NasdaqGM:HALL

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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 Analysis

Imperfect balance sheet and overvalued.


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

Stable Share Price: HALL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

47.9%

HALL

3.2%

US Insurance

-0.04%

US Market


1 Year Return

-74.9%

HALL

-9.5%

US Insurance

17.1%

US Market

Return vs Industry: HALL underperformed the US Insurance industry which returned -10.8% over the past year.

Return vs Market: HALL underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

HALLIndustryMarket
7 Day47.9%3.2%-0.04%
30 Day28.7%9.0%5.1%
90 Day48.9%23.8%19.5%
1 Year-74.9%-74.9%-7.1%-9.5%19.6%17.1%
3 Year-62.1%-62.1%6.2%-1.7%42.5%33.3%
5 Year-64.6%-64.6%37.5%20.3%75.1%56.2%

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 compared to its fair value and its price relative to the market?

0.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: HALL is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: HALL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HALL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HALL is good value based on its PB Ratio (0.4x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is Hallmark Financial Services forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

117.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HALL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HALL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HALL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HALL's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: HALL's revenue is forecast to decline over the next 3 years (-3.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-49.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HALL is currently unprofitable.

Growing Profit Margin: HALL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HALL is unprofitable, and losses have increased over the past 5 years at a rate of 49.3% per year.

Accelerating Growth: Unable to compare HALL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HALL is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-4%).


Return on Equity

High ROE: HALL has a negative Return on Equity (-42.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hallmark Financial Services's financial position?


Financial Position Analysis

Short Term Liabilities: HALL's short term assets ($654.7M) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: HALL's short term assets ($654.7M) exceed its long term liabilities ($106.2M).


Debt to Equity History and Analysis

Debt Level: HALL's debt to equity ratio (43.4%) is considered high.

Reducing Debt: HALL's debt to equity ratio has increased from 21.6% to 43.4% over the past 5 years.

Debt Coverage: HALL's debt is well covered by operating cash flow (22.5%).

Interest Coverage: Insufficient data to determine if HALL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HALL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HALL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HALL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HALL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HALL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Naveen Anand (53 yo)

5.92yrs

Tenure

US$842,867

Compensation

Mr. Naveen Anand serves as President of Hallmark County Mutual Insurance Company and has been its Director since 2014. Mr. Anand serves as President of American Hallmark Insurance Company of Texas and has ...


CEO Compensation Analysis

Compensation vs Market: Naveen's total compensation ($USD842.87K) is above average for companies of similar size in the US market ($USD589.17K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Schwarz
Interim Principal Executive Officer & Executive Chairman14yrsUS$214.80k1.12%
$ 844.8k
Naveen Anand
President & CEO5.92yrsUS$842.87k0.43%
$ 322.8k
Jeffrey Passmore
Senior VP1.33yrsUS$367.83k0.039%
$ 29.2k
Tarek Timol
Chief Information Officer & Head of Operations1.58yrsno datano data
Elena Banfi
Vice President of Group Counsel & Compliance1.58yrsno datano data
Blake Zipoy
Director of Corporate Communicationsno datano datano data
David Webb
Senior VP of Corporate Development & Strategy1.58yrsno datano data
David Miller
Senior VP & Head of Human Resources1.58yrsno datano data
Barbara Sinclair
Senior VP & Healthcare Group Leader4.75yrsno datano data
Charles Stauber
Chief Claims Officer4.33yrsno datano data
Michael Gramm
Senior Vice President of Commercial Auto2.33yrsno datano data
Michael Binns
President of Specialty Personal Lines6.75yrsno datano data

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: HALL's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Schwarz
Interim Principal Executive Officer & Executive Chairman14yrsUS$214.80k1.12%
$ 844.8k
Scott Berlin
Independent Director19.58yrsUS$49.50k0.084%
$ 63.6k
Mark Pape
Independent Director4.17yrsUS$44.25kno data
James Graves
Independent Director25.58yrsUS$57.00k0.13%
$ 98.0k

16.8yrs

Average Tenure

65yo

Average Age

Experienced Board: HALL's board of directors are seasoned and experienced ( 16.8 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 not been meaningfully diluted in the past year.


Top Shareholders

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$75.650m
  • Shares outstanding: 18.14m
  • Website: https://www.hallmarkgrp.com

Number of Employees


Location

  • Hallmark Financial Services, Inc.
  • Two Lincoln Centre
  • Suite 1100
  • Dallas
  • Texas
  • 75240-2345
  • 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 Analysis2020/08/11 23:37
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
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.