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HCI Group

NYSE:HCI
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HCI
NYSE
$347M
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

HCI Group, Inc. engages in the property and casualty insurance, reinsurance, real estate, and information technology businesses in Florida. The last earnings update was 54 days ago. More info.


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HCI Share Price and Events
7 Day Returns
0.1%
NYSE:HCI
0.9%
US Insurance
1.4%
US Market
1 Year Returns
0.4%
NYSE:HCI
14.9%
US Insurance
4.9%
US Market
HCI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HCI Group (HCI) 0.1% -3.2% -4.6% 0.4% 51.3% 0.8%
US Insurance 0.9% 3.2% 11.1% 14.9% 46.1% 47%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • HCI underperformed the Insurance industry which returned 14.9% over the past year.
  • HCI underperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
HCI
Industry
5yr Volatility vs Market

Value

 Is HCI Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HCI Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HCI Group.

NYSE:HCI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $24.23 * 15%
$3.63
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $24.23
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HCI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.69 (1 + (1- 21%) (49.06%))
0.972
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.972 * 5.96%)
8.52%

Discounted Cash Flow Calculation for NYSE:HCI using Excess Returns Model Model

The calculations below outline how an intrinsic value for HCI Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:HCI Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (15% – 8.52%) * $24.23)
$1.56
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.56 / (8.52% - 2.73%)
$26.95
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $24.23 + $26.95
$51.18
NYSE:HCI Discount to Share Price
Calculation Result
Value per share (USD) From above. $51.18
Current discount Discount to share price of $40.84
= -1 x ($40.84 - $51.18) / $51.18
20.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HCI Group is available for.
Intrinsic value
20%
Share price is $40.84 vs Future cash flow value of $51.18
Current Discount Checks
For HCI Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HCI Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HCI Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HCI Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HCI Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HCI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.88
NYSE:HCI Share Price ** NYSE (2019-06-25) in USD $40.84
United States of America Insurance Industry PE Ratio Median Figure of 90 Publicly-Listed Insurance Companies 17.67x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HCI Group.

NYSE:HCI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HCI Share Price ÷ EPS (both in USD)

= 40.84 ÷ 1.88

21.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCI Group is overvalued based on earnings compared to the US Insurance industry average.
  • HCI Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does HCI Group's expected growth come at a high price?
Raw Data
NYSE:HCI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
27.9%per year
United States of America Insurance Industry PEG Ratio Median Figure of 66 Publicly-Listed Insurance Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:HCI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.67x ÷ 27.9%

0.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCI Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on HCI Group's assets?
Raw Data
NYSE:HCI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $22.37
NYSE:HCI Share Price * NYSE (2019-06-25) in USD $40.84
United States of America Insurance Industry PB Ratio Median Figure of 119 Publicly-Listed Insurance Companies 1.23x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NYSE:HCI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HCI Share Price ÷ Book Value per Share (both in USD)

= 40.84 ÷ 22.37

1.83x

* Primary Listing of HCI Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HCI Group is overvalued based on assets compared to the US Insurance industry average.
X
Value checks
We assess HCI Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. HCI Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HCI Group expected to grow at an attractive rate?
  • HCI Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HCI Group's earnings growth is expected to exceed the United States of America market average.
  • HCI Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HCI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HCI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 27.9%
NYSE:HCI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 4.5%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HCI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HCI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 264 40 1
2020-12-31 243 36 2
2019-12-31 233 29 2
NYSE:HCI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 234 54 15
2018-12-31 231 29 18
2018-09-30 240 -6 37
2018-06-30 226 13 -9
2018-03-31 234 -22 -8
2017-12-31 244 17 -6
2017-09-30 255 48 -14
2017-06-30 275 49 35
2017-03-31 269 85 33
2016-12-31 262 88 27
2016-09-30 253 31 34
2016-06-30 247 38 30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HCI Group's earnings are expected to grow significantly at over 20% yearly.
  • HCI Group's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HCI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from HCI Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HCI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.60 4.60 4.60 1.00
2020-12-31 3.80 3.80 3.80 1.00
2019-12-31 3.08 3.08 3.08 1.00
NYSE:HCI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.88
2018-12-31 2.34
2018-09-30 4.67
2018-06-30 -1.10
2018-03-31 -0.91
2017-12-31 -0.75
2017-09-30 -1.54
2017-06-30 3.94
2017-03-31 3.61
2016-12-31 2.95
2016-09-30 3.61
2016-06-30 3.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HCI Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess HCI Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HCI Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HCI Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HCI Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HCI Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • HCI Group has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • HCI Group has become profitable in the last year making it difficult to compare the US Insurance industry average.
Earnings and Revenue History
HCI Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HCI Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HCI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 234.19 14.68 27.12
2018-12-31 231.29 18.44 25.91
2018-09-30 239.92 37.44 25.01
2018-06-30 225.67 -9.00 24.90
2018-03-31 234.43 -7.63 24.44
2017-12-31 244.41 -6.41 25.13
2017-09-30 255.15 -13.53 27.14
2017-06-30 275.40 35.29 27.54
2017-03-31 269.34 33.03 26.81
2016-12-31 262.22 27.48 26.20
2016-09-30 253.26 34.13 26.21
2016-06-30 246.79 30.27 25.44
2016-03-31 264.34 44.34 25.41
2015-12-31 285.95 62.46 28.28
2015-09-30 287.29 65.25 24.60
2015-06-30 292.99 71.35 24.93
2015-03-31 280.20 65.79 24.63
2014-12-31 266.11 58.35 24.59
2014-09-30 266.61 59.23 35.88
2014-06-30 254.35 58.63 31.20
2014-03-31 247.39 58.79 25.96
2013-12-31 241.09 62.25 20.08
2013-09-30 226.91 60.46 4.33
2013-06-30 203.70 50.75 2.85
2013-03-31 183.05 42.45 1.76
2012-12-31 162.89 29.35 11.39
2012-09-30 148.38 21.18 0.73
2012-06-30 136.61 20.31 0.27

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HCI Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HCI Group used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
  • HCI Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HCI Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HCI Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HCI Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HCI Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HCI Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • HCI Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HCI Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HCI Group Company Filings, last reported 2 months ago.

NYSE:HCI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 187.04 169.57 209.04
2018-12-31 181.44 250.15 305.94
2018-09-30 192.14 248.54 336.86
2018-06-30 191.02 240.98 326.50
2018-03-31 192.90 239.39 281.64
2017-12-31 193.98 237.84 255.88
2017-09-30 193.06 236.31 293.44
2017-06-30 238.43 234.82 296.52
2017-03-31 232.17 272.98 407.94
2016-12-31 243.75 148.33 280.53
2016-09-30 244.51 138.17 291.88
2016-06-30 239.76 128.59 309.27
2016-03-31 237.24 127.86 277.91
2015-12-31 237.72 129.43 267.74
2015-09-30 229.14 131.65 331.54
2015-06-30 225.75 130.93 274.73
2015-03-31 206.02 130.23 271.41
2014-12-31 182.59 125.89 314.42
2014-09-30 179.57 128.87 304.32
2014-06-30 176.09 128.21 302.05
2014-03-31 168.71 127.56 296.58
2013-12-31 160.52 126.93 293.40
2013-09-30 166.53 40.25 273.88
2013-06-30 153.59 40.25 296.81
2013-03-31 139.73 40.25 279.33
2012-12-31 121.25 0.00 230.21
2012-09-30 101.09 0.00 141.92
2012-06-30 98.00 0.00 131.09
  • HCI Group's level of debt (90.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (75.6% vs 90.7% today).
  • Debt is well covered by operating cash flow (31.7%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess HCI Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HCI Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.92%
Current annual income from HCI Group dividends. Estimated to be 4.07% next year.
If you bought $2,000 of HCI Group shares you are expected to receive $78 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HCI Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • HCI Group's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HCI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HCI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.76 1.00
2020-12-31 1.68 2.00
2019-12-31 1.60 2.00
NYSE:HCI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-11 1.600 3.853
2019-01-17 1.600 3.579
2018-10-23 1.500 3.002
2018-07-06 1.500 3.579
2018-04-17 1.500 3.579
2018-01-22 1.400 3.776
2017-10-24 1.400 4.382
2017-07-10 1.400 3.531
2017-04-21 1.400 3.050
2017-01-17 1.400 3.137
2016-10-17 1.200 3.637
2016-07-13 1.200 3.943
2016-04-19 1.200 4.009
2016-01-12 1.200 3.685
2015-10-22 1.200 3.198
2015-07-21 1.200 2.965
2015-04-22 1.200 2.709
2015-01-22 1.200 2.571
2014-10-21 1.100 2.482
2014-06-26 1.100 2.696
2014-03-17 1.100 2.872
2014-01-27 1.100 2.595
2013-10-18 1.100 2.315
2013-07-16 1.000 2.762
2013-03-05 1.000 3.458
2013-01-22 1.000 4.617
2012-10-19 1.000 4.675
2012-07-25 0.900 4.163
2012-03-28 0.900 6.116
2012-01-17 0.700 6.493
2011-11-21 0.600 7.498
2011-07-26 0.400 5.920
2011-04-26 0.400 5.655
2011-01-26 0.400 4.877
2010-11-03 0.400 4.898

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, HCI Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but HCI Group only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of HCI Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess HCI Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HCI Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HCI Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paresh Patel
COMPENSATION $4,262,719
AGE 55
TENURE AS CEO 7.9 years
CEO Bio

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 Property & Casualty Insurance Company, Inc. since June 2015 and also serves as its Chairman of the Board. Mr. Patel serves as President of HCI Group, Inc. Mr. Patel serves as the Executive Chairman, President and Director of TypTap Insurance Company. He is a Founder of NorthStar Bank in Tampa, Florida. Mr. Patel serves as Vice President of Greenleaf Capital, LLC. Mr. Patel served as the Executive Chairman of Homeowners Choice Property & Casualty Insurance Company, Inc. He has been the President of Scorpio Systems, Inc. a software development company of which he is the sole owner from 2006 to 2011. Mr. Patel has broad experience in technology and finance. He developed and continues to oversee development of the TypTap Insurance Company's policy administration systems. Mr. Patel also served as President of Homeowners Choice Property & Casualty Insurance Company, Inc. from 2011 to 2012. He served as Executive Chairman of Strategic Planning & Investments at HCI Group, Inc. He has considerable experience in business, management, systems and technology. As a private investor from 2000 to 2006, he used statistical and probability techniques to develop and implement a system for managing money as a business to generate cash flow. As a private investor from 2000 to 2006, Mr. Patel developed and implemented his own money management system based upon statistical and probability techniques. Mr. Patel served as a Director of Customer Care and Billing at Global Crossing from 1998 to 2000. In that position, he defined business processes and systems, hired and trained department staff and led the merger of the customer care and billing systems with the systems of companies that Global Crossing acquired. As an independent software and systems consultant from 1991 to 1998, he worked with large international telephone companies. He has been the Chairman of the Board at HCI Group, Inc. since May 2007. He served as Chairman of the Board at Oxbridge Re Holdings Limited since April 2013 until December 31, 2017. From 2011 to 2015, he served as Chairman of the Board of Directors of First Home Bancorp, Inc. He has been a Director of HCI Group, Inc. since November 2006. Since 2012, he has been a Director for Moksha Re SPC Ltd. He served as a Director of NorthStar Bank (Tampa, FL) and its parent company, NorthStar Banking Corporation from 2006 to 2010. Mr. Patel holds a Bachelors and Master’s Degree in Electronic engineering from the University of Cambridge in United Kingdom in 1984.

CEO Compensation
  • Paresh's compensation has increased in line with HCI Group recently becoming profitable.
  • Paresh's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HCI Group management team in years:

5.7
Average Tenure
56
Average Age
  • The average tenure for the HCI Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Paresh Patel

TITLE
Co-Founder
COMPENSATION
$4M
AGE
55
TENURE
7.9 yrs

Gregory Politis

TITLE
Co-Founder & Lead Independent Director
COMPENSATION
$118K
AGE
65
TENURE
12.6 yrs

James Harmsworth

TITLE
Chief Financial Officer
COMPENSATION
$622K
AGE
54
TENURE
2.1 yrs

Andrew Graham

TITLE
VP, General Counsel & Company Secretary
COMPENSATION
$509K
AGE
60
TENURE
11 yrs

Anthony Saravanos

TITLE
President of Real Estate Division & Director
COMPENSATION
$473K
AGE
47
TENURE
5.7 yrs

Karin Coleman

TITLE
Executive Vice President
COMPENSATION
$481K
AGE
57
TENURE
1.5 yrs

Kevin Mitchell

TITLE
Senior Vice President of Investor Relations
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the HCI Group board of directors in years:

7.1
Average Tenure
58.5
Average Age
  • The tenure for the HCI Group board of directors is about average.
Board of Directors

Paresh Patel

TITLE
Co-Founder
COMPENSATION
$4M
AGE
55
TENURE
12.1 yrs

Gregory Politis

TITLE
Co-Founder & Lead Independent Director
COMPENSATION
$118K
AGE
65
TENURE
2.4 yrs

Anthony Saravanos

TITLE
President of Real Estate Division & Director
COMPENSATION
$473K
AGE
47
TENURE
12.1 yrs

Harish Patel

TITLE
Director
COMPENSATION
$118K
AGE
61
TENURE
8.2 yrs

Robert Burks

TITLE
Director
COMPENSATION
$118K
AGE
70
TENURE
6 yrs

Jim Macchiarola

TITLE
Director
COMPENSATION
$118K
AGE
69
TENURE
5.6 yrs

George Apostolou

TITLE
Director
COMPENSATION
$118K
AGE
67
TENURE
12.1 yrs

Jay Madhu

TITLE
Director
COMPENSATION
$118K
AGE
52
TENURE
12.1 yrs

Sue Watts

TITLE
Director
AGE
56
TENURE
0.2 yrs

Loreen Spencer

TITLE
Director
AGE
52
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by HCI Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Jun 19 Buy Loreen Spencer Individual 06. Jun 19 06. Jun 19 950 $41.13 $39,072
16. Apr 19 Buy Gregory Politis Individual 12. Apr 19 12. Apr 19 4,000 $40.91 $163,620
14. Mar 19 Buy Pareshbhai Patel Individual 13. Mar 19 13. Mar 19 7,000 $41.20 $288,393
20. Dec 18 Buy Harish Patel Individual 14. Dec 18 18. Dec 18 1,215 $53.40 $63,447
18. Dec 18 Buy Robert Burks Individual 14. Dec 18 14. Dec 18 100 $51.70 $5,170
14. Dec 18 Buy George Apostolou Individual 05. Dec 18 05. Dec 18 500 $53.79 $26,895
12. Dec 18 Buy James Macchiarola Individual 10. Dec 18 10. Dec 18 1,500 $53.46 $80,185
12. Dec 18 Buy Andrew Graham Individual 10. Dec 18 10. Dec 18 100 $53.38 $5,332
28. Nov 18 Buy Pareshbhai Patel Individual 26. Nov 18 26. Nov 18 1,000 $52.91 $52,910
X
Management checks
We assess HCI Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HCI Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does The HCI Group, Inc. (NYSE:HCI) Share Price Fall With The Market?

This means that -- if history is a guide -- buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). … Share price volatility is well worth considering, but most long term investors consider the history of revenue and earnings growth to be more important. … Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility.

Simply Wall St -

Does HCI Group, Inc. (NYSE:HCI) Have A Volatile Share Price?

See our latest analysis for HCI Group What HCI's beta value tells investors Given that it has a beta of 0.82, we can surmise that the HCI Group share price has not been strongly impacted by broader market volatility (over the last 5 years). … Companies with market capitalisations around this size often show poor correlation with the broader market because market volatility is overshadowed by company specific events, or other factors. … Typically, smaller companies have a low beta if their share price tends to move a lot due to company specific developments.

Simply Wall St -

Why Fundamental Investors Might Love HCI Group, Inc. (NYSE:HCI)

(NYSE:HCI), there's is a company with a a great history of dividend payments as well as a excellent future outlook. … Reasonable growth potential average dividend payer One reason why investors are attracted to HCI is its earnings growth potential in the near future of 28% underlying the notable 20% return on equity over the next few years leading up to 2022. … NYSE:HCI Past and Future Earnings, June 12th 2019 HCI is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

Simply Wall St -

Can We See Significant Insider Ownership On The HCI Group, Inc. (NYSE:HCI) Share Register?

Check out our latest analysis for HCI Group NYSE:HCI Ownership Summary, May 24th 2019 What Does The Institutional Ownership Tell Us About HCI Group? … We can see that HCI Group does have institutional investors; and they hold 63% of the stock. … NYSE:HCI Income Statement, May 24th 2019 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions.

Simply Wall St -

Why HCI Group, Inc.'s (NYSE:HCI) CEO Pay Matters To You

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … The aim of all this is to consider the appropriateness of CEO pay levels. … How Does Paresh Patel's Compensation Compare With Similar Sized Companies?

Simply Wall St -

If You Had Bought HCI Group (NYSE:HCI) Shares Three Years Ago You'd Have Made 36%

(NYSE:HCI) shareholders, since the share price has fallen 14% in that time. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, HCI Group moved from a loss to profitability.

Simply Wall St -

How Does HCI Group, Inc. (NYSE:HCI) Fare As A Dividend Stock?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … (NYSE:HCI) has paid a dividend to shareholders. … 5 checks you should do on a dividend stock

Simply Wall St -

Why HCI Group, Inc. (NYSE:HCI) Looks Like A Quality Company

HCI Group has a ROE of 9.8%, based on the last twelve months. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.098. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Spotlight On HCI Group, Inc.'s (NYSE:HCI) Fundamentals

(NYSE:HCI) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of HCI, it

Simply Wall St -

Could The HCI Group, Inc. (NYSE:HCI) Ownership Structure Tell Us Something Useful?

A look at the shareholders of HCI Group, Inc. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … With a market capitalization of US$448m, HCI Group is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Company Info

Description

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, two marinas, three retail shopping centers, one office building, and one vacant shopping center for investment purposes. In addition, it designs and develops Web-based applications and products for mobile devices. 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.

Details
Name: HCI Group, Inc.
HCI
Exchange: NYSE
Founded: 2006
$347,251,248
8,502,724
Website: http://www.hcigroup.com
Address: HCI Group, Inc.
5300 West Cypress Street,
Suite 100,
Tampa,
Florida, 33607,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HCI Common Stock New York Stock Exchange US USD 15. Sep 2008
DB 0H5 Common Stock Deutsche Boerse AG DE EUR 15. Sep 2008
LSE 0J22 Common Stock London Stock Exchange GB USD 15. Sep 2008
Number of employees
Current staff
Staff numbers
387
HCI Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 00:29
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/24
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.