NasdaqGM:HALL

Stock Analysis Report

Hallmark Financial Services

Executive Summary

Hallmark Financial Services, Inc., through its subsidiaries, underwrites, markets, distributes, and services property/casualty insurance products to businesses and individuals in the United States.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • Hallmark Financial Services has significant price volatility in the past 3 months.
  • Hallmark Financial Services is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Hallmark Financial Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.2%

NasdaqGM:HALL

-1.1%

US Insurance

0.2%

US Market


1 Year Return

56.8%

NasdaqGM:HALL

7.1%

US Insurance

-0.7%

US Market

HALL outperformed the Insurance industry which returned 7.1% over the past year.

HALL outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

HALLIndustryMarket
7 Day4.2%-1.1%0.2%
30 Day19.0%-3.0%-2.7%
90 Day43.5%0.8%1.6%
1 Year56.8%56.8%9.7%7.1%1.6%-0.7%
3 Year64.7%64.7%44.1%33.2%40.0%30.9%
5 Year79.7%79.7%63.8%44.3%53.8%36.8%

Price Volatility Vs. Market

How volatile is Hallmark Financial Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hallmark Financial Services undervalued based on future cash flows and its price relative to the stock market?

9.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Hallmark Financial Services to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Hallmark Financial Services to establish if it is available at substantial discount.


Price Based on Earnings

Hallmark Financial Services is good value based on earnings compared to the US Insurance industry average.

Hallmark Financial Services is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Hallmark Financial Services earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Hallmark Financial Services is good value based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is Hallmark Financial Services expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hallmark Financial Services's revenue is expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).

Hallmark Financial Services's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Hallmark Financial Services's revenue growth is expected to exceed the United States of America market average.

Hallmark Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Hallmark Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hallmark Financial Services will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hallmark Financial Services performed over the past 5 years?

-14.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hallmark Financial Services's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Hallmark Financial Services has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Hallmark Financial Services has become profitable in the last year making it difficult to compare the US Insurance industry average.


Return on Equity

Hallmark Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hallmark Financial Services used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Hallmark Financial Services has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hallmark Financial Services's financial position?


Financial Position Analysis

Hallmark Financial Services's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Hallmark Financial Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hallmark Financial Services's level of debt (29.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (23.1% vs 29.6% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 9.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 6.1x debt.


Next Steps

Dividend

What is Hallmark Financial Services's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Hallmark Financial Services's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Hallmark Financial Services's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Hallmark Financial Services has not reported any payouts.

Unable to verify if Hallmark Financial Services's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Hallmark Financial Services has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hallmark Financial Services's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Naveen Anand (52yo)

4.9yrs

Tenure

US$1,028,566

Compensation

Naveen Anand became President and Chief Executive Officer of Hallmark Financial Services, Inc. in September, 2014. Most recently, Mr. Anand was an Executive with Torus Insurance Holdings Limited from 2009  ...


CEO Compensation Analysis

Naveen's remuneration is lower than average for companies of similar size in United States of America.

Naveen's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.6yrs

Average Tenure

52yo

Average Age

The average tenure for the Hallmark Financial Services management team is less than 2 years, this suggests a new team.


Board Age and Tenure

15.8yrs

Average Tenure

64yo

Average Age

The average tenure for the Hallmark Financial Services board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Hallmark Financial Services individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$106,49015 Aug 19
Naveen Anand
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares6,500
Max PriceUS$16.38
SellUS$102,38813 Mar 19
Scott Berlin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,750
Max PriceUS$10.53
SellUS$61,09322 Jan 19
James Graves
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,140
Max PriceUS$9.95

Ownership Breakdown


Management Team

  • Mark Schwarz (59yo)

    Executive Chairman of the Board

    • Tenure: 13.0yrs
    • Compensation: US$210.89k
  • David Miller

    Senior VP & Head of Human Resources

    • Tenure: 0.6yrs
  • Jeffrey Passmore (51yo)

    Senior VP

    • Tenure: 0.3yrs
    • Compensation: US$409.89k
  • Blake Zipoy

    Director of Corporate Communications

    • Tenure: 0.0yrs
  • Naveen Anand (52yo)

    President & CEO

    • Tenure: 4.9yrs
    • Compensation: US$1.03m
  • Barbara Sinclair

    Senior VP & Healthcare Group Leader

    • Tenure: 3.8yrs
  • Tarek Timol

    Chief Information Officer & Head of Operations

    • Tenure: 0.6yrs
  • Charles Stauber

    Chief Claims Officer

    • Tenure: 3.3yrs
  • Elena Banfi

    Vice President of Group Counsel & Compliance

    • Tenure: 0.6yrs
  • David Webb

    Senior VP of Corporate Development & Strategy

    • Tenure: 0.6yrs

Board Members

  • Scott Berlin (49yo)

    Director

    • Tenure: 18.6yrs
    • Compensation: US$44.25k
  • Mark Pape (69yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$44.25k
  • Jim Graves (70yo)

    Director

    • Tenure: 24.6yrs
    • Compensation: US$51.75k
  • Mark Schwarz (59yo)

    Executive Chairman of the Board

    • Tenure: 13.0yrs
    • Compensation: US$210.89k

Company Information

Hallmark Financial Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hallmark Financial Services, Inc.
  • Ticker: HALL
  • Exchange: NasdaqGM
  • Founded: 1987
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$307.730m
  • Shares outstanding: 18.12m
  • Website: https://www.hallmarkgrp.com

Number of Employees


Location

  • Hallmark Financial Services, Inc.
  • Two Lincoln Centre
  • Suite 1100
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HALLNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 1989

Biography

Hallmark Financial Services, Inc., through its subsidiaries, underwrites, markets, distributes, and services property/casualty insurance products to businesses and individuals in the United States. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:36
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
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.