HARTFORD INSURANCE GROUP INC (HIG) Stock Fundamental Analysis
NYSE:HIG - New York Stock Exchange, Inc. - US4165151048 - Common Stock - Currency: USD
Taking everything into account, HIG scores 5 out of 10 in our fundamental rating. HIG was compared to 143 industry peers in the Insurance industry. Both the profitability and the financial health of HIG get a neutral evaluation. Nothing too spectacular is happening here. HIG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HIG had positive earnings in the past year.
HIG had a positive operating cash flow in the past year.
Each year in the past 5 years HIG has been profitable.
Each year in the past 5 years HIG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.60%, HIG is in the better half of the industry, outperforming 75.52% of the companies in the same industry.
The Return On Equity of HIG (17.61%) is better than 81.12% 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
HIG has a Profit Margin of 11.03%. This is in the better half of the industry: HIG outperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of HIG has grown nicely.
Looking at the Operating Margin, with a value of 14.48%, HIG is in the better half of the industry, outperforming 66.43% of the companies in the same industry.
In the last couple of years the Operating Margin of HIG has remained more or less at the same level.
| 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
HIG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HIG has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HIG is 0.77, which is an excellent value as it means it would take HIG, only 0.77 years of fcf income to pay off all of its debts.
HIG's Debt to FCF ratio of 0.77 is fine compared to the rest of the industry. HIG outperforms 72.03% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that HIG is not too dependend on debt financing.
HIG has a better Debt to Equity ratio (0.26) 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
WACC9.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HIG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.27%.
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.
Looking at the last year, HIG shows a small growth in Revenue. The Revenue has grown by 7.42% in the last year.
HIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.05% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.28, HIG is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HIG is on the same level as its industry peers.
HIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 9.56, the valuation of HIG can be described as reasonable.
HIG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.19. HIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HIG is valued a bit cheaper than 74.83% of the companies in the same industry.
HIG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HIG is cheaper than 64.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
HIG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as HIG's earnings are expected to grow with 12.28% in the coming years.
PEG (NY)1.47
PEG (5Y)0.96
EPS Next 2Y12.55%
EPS Next 3Y12.28%
5. Dividend
5.1 Amount
HIG has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
HIG's Dividend Yield is comparable with the industry average which is at 3.46.
HIG's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
The dividend of HIG is nicely growing with an annual growth rate of 9.29%!
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%
124.9
-0.63 (-0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.87%
Inst Owner Change-0.62%
Ins Owners0.33%
Ins Owner Change7.85%
Market Cap35.48B
Analysts73.33
Price Target137.84 (10.36%)
Short Float %1.33%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)1.81%
PT rev (3m)4.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 9.56 | ||
| P/S | 1.32 | ||
| P/FCF | 6.26 | ||
| P/OCF | 6.12 | ||
| P/B | 2.11 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)10.17
EY8.14%
EPS(NY)13.06
Fwd EY10.46%
FCF(TTM)19.94
FCFY15.96%
OCF(TTM)20.4
OCFY16.34%
SpS94.66
BVpS59.29
TBVpS50.38
PEG (NY)1.47
PEG (5Y)0.96
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
WACC9.41%
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%