HAGERTY INC-A (HGTY) Stock Fundamental Analysis
NYSE:HGTY - New York Stock Exchange, Inc. - US4051661092 - Common Stock - Currency: USD
Overall HGTY gets a fundamental rating of 4 out of 10. We evaluated HGTY against 145 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 expensive, but it does show an excellent growth.
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.
Of the past 5 years HGTY 4 years were profitable.
HGTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.99%, HGTY is in line with its industry, outperforming 42.07% of the companies in the same industry.
With a Return On Equity value of 7.17%, HGTY is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 4.20%, HGTY is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| 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 77.93% of its industry peers.
HGTY's Profit Margin has declined in the last couple of years.
HGTY has a Operating Margin of 6.40%. This is in the lower half of the industry: HGTY underperforms 68.97% 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.
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
HGTY has an Altman-Z score of 1.57. This is a bad value and indicates that HGTY is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.57, HGTY belongs to the best of the industry, outperforming 85.52% 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.
Looking at the Debt to FCF ratio, with a value of 0.94, HGTY is in the better half of the industry, outperforming 67.59% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that HGTY is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, HGTY is not doing good in the industry: 68.28% of the companies in the same industry are doing better.
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 | 1.57 |
ROIC/WACC0.47
WACC8.95%
2.3 Liquidity
HGTY has a Current 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.
HGTY has a better Current ratio (0.19) than 68.28% of its industry peers.
A Quick Ratio of 0.19 indicates that HGTY may have some problems paying its short term obligations.
HGTY has a better Quick ratio (0.19) than 68.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 92.86% 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.
Looking at the last year, HGTY shows a quite strong growth in Revenue. The Revenue has grown by 18.45% in the last year.
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)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 25.90% on average over the next years. This is a very strong growth
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 Y43.39%
EPS Next 2Y34.84%
EPS Next 3Y25.9%
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.
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
The Price/Earnings ratio is 37.04, which means the current valuation is very expensive for HGTY.
HGTY's Price/Earnings ratio is a bit more expensive when compared to the industry. HGTY is more expensive than 77.93% of the companies in the same industry.
HGTY's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.19.
HGTY is valuated rather expensively with a Price/Forward Earnings ratio of 23.91.
HGTY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HGTY is more expensive than 75.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.33. HGTY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 23.91 |
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 66.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HGTY is valued a bit more expensive than the industry average as 66.90% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.34 | ||
| EV/EBITDA | 29.09 |
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 25.90% in the coming years.
PEG (NY)0.85
PEG (5Y)2.47
EPS Next 2Y34.84%
EPS Next 3Y25.9%
5. Dividend
5.1 Amount
No dividends for HGTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.94%
Inst Owner Change-0.14%
Ins Owners7.12%
Ins Owner Change0.3%
Market Cap3.42B
Analysts45
Price Target11.22 (12.2%)
Short Float %0.4%
Short Ratio4.52
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.53%
EPS NY rev (1m)-3.48%
EPS NY rev (3m)5.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)18.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 23.91 | ||
| P/S | 2.74 | ||
| P/FCF | 24.34 | ||
| P/OCF | 21.02 | ||
| P/B | 13.7 | ||
| P/tB | 70.85 | ||
| EV/EBITDA | 29.09 |
EPS(TTM)0.27
EY2.7%
EPS(NY)0.42
Fwd EY4.18%
FCF(TTM)0.41
FCFY4.11%
OCF(TTM)0.48
OCFY4.76%
SpS3.65
BVpS0.73
TBVpS0.14
PEG (NY)0.85
PEG (5Y)2.47
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 | 1.57 |
F-Score6
WACC8.95%
ROIC/WACC0.47
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 Y43.39%
EPS Next 2Y34.84%
EPS Next 3Y25.9%
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%