DB:0H5

Stock Analysis Report

Executive Summary

HCI Group, Inc. engages in the property and casualty insurance, reinsurance, real estate, and information technology businesses in Florida.


Snowflake Analysis

High growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has HCI Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0H5 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.7%

0H5

0.4%

DE Insurance

0.06%

DE Market


1 Year Return

-2.1%

0H5

27.1%

DE Insurance

14.8%

DE Market

Return vs Industry: 0H5 underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: 0H5 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

0H5IndustryMarket
7 Day6.7%0.4%0.06%
30 Day-1.4%0.3%1.8%
90 Day13.0%4.5%7.1%
1 Year1.6%-2.1%32.7%27.1%18.4%14.8%
3 Year23.9%11.3%64.7%44.8%17.4%7.0%
5 Year20.5%1.5%95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

How volatile is HCI Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is HCI Group undervalued compared to its fair value and its price relative to the market?

30.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0H5 (€40.6) is trading above our estimate of fair value (€35.46)

Significantly Below Fair Value: 0H5 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0H5 is poor value based on its PE Ratio (30.5x) compared to the Insurance industry average (11.9x).

PE vs Market: 0H5 is poor value based on its PE Ratio (30.5x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0H5 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 0H5 is overvalued based on its PB Ratio (1.9x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is HCI Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

31.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0H5's forecast earnings growth (53.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: 0H5's earnings (53.9% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0H5's revenue (9.3% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 0H5's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0H5's Return on Equity is forecast to be high in 3 years time (20.4%)


Next Steps

Past Performance

How has HCI Group performed over the past 5 years?

-39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0H5 has high quality earnings.

Growing Profit Margin: 0H5's current net profit margins (4.9%) are lower than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: 0H5's earnings have declined by -39.2% per year over the past 5 years.

Accelerating Growth: 0H5's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0H5 had negative earnings growth (-69.6%) over the past year, making it difficult to compare to the Insurance industry average (7.8%).


Return on Equity

High ROE: 0H5's Return on Equity (6.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HCI Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0H5 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0H5's debt is covered by short term assets (assets are 2.7x debt).


Financial Institutions Analysis

Asset Level: 0H5's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0H5 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0H5 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0H5 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0H5 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0H5 has an appropriate level of bad loans.


Next Steps

Dividend

What is HCI Group's current dividend yield, its reliability and sustainability?

3.48%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: 0H5's dividend (3.54%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 0H5's dividend (3.53%) is low compared to the top 25% of dividend payers in the German market (3.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0H5 has been paying a dividend for less than 10 years.

Growing Dividend: 0H5's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106.1%), 0H5's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0H5's dividends in 3 years are forecast to be well covered by earnings (38.6% payout ratio).


Next Steps

Management

What is the CEO of HCI Group's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Paresh Patel (56yo)

8.5yrs

Tenure

US$4,262,719

Compensation

Mr. Pareshbhai Suryakant Patel, also known as Paresh, co-founded HCI Group, Inc. in November 2006 and has been Chief Executive Officer since July 1, 2011. Mr. Patel serves as Executive Chairman of the Boar ...


CEO Compensation Analysis

Compensation vs Market: Paresh's total compensation ($USD4.26M) is above average for companies of similar size in the German market ($USD817.80K).

Compensation vs Earnings: Paresh's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

57yo

Average Age

Experienced Management: 0H5's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 0H5's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: 0H5 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€61,95327 Nov 19
James Macchiarola
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max Price€41.30
Buy€179,78014 Nov 19
Robert Burks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,400
Max Price€40.86
Buy€18,07122 Aug 19
Susan Watts
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares474
Max Price€38.12
Sell€201,50913 Aug 19
James Harmsworth
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,500
Max Price€36.64
Buy€34,59810 Jun 19
Loreen Spencer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares950
Max Price€36.42
Buy€144,59116 Apr 19
Gregory Politis
EntityIndividual
Role
Lead Director
Co-Founder & Lead Independent Director
Shares4,000
Max Price€36.15
Buy€255,11214 Mar 19
Pareshbhai Patel
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares7,000
Max Price€36.44

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Andrew Graham (61yo)

    VP, General Counsel & Company Secretary

    • Tenure: 11.6yrs
    • Compensation: US$508.52k
  • Gregory Politis (66yo)

    Co-Founder & Lead Independent Director

    • Tenure: 3yrs
    • Compensation: US$117.70k
  • Anthony Saravanos (48yo)

    President of Real Estate Division & Director

    • Tenure: 12.7yrs
    • Compensation: US$472.54k
  • Paresh Patel (56yo)

    Co-Founder

    • Tenure: 8.5yrs
    • Compensation: US$4.26m
  • James Harmsworth (55yo)

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: US$621.57k
  • Karin Coleman (58yo)

    Executive Vice President

    • Tenure: 2.1yrs
    • Compensation: US$480.92k
  • Kevin Mitchell

    Senior Vice President of Investor Relations

    • Tenure: 5yrs

Board Members

  • Jim Macchiarola (70yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$117.70k
  • Robert Burks (71yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$117.70k
  • George Apostolou (68yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$117.70k
  • Jay Madhu (53yo)

    Director

    • Tenure: 12.7yrs
    • Compensation: US$117.70k
  • Gregory Politis (66yo)

    Co-Founder & Lead Independent Director

    • Tenure: 3yrs
    • Compensation: US$117.70k
  • Anthony Saravanos (48yo)

    President of Real Estate Division & Director

    • Tenure: 12.7yrs
    • Compensation: US$472.54k
  • Paresh Patel (56yo)

    Co-Founder

    • Tenure: 8.5yrs
    • Compensation: US$4.26m
  • Sue Watts (57yo)

    Independent Director

    • Tenure: 0.8yrs
  • Harish Patel (62yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$117.70k
  • Loreen Spencer (53yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

HCI Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HCI Group, Inc.
  • Ticker: 0H5
  • Exchange: DB
  • Founded: 2006
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$368.608m
  • Listing Market Cap: US$332.300m
  • Shares outstanding: 8.02m
  • Website: https://www.hcigroup.com

Number of Employees


Location

  • HCI Group, Inc.
  • 5300 West Cypress Street
  • Suite 100
  • Tampa
  • Florida
  • 33607
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCINYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2008
0H5DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2008
0J22LSE (London Stock Exchange)YesCommon StockGBUSDSep 2008

Biography

HCI Group, Inc. engages in the property and casualty insurance, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners insurance, flood insurance, and wind-only insurance to homeowners, condominium owners, and tenants, as well as offers reinsurance programs. The company also owns and operates one full-service restaurant, two marinas, three retail shopping centers, one office building, and one vacant shopping center for investment purposes. In addition, it designs and develops Web-based applications and products for mobile devices. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was founded in 2006 and is headquartered in Tampa, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 21:29
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.