NYSE:HCI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


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


Market Performance


7 Day Return

-4.4%

HCI

-0.01%

US Insurance

1.0%

US Market


1 Year Return

-4.9%

HCI

15.1%

US Insurance

6.7%

US Market

Return vs Industry: HCI underperformed the US Insurance industry which returned 15.1% over the past year.

Return vs Market: HCI underperformed the US Market which returned 6.7% over the past year.


Share holder returns

HCIIndustryMarket
7 Day-4.4%-0.01%1.0%
30 Day-5.8%-1.6%-1.8%
90 Day-0.9%-3.5%-1.8%
1 Year-1.6%-4.9%17.9%15.1%9.1%6.7%
3 Year54.7%38.9%42.0%31.1%46.1%36.6%
5 Year-0.5%-16.0%74.5%53.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

22x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: HCI ($40.47) is trading above our estimate of fair value ($28.28)

Significantly Undervalued: HCI is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: HCI is poor value based on its PE Ratio (22x) compared to the Insurance industry average (15.6x).

PE vs Market: HCI is poor value based on its PE Ratio (22x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: HCI is good value based on its PEG Ratio (0.5x)


Price Based on Value of Assets

PB vs Industry: HCI is overvalued based on its PB Ratio (1.7x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is HCI Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

44.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HCI's forecast earnings growth (44.2% per year) is above the savings rate (2.7%).

Earnings vs Market: HCI's earnings (44.2% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: HCI's revenue (2.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: HCI's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

-37.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HCI's earnings have declined by -37.7% per year over the past 5 years.

Accelerating Growth: HCI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HCI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (3.1%).


Return on Equity

High ROE: HCI's Return on Equity (7.9%) is considered low.


Return on Assets

ROA vs Industry: HCI has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: HCI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is HCI Group'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: HCI has a low level of unsold assets or inventory.

Debt Coverage by Assets: HCI's debt is covered by short term assets (assets are 2.168360x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.11%

Expected Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years4.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: HCI's dividend (3.95%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: HCI's dividend (3.95%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Whilst dividend payments have been stable, HCI has been paying a dividend for less than 10 years.

Growing Dividend: HCI's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.2%), HCI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HCI's dividends in 3 years are forecast to be well covered by earnings (42% payout ratio).


Next Steps

Management

What is the CEO of HCI Group's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Paresh Patel (56yo)

8.3yrs

Tenure

US$4,262,719

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 has been President of Homeowners Choice  ...


CEO Compensation Analysis

Compensation vs. Market: Paresh's total compensation ($USD4.26M) is about average for companies of similar size in the US market ($USD1.85M).

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


Management Age and Tenure

6.0yrs

Average Tenure

57yo

Average Age

Experienced Management: HCI's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HCI's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: HCI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$20,04122 Aug 19
Susan Watts
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares474
Max PriceUS$42.28
SellUS$226,03413 Aug 19
James Harmsworth
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,500
Max PriceUS$41.10
BuyUS$39,07210 Jun 19
Loreen Spencer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares950
Max PriceUS$41.13
BuyUS$163,62016 Apr 19
Gregory Politis
EntityIndividual
Role
Lead Director
Co-Founder & Lead Independent Director
Shares4,000
Max PriceUS$40.91
BuyUS$288,39314 Mar 19
Pareshbhai Patel
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares7,000
Max PriceUS$41.20
BuyUS$63,44720 Dec 18
Harish Patel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,215
Max PriceUS$53.40
BuyUS$5,17018 Dec 18
Robert Burks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$51.70
BuyUS$26,89514 Dec 18
George Apostolou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$53.79
BuyUS$80,18512 Dec 18
James Macchiarola
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$53.46
BuyUS$5,33212 Dec 18
Andrew Graham
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Company Secretary
Shares100
Max PriceUS$53.38
BuyUS$52,91028 Nov 18
Pareshbhai Patel
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares1,000
Max PriceUS$52.91

Ownership Breakdown


Management Team

  • Andrew Graham (61yo)

    VP, General Counsel & Company Secretary

    • Tenure: 11.3yrs
    • Compensation: US$508.52k
  • Gregory Politis (66yo)

    Co-Founder & Lead Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$117.70k
  • Anthony Saravanos (48yo)

    President of Real Estate Division & Director

    • Tenure: 12.4yrs
    • Compensation: US$472.54k
  • Paresh Patel (56yo)

    Co-Founder

    • Tenure: 8.3yrs
    • Compensation: US$4.26m
  • James Harmsworth (55yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: US$621.57k
  • Karin Coleman (58yo)

    Executive Vice President

    • Tenure: 1.8yrs
    • Compensation: US$480.92k
  • Kevin Mitchell

    Senior Vice President of Investor Relations

    • Tenure: 4.8yrs

Board Members

  • Jim Macchiarola (70yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$117.70k
  • Robert Burks (71yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$117.70k
  • George Apostolou (68yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$117.70k
  • Jay Madhu (53yo)

    Director

    • Tenure: 12.4yrs
    • Compensation: US$117.70k
  • Gregory Politis (66yo)

    Co-Founder & Lead Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$117.70k
  • Anthony Saravanos (48yo)

    President of Real Estate Division & Director

    • Tenure: 12.4yrs
    • Compensation: US$472.54k
  • Paresh Patel (56yo)

    Co-Founder

    • Tenure: 8.3yrs
    • Compensation: US$4.26m
  • Sue Watts (57yo)

    Independent Director

    • Tenure: 0.5yrs
  • Harish Patel (62yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$117.70k
  • Loreen Spencer (53yo)

    Independent Director

    • Tenure: 0.5yrs

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$331.052m
  • Shares outstanding: 8.18m
  • 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 in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:14
End of Day Share Price2019/10/11 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.

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