ins Owners7.13%
Ins Owner Change0.3%
Market Cap3.70B
Analysts45
Price Target11.22 (3.6%)
Short Float %0.42%
Short Ratio2.29
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)2
Avg EPS beat(2)124.32%
Min EPS beat(2)12.46%
Max EPS beat(2)236.18%
EPS beat(4)3
Avg EPS beat(4)88.84%
Min EPS beat(4)-87.27%
Max EPS beat(4)236.18%
EPS beat(8)4
Avg EPS beat(8)52.71%
EPS beat(12)6
Avg EPS beat(12)39.09%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.3%
Min Revenue beat(2)4.12%
Max Revenue beat(2)4.47%
Revenue beat(4)4
Avg Revenue beat(4)2.9%
Min Revenue beat(4)0.26%
Max Revenue beat(4)4.47%
Revenue beat(8)7
Avg Revenue beat(8)1.82%
Revenue beat(12)9
Avg Revenue beat(12)2.48%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-23.68%
EPS NY rev (1m)1.03%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.68 | ||
| Fwd PE | 25.28 | ||
| P/S | 2.84 | ||
| P/FCF | 28.16 | ||
| P/OCF | 24.29 | ||
| P/B | 14.52 | ||
| P/tB | 68.33 | ||
| EV/EBITDA | 29.72 |
EPS(TTM)0.28
EY2.59%
EPS(NY)0.43
Fwd EY3.96%
FCF(TTM)0.38
FCFY3.55%
OCF(TTM)0.45
OCFY4.12%
SpS3.81
BVpS0.75
TBVpS0.16
PEG (NY)0.86
PEG (5Y)2.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.9% | ||
| ROE | 7.23% | ||
| ROCE | 5.88% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.74% | ||
| ROICexgc | 6.15% | ||
| OM | 6.87% | ||
| PM (TTM) | 1.42% | ||
| GM | N/A | ||
| FCFM | 10.09% |
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-Score4
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 57.18% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 9.43 | ||
| Cash Conversion | 120.82% | ||
| Profit Quality | 712.84% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 1.49 |
F-Score4
WACC8.79%
ROIC/WACC0.49
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)21.74%
EPS 3YN/A
EPS 5Y15.01%
EPS Q2Q%8.33%
EPS Next Y44.87%
EPS Next 2Y36.48%
EPS Next 3Y5.53%
EPS Next 5YN/A
Revenue 1Y (TTM)17.89%
Revenue growth 3Y24.68%
Revenue growth 5Y24.74%
Sales Q2Q%13.25%
Revenue Next Year14.46%
Revenue Next 2Y15.17%
Revenue Next 3Y13.45%
Revenue Next 5YN/A
EBIT growth 1Y39.3%
EBIT growth 3YN/A
EBIT growth 5Y43.77%
EBIT Next Year177.93%
EBIT Next 3Y61.43%
EBIT Next 5YN/A
FCF growth 1Y390.77%
FCF growth 3YN/A
FCF growth 5Y31.05%
OCF growth 1Y131.04%
OCF growth 3Y61.18%
OCF growth 5Y28.72%