HAGERTY INC-A (HGTY) Stock Fundamental Analysis
USA - NYSE:HGTY - US4051661092 - Common Stock
11.99 USD
-0.14 (-1.15%)
11.99 USD
0 (0%)
HGTY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. The financial health of HGTY is average, but there are quite some concerns on its profitability. HGTY shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year HGTY was profitable.
HGTY had a positive operating cash flow in the past year.
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 (0.90%) is worse than 61.64% of its industry peers.
HGTY has a Return On Equity of 7.23%. This is in the lower half of the industry: HGTY underperforms 65.07% of its industry peers.
HGTY has a better Return On Invested Capital (4.31%) than 75.34% 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
With a Profit Margin value of 1.42%, HGTY is not doing good in the industry: 80.82% of the companies in the same industry are doing better.
HGTY's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.87%, HGTY is not doing good in the industry: 69.86% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HGTY is destroying value.
Compared to 1 year ago, HGTY has more shares outstanding
HGTY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HGTY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that HGTY is in the distress zone and has some risk of bankruptcy.
HGTY has a better Altman-Z score (1.62) than 86.30% of its industry peers.
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.
HGTY's Debt to FCF ratio of 1.17 is fine compared to the rest of the industry. HGTY outperforms 63.01% of its industry peers.
HGTY has a Debt/Equity ratio of 0.60. This is a neutral value indicating HGTY is somewhat dependend on debt financing.
HGTY's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. HGTY is outperformed by 79.45% of its industry peers.
Although HGTY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.5
WACC8.67%
2.3 Liquidity
HGTY has a Current Ratio of 0.18. This is a bad value and indicates that HGTY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HGTY (0.18) is better than 66.44% of its industry peers.
HGTY has a Quick Ratio of 0.18. 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 has a better Quick ratio (0.18) than 66.44% 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.
The Earnings Per Share has been growing by 15.01% on average over the past years. This is quite good.
HGTY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.89%.
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
Based on estimates for the next years, HGTY will show a very strong growth in Earnings Per Share. The EPS will grow by 38.28% on average per year.
Based on estimates for the next years, HGTY will show a quite strong growth in Revenue. The Revenue will grow by 8.18% on average per year.
EPS Next Y48.12%
EPS Next 2Y40.01%
EPS Next 3Y23.28%
EPS Next 5Y38.28%
Revenue Next Year14.96%
Revenue Next 2Y6.37%
Revenue Next 3Y8.18%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 42.82, HGTY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HGTY indicates a rather expensive valuation: HGTY more expensive than 83.56% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. HGTY is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 26.59 indicates a quite expensive valuation of HGTY.
Based on the Price/Forward Earnings ratio, HGTY is valued a bit more expensive than 76.03% of the companies in the same industry.
HGTY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.82 | ||
| Fwd PE | 26.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HGTY is valued a bit more expensive than the industry average as 69.18% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HGTY indicates a slightly more expensive valuation: HGTY is more expensive than 67.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.18 | ||
| EV/EBITDA | 32.59 |
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.
HGTY's earnings are expected to grow with 23.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)2.85
EPS Next 2Y40.01%
EPS Next 3Y23.28%
5. Dividend
5.1 Amount
No dividends for HGTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.99
-0.14 (-1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.17%
Inst Owner Change0%
Ins Owners7.11%
Ins Owner Change0.01%
Market Cap4.10B
Analysts75
Price Target14.28 (19.1%)
Short Float %0.57%
Short Ratio2.24
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)27.27%
PT rev (3m)27.27%
EPS NQ rev (1m)-6.67%
EPS NQ rev (3m)-18.71%
EPS NY rev (1m)2.24%
EPS NY rev (3m)3.3%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.82 | ||
| Fwd PE | 26.59 | ||
| P/S | 3.15 | ||
| P/FCF | 31.18 | ||
| P/OCF | 26.89 | ||
| P/B | 16.07 | ||
| P/tB | 75.65 | ||
| EV/EBITDA | 32.59 |
EPS(TTM)0.28
EY2.34%
EPS(NY)0.45
Fwd EY3.76%
FCF(TTM)0.38
FCFY3.21%
OCF(TTM)0.45
OCFY3.72%
SpS3.81
BVpS0.75
TBVpS0.16
PEG (NY)0.89
PEG (5Y)2.85
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 | 1.62 |
F-Score4
WACC8.67%
ROIC/WACC0.5
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 Y48.12%
EPS Next 2Y40.01%
EPS Next 3Y23.28%
EPS Next 5Y38.28%
Revenue 1Y (TTM)17.89%
Revenue growth 3Y24.68%
Revenue growth 5Y24.74%
Sales Q2Q%13.25%
Revenue Next Year14.96%
Revenue Next 2Y6.37%
Revenue Next 3Y8.18%
Revenue Next 5YN/A
EBIT growth 1Y39.3%
EBIT growth 3YN/A
EBIT growth 5Y43.77%
EBIT Next Year191.04%
EBIT Next 3Y68.08%
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%