HERITAGE INSURANCE HOLDINGS (HRTG) Stock Fundamental Analysis
USA - NYSE:HRTG - US42727J1025 - Common Stock
28.4 USD
+2.97 (+11.68%)
28.25 USD
-0.15 (-0.53%)
HRTG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. HRTG has a medium profitability rating, but doesn't score so well on its financial health evaluation. HRTG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HRTG was profitable.
HRTG had a negative 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 4.22%. This is in the better half of the industry: HRTG outperforms 79.45% of its industry peers.
HRTG has a better Return On Equity (27.90%) than 94.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.89%, HRTG belongs to the top of the industry, outperforming 80.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.22% | ||
| ROE | 27.9% | ||
| ROIC | 4.89% |
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
The Profit Margin of HRTG (12.71%) is better than 74.66% of its industry peers.
HRTG's Profit Margin has improved in the last couple of years.
HRTG has a Operating Margin of 17.89%. This is in the better half of the industry: HRTG outperforms 73.29% of its industry peers.
In the last couple of years the Operating Margin of HRTG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.89% | ||
| PM (TTM) | 12.71% | ||
| 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.
Compared to 1 year ago, HRTG has more shares outstanding
Compared to 5 years ago, HRTG has more shares outstanding
Compared to 1 year ago, HRTG has an improved debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.28 indicates that HRTG is not too dependend on debt financing.
HRTG's Debt to Equity ratio of 0.28 is in line compared to the rest of the industry. HRTG outperforms 55.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.59
WACC8.35%
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 65.07% of its industry peers.
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's Quick ratio of 0.12 is fine compared to the rest of the industry. HRTG outperforms 65.07% 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 77.95%, which is quite impressive.
The Earnings Per Share has been growing by 16.67% on average over the past years. This is quite good.
Looking at the last year, HRTG shows a quite strong growth in Revenue. The Revenue has grown by 9.57% in the last year.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
EPS 1Y (TTM)77.95%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%154.1%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%2.19%
3.2 Future
Based on estimates for the next years, HRTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.43% on average per year.
HRTG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y100.52%
EPS Next 2Y43.06%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
HRTG is valuated reasonably with a Price/Earnings ratio of 8.18.
Based on the Price/Earnings ratio, HRTG is valued a bit cheaper than the industry average as 73.97% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HRTG to the average of the S&P500 Index (27.38), we can say HRTG is valued rather cheaply.
A Price/Forward Earnings ratio of 6.90 indicates a rather cheap valuation of HRTG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRTG indicates a somewhat cheap valuation: HRTG is cheaper than 76.03% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. HRTG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
HRTG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HRTG is cheaper than 86.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.2 |
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.
A more expensive valuation may be justified as HRTG's earnings are expected to grow with 26.51% in the coming years.
PEG (NY)0.08
PEG (5Y)0.49
EPS Next 2Y43.06%
EPS Next 3Y26.51%
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 3.44.
HRTG's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| 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 2Y43.06%
EPS Next 3Y26.51%
28.4
+2.97 (+11.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners58.04%
Inst Owner Change4.39%
Ins Owners26.47%
Ins Owner Change-3.38%
Market Cap880.97M
Analysts80
Price Target29.58 (4.15%)
Short Float %8.23%
Short Ratio4.91
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)83.93%
Min EPS beat(2)50.41%
Max EPS beat(2)117.46%
EPS beat(4)4
Avg EPS beat(4)129.25%
Min EPS beat(4)15.2%
Max EPS beat(4)333.94%
EPS beat(8)6
Avg EPS beat(8)82.22%
EPS beat(12)9
Avg EPS beat(12)127.48%
EPS beat(16)11
Avg EPS beat(16)120.54%
Revenue beat(2)0
Avg Revenue beat(2)-3.4%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-2.95%
Revenue beat(4)1
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-3.85%
Max Revenue beat(4)3.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)6
Avg Revenue beat(12)1.04%
Revenue beat(16)9
Avg Revenue beat(16)1.27%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)65.22%
EPS NY rev (1m)0%
EPS NY rev (3m)25.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 6.9 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.3 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 3.2 |
EPS(TTM)3.47
EY12.22%
EPS(NY)4.11
Fwd EY14.48%
FCF(TTM)-1.11
FCFYN/A
OCF(TTM)-0.82
OCFYN/A
SpS27.13
BVpS12.36
TBVpS11.28
PEG (NY)0.08
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.22% | ||
| ROE | 27.9% | ||
| ROCE | 6.05% | ||
| ROIC | 4.89% | ||
| ROICexc | 6.03% | ||
| ROICexgc | 13.57% | ||
| OM | 17.89% | ||
| PM (TTM) | 12.71% | ||
| GM | N/A | ||
| FCFM | N/A |
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-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 84% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 17.01 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.12 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | N/A |
F-Score6
WACC8.35%
ROIC/WACC0.59
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)77.95%
EPS 3YN/A
EPS 5Y16.67%
EPS Q2Q%154.1%
EPS Next Y100.52%
EPS Next 2Y43.06%
EPS Next 3Y26.51%
EPS Next 5Y17.43%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y8.96%
Revenue growth 5Y9.83%
Sales Q2Q%2.19%
Revenue Next Year4.42%
Revenue Next 2Y5.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y95.27%
EBIT growth 3YN/A
EBIT growth 5Y13.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-211.59%
FCF growth 3Y10.09%
FCF growth 5Y-7.22%
OCF growth 1Y-167.87%
OCF growth 3Y13.16%
OCF growth 5Y-6.16%