HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
NYSE:HRTG - New York Stock Exchange, Inc. - US42727J1025 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HRTG. HRTG was compared to 143 industry peers in the Insurance industry. There are concerns on the financial health of HRTG while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on HRTG.
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.
In multiple years HRTG reported negative net income over the last 5 years.
HRTG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HRTG has a better Return On Assets (3.51%) than 74.83% of its industry peers.
With an excellent Return On Equity value of 23.64%, HRTG belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
HRTG's Return On Invested Capital of 4.28% is amongst the best of the industry. HRTG outperforms 80.42% 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 decent Profit Margin value of 9.29%, HRTG is doing good in the industry, outperforming 60.14% of the companies in the same industry.
In the last couple of years the Profit Margin of HRTG has grown nicely.
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.
HRTG has more shares outstanding than it did 1 year ago.
HRTG has more shares outstanding than it did 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.
The Debt to FCF ratio of HRTG (1.53) is comparable to the rest of the industry.
HRTG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
HRTG has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC9.52%
2.3 Liquidity
A Current Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
The Current ratio of HRTG (0.12) is better than 65.73% 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 65.73% 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 54.27%, which is quite impressive.
Measured over the past years, HRTG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.67% on average per year.
HRTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.65%.
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)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
Based on estimates for the next years, HRTG will show a very strong growth in Earnings Per Share. The EPS will grow by 32.66% on average per year.
The Revenue is expected to grow by 6.64% on average over the next years.
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.
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 8.87 indicates a reasonable valuation of HRTG.
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 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.34 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 74.83% 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 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 6.34 |
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 87.41% of the companies listed in the same industry.
HRTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 3.06 |
4.3 Compensation for Growth
HRTG's 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 32.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)0.53
EPS Next 2Y32.66%
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 3.46.
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
22.44
+0.11 (+0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners58.01%
Inst Owner Change-1.71%
Ins Owners26.42%
Ins Owner Change7.5%
Market Cap695.42M
Analysts80
Price Target29.58 (31.82%)
Short Float %7.68%
Short Ratio3.41
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)48.72%
PT rev (3m)81.25%
EPS NQ rev (1m)3.38%
EPS NQ rev (3m)30.09%
EPS NY rev (1m)0%
EPS NY rev (3m)61.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 6.34 | ||
| P/S | 0.83 | ||
| P/FCF | 9.46 | ||
| P/OCF | 8.32 | ||
| P/B | 2.11 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 3.06 |
EPS(TTM)2.53
EY11.27%
EPS(NY)3.54
Fwd EY15.76%
FCF(TTM)2.37
FCFY10.57%
OCF(TTM)2.7
OCFY12.03%
SpS27.02
BVpS10.62
TBVpS9.49
PEG (NY)0.15
PEG (5Y)0.53
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
WACC9.52%
ROIC/WACC0.45
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%