Heritage Insurance Holdings, Inc. Fundamental Analysis
Heritage Insurance Holdings, Inc. Fundamental Analysis
Heritage Insurance Holdings, Inc. (HRTG) shows strong financial fundamentals with a PE ratio of 3.35, profit margin of 25.99%, and ROE of 43.68%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 3.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HRTG's fundamental strength across five key dimensions:
Efficiency Score
WeakHRTG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHRTG trades at attractive valuation levels.
Growth Score
WeakHRTG faces weak or negative growth trends.
Financial Health Score
ModerateHRTG shows balanced financial health with some risks.
Profitability Score
ExcellentHRTG achieves industry-leading margins.
Key Financial Metrics
Is HRTG Expensive or Cheap?
P/E Ratio
HRTG trades at 3.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HRTG's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Heritage Insurance Holdings, Inc. at 1.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.76 times EBITDA. This is generally considered low.
How Well Does HRTG Make Money?
Net Profit Margin
For every $100 in sales, Heritage Insurance Holdings, Inc. keeps $25.99 as profit after all expenses.
Operating Margin
Core operations generate 34.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $43.68 in profit for every $100 of shareholder equity.
ROA
Heritage Insurance Holdings, Inc. generates $9.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heritage Insurance Holdings, Inc. generates strong operating cash flow of $204.04M, reflecting robust business health.
Free Cash Flow
Heritage Insurance Holdings, Inc. generates strong free cash flow of $198.65M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.55 in free cash annually.
FCF Yield
HRTG converts 30.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.44
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.49
vs 25 benchmark
How HRTG Stacks Against Its Sector Peers
| Metric | HRTG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.35 | 19.38 | Better (Cheaper) |
| ROE | 43.68% | 804.00% | Weak |
| Net Margin | 25.99% | -7623.00% (disorted) | Strong |
| Debt/Equity | 0.19 | 1.07 | Strong (Low Leverage) |
| Current Ratio | 0.81 | 609.22 | Weak Liquidity |
| ROA | 9.98% | -20946.00% (disorted) | Weak |
HRTG outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Heritage Insurance Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.33%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
1799.58%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-3.03%
Industry Style: Value, Dividend, Cyclical
Declining