UNIVERSAL INSURANCE HOLDINGS (UVE) Stock Fundamental Analysis
NYSE:UVE - New York Stock Exchange, Inc. - US91359V1070 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to UVE. UVE was compared to 145 industry peers in the Insurance industry. While UVE seems to be doing ok healthwise, there are quite some concerns on its profitability. UVE may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
UVE had positive earnings in the past year.
In the past year UVE had a positive cash flow from operations.
Of the past 5 years UVE 4 years were profitable.
Each year in the past 5 years UVE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UVE (2.46%) is comparable to the rest of the industry.
The Return On Equity of UVE (15.79%) is better than 77.24% of its industry peers.
UVE has a Return On Invested Capital (2.74%) which is in line with its industry peers.
| 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
Looking at the Profit Margin, with a value of 4.31%, UVE is doing worse than 63.45% of the companies in the same industry.
UVE's Profit Margin has declined in the last couple of years.
UVE's Operating Margin of 6.40% is on the low side compared to the rest of the industry. UVE is outperformed by 68.97% of its industry peers.
In the last couple of years the Operating Margin of UVE has declined.
| 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.
Compared to 1 year ago, UVE has less shares outstanding
Compared to 5 years ago, UVE has less shares outstanding
The debt/assets ratio for UVE has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of UVE is 0.44, which is an excellent value as it means it would take UVE, only 0.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UVE (0.44) is better than 79.31% of its industry peers.
UVE has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
UVE has a Debt to Equity ratio of 0.24. This is in the better half of the industry: UVE outperforms 66.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC8.34%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
UVE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.17%.
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 7.24% in the last year.
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.
The Revenue is expected to grow by 5.99% on average over the next years.
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
UVE is valuated reasonably with a Price/Earnings ratio of 11.07.
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 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.02 indicates a reasonable valuation of UVE.
66.21% of the companies in the same industry are more expensive than UVE, based on the Price/Forward Earnings ratio.
UVE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 8.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UVE is valued cheaper than 84.83% of the companies in the same industry.
UVE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UVE is cheaper than 81.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.86 | ||
| EV/EBITDA | 3.52 |
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)0.24
PEG (5Y)1.09
EPS Next 2Y29.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UVE has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.67, UVE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, 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
UVE pays out 33.78% of its income as dividend. This is a sustainable payout ratio.
The dividend of UVE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.78%
EPS Next 2Y29.19%
EPS Next 3YN/A
23.7
-0.61 (-2.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners72.19%
Inst Owner Change0%
Ins Owners5.3%
Ins Owner Change-1.66%
Market Cap666.92M
Analysts76.67
Price Target29.58 (24.81%)
Short Float %1.3%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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)0%
PT rev (3m)7.41%
EPS NQ rev (1m)-11.81%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 8.02 | ||
| P/S | 0.43 | ||
| P/FCF | 2.86 | ||
| P/OCF | 2.76 | ||
| P/B | 1.58 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 3.52 |
EPS(TTM)2.14
EY9.03%
EPS(NY)2.95
Fwd EY12.47%
FCF(TTM)8.29
FCFY34.96%
OCF(TTM)8.57
OCFY36.17%
SpS54.99
BVpS15.01
TBVpS15.01
PEG (NY)0.24
PEG (5Y)1.09
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
WACC8.34%
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%