NasdaqGM:FNHC

Stock Analysis Report

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Executive Summary

FedNat Holding Company, through its subsidiaries, engages in the insurance underwriting, distribution, and claims processing business in Florida, Louisiana, South Carolina, Texas, and Alabama.


Snowflake Analysis

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has FedNat Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.6%

FNHC

3.7%

US Insurance

3.0%

US Market


1 Year Return

-7.9%

FNHC

-16.4%

US Insurance

9.9%

US Market

Return vs Industry: FNHC exceeded the US Insurance industry which returned -15.4% over the past year.

Return vs Market: FNHC underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

FNHCIndustryMarket
7 Day1.6%3.7%3.0%
30 Day3.1%7.2%8.2%
90 Day-0.08%-15.3%0.4%
1 Year-5.4%-7.9%-14.2%-16.4%12.4%9.9%
3 Year-18.5%-23.5%0.5%-7.5%31.0%22.3%
5 Year-46.5%-50.8%30.2%14.1%58.1%40.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is FedNat Holding undervalued compared to its fair value and its price relative to the market?

23.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FNHC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FNHC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FNHC is poor value based on its PE Ratio (23.2x) compared to the Insurance industry average (13.5x).

PE vs Market: FNHC is poor value based on its PE Ratio (23.2x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: FNHC is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: FNHC is good value based on its PB Ratio (0.7x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

78.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FNHC's forecast earnings growth (78.4% per year) is above the savings rate (2.2%).

Earnings vs Market: FNHC's earnings (78.4% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: FNHC's revenue (11.8% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: FNHC's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FNHC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FedNat Holding performed over the past 5 years?

-41.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FNHC has high quality earnings.

Growing Profit Margin: FNHC's current net profit margins (1.6%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: FNHC's earnings have declined by -41.9% per year over the past 5 years.

Accelerating Growth: FNHC's earnings growth over the past year (95.7%) exceeds its 5-year average (-41.9% per year).

Earnings vs Industry: FNHC earnings growth over the past year (95.7%) exceeded the Insurance industry -0.4%.


Return on Equity

High ROE: FNHC's Return on Equity (2.9%) is considered low.


Next Steps

Financial Health

How is FedNat Holding's financial position?


Financial Position Analysis

Short Term Liabilities: FNHC's short term assets ($514.5M) exceed its short term liabilities ($421.3M).

Long Term Liabilities: FNHC's short term assets ($514.5M) do not cover its long term liabilities ($516.6M).


Debt to Equity History and Analysis

Debt Level: FNHC's debt to equity ratio (41.2%) is considered high.

Reducing Debt: FNHC's debt to equity ratio has increased from 2.3% to 41.2% over the past 5 years.

Debt Coverage: FNHC's debt is well covered by operating cash flow (64.4%).

Interest Coverage: FNHC's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

What is FedNat Holding's current dividend yield, its reliability and sustainability?

2.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FNHC's dividend (2.95%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: FNHC's dividend (2.95%) is low compared to the top 25% of dividend payers in the US market (4.52%).


Stability and Growth of Payments

Stable Dividend: FNHC's dividend payments have been volatile in the past 10 years.

Growing Dividend: FNHC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.6%), FNHC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average management tenure


CEO

Michael Braun (52yo)

11.92yrs

Tenure

US$1,716,800

Compensation

Mr. Michael H. Braun has been the Chief Executive Officer of FedNat Holding Company (formerly known as Federated National Holding Company) (21st Century Holding Co.) since July 1, 2008 and has been its Pre ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.72M) is about average for companies of similar size in the US market ($USD1.38M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Braun
President11.92yrsUS$1.72m4.73% $7.9m
Ronald Jordan
Chief Financial Officer3.17yrsUS$606.05k0.35% $578.4k
Erick Fernandez
Chief Accounting Officer & Treasurer3.17yrsUS$252.97k0.097% $162.1k
James Jennings
VP of Risk Management & Corporate Secretaryno dataUS$196.62kno data
C. Turnau
President of Federated National Adjusting Inc13.92yrsno datano data

7.5yrs

Average Tenure

52yo

Average Age

Experienced Management: FNHC's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Braun
President11.92yrsUS$1.72m4.73% $7.9m
Bruce Simberg
Independent Chairman of the Board4.42yrsUS$220.74k3.77% $6.3m
William Stewart
Independent Director4.67yrsUS$197.12k0.20% $338.9k
David Patterson
Independent Director0.67yrUS$39.38k0.085% $141.3k
Richard Wilcox
Lead Independent Director 5.17yrsUS$199.74k1.31% $2.2m
David Michelson
Independent Director0.67yrUS$39.38k0.085% $141.3k
Jenifer Kimbrough
Independent Director11.17yrsUS$199.74k0.20% $338.7k
Thomas Rogers
Independent Director4.67yrsUS$194.49k0.20% $338.9k
Roberta Young
Independent Director2.75yrsUS$178.74k0.16% $265.5k

4.7yrs

Average Tenure

67yo

Average Age

Experienced Board: FNHC's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.


Top Shareholders

Company Information

FedNat Holding Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FedNat Holding Company
  • Ticker: FNHC
  • Exchange: NasdaqGM
  • Founded: 1991
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$166.678m
  • Shares outstanding: 13.67m
  • Website: https://www.fednat.com

Number of Employees


Location

  • FedNat Holding Company
  • 14050 N.W. 14th Street
  • Suite 180
  • Sunrise
  • Florida
  • 33323
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNHCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 1998

Biography

FedNat Holding Company, through its subsidiaries, engages in the insurance underwriting, distribution, and claims processing business in Florida, Louisiana, South Carolina, Texas, and Alabama. The company is involved in the homeowners, and fire property and casualty insurance; and personal automobile insurance businesses, as well as commercial general liability and federal flood businesses. It markets and distributes its own and third-party insurers’ products, and other services through a network of independent and general agents. The company was formerly known as Federated National Holding Company and changed its name to FedNat Holding Company in May 2018. FedNat Holding Company was founded in 1991 and is based in Sunrise, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 02:31
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.