HERITAGE INSURANCE HOLDINGS (HRTG)
US42727J1025 - Common Stock
Overall HRTG gets a fundamental rating of 4 out of 10. We evaluated HRTG against 140 industry peers in the Insurance industry. HRTG has a medium profitability rating, but doesn't score so well on its financial health evaluation. HRTG has a correct valuation and a medium growth rate.
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.
Of the past 5 years HRTG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HRTG (2.11%) is comparable to the rest of the industry.
HRTG has a Return On Equity of 20.58%. This is amongst the best in the industry. HRTG outperforms 87.77% of its industry peers.
With a decent Return On Invested Capital value of 2.66%, HRTG is doing good in the industry, outperforming 61.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 20.58% | ||
| ROIC | 2.66% |
ROA(3y)-2.71%
ROA(5y)-1.24%
ROE(3y)-39.69%
ROE(5y)-22.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.17%, HRTG is in line with its industry, outperforming 49.64% of the companies in the same industry.
HRTG's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.71%, HRTG perfoms like the industry average, outperforming 48.92% of the companies in the same industry.
In the last couple of years the Operating Margin of HRTG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.71% | ||
| PM (TTM) | 6.17% | ||
| GM | N/A |
OM growth 3Y71.69%
OM growth 5Y-9.68%
PM growth 3Y57.82%
PM growth 5Y1.69%
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.
Compared to 1 year ago, HRTG has more shares outstanding
Compared to 5 years ago, HRTG has more shares outstanding
The debt/assets ratio for HRTG is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HRTG is 2.32, which is a good value as it means it would take HRTG, 2.32 years of fcf income to pay off all of its debts.
HRTG has a Debt to FCF ratio of 2.32. This is comparable to the rest of the industry: HRTG outperforms 53.24% of its industry peers.
HRTG has a Debt/Equity ratio of 0.64. This is a neutral value indicating HRTG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, HRTG is not doing good in the industry: 68.35% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for HRTG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC7.89%
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 65.47% 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 better Quick ratio (0.12) than 65.47% 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 171.97%, which is quite impressive.
HRTG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.35% yearly.
Looking at the last year, HRTG shows a quite strong growth in Revenue. The Revenue has grown by 11.01% in the last year.
Measured over the past years, HRTG shows a quite strong growth in Revenue. The Revenue has been growing by 8.90% on average per year.
EPS 1Y (TTM)171.97%
EPS 3Y75.17%
EPS 5Y4.35%
EPS growth Q2Q139.58%
Revenue 1Y (TTM)11.01%
Revenue growth 3Y7.42%
Revenue growth 5Y8.9%
Revenue growth Q2Q7.08%
3.2 Future
Based on estimates for the next years, HRTG will show a small growth in Earnings Per Share. The EPS will grow by 1.87% on average per year.
Based on estimates for the next years, HRTG will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
EPS Next Y-13.02%
EPS Next 2Y1.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.07%
Revenue Next 2Y5.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.26 indicates a rather cheap valuation of HRTG.
HRTG's Price/Earnings ratio is a bit cheaper when compared to the industry. HRTG is cheaper than 79.14% of the companies in the same industry.
HRTG is valuated cheaply when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.04, which indicates a rather cheap valuation of HRTG.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than 76.98% 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 20.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.26 | ||
| Fwd PE | 6.04 |
4.2 Price Multiples
74.82% of the companies in the same industry are more expensive than HRTG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.58 | ||
| EV/EBITDA | -0.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y1.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HRTG has a Yearly Dividend Yield of 2.84%.
HRTG's Dividend Yield is a higher than the industry average which is at 4.27.
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
HRTG pays out 0.02% of its income as dividend. This is a sustainable payout ratio.
DP0.02%
EPS Next 2Y1.87%
EPS Next 3YN/A
HERITAGE INSURANCE HOLDINGS
NYSE:HRTG (5/15/2024, 2:28:25 PM)
9.04
+0.02 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap276.99M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.26 | ||
| Fwd PE | 6.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 20.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.71% | ||
| PM (TTM) | 6.17% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)171.97%
EPS 3Y75.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.01%
Revenue growth 3Y7.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y