HARTFORD INSURANCE GROUP INC (HIG) Stock Fundamental Analysis
NYSE:HIG - New York Stock Exchange, Inc. - US4165151048 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HIG. HIG was compared to 143 industry peers in the Insurance industry. HIG has only an average score on both its financial health and profitability. HIG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HIG was profitable.
HIG had a positive operating cash flow in the past year.
HIG had positive earnings in each of the past 5 years.
Each year in the past 5 years HIG had a positive operating cash flow.
1.2 Ratios
HIG has a Return On Assets of 3.60%. This is in the better half of the industry: HIG outperforms 75.52% of its industry peers.
HIG has a Return On Equity of 17.61%. This is amongst the best in the industry. HIG outperforms 80.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 17.61% | ||
| ROIC | N/A |
ROA(3y)3.17%
ROA(5y)2.98%
ROE(3y)16.04%
ROE(5y)14.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HIG (11.03%) is better than 69.23% of its industry peers.
HIG's Profit Margin has improved in the last couple of years.
The Operating Margin of HIG (14.48%) is better than 65.03% of its industry peers.
HIG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 11.03% | ||
| GM | N/A |
OM growth 3Y2.24%
OM growth 5Y0.62%
PM growth 3Y3.61%
PM growth 5Y3.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HIG does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, HIG has less shares outstanding
Compared to 5 years ago, HIG has less shares outstanding
HIG has a better debt/assets ratio than last year.
2.2 Solvency
HIG has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
The Debt to FCF ratio of HIG (0.77) is better than 70.63% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that HIG is not too dependend on debt financing.
The Debt to Equity ratio of HIG (0.26) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.59%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.27% over the past year.
Measured over the past years, HIG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.78% on average per year.
The Revenue has been growing slightly by 7.42% in the past year.
Measured over the past years, HIG shows a small growth in Revenue. The Revenue has been growing by 5.05% on average per year.
EPS 1Y (TTM)6.27%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%-5.98%
Revenue 1Y (TTM)7.42%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%6.09%
3.2 Future
The Earnings Per Share is expected to grow by 12.28% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.65% on average over the next years.
EPS Next Y8.36%
EPS Next 2Y12.55%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue Next Year8.71%
Revenue Next 2Y7.45%
Revenue Next 3Y6.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HIG is valuated correctly with a Price/Earnings ratio of 12.68.
HIG's Price/Earnings is on the same level as the industry average.
HIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
HIG is valuated reasonably with a Price/Forward Earnings ratio of 9.87.
HIG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. HIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
72.03% of the companies in the same industry are more expensive than HIG, based on the Enterprise Value to EBITDA ratio.
HIG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HIG is cheaper than 62.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.47 | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HIG's earnings are expected to grow with 12.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)0.99
EPS Next 2Y12.55%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
HIG has a Yearly Dividend Yield of 1.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.23, HIG has a dividend in line with its industry peers.
HIG's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
On average, the dividend of HIG grows each year by 9.29%, which is quite nice.
HIG has paid a dividend for at least 10 years, which is a reliable track record.
HIG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.29%
Div Incr Years12
Div Non Decr Years15
5.3 Sustainability
19.75% of the earnings are spent on dividend by HIG. This is a low number and sustainable payout ratio.
The dividend of HIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.75%
EPS Next 2Y12.55%
EPS Next 3Y12.28%
128.92
-0.13 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change-0.35%
Ins Owners0.28%
Ins Owner Change8.41%
Market Cap36.63B
Analysts73.33
Price Target135.39 (5.02%)
Short Float %1.02%
Short Ratio1.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend1.97
Dividend Growth(5Y)9.29%
DP19.75%
Div Incr Years12
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.14%
Min EPS beat(2)1.72%
Max EPS beat(2)10.56%
EPS beat(4)3
Avg EPS beat(4)5.31%
Min EPS beat(4)-1.43%
Max EPS beat(4)10.56%
EPS beat(8)6
Avg EPS beat(8)6.89%
EPS beat(12)9
Avg EPS beat(12)10.75%
EPS beat(16)13
Avg EPS beat(16)17.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-3.21%
Max Revenue beat(2)-1.49%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)-0.09%
Revenue beat(8)0
Avg Revenue beat(8)-1.49%
Revenue beat(12)1
Avg Revenue beat(12)-1.04%
Revenue beat(16)4
Avg Revenue beat(16)0.25%
PT rev (1m)2.66%
PT rev (3m)3.04%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 9.87 | ||
| P/S | 1.36 | ||
| P/FCF | 6.47 | ||
| P/OCF | 6.32 | ||
| P/B | 2.17 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)10.17
EY7.89%
EPS(NY)13.06
Fwd EY10.13%
FCF(TTM)19.94
FCFY15.46%
OCF(TTM)20.4
OCFY15.83%
SpS94.66
BVpS59.29
TBVpS50.38
PEG (NY)1.52
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 17.61% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 14.48% | ||
| PM (TTM) | 11.03% | ||
| GM | N/A | ||
| FCFM | 21.06% |
ROA(3y)3.17%
ROA(5y)2.98%
ROE(3y)16.04%
ROE(5y)14.1%
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)4.21%
ROCE(5y)4.01%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.24%
OM growth 5Y0.62%
PM growth 3Y3.61%
PM growth 5Y3.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 4.99% | ||
| Cap/Sales | 0.49% | ||
| Interest Coverage | 17.7 | ||
| Cash Conversion | 88.37% | ||
| Profit Quality | 190.9% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.59%
ROIC/WACCN/A
Cap/Depr(3y)7.01%
Cap/Depr(5y)6.34%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.67%
Profit Quality(3y)187.16%
Profit Quality(5y)189.69%
High Growth Momentum
Growth
EPS 1Y (TTM)6.27%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%-5.98%
EPS Next Y8.36%
EPS Next 2Y12.55%
EPS Next 3Y12.28%
EPS Next 5YN/A
Revenue 1Y (TTM)7.42%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%6.09%
Revenue Next Year8.71%
Revenue Next 2Y7.45%
Revenue Next 3Y6.65%
Revenue Next 5YN/A
EBIT growth 1Y11.13%
EBIT growth 3Y8.2%
EBIT growth 5Y5.7%
EBIT Next Year13.97%
EBIT Next 3Y7.06%
EBIT Next 5YN/A
FCF growth 1Y33.05%
FCF growth 3Y12.78%
FCF growth 5Y11.24%
OCF growth 1Y30.27%
OCF growth 3Y12.49%
OCF growth 5Y11.11%