NYSE:HCI

Stock Analysis Report

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Executive Summary

HCI Group, Inc. engages in the property and casualty insurance, reinsurance, real estate, and information technology businesses in Florida.


Snowflake Analysis

Proven track record with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has HCI Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HCI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

HCI

-1.7%

US Insurance

1.3%

US Market


1 Year Return

11.1%

HCI

-23.1%

US Insurance

6.1%

US Market

Return vs Industry: HCI exceeded the US Insurance industry which returned -23.1% over the past year.

Return vs Market: HCI exceeded the US Market which returned 6.1% over the past year.


Shareholder returns

HCIIndustryMarket
7 Day0.2%-1.7%1.3%
30 Day2.0%-11.1%-0.3%
90 Day10.8%-2.6%16.6%
1 Year15.3%11.1%-21.0%-23.1%8.4%6.1%
3 Year10.9%-0.7%-3.8%-11.7%35.8%26.9%
5 Year19.4%-0.04%22.0%6.7%62.7%44.7%

Price Volatility Vs. Market

How volatile is HCI Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HCI Group undervalued compared to its fair value and its price relative to the market?

17.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HCI ($45.49) is trading above our estimate of fair value ($22.15)

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


Price To Earnings Ratio

PE vs Industry: HCI is poor value based on its PE Ratio (17.6x) compared to the US Insurance industry average (13x).

PE vs Market: HCI is poor value based on its PE Ratio (17.6x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: HCI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HCI is overvalued based on its PB Ratio (2x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is HCI Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCI's forecast earnings growth (22.9% per year) is above the savings rate (2.2%).

Earnings vs Market: HCI's earnings (22.9% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HCI's revenue (12.2% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: HCI's revenue (12.2% 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 HCI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has HCI Group performed over the past 5 years?

-35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCI has high quality earnings.

Growing Profit Margin: HCI's current net profit margins (8.1%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: HCI's earnings have declined by -35.5% per year over the past 5 years.

Accelerating Growth: HCI's earnings growth over the past year (31.7%) exceeds its 5-year average (-35.5% per year).

Earnings vs Industry: HCI earnings growth over the past year (31.7%) exceeded the Insurance industry -1.9%.


Return on Equity

High ROE: HCI's Return on Equity (11.4%) is considered low.


Next Steps

Financial Health

How is HCI Group's financial position?


Financial Position Analysis

Short Term Liabilities: HCI's short term assets ($480.9M) exceed its short term liabilities ($450.2M).

Long Term Liabilities: HCI's short term assets ($480.9M) exceed its long term liabilities ($206.9M).


Debt to Equity History and Analysis

Debt Level: HCI's debt to equity ratio (105.5%) is considered high.

Reducing Debt: HCI's debt to equity ratio has increased from 63.1% to 105.5% over the past 5 years.

Debt Coverage: HCI's debt is well covered by operating cash flow (52.3%).

Interest Coverage: HCI's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

What is HCI Group current dividend yield, its reliability and sustainability?

3.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HCI's dividend (3.52%) is higher than the bottom 25% of dividend payers in the US market (1.7%).

High Dividend: HCI's dividend (3.52%) is low compared to the top 25% of dividend payers in the US market (4.69%).


Stability and Growth of Payments

Stable Dividend: HCI's dividends per share have been stable in the past 10 years.

Growing Dividend: HCI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62%), HCI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Paresh Patel (57yo)

9yrs

Tenure

US$6,076,669

Compensation

Mr. Pareshbhai Suryakant Patel, also known as Paresh, co-founded HCI Group, Inc. in November 2006 and has been Chief Executive Officer since July 1, 2011. Mr. Patel serves as Executive Chairman of the Boar ...


CEO Compensation Analysis

Compensation vs Market: Paresh's total compensation ($USD6.08M) is above average for companies of similar size in the US market ($USD2.16M).

Compensation vs Earnings: Paresh's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pareshbhai Patel
Co-Founder9yrsUS$6.08m10.35% $37.1m
James Harmsworth
Chief Financial Officer3.17yrsUS$636.65k0.44% $1.6m
Andrew Graham
VP, General Counsel & Company Secretary12.08yrsUS$541.75k0.50% $1.8m
Anthony Saravanos
President of Greenleaf Capital LLC & Director13.17yrsUS$506.75k1.71% $6.1m
Karin Coleman
Executive VP and President of Homeowners Choice Property & Casualty Insurance Company2.58yrsUS$515.75k0.34% $1.2m
Kevin Mitchell
Senior Vice President of Investor Relations5.5yrsno datano data
Rachel Swansiger
Investor Relations Officerno datano datano data

6.1yrs

Average Tenure

57yo

Average Age

Experienced Management: HCI's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pareshbhai Patel
Co-Founder9yrsUS$6.08m10.35% $37.1m
Anthony Saravanos
President of Greenleaf Capital LLC & Director13.17yrsUS$506.75k1.71% $6.1m
James Macchiarola
Independent Director6.67yrsUS$139.63k0.13% $460.2k
Robert Burks
Independent Director7.08yrsUS$139.63k0.074% $266.9k
George Apostolou
Independent Director13.17yrsUS$134.83k1.36% $4.9m
Sanjay Madhu
Director13.17yrsUS$134.83k1.11% $4.0m
Gregory Politis
Co-Founder & Lead Independent Director3.5yrsUS$134.83k5.17% $18.5m
Susan Watts
Independent Director1.25yrsUS$99.26k0.039% $140.6k
Harish Patel
Independent Director9.25yrsUS$134.83k1.3% $4.7m
Loreen Spencer
Independent Director1.25yrsUS$99.26k0.026% $94.0k

8.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: HCI's board of directors are considered experienced (8.2 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

HCI Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HCI Group, Inc.
  • Ticker: HCI
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$358.332m
  • Shares outstanding: 7.88m
  • Website: https://www.hcigroup.com

Number of Employees


Location

  • HCI Group, Inc.
  • 5300 West Cypress Street
  • Suite 100
  • Tampa
  • Florida
  • 33607
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCINYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2008
0H5DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2008
0J22LSE (London Stock Exchange)YesCommon StockGBUSDSep 2008

Biography

HCI Group, Inc. engages in the property and casualty insurance, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners insurance, flood insurance, and wind-only insurance to homeowners, condominium owners, and tenants, as well as offers reinsurance programs. The company also owns and operates one full-service restaurant, marinas, waterfront property, retail shopping centres, office building, and vacant shopping centre for investment purposes. In addition, it designs and develops web-based applications and products for mobile devices, including SAMS and ClaimColony applications. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was founded in 2006 and is headquartered in Tampa, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 00:05
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.