NasdaqGM:NGHC

Stock Analysis Report

National General Holdings

Executive Summary

National General Holdings Corp., a specialty personal lines insurance holding company, provides various insurance products and services in the United States, Bermuda, Luxembourg, and Sweden.

Snowflake

Fundamentals

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has National General Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

NasdaqGM:NGHC

1.6%

US Insurance

0.8%

US Market


1 Year Return

-4.8%

NasdaqGM:NGHC

9.9%

US Insurance

1.9%

US Market

NGHC underperformed the Insurance industry which returned 9.5% over the past year.

NGHC underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

NGHCIndustryMarket
7 Day-0.4%1.6%0.8%
30 Day2.0%2.7%3.4%
90 Day-0.3%1.4%2.1%
1 Year-4.1%-4.8%12.6%9.9%4.2%1.9%
3 Year13.3%11.0%47.6%36.3%46.7%37.2%
5 Year47.9%43.5%71.8%51.2%62.3%44.5%

Price Volatility Vs. Market

How volatile is National General Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is National General Holdings undervalued based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

National General Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

National General Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

National General Holdings is good value based on earnings compared to the US Insurance industry average.

National General Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

National General Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

National General Holdings is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is National General Holdings expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

National General Holdings's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

National General Holdings's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

National General Holdings's revenue growth is expected to exceed the United States of America market average.

National General Holdings's earnings growth is positive but not above the United States of America market average.

National General Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

National General Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has National General Holdings performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

National General Holdings's year on year earnings growth rate has been positive over the past 5 years.

National General Holdings's 1-year earnings growth exceeds its 5-year average (68.6% vs 11.6%)

National General Holdings's earnings growth has exceeded the US Insurance industry average in the past year (68.6% vs 3.1%).


Return on Equity

National General Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

National General Holdings used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

National General Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is National General Holdings's financial position?


Financial Position Analysis

National General Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

National General Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

National General Holdings's level of debt (28%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (33.5% vs 28% today).

Debt is well covered by operating cash flow (105.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 6x debt.


Next Steps

Dividend

What is National General Holdings's current dividend yield, its reliability and sustainability?

0.85%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase National General Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

National General Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

National General Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, National General Holdings has been paying a dividend for less than 10 years.

Dividend payments have increased, but National General Holdings only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (13x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (13.7x coverage).


Next Steps

Management

What is the CEO of National General Holdings's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Barry Karfunkel (39yo)

3.4yrs

Tenure

US$5,892,270

Compensation

Mr. Barry Samuel Karfunkel has been Co-Chairman of the Board at National General Holdings Corporation since May 07, 2018 and its Chief Executive Officer and Director since April 2016 and 2010 respectively. ...


CEO Compensation Analysis

Barry's remuneration is about average for companies of similar size in United States of America.

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


Management Age and Tenure

4.2yrs

Average Tenure

46yo

Average Age

The tenure for the National General Holdings management team is about average.


Board Age and Tenure

4.6yrs

Average Tenure

63yo

Average Age

The tenure for the National General Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$464,34626 Dec 18
Robert Karfunkel
EntityIndividual
Role
Co-Chairman of the Board
President & Co-Chairman
Shares20,000
Max PriceUS$23.22
BuyUS$188,43026 Dec 18
Barry Karfunkel
EntityIndividual
Role
Chief Executive Officer
CEO & Co-Chairman
Shares8,148
Max PriceUS$23.23

Ownership Breakdown


Management Team

  • Peter Rendall (46yo)

    Chief Operating Officer

    • Tenure: 4.2yrs
  • Tom Newgarden (52yo)

    Chief Product and Analytics Officer & President of National General Preferred

    • Tenure: 7.7yrs
  • Mike Weiner (47yo)

    Executive VP & CFO

    • Tenure: 9.7yrs
    • Compensation: US$2.80m
  • Barry Karfunkel (39yo)

    CEO & Co-Chairman

    • Tenure: 3.4yrs
    • Compensation: US$5.89m
  • Jeff Weissmann (41yo)

    Executive VP

    • Tenure: 8.7yrs
    • Compensation: US$2.69m
  • Robert Karfunkel (35yo)

    President & Co-Chairman

    • Tenure: 1.3yrs
    • Compensation: US$5.29m
  • Lawrence Moloney (56yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 2.3yrs
  • Peter Rendall (46yo)

    Executive VP & COO

    • Tenure: 4.2yrs
    • Compensation: US$2.55m
  • Sam Rea

    Executive VP & Chief Information Officer

    • Tenure: 0yrs
  • Nicole Pemberton

    Senior Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Donald DeCarlo (80yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$133.30k
  • Jay Nichols (59yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$128.30k
  • Pat Fallon (74yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$138.30k
  • Barry Zyskind (47yo)

    Director

    • Tenure: 6.3yrs
  • John Marshaleck (67yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$143.30k
  • Barbara Paris (68yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$128.30k
  • Barry Karfunkel (39yo)

    CEO & Co-Chairman

    • Tenure: 3.4yrs
    • Compensation: US$5.89m
  • Robert Karfunkel (35yo)

    President & Co-Chairman

    • Tenure: 1.3yrs
    • Compensation: US$5.29m

Company Information

National General Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: National General Holdings Corp.
  • Ticker: NGHC
  • Exchange: NasdaqGM
  • Founded: 1939
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$2.762b
  • Shares outstanding: 113.22m
  • Website: https://www.nationalgeneral.com

Number of Employees


Location

  • National General Holdings Corp.
  • 59 Maiden Lane
  • 38th Floor
  • New York
  • New York
  • 10038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTGK.POTCPK (Pink Sheets LLC)DEP SHS PFD-BUSUSDNo data
NGHCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2013
5NAADB (Deutsche Boerse AG)YesCommon StockDEEURJun 2013
NGHC.PNasdaqGM (Nasdaq Global Market)PFD SER A %USUSDJun 2014
NGHC.ONasdaqGM (Nasdaq Global Market)DEP SHS PFD-BUSUSDMar 2015
NGHC.NNasdaqGM (Nasdaq Global Market)DEP SHS PFD CUSUSDJun 2016

Biography

National General Holdings Corp., a specialty personal lines insurance holding company, provides various insurance products and services in the United States, Bermuda, Luxembourg, and Sweden. The company's  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 00:58
End of Day Share Price2019/09/17 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.