HCI Group, Inc.
HCI Group, Inc. Fundamental Analysis
HCI Group, Inc. (HCI) shows strong financial fundamentals with a PE ratio of 6.32, profit margin of 33.16%, and ROE of 38.04%. The company generates $1.0B in annual revenue with strong year-over-year growth of 20.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 99.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze HCI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHCI demonstrates superior asset utilization.
Valuation Score
ExcellentHCI trades at attractive valuation levels.
Growth Score
ModerateHCI shows steady but slowing expansion.
Financial Health Score
ExcellentHCI maintains a strong and stable balance sheet.
Profitability Score
ExcellentHCI achieves industry-leading margins.
Key Financial Metrics
Is HCI Expensive or Cheap?
P/E Ratio
HCI trades at 6.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HCI's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values HCI Group, Inc. at 1.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.33 times EBITDA. This is generally considered low.
How Well Does HCI Make Money?
Net Profit Margin
For every $100 in sales, HCI Group, Inc. keeps $33.16 as profit after all expenses.
Operating Margin
Core operations generate 47.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $38.04 in profit for every $100 of shareholder equity.
ROA
HCI Group, Inc. generates $11.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HCI Group, Inc. generates strong operating cash flow of $507.36M, reflecting robust business health.
Free Cash Flow
HCI Group, Inc. generates strong free cash flow of $503.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $38.78 in free cash annually.
FCF Yield
HCI converts 20.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
145.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.38
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How HCI Stacks Against Its Sector Peers
| Metric | HCI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.32 | 18.89 | Better (Cheaper) |
| ROE | 38.04% | 818.00% | Weak |
| Net Margin | 33.16% | 2473.00% | Weak |
| Debt/Equity | 0.06 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 145.90 | 692.63 | Strong Liquidity |
| ROA | 11.82% | -24053.00% (disorted) | Strong |
HCI outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HCI Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
Declining