NYSE:UVE

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Universal Insurance Holdings

Executive Summary

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.9%

UVE

-0.01%

US Insurance

-0.7%

US Market


1 Year Return

-38.0%

UVE

-21.1%

US Insurance

5.3%

US Market

Return vs Industry: UVE underperformed the US Insurance industry which returned -21.1% over the past year.

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


Shareholder returns

UVEIndustryMarket
7 Day-1.9%-0.01%-0.7%
30 Day-6.6%0.2%4.6%
90 Day-4.4%1.4%14.0%
1 Year-36.3%-38.0%-19.1%-21.1%7.6%5.3%
3 Year-25.4%-31.2%-0.9%-9.0%34.9%26.1%
5 Year-25.2%-35.0%26.7%10.8%62.3%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Universal 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: UVE ($17.04) is trading below our estimate of fair value ($58.28)

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


Price To Earnings Ratio

PE vs Industry: UVE is poor value based on its PE Ratio (21.5x) compared to the US Insurance industry average (13.3x).

PE vs Market: UVE is poor value based on its PE Ratio (21.5x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UVE is overvalued based on its PB Ratio (1.1x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is Universal Insurance Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

61.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UVE's forecast earnings growth (61.3% per year) is above the savings rate (2.2%).

Earnings vs Market: UVE's earnings (61.3% per year) are forecast to grow faster than the US market (22.9% per year).

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

Revenue vs Market: UVE's revenue (8.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: UVE's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if UVE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UVE has high quality earnings.

Growing Profit Margin: UVE's current net profit margins (2.8%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: UVE's earnings have declined by -3.3% per year over the past 5 years.

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

Earnings vs Industry: UVE had negative earnings growth (-77.4%) over the past year, making it difficult to compare to the Insurance industry average (-1.9%).


Return on Equity

High ROE: UVE's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Universal Insurance Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: UVE's short term assets ($450.8M) do not cover its short term liabilities ($857.7M).

Long Term Liabilities: UVE's short term assets ($450.8M) exceed its long term liabilities ($193.5M).


Debt to Equity History and Analysis

Debt Level: UVE's debt to equity ratio (1.9%) is considered satisfactory.

Reducing Debt: UVE's debt to equity ratio has reduced from 16.1% to 1.9% over the past 5 years.

Debt Coverage: UVE's debt is well covered by operating cash flow (1033.5%).

Interest Coverage: UVE's interest payments on its debt are well covered by EBIT (151.6x coverage).


Balance Sheet


Next Steps

Dividend

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

4.52%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: UVE's dividend (4.52%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: UVE's dividend (4.52%) is low compared to the top 25% of dividend payers in the US market (4.6%).


Stability and Growth of Payments

Stable Dividend: UVE's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.8%), UVE's 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?

4.3yrs

Average management tenure


CEO

Steve Donaghy (55yo)

1

Tenure

US$2,841,894

Compensation

Mr. Stephen Joseph Donaghy, also known as Steve, has been Chief Executive Officer of Universal Insurance Holdings, Inc. since July 15, 2019 and its Director since February 26, 2020. Mr. Donaghy was Chief O ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.84M) is above average for companies of similar size in the US market ($USD2.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sean Downes
Executive Chairman6.92yrsUS$5.41m4.61% $25.5m
Stephen Donaghy
CEO & Director1yrUS$2.84m1.71% $9.5m
Jon Springer
President7.42yrsUS$2.78m1.56% $8.6m
Frank Wilcox
CFO & Principal Accounting Officer6.75yrsUS$1.11m0.33% $1.8m
Kimberly Campos
Chief Information Officer3.5yrsUS$414.59k0.0085% $47.2k
Rob Luther
Vice President of Corporate Developmentno datano datano data
Darryl Lewis
Chief Legal Officer1.92yrsUS$58.33kno data
Gary Ropiecki
Secretaryno datano datano data
James Lynch
Director of Financial Analysis9.75yrsUS$909.57kno data

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: UVE's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Downes
Executive Chairman6.92yrsUS$5.41m4.61% $25.5m
Stephen Donaghy
CEO & Director1yrUS$2.84m1.71% $9.5m
Jon Springer
President7.42yrsUS$2.78m1.56% $8.6m
Kimberly Campos
Chief Information Officer3.5yrsUS$414.59k0.0085% $47.2k
Michael Pietrangelo
Lead Independent Director6.5yrsUS$298.04k0.28% $1.5m
Joel Wilentz
Independent Director23.33yrsUS$283.04k0.75% $4.1m
Scott Callahan
Independent Director7.08yrsUS$298.04k0.026% $145.4k
Ozzie Schindler
Independent Director13.5yrsUS$298.04k0.097% $537.1k
Ralph Palmieri
Independent Director6.08yrsUS$298.04k0.024% $134.6k
Richard Peterson
Independent Director6.08yrsUS$298.04k0.031% $173.4k
Marlene Gordon
Independent Director0.083yrno datano data

6.5yrs

Average Tenure

53yo

Average Age

Experienced Board: UVE's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UVE 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

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


Key Information

  • Name: Universal Insurance Holdings, Inc.
  • Ticker: UVE
  • Exchange: NYSE
  • Founded: 1990
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$552.149m
  • Shares outstanding: 32.40m
  • Website: https://www.universalinsuranceholdings.com

Number of Employees


Location

  • Universal Insurance Holdings, Inc.
  • 1110 West Commercial Boulevard
  • Suite 100
  • Fort Lauderdale
  • Florida
  • 33309
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UVENYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1992
5UIDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1992

Biography

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. The company develops, markets, and underwrites insurance products for personal residential homeowner’s insurance. It also provides personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire, and commercial residential multi-peril; and allied lines, coverage for other structures, and personal property, as well as liability and personal articles coverages. In addition, the company offers policy and claims administration, and reinsurance intermediary services, as well as operates Universal Direct, a direct-to-consumer online platform, which enables homeowners to directly purchase, pay for, and bind homeowners’ policies. It provides its products through a network of independent agents. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was founded in 1990 and is headquartered in Fort Lauderdale, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 23:59
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.