HARTFORD INSURANCE GROUP INC (HIG) Stock Fundamental Analysis
NYSE:HIG - New York Stock Exchange, Inc. - US4165151048 - Common Stock - Currency: USD
Overall HIG gets a fundamental rating of 5 out of 10. We evaluated HIG against 143 industry peers in the Insurance industry. HIG has an average financial health and profitability rating. HIG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HIG had positive earnings in the past year.
In the past year HIG had a positive cash flow from operations.
Each year in the past 5 years HIG has been profitable.
HIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HIG (3.60%) is better than 74.13% of its industry peers.
HIG's Return On Equity of 17.61% is fine compared to the rest of the industry. HIG outperforms 79.02% 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 better Profit Margin (11.03%) than 70.63% of its industry peers.
HIG's Profit Margin has improved in the last couple of years.
HIG's Operating Margin of 14.48% is fine compared to the rest of the industry. HIG outperforms 69.23% 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.
The number of shares outstanding for HIG has been reduced compared to 1 year ago.
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.
HIG has a Debt to FCF ratio of 0.77. This is in the better half of the industry: HIG outperforms 74.83% of its industry peers.
HIG has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
HIG's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. HIG outperforms 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.32%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.73%, which is quite good.
The Earnings Per Share has been growing by 12.78% on average over the past years. This is quite good.
HIG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.19%.
HIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.05% yearly.
EPS 1Y (TTM)8.73%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%36.4%
Revenue 1Y (TTM)8.19%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%7.72%
3.2 Future
The Earnings Per Share is expected to grow by 11.75% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.60% on average over the next years.
EPS Next Y8.33%
EPS Next 2Y12.35%
EPS Next 3Y11.75%
EPS Next 5YN/A
Revenue Next Year8.65%
Revenue Next 2Y7.4%
Revenue Next 3Y6.6%
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 stable.
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
Based on the Price/Earnings ratio of 11.48, the valuation of HIG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HIG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HIG to the average of the S&P500 Index (26.54), we can say HIG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.78, the valuation of HIG can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as HIG.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, HIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
HIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIG is cheaper than 72.73% of the companies in the same industry.
66.43% of the companies in the same industry are more expensive than HIG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.31 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
HIG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.38
PEG (5Y)0.9
EPS Next 2Y12.35%
EPS Next 3Y11.75%
5. Dividend
5.1 Amount
HIG has a Yearly Dividend Yield of 1.65%.
Compared to an average industry Dividend Yield of 3.53, HIG has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, HIG is paying slightly less dividend.
| 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 been paying a dividend for at least 10 years, so it has 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.
HIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.75%
EPS Next 2Y12.35%
EPS Next 3Y11.75%
127.21
-1.6 (-1.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.87%
Inst Owner Change-0.21%
Ins Owners0.33%
Ins Owner Change8.99%
Market Cap35.77B
Analysts73.33
Price Target140.22 (10.23%)
Short Float %1.14%
Short Ratio2.03
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)0.59%
PT rev (3m)4.14%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-0.25%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 9.78 | ||
| P/S | 1.33 | ||
| P/FCF | 6.31 | ||
| P/OCF | 6.17 | ||
| P/B | 2.12 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)11.08
EY8.71%
EPS(NY)13.01
Fwd EY10.23%
FCF(TTM)20.14
FCFY15.84%
OCF(TTM)20.62
OCFY16.21%
SpS95.65
BVpS59.91
TBVpS50.91
PEG (NY)1.38
PEG (5Y)0.9
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
WACC8.32%
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)8.73%
EPS 3Y18.67%
EPS 5Y12.78%
EPS Q2Q%36.4%
EPS Next Y8.33%
EPS Next 2Y12.35%
EPS Next 3Y11.75%
EPS Next 5YN/A
Revenue 1Y (TTM)8.19%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%7.72%
Revenue Next Year8.65%
Revenue Next 2Y7.4%
Revenue Next 3Y6.6%
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%