HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
28.99 USD
-0.79 (-2.65%)
28.99 USD
0 (0%)
Taking everything into account, HRTG scores 5 out of 10 in our fundamental rating. HRTG was compared to 148 industry peers in the Insurance industry. Both the profitability and the financial health of HRTG get a neutral evaluation. Nothing too spectacular is happening here. HRTG scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
In multiple years HRTG reported negative net income over the last 5 years.
Of the past 5 years HRTG 4 years had a positive operating cash flow.
1.2 Ratios
HRTG's Return On Assets of 6.30% is amongst the best of the industry. HRTG outperforms 88.51% of its industry peers.
Looking at the Return On Equity, with a value of 34.12%, HRTG belongs to the top of the industry, outperforming 97.97% of the companies in the same industry.
The Return On Invested Capital of HRTG (7.27%) is better than 87.84% 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
The Profit Margin of HRTG (17.72%) is better than 85.81% of its industry peers.
In the last couple of years the Profit Margin of HRTG has grown nicely.
Looking at the Operating Margin, with a value of 24.81%, HRTG belongs to the top of the industry, outperforming 84.46% of the companies in the same industry.
In the last couple of years the Operating Margin of HRTG has grown nicely.
| 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
HRTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HRTG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HRTG has more shares outstanding
HRTG has a better debt/assets ratio than last year.
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 72.97% of its industry peers.
HRTG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
HRTG has a better Debt to Equity ratio (0.22) than 66.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.35%
2.3 Liquidity
HRTG has a Current 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's Current ratio of 0.12 is fine compared to the rest of the industry. HRTG outperforms 63.51% of its industry peers.
A Quick Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
The Quick ratio of HRTG (0.12) is better than 63.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
HRTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 93.20%, which is quite impressive.
HRTG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.67% yearly.
HRTG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.12%.
HRTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.83% yearly.
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.
Based on estimates for the next years, HRTG will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.00, the valuation of HRTG can be described as very cheap.
Based on the Price/Earnings ratio, HRTG is valued cheaper than 82.43% of the companies in the same industry.
HRTG is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
HRTG is valuated cheaply with a Price/Forward Earnings ratio of 6.61.
79.05% of the companies in the same industry are more expensive than HRTG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.04. HRTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6 | ||
| Fwd PE | 6.61 |
4.2 Price Multiples
91.89% of the companies in the same industry are more expensive than HRTG, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as HRTG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.57 | ||
| EV/EBITDA | 2.06 |
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.
HRTG has a very decent profitability rating, which may justify a higher PE ratio.
HRTG's earnings are expected to grow with 31.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)0.36
EPS Next 2Y47.72%
EPS Next 3Y31.49%
5. Dividend
5.1 Amount
HRTG has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.42, HRTG pays a bit more dividend than its industry peers.
HRTG's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
The dividend of HRTG decreases each year by -73.43%.
HRTG has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-73.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y47.72%
EPS Next 3Y31.49%
28.99
-0.79 (-2.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners63.14%
Inst Owner Change3.45%
Ins Owners17.6%
Ins Owner Change-10.04%
Market Cap896.08M
Revenue(TTM)842.28M
Net Income(TTM)149.21M
Analysts80
Price Target36.21 (24.91%)
Short Float %6.62%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend0
Dividend Growth(5Y)-73.43%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)125.96%
Min EPS beat(2)50.41%
Max EPS beat(2)201.52%
EPS beat(4)4
Avg EPS beat(4)96.15%
Min EPS beat(4)15.2%
Max EPS beat(4)201.52%
EPS beat(8)7
Avg EPS beat(8)110.99%
EPS beat(12)10
Avg EPS beat(12)151.8%
EPS beat(16)12
Avg EPS beat(16)134.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)3.14%
Revenue beat(8)2
Avg Revenue beat(8)-0.74%
Revenue beat(12)6
Avg Revenue beat(12)0.99%
Revenue beat(16)8
Avg Revenue beat(16)0.79%
PT rev (1m)12.7%
PT rev (3m)22.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)19.08%
EPS NY rev (3m)29.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6 | ||
| Fwd PE | 6.61 | ||
| P/S | 1.06 | ||
| P/FCF | 8.57 | ||
| P/OCF | 7.98 | ||
| P/B | 2.05 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 2.06 |
EPS(TTM)4.83
EY16.66%
EPS(NY)4.39
Fwd EY15.13%
FCF(TTM)3.38
FCFY11.67%
OCF(TTM)3.63
OCFY12.54%
SpS27.25
BVpS14.15
TBVpS13.12
PEG (NY)0.04
PEG (5Y)0.36
Graham Number39.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.3% | ||
| ROE | 34.12% | ||
| ROCE | 9% | ||
| ROIC | 7.27% | ||
| ROICexc | 9.59% | ||
| ROICexgc | 19.09% | ||
| OM | 24.81% | ||
| PM (TTM) | 17.72% | ||
| GM | N/A | ||
| FCFM | 12.42% |
ROA(3y)-0.61%
ROA(5y)-1.03%
ROE(3y)-25.38%
ROE(5y)-19.16%
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)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y9.04%
ROICexc growth 3YN/A
ROICexc growth 5Y8.96%
OM growth 3YN/A
OM growth 5Y3.39%
PM growth 3YN/A
PM growth 5Y6.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 64.94% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | 27.02 | ||
| Cash Conversion | 50.85% | ||
| Profit Quality | 70.09% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | N/A |
F-Score7
WACC8.35%
ROIC/WACC0.87
Cap/Depr(3y)73.41%
Cap/Depr(5y)48.4%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)93.2%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%503.7%
EPS Next Y159.74%
EPS Next 2Y47.72%
EPS Next 3Y31.49%
EPS Next 5Y19.24%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%0.29%
Revenue Next Year4.71%
Revenue Next 2Y5.99%
Revenue Next 3Y5.95%
Revenue Next 5YN/A
EBIT growth 1Y112.69%
EBIT growth 3YN/A
EBIT growth 5Y13.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y296.2%
FCF growth 3Y10.09%
FCF growth 5Y-7.22%
OCF growth 1Y333.58%
OCF growth 3Y13.16%
OCF growth 5Y-6.16%
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.
Can you provide the valuation status for HERITAGE INSURANCE HOLDINGS?
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 valuation of HERITAGE INSURANCE HOLDINGS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HERITAGE INSURANCE HOLDINGS (HRTG) is 6 and the Price/Book (PB) ratio is 2.05.
Can you provide the financial health for HRTG stock?
The financial health rating of HERITAGE INSURANCE HOLDINGS (HRTG) is 4 / 10.