NYSE:HIG

Stock Analysis Report

Hartford Financial Services Group

Executive Summary

The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States.

Rewards

Trading at 45.3% below its fair value

Earnings grew by 134.1% over the past year

Pays a high and reliable dividend of 1.96%

Risk Analysis

No risks detected for HIG from our risk checks.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

HIG

1.7%

US Insurance

1.1%

US Market


1 Year Return

48.0%

HIG

22.4%

US Insurance

17.8%

US Market

Return vs Industry: HIG exceeded the US Insurance industry which returned 22.4% over the past year.

Return vs Market: HIG exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

HIGIndustryMarket
7 Day1.4%1.7%1.1%
30 Day0.1%0.4%1.4%
90 Day3.6%0.5%3.9%
1 Year51.2%48.0%25.4%22.4%20.3%17.8%
3 Year34.8%26.8%32.5%22.3%44.8%35.4%
5 Year69.3%53.3%69.4%49.1%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hartford Financial Services Group undervalued compared to its fair value and its price relative to the market?

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIG ($61.17) is trading below our estimate of fair value ($111.89)

Significantly Below Fair Value: HIG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HIG is good value based on its PE Ratio (12.9x) compared to the Insurance industry average (16.7x).

PE vs Market: HIG is good value based on its PE Ratio (12.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: HIG is poor value based on its PEG Ratio (12.9x)


Price to Book Ratio

PB vs Industry: HIG is overvalued based on its PB Ratio (1.4x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Hartford Financial Services Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIG's forecast earnings growth (1% per year) is below the savings rate (1.7%).

Earnings vs Market: HIG's earnings (1% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HIG's earnings are forecast to grow, but not significantly.

Revenue vs Market: HIG's revenue (4% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: HIG's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HIG's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Hartford Financial Services Group performed over the past 5 years?

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIG has high quality earnings.

Growing Profit Margin: HIG's current net profit margins (8.6%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: HIG's earnings have declined by -8% per year over the past 5 years.

Accelerating Growth: HIG's earnings growth over the past year (134.1%) exceeds its 5-year average (-8% per year).

Earnings vs Industry: HIG earnings growth over the past year (134.1%) exceeded the Insurance industry -10.4%.


Return on Equity

High ROE: HIG's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hartford Financial Services 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: HIG has a low level of unsold assets or inventory.

Debt Coverage by Assets: HIG's debt is covered by short term assets (assets are 2.8x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Hartford Financial Services Group's current dividend yield, its reliability and sustainability?

1.96%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: HIG's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HIG's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.3%), HIG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HIG's dividends in 3 years are forecast to be well covered by earnings (23.7% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Chris Swift (58yo)

5.4yrs

Tenure

US$13,883,615

Compensation

Christopher Jerome Swift is Chairman and Chief Executive Officer of The Hartford Financial Services Group, Inc. ("The Hartford"). He joined The Hartford in March 2010 and served as Executive Vice Presi ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD13.88M) is about average for companies of similar size in the US market ($USD10.90M).

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


Management Age and Tenure

5.4yrs

Average Tenure

58yo

Average Age

Experienced Management: HIG's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HIG's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$177,05115 Aug 19
Robert Allardice
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$59.02
SellUS$553,06413 Aug 19
Robert Allardice
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,500
Max PriceUS$58.71
SellUS$110,46411 Jun 19
Robert Allardice
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$55.23
SellUS$353,86307 Jun 19
Robert Allardice
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,500
Max PriceUS$54.94
SellUS$266,39216 May 19
Martha Gervasi
EntityIndividual
Shares5,039
Max PriceUS$52.87
BuyUS$521,90013 May 19
Trevor Fetter
EntityIndividual
Role
Lead Director
Lead Director
Shares10,000
Max PriceUS$52.19

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kathy Bromage (61yo)

    Chief Marketing & Communications Officer

    • Tenure: 4.5yrs
  • Chris Swift (58yo)

    Chairman & CEO

    • Tenure: 5.4yrs
    • Compensation: US$13.88m
  • Doug Elliot (59yo)

    President

    • Tenure: 5.4yrs
    • Compensation: US$9.00m
  • Bill Bloom (55yo)

    Head of Operations

    • Tenure: 5.3yrs
    • Compensation: US$3.25m
  • Beth Costello (51yo)

    Executive VP & CFO

    • Tenure: 5.4yrs
    • Compensation: US$4.43m
  • Brion Johnson (59yo)

    Executive VP & Chief Investment Officer

    • Tenure: 7.6yrs
    • Compensation: US$4.43m
  • Patti McEvoy

    Chief Ethics & Compliance Officer

    • Tenure: 6.4yrs
  • David Robinson (53yo)

    Executive VP & General Counsel

    • Tenure: 4.5yrs
  • Melinda Thompson

    Head of Sales & Distribution

    • Tenure: 3.7yrs
  • Deepa Soni

    Chief Information Officer

    • Tenure: 0.3yrs

Board Members

  • Mike Morris (72yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$277.75k
  • Greig Woodring (67yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$328.50k
  • Carlos Dominguez (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$325.95k
  • Chris Swift (58yo)

    Chairman & CEO

    • Tenure: 5.4yrs
    • Compensation: US$13.88m
  • Trevor Fetter (59yo)

    Lead Director

    • Tenure: 2.9yrs
    • Compensation: US$295.79k
  • Julie Richardson (56yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$285.79k
  • Kathryn Mikells (53yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$260.90k
  • Virginia Ruesterholz (58yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$285.79k
  • Barry Allardice (71yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$287.75k
  • Teresa Roseborough (60yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$261.07k

Company Information

The Hartford Financial Services Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Hartford Financial Services Group, Inc.
  • Ticker: HIG
  • Exchange: NYSE
  • Founded: 1810
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$22.000b
  • Shares outstanding: 360.42m
  • Website: https://www.thehartford.com

Number of Employees


Location

  • The Hartford Financial Services Group, Inc.
  • One Hartford Plaza
  • Hartford
  • Connecticut
  • 6155
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIGNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1995
HFFBST (Boerse-Stuttgart)YesCommon StockDEEURDec 1995
HFFDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1995
0J3HLSE (London Stock Exchange)YesCommon StockGBUSDDec 1995
HIG.PRGNYSE (New York Stock Exchange)6.0 DPSHS PFD GUSUSDOct 2018

Biography

The Hartford Financial Services Group, Inc., through its subsidiaries, provides insurance and financial services to individual and business customers in the United States. Its Commercial Lines segment offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:37
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.