UNIVERSAL INSURANCE HOLDINGS (UVE) Stock Fundamental Analysis
NYSE:UVE - New York Stock Exchange, Inc. - US91359V1070 - Common Stock - Currency: USD
Overall UVE gets a fundamental rating of 5 out of 10. We evaluated UVE against 143 industry peers in the Insurance industry. While UVE seems to be doing ok healthwise, 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.
In the past year UVE had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.46%, UVE is in line with its industry, outperforming 57.34% of the companies in the same industry.
With a decent Return On Equity value of 15.79%, UVE is doing good in the industry, outperforming 73.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.74%, UVE is in line with its industry, outperforming 57.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 15.79% | ||
| ROIC | 2.74% |
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 has a Profit Margin of 4.31%. This is in the lower half of the industry: UVE underperforms 67.13% of its industry peers.
UVE's Profit Margin has declined in the last couple of years.
UVE has a Operating Margin of 6.40%. This is in the lower half of the industry: UVE underperforms 66.43% of its industry peers.
UVE's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | 4.31% | ||
| 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
UVE 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 UVE has been reduced compared to 1 year ago.
The number of shares outstanding for UVE has been reduced compared to 5 years ago.
The debt/assets ratio for UVE has been reduced compared to a year ago.
2.2 Solvency
UVE has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.44, UVE is in the better half of the industry, outperforming 79.72% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that UVE is not too dependend on debt financing.
UVE has a better Debt to Equity ratio (0.24) than 67.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC8.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for UVE have decreased by -3.17% in the last year.
The Earnings Per Share has been growing by 10.18% on average over the past years. This is quite good.
UVE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.24%.
UVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.11% yearly.
EPS 1Y (TTM)-3.17%
EPS 3Y44.23%
EPS 5Y10.18%
EPS Q2Q%34.58%
Revenue 1Y (TTM)7.24%
Revenue growth 3Y10.67%
Revenue growth 5Y10.11%
Sales Q2Q%8.2%
3.2 Future
Based on estimates for the next years, UVE will show a very strong growth in Earnings Per Share. The EPS will grow by 29.19% on average per year.
UVE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.99% yearly.
EPS Next Y46.94%
EPS Next 2Y29.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.08%
Revenue Next 2Y5.99%
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
With a Price/Earnings ratio of 12.01, UVE is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as UVE.
The average S&P500 Price/Earnings ratio is at 24.85. UVE is valued rather cheaply when compared to this.
UVE is valuated reasonably with a Price/Forward Earnings ratio of 8.70.
UVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UVE is cheaper than 64.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.89. UVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
UVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UVE is cheaper than 83.92% of the companies in the same industry.
82.52% of the companies in the same industry are more expensive than UVE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.11 | ||
| EV/EBITDA | 4.07 |
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.
A more expensive valuation may be justified as UVE's earnings are expected to grow with 29.19% in the coming years.
PEG (NY)0.26
PEG (5Y)1.18
EPS Next 2Y29.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UVE has a Yearly Dividend Yield of 2.52%.
UVE's Dividend Yield is a higher than the industry average which is at 3.19.
Compared to an average S&P500 Dividend Yield of 2.40, UVE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
The dividend of UVE has a limited annual growth rate of 0.21%.
UVE has paid a dividend for at least 10 years, which is a reliable track record.
As UVE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.21%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
UVE pays out 33.78% of its income as dividend. This is a sustainable payout ratio.
UVE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.78%
EPS Next 2Y29.19%
EPS Next 3YN/A
25.71
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.8%
Inst Owner Change2.78%
Ins Owners5.5%
Ins Owner Change-1.69%
Market Cap724.76M
Analysts76.67
Price Target29.58 (15.05%)
Short Float %1.31%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend0.78
Dividend Growth(5Y)0.21%
DP33.78%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)102.18%
Min EPS beat(2)13.15%
Max EPS beat(2)191.21%
EPS beat(4)4
Avg EPS beat(4)60.86%
Min EPS beat(4)13.15%
Max EPS beat(4)191.21%
EPS beat(8)8
Avg EPS beat(8)46.64%
EPS beat(12)12
Avg EPS beat(12)54.34%
EPS beat(16)16
Avg EPS beat(16)44.24%
Revenue beat(2)2
Avg Revenue beat(2)9.61%
Min Revenue beat(2)9.08%
Max Revenue beat(2)10.14%
Revenue beat(4)4
Avg Revenue beat(4)4.93%
Min Revenue beat(4)0.1%
Max Revenue beat(4)10.14%
Revenue beat(8)8
Avg Revenue beat(8)5.04%
Revenue beat(12)11
Avg Revenue beat(12)5.08%
Revenue beat(16)14
Avg Revenue beat(16)4.77%
PT rev (1m)7.41%
PT rev (3m)7.41%
EPS NQ rev (1m)11.4%
EPS NQ rev (3m)6.72%
EPS NY rev (1m)0%
EPS NY rev (3m)13.19%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)12.15%
Revenue NY rev (1m)3.16%
Revenue NY rev (3m)15.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 8.7 | ||
| P/S | 0.47 | ||
| P/FCF | 3.11 | ||
| P/OCF | 3 | ||
| P/B | 1.72 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 4.07 |
EPS(TTM)2.14
EY8.32%
EPS(NY)2.95
Fwd EY11.49%
FCF(TTM)8.27
FCFY32.17%
OCF(TTM)8.56
OCFY33.28%
SpS54.89
BVpS14.98
TBVpS14.98
PEG (NY)0.26
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 15.79% | ||
| ROCE | 3.77% | ||
| ROIC | 2.74% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 4.42% | ||
| OM | 6.4% | ||
| PM (TTM) | 4.31% | ||
| GM | N/A | ||
| FCFM | 15.07% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 131.78% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 229.36% | ||
| Profit Quality | 349.55% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.41%
ROIC/WACC0.33
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)-3.17%
EPS 3Y44.23%
EPS 5Y10.18%
EPS Q2Q%34.58%
EPS Next Y46.94%
EPS Next 2Y29.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.24%
Revenue growth 3Y10.67%
Revenue growth 5Y10.11%
Sales Q2Q%8.2%
Revenue Next Year11.08%
Revenue Next 2Y5.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.49%
EBIT growth 3Y46.28%
EBIT growth 5Y7.41%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-21.74%
FCF growth 3Y-17.58%
FCF growth 5Y11.94%
OCF growth 1Y-19.94%
OCF growth 3Y-16.32%
OCF growth 5Y10.18%