NasdaqGM:HIIQ

Stock Analysis Report

Health Insurance Innovations

Executive Summary

Health Insurance Innovations, Inc. operates as a cloud-based technology platform and distributor of individual and family health insurance plans, and supplemental products in the United States.

Rewards

PE ratio (17.7x) is below the US market (18.9x)

Earnings are forecast to grow 17.06% per year

Earnings grew by 22.4% over the past year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Acceptable track record with limited growth.

Share Price & News

How has Health Insurance Innovations's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.4%

HIIQ

-2.3%

US Insurance

-2.7%

US Market


1 Year Return

-44.5%

HIIQ

17.7%

US Insurance

21.2%

US Market

Return vs Industry: HIIQ underperformed the US Insurance industry which returned 20.4% over the past year.

Return vs Market: HIIQ underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

HIIQIndustryMarket
7 Day5.4%-2.3%-2.7%
30 Day10.3%-0.04%0.09%
90 Day-24.2%3.0%6.9%
1 Year-44.5%-44.5%20.7%17.7%23.8%21.2%
3 Year7.3%7.3%33.7%23.4%48.1%38.6%
5 Year193.6%193.6%72.5%51.8%72.5%53.4%

Price Volatility Vs. Market

How volatile is Health Insurance Innovations's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Health Insurance Innovations undervalued compared to its fair value and its price relative to the market?

17.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HIIQ ($21.07) is trading above our estimate of fair value ($19.41)

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


Price To Earnings Ratio

PE vs Industry: HIIQ is poor value based on its PE Ratio (17.7x) compared to the Insurance industry average (16.7x).

PE vs Market: HIIQ is good value based on its PE Ratio (16.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HIIQ is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: HIIQ is overvalued based on its PB Ratio (3x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Health Insurance Innovations forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIIQ's forecast earnings growth (17.1% per year) is above the savings rate (1.7%).

Earnings vs Market: HIIQ's earnings (13.4% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: HIIQ's earnings are forecast to grow, but not significantly.

Revenue vs Market: HIIQ's revenue (9.3% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: HIIQ'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: Insufficient data to determine if HIIQ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Health Insurance Innovations performed over the past 5 years?

46.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIIQ has a high level of non-cash earnings.

Growing Profit Margin: HIIQ's current net profit margins (3.9%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: HIIQ has become profitable over the past 5 years, growing earnings by 46.1% per year.

Accelerating Growth: HIIQ's earnings growth over the past year (22.4%) is below its 5-year average (46.1% per year).

Earnings vs Industry: HIIQ earnings growth over the past year (22.4%) exceeded the Insurance industry -11.3%.


Return on Equity

High ROE: HIIQ's Return on Equity (16.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Health Insurance Innovations'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: HIIQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: HIIQ's debt is covered by short term assets (assets are 1.5x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Health Insurance Innovations's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if HIIQ'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 HIIQ's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Health Insurance Innovations's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Gavin Southwell (41yo)

3.2yrs

Tenure

US$2,238,600

Compensation

Mr. Gavin Southwell has been Chief Executive Officer of Health Insurance Innovations, Inc. since November 15, 2016 and has been its President since July 2016. Mr. Southwell served as a Consultant of Healt ...


CEO Compensation Analysis

Compensation vs Market: Gavin's total compensation ($USD2.24M) is above average for companies of similar size in the US market ($USD1.08M).

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


Management Age and Tenure

2.1yrs

Average Tenure

46yo

Average Age

Experienced Management: HIIQ's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

57yo

Average Age

Experienced Board: HIIQ's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: HIIQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$530,10723 Dec 19
Voss Capital, LLC
EntityCompany
Shares21,637
Max PriceUS$24.50
BuyUS$13,812,30623 Dec 19
Voss Capital, LLC
EntityCompany
Shares506,650
Max PriceUS$27.58
SellUS$6,645,21003 Dec 19
Michael Kosloske
EntityIndividual
Shares362,379
Max PriceUS$19.26
SellUS$15,50510 Jul 19
Michael Kosloske
EntityIndividual
Shares620
Max PriceUS$25.02
SellUS$1,312,88710 Jul 19
Michael Kosloske
EntityIndividual
Shares51,906
Max PriceUS$26.04
SellUS$2,021,51808 Jul 19
Michael Kosloske
EntityIndividual
Shares77,211
Max PriceUS$26.50
SellUS$1,346,45103 Jul 19
Michael Kosloske
EntityIndividual
Shares51,160
Max PriceUS$26.72
SellUS$1,059,28901 Jul 19
Michael Kosloske
EntityIndividual
Shares41,393
Max PriceUS$25.61
SellUS$2,749,02426 Jun 19
Michael Kosloske
EntityIndividual
Shares105,401
Max PriceUS$26.21
BuyUS$7,862,74317 Apr 19
Cannell Capital LLC
EntityCompany
Shares203,698
Max PriceUS$38.60
BuyUS$89,06125 Mar 19
Paul Avery
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$29.69
BuyUS$2,655,66420 Mar 19
B. Riley Capital Management, LLC
EntityCompany
Shares90,742
Max PriceUS$29.27
BuyUS$89,51320 Mar 19
John Fichthorn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$29.84
BuyUS$239,25420 Mar 19
Paul Gabos
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares8,000
Max PriceUS$29.91

Ownership Breakdown

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


Management Team

  • Jeffrey Eisenberg (54yo)

    Consultant

    • Tenure: 5.3yrs
    • Compensation: US$10.00k
  • Gavin Southwell (41yo)

    President

    • Tenure: 3.2yrs
    • Compensation: US$2.24m
  • Erik Helding (46yo)

    CFO, Treasurer & Secretary

    • Tenure: 0.2yrs
  • Gerod Vernon

    Vice President of Sales

    • Angela Bryant

      Senior VP & General Counsel

      • Domenick DiCicco

        Chief Compliance Officer Counsel

        • Tenure: 0.6yrs
      • John Evans

        Investor Relations contact

        • Tenure: 4yrs
      • Mike DeVries

        Senior Vice President of Finance

        • Jennifer Hammer

          Head of Strategic Initiatives Team

          • Tenure: 1.1yrs

        Board Members

        • Paul Gabos (53yo)

          Non-Executive Chairman

          • Tenure: 3.2yrs
          • Compensation: US$191.50k
        • Paul Avery (59yo)

          Independent Director

          • Tenure: 6.9yrs
          • Compensation: US$137.50k
        • Bob Murley (69yo)

          Independent Director

          • Tenure: 5.3yrs
          • Compensation: US$137.50k
        • Peggy Scott (68yo)

          Independent Director

          • Tenure: 0.7yrs
        • John Fichthorn (46yo)

          Independent Director

          • Tenure: 2.1yrs
          • Compensation: US$130.00k
        • Gavin Southwell (41yo)

          President

          • Tenure: 3.2yrs
          • Compensation: US$2.24m
        • Anthony Barkett (72yo)

          Independent Director

          • Tenure: 6.8yrs
          • Compensation: US$151.50k
        • Ellen Duffield (55yo)

          Independent Director

          • Tenure: 0.7yrs

        Company Information

        Health Insurance Innovations, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Health Insurance Innovations, Inc.
        • Ticker: HIIQ
        • Exchange: NasdaqGM
        • Founded: 2008
        • Industry: Insurance Brokers
        • Sector: Insurance
        • Implied Market Cap: US$305.727m
        • Market Cap: US$251.957m
        • Shares outstanding: 14.21m
        • Website: https://www.hiiq.com

        Number of Employees


        Location

        • Health Insurance Innovations, Inc.
        • 15438 North Florida Avenue
        • Suite 201
        • Tampa
        • Florida
        • 33613
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        HIIQNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDFeb 2013
        6LNDB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2013
        0J3ULSE (London Stock Exchange)YesClass A Common StockGBUSDFeb 2013

        Biography

        Health Insurance Innovations, Inc. operates as a cloud-based technology platform and distributor of individual and family health insurance plans, and supplemental products in the United States. It offers short-term medical plans that provide 3 months to 12 months of health insurance coverage with various deductible and copay levels; health benefit insurance plans, which offer fixed cash benefits and additional benefits for procedures and services; and supplemental insurance products, including life insurance policies, dental plans, vision plans, cancer/critical illness plans, deductible and gap protection plans, and pharmacy benefit cards. The company offers individual and family health insurance plans, and supplemental products in concert with insurance carriers and discount benefit providers; and markets them to individuals through a network of distributors. Health Insurance Innovations, Inc. was founded in 2008 and is based in Tampa, Florida. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/28 01:10
        End of Day Share Price2020/01/27 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.