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HIG

Hartford Financial Services Group NYSE:HIG Stock Report

Last Price

US$69.26

Market Cap

US$22.9b

7D

-2.2%

1Y

4.7%

Updated

16 May, 2022

Data

Company Financials +
HIG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends5/6

HIG Stock Overview

The Hartford Financial Services Group, Inc.

Hartford Financial Services Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hartford Financial Services Group
Historical stock prices
Current Share PriceUS$69.26
52 Week HighUS$78.17
52 Week LowUS$59.86
Beta0.97
1 Month Change-7.59%
3 Month Change-2.46%
1 Year Change4.70%
3 Year Change30.34%
5 Year Change41.93%
Change since IPO178.43%

Recent News & Updates

Apr 06
Here's Why I Think Hartford Financial Services Group (NYSE:HIG) Might Deserve Your Attention Today

Here's Why I Think Hartford Financial Services Group (NYSE:HIG) Might Deserve Your Attention Today

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Mar 17

Hartford's Consistent Performance Not Quite In Step With The Hard Commercial P&C Market

Hartford beat Q4'21 expectations, but it was a lower-quality beat, with weaker core underwriting performance in both commercial and personal lines. The hard market in commercial P&C is helping Hartford, but not as much as its peers, given its greater exposure to smaller corporate clients and workers' comp. It will take time to fix the loss issues in the auto business, but Hartford's positioning is better than most because of the decisions it made during the pandemic. Long-term core earnings growth in excess of 4% should be able to drive a long-term total annualized return in the double digits, but near-term outperformance may be more challenging given the mix.

Shareholder Returns

HIGUS InsuranceUS Market
7D-2.2%-0.07%0.7%
1Y4.7%0.6%-10.8%

Return vs Industry: HIG exceeded the US Insurance industry which returned 0.3% over the past year.

Return vs Market: HIG exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is HIG's price volatile compared to industry and market?
HIG volatility
HIG Average Weekly Movement4.0%
Insurance Industry Average Movement5.1%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: HIG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HIG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
181018,100Chris Swifthttps://www.thehartford.com

The Hartford Financial Services Group, Inc. provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers workers’ compensation, property, automobile, liability, umbrella, bond, marine, livestock, and reinsurance; and customized insurance products and risk management services, including professional liability, bond, surety, and specialty casualty coverages through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channel and independent agents.

Hartford Financial Services Group Fundamentals Summary

How do Hartford Financial Services Group's earnings and revenue compare to its market cap?
HIG fundamental statistics
Market CapUS$22.87b
Earnings (TTM)US$2.54b
Revenue (TTM)US$22.44b

9.0x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIG income statement (TTM)
RevenueUS$22.44b
Cost of RevenueUS$14.20b
Gross ProfitUS$8.24b
Other ExpensesUS$5.70b
EarningsUS$2.54b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.72
Gross Margin36.73%
Net Profit Margin11.32%
Debt/Equity Ratio31.3%

How did HIG perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

20%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HIG ($69.26) is trading below our estimate of fair value ($180.46)

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 (9x) compared to the US Insurance industry average (11.2x).

PE vs Market: HIG is good value based on its PE Ratio (9x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: HIG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HIG is overvalued based on its PB Ratio (1.5x) compared to the US Insurance industry average (1x).


Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIG's forecast earnings growth (9.7% per year) is above the savings rate (1.9%).

Earnings vs Market: HIG's earnings (9.7% per year) are forecast to grow slower than the US market (12.6% per year).

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

Revenue vs Market: HIG's revenue (3.4% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: HIG's revenue (3.4% 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 (15.2%).


Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HIG has high quality earnings.

Growing Profit Margin: HIG's current net profit margins (11.3%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: HIG's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: HIG's earnings growth over the past year (50.1%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: HIG earnings growth over the past year (50.1%) exceeded the Insurance industry -2.6%.


Return on Equity

High ROE: HIG's Return on Equity (16.1%) is considered low.


Financial Health

How is Hartford Financial Services Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HIG's short term assets ($16.0B) exceed its short term liabilities ($8.2B).

Long Term Liabilities: HIG's short term assets ($16.0B) do not cover its long term liabilities ($51.2B).


Debt to Equity History and Analysis

Debt Level: HIG's net debt to equity ratio (5.1%) is considered satisfactory.

Reducing Debt: HIG's debt to equity ratio has reduced from 32% to 31.3% over the past 5 years.

Debt Coverage: HIG's debt is well covered by operating cash flow (75.6%).

Interest Coverage: HIG's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HIG's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: HIG's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.8%), HIG's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14%), HIG's dividend payments are thoroughly covered by cash flows.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Chris Swift (60 yo)

7.83yrs

Tenure

US$15,824,348

Compensation

Mr. Christopher Jerome Swift, also known as Chris, serves as the Director of Citizens Financial Group, Inc since February 1, 2021. He serves as Director of Citizens Bank, National Association. He has been...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD15.82M) is about average for companies of similar size in the US market ($USD13.26M).

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


Leadership Team

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


Board Members

Experienced Board: HIG's board of directors are considered experienced (7.5 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

The Hartford Financial Services Group, Inc.'s 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
  • Implied Market Cap: US$22.873b
  • Shares outstanding: 328.86m
  • Website: https://www.thehartford.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.