UNIVERSAL INSURANCE HOLDINGS (UVE) Stock Fundamental Analysis
NYSE:UVE - New York Stock Exchange, Inc. - US91359V1070 - Common Stock - Currency: USD
UVE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 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 is not valued too expensively and it also shows a decent growth rate.
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's Return On Assets of 2.46% is in line compared to the rest of the industry. UVE outperforms 56.64% of its industry peers.
UVE's Return On Equity of 15.79% is fine compared to the rest of the industry. UVE outperforms 76.92% of its industry peers.
UVE has a Return On Invested Capital of 2.74%. This is in the better half of the industry: UVE outperforms 60.14% of 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 64.34% of the companies in the same industry.
In the last couple of years the Profit Margin of UVE has declined.
UVE's Operating Margin of 6.40% is on the low side compared to the rest of the industry. UVE is outperformed by 69.23% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UVE 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 79.02% of its industry peers.
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 67.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC8.4%
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.
UVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.18% yearly.
Looking at the last year, UVE shows a small growth in Revenue. The Revenue has grown by 7.24% 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)-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
UVE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.19% yearly.
Based on estimates for the next years, UVE will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
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
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 correctly with a Price/Earnings ratio of 12.68.
The rest of the industry has a similar Price/Earnings ratio as UVE.
UVE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
UVE is valuated reasonably with a Price/Forward Earnings ratio of 9.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UVE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of UVE to the average of the S&P500 Index (22.15), we can say UVE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 9.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UVE indicates a rather cheap valuation: UVE is cheaper than 83.22% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UVE indicates a somewhat cheap valuation: UVE is cheaper than 78.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.28 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
The 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 29.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)1.25
EPS Next 2Y29.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UVE has a Yearly Dividend Yield of 2.38%.
UVE's Dividend Yield is a higher than the industry average which is at 3.20.
Compared to an average S&P500 Dividend Yield of 2.38, UVE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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.
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
27.14
+0.22 (+0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.8%
Inst Owner Change7.29%
Ins Owners5.5%
Ins Owner Change-1.79%
Market Cap763.72M
Analysts76.67
Price Target29.58 (8.99%)
Short Float %1.31%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)16.51%
EPS NQ rev (3m)11.4%
EPS NY rev (1m)0%
EPS NY rev (3m)13.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)3.16%
Revenue NY rev (3m)15.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 9.19 | ||
| P/S | 0.49 | ||
| P/FCF | 3.28 | ||
| P/OCF | 3.17 | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 4.44 |
EPS(TTM)2.14
EY7.89%
EPS(NY)2.95
Fwd EY10.89%
FCF(TTM)8.29
FCFY30.53%
OCF(TTM)8.57
OCFY31.58%
SpS54.99
BVpS15.01
TBVpS15.01
PEG (NY)0.27
PEG (5Y)1.25
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
WACC8.4%
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%