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Heritage Insurance Holdings

Market Cap

US$246.1m

Last Updated

2021/05/06 22:46 UTC

Data Sources

Company Financials +

Executive Summary

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. More Details


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Heritage Insurance Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HRTG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HRTG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-6.9%

HRTG

2.6%

US Insurance

-1.7%

US Market


1 Year Return

-26.8%

HRTG

60.2%

US Insurance

51.8%

US Market

Return vs Industry: HRTG underperformed the US Insurance industry which returned 62.3% over the past year.

Return vs Market: HRTG underperformed the US Market which returned 52.8% over the past year.


Shareholder returns

HRTGIndustryMarket
7 Day-6.9%2.6%-1.7%
30 Day-20.8%7.1%1.5%
90 Day-6.9%17.5%3.1%
1 Year-25.2%-26.8%64.3%60.2%54.4%51.8%
3 Year-44.6%-47.6%43.1%32.5%63.0%52.8%
5 Year-33.1%-38.8%87.1%63.9%127.2%101.9%

Long-Term Price Volatility Vs. Market

How volatile is Heritage Insurance Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Heritage Insurance Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HRTG ($8.67) is trading below our estimate of fair value ($21.95)

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


Price To Earnings Ratio

PE vs Industry: HRTG is poor value based on its PE Ratio (26x) compared to the US Insurance industry average (13.6x).

PE vs Market: HRTG is poor value based on its PE Ratio (26x) compared to the US market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: HRTG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: HRTG is good value based on its PB Ratio (0.5x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Heritage Insurance Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRTG's forecast earnings growth (61% per year) is above the savings rate (2%).

Earnings vs Market: HRTG's earnings (61% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: HRTG's revenue (4.4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HRTG's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HRTG's Return on Equity is forecast to be low in 3 years time (9.2%).


Past Performance

How has Heritage Insurance Holdings performed over the past 5 years?

-30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRTG has high quality earnings.

Growing Profit Margin: HRTG's current net profit margins (1.6%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: HRTG's earnings have declined by 30.8% per year over the past 5 years.

Accelerating Growth: HRTG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HRTG had negative earnings growth (-67.4%) over the past year, making it difficult to compare to the Insurance industry average (25.8%).


Return on Equity

High ROE: HRTG's Return on Equity (2.1%) is considered low.


Financial Health

How is Heritage Insurance Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HRTG's short term assets ($1.2B) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: HRTG's short term assets ($1.2B) exceed its long term liabilities ($146.1M).


Debt to Equity History and Analysis

Debt Level: HRTG's debt to equity ratio (27.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if HRTG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HRTG's debt is well covered by operating cash flow (140.7%).

Interest Coverage: HRTG's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

What is Heritage Insurance Holdings's current dividend yield, its reliability and sustainability?

2.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HRTG's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: HRTG's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

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

Growing Dividend: HRTG's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), HRTG'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?

3.2yrs

Average management tenure


CEO

Ernie Garateix (48 yo)

0.42

Tenure

US$1,784,549

Compensation

Mr. Ernesto Jose Garateix, also known as Ernie, CPCU, had been the Chief Operating Officer at Heritage Insurance Holdings, Inc. since December 22, 2014 and served as its Executive Vice President since Augu...


CEO Compensation Analysis

Compensation vs Market: Ernie's total compensation ($USD1.78M) is above average for companies of similar size in the US market ($USD983.24K).

Compensation vs Earnings: Ernie's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: HRTG's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: HRTG's board of directors are considered experienced (6.8 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

Heritage Insurance Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Heritage Insurance Holdings, Inc.
  • Ticker: HRTG
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$246.108m
  • Shares outstanding: 27.75m
  • Website: https://www.heritagepci.com

Number of Employees


Location

  • Heritage Insurance Holdings, Inc.
  • 2600 McCormick Drive
  • Suite 300
  • Clearwater
  • Florida
  • 33759
  • United States

Listings


Biography

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family ho...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 22:46
End of Day Share Price2021/05/06 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.