HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
26.44 USD
+0.72 (+2.8%)
26.44 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HRTG. HRTG was compared to 148 industry peers in the Insurance industry. HRTG has only an average score on both its financial health and profitability. HRTG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year HRTG was profitable.
- HRTG had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: HRTG reported negative net income in multiple years.
- Of the past 5 years HRTG 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.30%, HRTG belongs to the top of the industry, outperforming 87.84% of the companies in the same industry.
- HRTG's Return On Equity of 34.12% is amongst the best of the industry. HRTG outperforms 97.97% of its industry peers.
- HRTG's Return On Invested Capital of 7.27% is amongst the best of the industry. HRTG outperforms 88.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 34.12% | ||
| ROIC | 7.27% |
ROA(3y)-0.61%
ROA(5y)-1.03%
ROE(3y)-25.38%
ROE(5y)-19.16%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- HRTG has a Profit Margin of 17.72%. This is amongst the best in the industry. HRTG outperforms 85.81% of its industry peers.
- In the last couple of years the Profit Margin of HRTG has grown nicely.
- The Operating Margin of HRTG (24.81%) is better than 83.78% of its industry peers.
- HRTG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.81% | ||
| PM (TTM) | 17.72% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y3.39%
PM growth 3YN/A
PM growth 5Y6.13%
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), HRTG is destroying value.
- Compared to 1 year ago, HRTG has more shares outstanding
- The number of shares outstanding for HRTG has been increased compared to 5 years ago.
- Compared to 1 year ago, HRTG has an improved debt to assets ratio.
2.2 Solvency
- HRTG has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
- HRTG has a Debt to FCF ratio of 0.91. This is in the better half of the industry: HRTG outperforms 72.30% of its industry peers.
- A Debt/Equity ratio of 0.22 indicates that HRTG is not too dependend on debt financing.
- The Debt to Equity ratio of HRTG (0.22) is better than 66.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC8.42%
2.3 Liquidity
- A Current Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.12, HRTG is in the better half of the industry, outperforming 64.86% of the companies in the same industry.
- HRTG has a Quick Ratio of 0.12. This is a bad value and indicates that HRTG is not financially healthy enough and could expect problems in meeting its short term obligations.
- HRTG has a Quick ratio of 0.12. This is in the better half of the industry: HRTG outperforms 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 93.20% over the past year.
- The Earnings Per Share has been growing by 16.67% on average over the past years. This is quite good.
- Looking at the last year, HRTG shows a small growth in Revenue. The Revenue has grown by 6.12% in the last year.
- The Revenue has been growing by 9.83% on average over the past years. This is quite good.
EPS 1Y (TTM)93.2%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%503.7%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%0.29%
3.2 Future
- HRTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.24% yearly.
- The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y159.74%
EPS Next 2Y47.72%
EPS Next 3Y31.49%
EPS Next 5Y19.24%
Revenue Next Year4.71%
Revenue Next 2Y5.99%
Revenue Next 3Y5.95%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 5.47, the valuation of HRTG can be described as very cheap.
- Based on the Price/Earnings ratio, HRTG is valued cheaper than 83.11% of the companies in the same industry.
- HRTG is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 6.03, which indicates a rather cheap valuation of HRTG.
- HRTG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HRTG is cheaper than 79.05% of the companies in the same industry.
- HRTG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.47 | ||
| Fwd PE | 6.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HRTG is valued cheaply inside the industry as 95.27% of the companies are valued more expensively.
- HRTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.81 | ||
| EV/EBITDA | 1.49 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of HRTG may justify a higher PE ratio.
- A more expensive valuation may be justified as HRTG's earnings are expected to grow with 31.49% in the coming years.
PEG (NY)0.03
PEG (5Y)0.33
EPS Next 2Y47.72%
EPS Next 3Y31.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.84%, HRTG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.41, HRTG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, HRTG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
- HRTG has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y47.72%
EPS Next 3Y31.49%
HERITAGE INSURANCE HOLDINGS / HRTG FAQ
What is the ChartMill fundamental rating of HERITAGE INSURANCE HOLDINGS (HRTG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HRTG.
What is the valuation status of HERITAGE INSURANCE HOLDINGS (HRTG) stock?
ChartMill assigns a valuation rating of 8 / 10 to HERITAGE INSURANCE HOLDINGS (HRTG). This can be considered as Undervalued.
How profitable is HERITAGE INSURANCE HOLDINGS (HRTG) stock?
HERITAGE INSURANCE HOLDINGS (HRTG) has a profitability rating of 6 / 10.
What is the earnings growth outlook for HERITAGE INSURANCE HOLDINGS?
The Earnings per Share (EPS) of HERITAGE INSURANCE HOLDINGS (HRTG) is expected to grow by 159.74% in the next year.
Can you provide the dividend sustainability for HRTG stock?
The dividend rating of HERITAGE INSURANCE HOLDINGS (HRTG) is 4 / 10 and the dividend payout ratio is 0%.