HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
NYSE:HRTG - New York Stock Exchange, Inc. - US42727J1025 - Common Stock - Currency: USD
Taking everything into account, HRTG scores 5 out of 10 in our fundamental rating. HRTG was compared to 143 industry peers in the Insurance industry. While HRTG is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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.
Of the past 5 years HRTG 4 years had a positive operating cash flow.
1.2 Ratios
HRTG has a better Return On Assets (3.51%) than 74.13% of its industry peers.
The Return On Equity of HRTG (23.64%) is better than 92.31% of its industry peers.
With a decent Return On Invested Capital value of 4.28%, HRTG is doing good in the industry, outperforming 79.72% of the companies in the same industry.
| 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
HRTG has a Profit Margin of 9.29%. This is in the better half of the industry: HRTG outperforms 60.84% of its industry peers.
HRTG's Profit Margin has improved in the last couple of years.
HRTG has a better Operating Margin (13.54%) than 64.34% of its industry peers.
HRTG's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRTG is destroying value.
The number of shares outstanding for HRTG has been increased compared to 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
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.
The Debt to FCF ratio of HRTG (1.53) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.34 indicates that HRTG is not too dependend on debt financing.
HRTG has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.5
WACC8.49%
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
HRTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.27%, which is quite impressive.
The Earnings Per Share has been growing by 16.67% on average over the past years. This is quite good.
The Revenue has grown by 11.65% in the past year. This is quite good.
Measured over the past years, HRTG shows a quite strong growth in Revenue. The Revenue has been growing by 9.83% on average per year.
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 33.90% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.64% on average over the next years.
EPS Next Y61.32%
EPS Next 2Y33.9%
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 8.67, which indicates a very decent valuation of HRTG.
74.83% of the companies in the same industry are more expensive than HRTG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.46. HRTG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.08, the valuation of HRTG can be described as very cheap.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than 77.62% of the companies in the same industry.
HRTG is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRTG indicates a rather cheap valuation: HRTG is cheaper than 88.11% of the companies listed in the same industry.
HRTG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | 2.85 |
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.
A more expensive valuation may be justified as HRTG's earnings are expected to grow with 33.90% in the coming years.
PEG (NY)0.14
PEG (5Y)0.52
EPS Next 2Y33.9%
EPS Next 3YN/A
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 3.38, 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 2.34.
| 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 2Y33.9%
EPS Next 3YN/A
21.93
+0.43 (+2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners58.01%
Inst Owner Change0.59%
Ins Owners26.42%
Ins Owner Change7.49%
Market Cap679.61M
Analysts80
Price Target29.58 (34.88%)
Short Float %9.66%
Short Ratio4.12
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)48.72%
EPS NQ rev (1m)3.24%
EPS NQ rev (3m)34.23%
EPS NY rev (1m)1.05%
EPS NY rev (3m)35.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 6.08 | ||
| P/S | 0.81 | ||
| P/FCF | 9.24 | ||
| P/OCF | 8.13 | ||
| P/B | 2.07 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 2.85 |
EPS(TTM)2.53
EY11.54%
EPS(NY)3.6
Fwd EY16.43%
FCF(TTM)2.37
FCFY10.82%
OCF(TTM)2.7
OCFY12.3%
SpS27.02
BVpS10.62
TBVpS9.49
PEG (NY)0.14
PEG (5Y)0.52
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
WACC8.49%
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 Y61.32%
EPS Next 2Y33.9%
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%