Interested In United Insurance Holdings Corp (NASDAQ:UIHC)? Here's What Its Recent Performance Looks Like

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. Investors may find my commentary, albeit very high-level and brief, on United Insurance Holdings Corp (NASDAQ:UIHC) useful as an attempt to give more color around how United Insurance Holdings is currently performing. See our latest analysis for United Insurance Holdings

How Well Did UIHC Perform?

For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique enables me to analyze different companies on a similar basis, using the latest information. For United Insurance Holdings, its most recent earnings (trailing twelve month) is US$14.62M, which, relative to the prior year's level, has escalated by more than double. Given that these values are somewhat myopic, I have calculated an annualized five-year value for United Insurance Holdings's net income, which stands at US$17.00M This means although earnings increased from last year's level, over a longer period of time, United Insurance Holdings's earnings have been deteriorating on average.

Why is this? Well, let's look at what's occurring with margins and if the rest of the industry is facing the same headwind. Revenue growth over the last couple of years, has been positive, however, earnings growth has failed to keep up meaning United Insurance Holdings has been increasing its expenses by a lot more. This hurts margins and earnings, and is not a sustainable practice. Viewing growth from a sector-level, the US insurance industry has been growing, albeit, at a unexciting single-digit rate of 3.56% in the past twelve months, and 8.13% over the past five. This means that whatever recent headwind the industry is experiencing, United Insurance Holdings is relatively better-cushioned than its peers.

What does this mean?

United Insurance Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. I suggest you continue to research United Insurance Holdings to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for UIHC’s future growth? Take a look at our free research report of analyst consensus for UIHC’s outlook.
2. Financial Health: Is UIHC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.