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. Both the profitability and the financial health of HIG get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year HIG had a positive cash flow from operations.
Each year in the past 5 years HIG has been profitable.
In the past 5 years HIG always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.60%, HIG is doing good in the industry, outperforming 74.13% of the companies in the same industry.
The Return On Equity of HIG (17.61%) is better than 77.62% 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's Profit Margin of 11.03% is fine compared to the rest of the industry. HIG outperforms 69.93% of its industry peers.
In the last couple of years the Profit Margin of HIG has grown nicely.
HIG has a Operating Margin of 14.48%. This is in the better half of the industry: HIG outperforms 64.34% 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.
Looking at the Debt to FCF ratio, with a value of 0.77, HIG is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
HIG has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.26, HIG is doing good in the industry, outperforming 65.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.28%
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%.
HIG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.78% yearly.
HIG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.42%.
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%-25.94%
3.2 Future
HIG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.65% yearly.
Based on estimates for the next years, HIG will show a small growth in Revenue. The Revenue will grow by 6.31% on average per year.
EPS Next Y8.07%
EPS Next 2Y11.77%
EPS Next 3Y11.65%
EPS Next 5YN/A
Revenue Next Year9.49%
Revenue Next 2Y7.37%
Revenue Next 3Y6.31%
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
A Price/Earnings ratio of 11.98 indicates a reasonable valuation of HIG.
The rest of the industry has a similar Price/Earnings ratio as HIG.
HIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.85.
A Price/Forward Earnings ratio of 9.46 indicates a reasonable valuation of HIG.
Based on the Price/Forward Earnings ratio, HIG is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.77. HIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
73.43% of the companies in the same industry are more expensive than HIG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HIG is valued a bit cheaper than 65.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.14 | ||
| EV/EBITDA | 5.98 |
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)1.49
PEG (5Y)0.94
EPS Next 2Y11.77%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
HIG has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 3.21, HIG has a dividend in line with its industry peers.
HIG's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of HIG grows each year by 9.29%, which is quite nice.
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.
The dividend of HIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.75%
EPS Next 2Y11.77%
EPS Next 3Y11.65%
121.84
-0.83 (-0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change0.32%
Ins Owners0.28%
Ins Owner Change7.94%
Market Cap34.77B
Analysts72.8
Price Target133.14 (9.27%)
Short Float %1.1%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)-16.96%
Min Revenue beat(2)-32.43%
Max Revenue beat(2)-1.49%
Revenue beat(4)0
Avg Revenue beat(4)-9.07%
Min Revenue beat(4)-32.43%
Max Revenue beat(4)-0.09%
Revenue beat(8)0
Avg Revenue beat(8)-5.14%
Revenue beat(12)1
Avg Revenue beat(12)-3.47%
Revenue beat(16)4
Avg Revenue beat(16)-1.57%
PT rev (1m)1.42%
PT rev (3m)0.96%
EPS NQ rev (1m)-7.02%
EPS NQ rev (3m)-25.11%
EPS NY rev (1m)-1.18%
EPS NY rev (3m)-5.02%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 9.46 | ||
| P/S | 1.29 | ||
| P/FCF | 6.14 | ||
| P/OCF | 6 | ||
| P/B | 2.06 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)10.17
EY8.35%
EPS(NY)12.88
Fwd EY10.57%
FCF(TTM)19.85
FCFY16.29%
OCF(TTM)20.31
OCFY16.67%
SpS94.23
BVpS59.02
TBVpS50.15
PEG (NY)1.49
PEG (5Y)0.94
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
WACC8.28%
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 Y8.07%
EPS Next 2Y11.77%
EPS Next 3Y11.65%
EPS Next 5YN/A
Revenue 1Y (TTM)7.42%
Revenue growth 3Y5.83%
Revenue growth 5Y5.05%
Sales Q2Q%-25.94%
Revenue Next Year9.49%
Revenue Next 2Y7.37%
Revenue Next 3Y6.31%
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%