UNIVERSAL INSURANCE HOLDINGS (UVE) Stock Fundamental Analysis
NYSE:UVE - US91359V1070 - Common Stock
25.46 USD
+0.62 (+2.5%)
25.46 USD
0 (0%)
Taking everything into account, UVE scores 5 out of 10 in our fundamental rating. UVE was compared to 146 industry peers in the Insurance industry. The financial health of UVE is average, but there are quite some concerns on its profitability. UVE 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 UVE was profitable.
UVE had a positive operating cash flow in the past year.
Of the past 5 years UVE 4 years were profitable.
In the past 5 years UVE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of UVE (2.03%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 14.50%, UVE is in the better half of the industry, outperforming 71.23% of the companies in the same industry.
UVE has a Return On Invested Capital of 2.21%. This is comparable to the rest of the industry: UVE outperforms 49.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 14.5% | ||
| ROIC | 2.21% |
ROA(3y)1.4%
ROA(5y)1.25%
ROE(3y)9.21%
ROE(5y)7.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
UVE's Profit Margin of 4.23% is on the low side compared to the rest of the industry. UVE is outperformed by 66.44% of its industry peers.
UVE's Profit Margin has declined in the last couple of years.
The Operating Margin of UVE (6.22%) is worse than 69.86% of its industry peers.
In the last couple of years the Operating Margin of UVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.22% | ||
| PM (TTM) | 4.23% | ||
| GM | N/A |
OM growth 3Y32.18%
OM growth 5Y-2.45%
PM growth 3Y28.68%
PM growth 5Y-4.78%
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), UVE is destroying value.
UVE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for UVE has been reduced compared to 5 years ago.
UVE has a better debt/assets ratio than last year.
2.2 Solvency
UVE has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
UVE's Debt to FCF ratio of 0.38 is amongst the best of the industry. UVE outperforms 84.93% of its industry peers.
UVE has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.22, UVE is doing good in the industry, outperforming 67.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC8.2%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
UVE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.10%.
The Earnings Per Share has been growing by 10.18% on average over the past years. This is quite good.
Looking at the last year, UVE shows a small growth in Revenue. The Revenue has grown by 5.64% in the last year.
Measured over the past years, UVE shows a quite strong growth in Revenue. The Revenue has been growing by 10.11% on average per year.
EPS 1Y (TTM)-13.1%
EPS 3Y44.23%
EPS 5Y10.18%
EPS Q2Q%4.24%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y10.67%
Revenue growth 5Y10.11%
Sales Q2Q%16%
3.2 Future
The Earnings Per Share is expected to grow by 25.93% on average over the next years. This is a very strong growth
Based on estimates for the next years, UVE will show a small growth in Revenue. The Revenue will grow by 6.44% on average per year.
EPS Next Y46.36%
EPS Next 2Y29.19%
EPS Next 3Y25.93%
EPS Next 5YN/A
Revenue Next Year14.4%
Revenue Next 2Y6.44%
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.
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
With a Price/Earnings ratio of 11.63, the valuation of UVE can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as UVE.
UVE is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.62 indicates a reasonable valuation of UVE.
UVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UVE is cheaper than 67.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. UVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
UVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UVE is cheaper than 83.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UVE is valued cheaply inside the industry as 86.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.7 | ||
| EV/EBITDA | 4.39 |
4.3 Compensation for Growth
UVE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UVE's earnings are expected to grow with 25.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)1.14
EPS Next 2Y29.19%
EPS Next 3Y25.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.63%, UVE has a reasonable but not impressive dividend return.
UVE's Dividend Yield is a higher than the industry average which is at 3.24.
Compared to an average S&P500 Dividend Yield of 2.32, UVE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of UVE has a limited annual growth rate of 0.21%.
UVE has been paying a dividend for at least 10 years, so it has a reliable track record.
UVE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
33.76% of the earnings are spent on dividend by UVE. This is a low number and sustainable payout ratio.
The dividend of UVE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.76%
EPS Next 2Y29.19%
EPS Next 3Y25.93%
25.46
+0.62 (+2.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners73.09%
Inst Owner Change3.8%
Ins Owners6.92%
Ins Owner Change5.64%
Market Cap721.03M
Analysts76.67
Price Target29.58 (16.18%)
Short Float %2.31%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend0.78
Dividend Growth(5Y)0.21%
DP33.76%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.94%
Min EPS beat(2)8.73%
Max EPS beat(2)13.15%
EPS beat(4)4
Avg EPS beat(4)59.55%
Min EPS beat(4)8.73%
Max EPS beat(4)191.21%
EPS beat(8)8
Avg EPS beat(8)46.15%
EPS beat(12)12
Avg EPS beat(12)53.46%
EPS beat(16)16
Avg EPS beat(16)43.85%
Revenue beat(2)2
Avg Revenue beat(2)10.1%
Min Revenue beat(2)10.06%
Max Revenue beat(2)10.14%
Revenue beat(4)4
Avg Revenue beat(4)7.34%
Min Revenue beat(4)0.1%
Max Revenue beat(4)10.14%
Revenue beat(8)8
Avg Revenue beat(8)6.13%
Revenue beat(12)11
Avg Revenue beat(12)5.46%
Revenue beat(16)14
Avg Revenue beat(16)4.82%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-10.34%
EPS NQ rev (3m)-36.17%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 8.62 | ||
| P/S | 0.46 | ||
| P/FCF | 2.7 | ||
| P/OCF | 2.63 | ||
| P/B | 1.57 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 4.39 |
EPS(TTM)2.19
EY8.6%
EPS(NY)2.95
Fwd EY11.6%
FCF(TTM)9.42
FCFY37%
OCF(TTM)9.68
OCFY38.04%
SpS55.35
BVpS16.17
TBVpS16.17
PEG (NY)0.25
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 14.5% | ||
| ROCE | 3.04% | ||
| ROIC | 2.21% | ||
| ROICexc | 2.5% | ||
| ROICexgc | 3.98% | ||
| OM | 6.22% | ||
| PM (TTM) | 4.23% | ||
| GM | N/A | ||
| FCFM | 17.02% |
ROA(3y)1.4%
ROA(5y)1.25%
ROE(3y)9.21%
ROE(5y)7.32%
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 3Y37.31%
ROICexcg growth 5Y0.06%
ROICexc growth 3Y30%
ROICexc growth 5Y-3.1%
OM growth 3Y32.18%
OM growth 5Y-2.45%
PM growth 3Y28.68%
PM growth 5Y-4.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 122.95% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 264.66% | ||
| Profit Quality | 401.88% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.2%
ROIC/WACC0.27
Cap/Depr(3y)95.91%
Cap/Depr(5y)145.86%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.1%
EPS 3Y44.23%
EPS 5Y10.18%
EPS Q2Q%4.24%
EPS Next Y46.36%
EPS Next 2Y29.19%
EPS Next 3Y25.93%
EPS Next 5YN/A
Revenue 1Y (TTM)5.64%
Revenue growth 3Y10.67%
Revenue growth 5Y10.11%
Sales Q2Q%16%
Revenue Next Year14.4%
Revenue Next 2Y6.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.65%
EBIT growth 3Y46.28%
EBIT growth 5Y7.41%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y173.6%
FCF growth 3Y-17.58%
FCF growth 5Y11.94%
OCF growth 1Y172.91%
OCF growth 3Y-16.32%
OCF growth 5Y10.18%