HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRTG - US42727J1025 - Common Stock
29.05 USD
+0.43 (+1.5%)
29.05 USD
0 (0%)
HRTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. HRTG has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on HRTG.
1. Profitability
1.1 Basic Checks
HRTG had positive earnings in the past year.
HRTG had a positive operating cash flow in the past year.
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 Return On Assets of 6.30%. This is amongst the best in the industry. HRTG outperforms 88.44% of its industry peers.
HRTG has a better Return On Equity (34.12%) than 96.60% of its industry peers.
With an excellent Return On Invested Capital value of 7.27%, HRTG belongs to the best of the industry, outperforming 89.12% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 17.72%, HRTG belongs to the top of the industry, outperforming 84.35% of the companies in the same industry.
In the last couple of years the Profit Margin of HRTG has grown nicely.
The Operating Margin of HRTG (24.81%) is better than 87.07% of its industry peers.
HRTG's Operating Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for HRTG has been increased compared to 1 year ago.
HRTG has more shares outstanding than it did 5 years ago.
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's Debt to FCF ratio of 0.91 is fine compared to the rest of the industry. HRTG outperforms 72.11% 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC8.23%
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 has a better Current ratio (0.12) than 64.63% of its industry peers.
A Quick Ratio of 0.12 indicates that HRTG may have some problems paying its short term obligations.
HRTG's Quick ratio of 0.12 is fine compared to the rest of the industry. HRTG outperforms 64.63% of its industry peers.
| 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 93.20% over the past year.
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.
Looking at the last year, HRTG shows a small growth in Revenue. The Revenue has grown by 6.12% in the last year.
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)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
The Earnings Per Share is expected to grow by 17.43% on average over the next years. This is quite good.
Based on estimates for the next years, HRTG will show a small growth in Revenue. The Revenue will grow by 5.60% on average per year.
EPS Next Y118.12%
EPS Next 2Y44.23%
EPS Next 3Y26.51%
EPS Next 5Y17.43%
Revenue Next Year4.42%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 6.01 indicates a rather cheap valuation of HRTG.
HRTG's Price/Earnings ratio is rather cheap when compared to the industry. HRTG is cheaper than 80.95% of the companies in the same industry.
HRTG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 6.95, the valuation of HRTG can be described as very cheap.
Based on the Price/Forward Earnings ratio, HRTG is valued a bit cheaper than 76.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. HRTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 6.95 |
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 91.84% 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 | 8.62 | ||
| EV/EBITDA | 1.91 |
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.
A more expensive valuation may be justified as HRTG's earnings are expected to grow with 26.51% in the coming years.
PEG (NY)0.05
PEG (5Y)0.36
EPS Next 2Y44.23%
EPS Next 3Y26.51%
5. Dividend
5.1 Amount
HRTG has a Yearly Dividend Yield of 2.84%.
Compared to an average industry Dividend Yield of 3.46, HRTG pays a bit more dividend than its industry peers.
HRTG's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| 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 2Y44.23%
EPS Next 3Y26.51%
29.05
+0.43 (+1.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.37%
Inst Owner Change3.44%
Ins Owners20.99%
Ins Owner Change-7.34%
Market Cap901.13M
Revenue(TTM)842.28M
Net Income(TTM)149.21M
Analysts80
Price Target36.21 (24.65%)
Short Float %5.22%
Short Ratio2.38
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)1.81%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)0%
EPS NY rev (3m)8.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 6.95 | ||
| P/S | 1.07 | ||
| P/FCF | 8.62 | ||
| P/OCF | 8.02 | ||
| P/B | 2.06 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 1.91 |
EPS(TTM)4.83
EY16.63%
EPS(NY)4.18
Fwd EY14.39%
FCF(TTM)3.37
FCFY11.61%
OCF(TTM)3.62
OCFY12.47%
SpS27.15
BVpS14.1
TBVpS13.07
PEG (NY)0.05
PEG (5Y)0.36
Graham Number39.14
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
WACC8.23%
ROIC/WACC0.88
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 Y118.12%
EPS Next 2Y44.23%
EPS Next 3Y26.51%
EPS Next 5Y17.43%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%0.29%
Revenue Next Year4.42%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
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 6.01 and the Price/Book (PB) ratio is 2.06.
Can you provide the financial health for HRTG stock?
The financial health rating of HERITAGE INSURANCE HOLDINGS (HRTG) is 4 / 10.