UNIVERSAL INSURANCE HOLDINGS (UVE) Stock Fundamental Analysis
USA - NYSE:UVE - US91359V1070 - Common Stock
33.61 USD
+0.84 (+2.56%)
33.61 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to UVE. UVE was compared to 146 industry peers in the Insurance industry. UVE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
UVE had positive earnings in 4 of the past 5 years.
UVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UVE has a Return On Assets (2.03%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 14.50%, UVE is in the better half of the industry, outperforming 68.49% of the companies in the same industry.
UVE has a Return On Invested Capital (2.21%) which is comparable to the rest of the industry.
| 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
Looking at the Profit Margin, with a value of 4.23%, UVE is doing worse than 70.55% of the companies in the same industry.
In the last couple of years the Profit Margin of UVE has declined.
UVE has a worse Operating Margin (6.22%) than 71.92% of its industry peers.
UVE's Operating Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for UVE has been reduced compared to 1 year ago.
UVE has less shares outstanding than it did 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.
With an excellent Debt to FCF ratio value of 0.38, UVE belongs to the best of the industry, outperforming 85.62% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that UVE is not too dependend on debt financing.
UVE has a Debt to Equity ratio of 0.22. This is in the better half of the industry: UVE outperforms 67.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC8.25%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 120.51% over the past year.
Measured over the past years, UVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.18% on average per year.
UVE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.27%.
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)120.51%
EPS 3Y44.23%
EPS 5Y10.18%
EPS Q2Q%289.04%
Revenue 1Y (TTM)9.27%
Revenue growth 3Y10.67%
Revenue growth 5Y10.11%
Sales Q2Q%4.03%
3.2 Future
UVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.93% yearly.
UVE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.44% yearly.
EPS Next Y147.65%
EPS Next 2Y27.75%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
UVE is valuated cheaply with a Price/Earnings ratio of 7.82.
Compared to the rest of the industry, the Price/Earnings ratio of UVE indicates a somewhat cheap valuation: UVE is cheaper than 71.92% of the companies listed in the same industry.
UVE is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
UVE is valuated reasonably with a Price/Forward Earnings ratio of 11.64.
UVE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of UVE to the average of the S&P500 Index (32.68), we can say UVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UVE indicates a somewhat cheap valuation: UVE is cheaper than 69.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UVE is valued a bit cheaper than 78.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.57 | ||
| EV/EBITDA | 6.39 |
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)0.05
PEG (5Y)0.77
EPS Next 2Y27.75%
EPS Next 3Y25.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, UVE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.33, UVE has a dividend in line with its industry peers.
UVE's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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.
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 33.76% 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.
DP33.76%
EPS Next 2Y27.75%
EPS Next 3Y25.93%
33.61
+0.84 (+2.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners75.61%
Inst Owner Change-0.43%
Ins Owners6.68%
Ins Owner Change4.63%
Market Cap951.84M
Revenue(TTM)1.52B
Net Income(TTM)66.38M
Analysts80
Price Target35.7 (6.22%)
Short Float %1.31%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)20.69%
PT rev (3m)20.69%
EPS NQ rev (1m)289.65%
EPS NQ rev (3m)289.65%
EPS NY rev (1m)65.02%
EPS NY rev (3m)68.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 11.64 | ||
| P/S | 0.61 | ||
| P/FCF | 3.57 | ||
| P/OCF | 3.47 | ||
| P/B | 2.08 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 6.39 |
EPS(TTM)4.3
EY12.79%
EPS(NY)2.89
Fwd EY8.59%
FCF(TTM)9.42
FCFY28.03%
OCF(TTM)9.68
OCFY28.82%
SpS55.35
BVpS16.17
TBVpS16.17
PEG (NY)0.05
PEG (5Y)0.77
Graham Number39.55
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
ROICexgc growth 3Y37.31%
ROICexgc 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
WACC8.25%
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)120.51%
EPS 3Y44.23%
EPS 5Y10.18%
EPS Q2Q%289.04%
EPS Next Y147.65%
EPS Next 2Y27.75%
EPS Next 3Y25.93%
EPS Next 5YN/A
Revenue 1Y (TTM)9.27%
Revenue growth 3Y10.67%
Revenue growth 5Y10.11%
Sales Q2Q%4.03%
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%
UNIVERSAL INSURANCE HOLDINGS / UVE FAQ
What is the fundamental rating for UVE stock?
ChartMill assigns a fundamental rating of 5 / 10 to UVE.
What is the valuation status of UNIVERSAL INSURANCE HOLDINGS (UVE) stock?
ChartMill assigns a valuation rating of 7 / 10 to UNIVERSAL INSURANCE HOLDINGS (UVE). This can be considered as Undervalued.
Can you provide the profitability details for UNIVERSAL INSURANCE HOLDINGS?
UNIVERSAL INSURANCE HOLDINGS (UVE) has a profitability rating of 3 / 10.
How financially healthy is UNIVERSAL INSURANCE HOLDINGS?
The financial health rating of UNIVERSAL INSURANCE HOLDINGS (UVE) is 4 / 10.
What is the expected EPS growth for UNIVERSAL INSURANCE HOLDINGS (UVE) stock?
The Earnings per Share (EPS) of UNIVERSAL INSURANCE HOLDINGS (UVE) is expected to grow by 147.65% in the next year.