HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
NYSE:HRTG - New York Stock Exchange, Inc. - US42727J1025 - Common Stock - Currency: USD
Overall HRTG gets a fundamental rating of 5 out of 10. We evaluated HRTG against 143 industry peers in the Insurance industry. There are concerns on the financial health of HRTG while its profitability can be described as average. HRTG may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
HRTG had positive earnings in the past year.
In the past year HRTG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HRTG reported negative net income in multiple years.
HRTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HRTG has a Return On Assets of 3.51%. This is in the better half of the industry: HRTG outperforms 74.83% of its industry peers.
HRTG's Return On Equity of 23.64% is amongst the best of the industry. HRTG outperforms 92.31% of its industry peers.
The Return On Invested Capital of HRTG (4.28%) is better than 79.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 23.64% | ||
| ROIC | 4.28% |
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
With a Profit Margin value of 9.29%, HRTG perfoms like the industry average, outperforming 59.44% of the companies in the same industry.
HRTG's Profit Margin has improved in the last couple of years.
HRTG's Operating Margin of 13.54% is fine compared to the rest of the industry. HRTG outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of HRTG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.54% | ||
| PM (TTM) | 9.29% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRTG is destroying value.
The number of shares outstanding for HRTG has been increased compared to 1 year ago.
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
The Debt to FCF ratio of HRTG is 1.53, which is an excellent value as it means it would take HRTG, only 1.53 years of fcf income to pay off all of its debts.
HRTG's Debt to FCF ratio of 1.53 is in line compared to the rest of the industry. HRTG outperforms 48.95% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that HRTG is not too dependend on debt financing.
HRTG's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. HRTG outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.5
WACC8.55%
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.
With a decent Current ratio value of 0.12, HRTG is doing good in the industry, outperforming 65.73% of the companies in the same industry.
A Quick Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.12, HRTG is in the better half of the industry, outperforming 65.73% of the companies in the same industry.
| 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 54.27% over the past year.
The Earnings Per Share has been growing by 16.67% on average over the past years. This is quite good.
HRTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.65%.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
EPS 1Y (TTM)54.27%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%110.64%
Revenue 1Y (TTM)11.65%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%10.57%
3.2 Future
The Earnings Per Share is expected to grow by 32.66% on average over the next years. This is a very strong growth
HRTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.
EPS Next Y58.01%
EPS Next 2Y32.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.99%
Revenue Next 2Y6.64%
Revenue Next 3YN/A
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 accelerating.
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 9.76, the valuation of HRTG can be described as very reasonable.
Based on the Price/Earnings ratio, HRTG is valued a bit cheaper than the industry average as 71.33% of the companies are valued more expensively.
HRTG is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.98 indicates a rather cheap valuation of HRTG.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than the industry average as 74.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, HRTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRTG is valued cheaper than 85.31% of the companies in the same industry.
HRTG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.41 | ||
| EV/EBITDA | 3.41 |
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's earnings are expected to grow with 32.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)0.59
EPS Next 2Y32.66%
EPS Next 3YN/A
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.
HRTG's Dividend Yield is a higher than the industry average which is at 3.23.
Compared to an average S&P500 Dividend Yield of 2.40, HRTG has a dividend comparable with the average S&P500 company.
| 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 2Y32.66%
EPS Next 3YN/A
NYSE:HRTG (5/30/2025, 1:48:34 PM)
24.7011
+0.98 (+4.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners57.28%
Inst Owner Change-1.75%
Ins Owners26.71%
Ins Owner Change5.79%
Market Cap765.49M
Analysts80
Price Target19.89 (-19.48%)
Short Float %3.41%
Short Ratio2.02
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)66.33%
Min EPS beat(2)15.2%
Max EPS beat(2)117.46%
EPS beat(4)4
Avg EPS beat(4)127.74%
Min EPS beat(4)15.2%
Max EPS beat(4)333.94%
EPS beat(8)6
Avg EPS beat(8)95.86%
EPS beat(12)9
Avg EPS beat(12)156.57%
EPS beat(16)10
Avg EPS beat(16)102.34%
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)3.14%
Revenue beat(4)2
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)3.14%
Revenue beat(8)4
Avg Revenue beat(8)1.29%
Revenue beat(12)7
Avg Revenue beat(12)1.45%
Revenue beat(16)10
Avg Revenue beat(16)1.69%
PT rev (1m)0%
PT rev (3m)21.88%
EPS NQ rev (1m)30.03%
EPS NQ rev (3m)43.92%
EPS NY rev (1m)32.33%
EPS NY rev (3m)61.81%
Revenue NQ rev (1m)-1.82%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 6.98 | ||
| P/S | 0.91 | ||
| P/FCF | 10.41 | ||
| P/OCF | 9.15 | ||
| P/B | 2.33 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 3.41 |
EPS(TTM)2.53
EY10.24%
EPS(NY)3.54
Fwd EY14.32%
FCF(TTM)2.37
FCFY9.61%
OCF(TTM)2.7
OCFY10.92%
SpS27.02
BVpS10.62
TBVpS9.49
PEG (NY)0.17
PEG (5Y)0.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 23.64% | ||
| ROCE | 5.3% | ||
| ROIC | 4.28% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 10.55% | ||
| OM | 13.54% | ||
| PM (TTM) | 9.29% | ||
| GM | N/A | ||
| FCFM | 8.78% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 98.95% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 12.38 | ||
| Cash Conversion | 67.69% | ||
| Profit Quality | 94.52% | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | N/A |
F-Score8
WACC8.55%
ROIC/WACC0.5
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)54.27%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%110.64%
EPS Next Y58.01%
EPS Next 2Y32.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.65%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%10.57%
Revenue Next Year5.99%
Revenue Next 2Y6.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y70%
EBIT growth 3YN/A
EBIT growth 5Y13.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y301.79%
FCF growth 3Y10.09%
FCF growth 5Y-7.22%
OCF growth 1Y322.34%
OCF growth 3Y13.16%
OCF growth 5Y-6.16%