HAGERTY INC-A (HGTY) Stock Fundamental Analysis
NYSE:HGTY - New York Stock Exchange, Inc. - US4051661092 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HGTY. HGTY was compared to 143 industry peers in the Insurance industry. The financial health of HGTY is average, but 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
HGTY had positive earnings in the past year.
HGTY had a positive operating cash flow in the past year.
HGTY had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HGTY had a positive operating cash flow.
1.2 Ratios
HGTY has a Return On Assets (0.99%) which is comparable to the rest of the industry.
With a Return On Equity value of 7.17%, HGTY is not doing good in the industry: 66.43% of the companies in the same industry are doing better.
HGTY has a Return On Invested Capital of 4.20%. This is in the better half of the industry: HGTY outperforms 79.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 7.17% | ||
| ROIC | 4.2% |
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 1.43% is on the low side compared to the rest of the industry. HGTY is outperformed by 79.02% of its industry peers.
In the last couple of years the Profit Margin of HGTY has declined.
The Operating Margin of HGTY (6.40%) is worse than 69.93% of its industry peers.
HGTY's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | 1.43% | ||
| 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.
The number of shares outstanding for HGTY has been increased compared to 1 year ago.
The number of shares outstanding for HGTY has been increased compared to 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 1.50, we must say that HGTY is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.50, HGTY belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Debt to FCF ratio of HGTY is 0.94, which is an excellent value as it means it would take HGTY, only 0.94 years of fcf income to pay off all of its debts.
HGTY has a better Debt to FCF ratio (0.94) than 66.43% of its industry peers.
HGTY has a Debt/Equity ratio of 0.53. This is a neutral value indicating HGTY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, HGTY is doing worse than 69.23% of the companies in the same industry.
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 | 0.53 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.44
WACC9.54%
2.3 Liquidity
A Current Ratio of 0.19 indicates that HGTY may have some problems paying its short term obligations.
HGTY has a Current ratio of 0.19. This is in the better half of the industry: HGTY outperforms 67.83% of its industry peers.
HGTY has a Quick Ratio of 0.19. This is a bad value and indicates that HGTY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.19, HGTY is doing good in the industry, outperforming 67.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
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.
HGTY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.01% yearly.
HGTY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.45%.
Measured over the past years, HGTY shows a very strong growth in Revenue. The Revenue has been growing by 24.74% on average per year.
EPS 1Y (TTM)92.86%
EPS 3YN/A
EPS 5Y15.01%
EPS Q2Q%100%
Revenue 1Y (TTM)18.45%
Revenue growth 3Y24.68%
Revenue growth 5Y24.74%
Sales Q2Q%17.62%
3.2 Future
The Earnings Per Share is expected to grow by 39.69% on average over the next years. This is a very strong growth
Based on estimates for the next years, HGTY will show a quite strong growth in Revenue. The Revenue will grow by 13.45% on average per year.
EPS Next Y48.57%
EPS Next 2Y39.69%
EPS Next 3YN/A
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 accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 35.37, which means the current valuation is very expensive for HGTY.
Based on the Price/Earnings ratio, HGTY is valued a bit more expensive than 79.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, HGTY is valued a bit more expensive.
With a Price/Forward Earnings ratio of 21.28, HGTY is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HGTY is valued a bit more expensive than 72.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.41. HGTY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.37 | ||
| Fwd PE | 21.28 |
4.2 Price Multiples
HGTY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HGTY is more expensive than 67.13% of the companies in the same industry.
69.93% of the companies in the same industry are cheaper than HGTY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.24 | ||
| EV/EBITDA | 27.57 |
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.
A more expensive valuation may be justified as HGTY's earnings are expected to grow with 39.69% in the coming years.
PEG (NY)0.73
PEG (5Y)2.36
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 |
9.55
+0.07 (+0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.94%
Inst Owner Change0.85%
Ins Owners7.12%
Ins Owner Change0.4%
Market Cap3.26B
Analysts45
Price Target11.22 (17.49%)
Short Float %0.36%
Short Ratio3.97
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)215.08%
Min EPS beat(2)193.97%
Max EPS beat(2)236.18%
EPS beat(4)2
Avg EPS beat(4)68.56%
Min EPS beat(4)-87.27%
Max EPS beat(4)236.18%
EPS beat(8)3
Avg EPS beat(8)42.98%
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)3.6%
Min Revenue beat(2)2.74%
Max Revenue beat(2)4.47%
Revenue beat(4)4
Avg Revenue beat(4)2.84%
Min Revenue beat(4)0.26%
Max Revenue beat(4)4.47%
Revenue beat(8)6
Avg Revenue beat(8)1.14%
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)-5.56%
EPS NQ rev (3m)-19.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.94%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.37 | ||
| Fwd PE | 21.28 | ||
| P/S | 2.62 | ||
| P/FCF | 23.24 | ||
| P/OCF | 20.07 | ||
| P/B | 13.08 | ||
| P/tB | 67.67 | ||
| EV/EBITDA | 27.57 |
EPS(TTM)0.27
EY2.83%
EPS(NY)0.45
Fwd EY4.7%
FCF(TTM)0.41
FCFY4.3%
OCF(TTM)0.48
OCFY4.98%
SpS3.65
BVpS0.73
TBVpS0.14
PEG (NY)0.73
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 7.17% | ||
| ROCE | 5.74% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.63% | ||
| ROICexgc | 6.09% | ||
| OM | 6.4% | ||
| PM (TTM) | 1.43% | ||
| GM | N/A | ||
| FCFM | 11.25% |
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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 58.67% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 8.7 | ||
| Cash Conversion | 138.2% | ||
| Profit Quality | 784.56% | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 1.5 |
F-Score6
WACC9.54%
ROIC/WACC0.44
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)18.45%
Revenue growth 3Y24.68%
Revenue growth 5Y24.74%
Sales Q2Q%17.62%
Revenue Next Year14.46%
Revenue Next 2Y15.17%
Revenue Next 3Y13.45%
Revenue Next 5YN/A
EBIT growth 1Y72.03%
EBIT growth 3YN/A
EBIT growth 5Y43.77%
EBIT Next Year192.4%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y777.63%
FCF growth 3YN/A
FCF growth 5Y31.05%
OCF growth 1Y180.37%
OCF growth 3Y61.18%
OCF growth 5Y28.72%