Hippo Holdings Inc. Fundamental Analysis (NYSE: HIPO)
Hippo Holdings Inc. Fundamental Analysis (NYSE: HIPO)
Hippo Holdings Inc. (NYSE: HIPO) shows moderate financial fundamentals with a PE ratio of 29.98, profit margin of 5.90%, and ROE of 7.04%. The company generates $0.5B in annual revenue with strong year-over-year growth of 25.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HIPO's fundamental strength across five key dimensions:
Efficiency Score
WeakHIPO struggles to generate sufficient returns from assets.
Valuation Score
ModerateHIPO shows balanced valuation metrics.
Growth Score
ModerateHIPO shows steady but slowing expansion.
Financial Health Score
ExcellentHIPO maintains a strong and stable balance sheet.
Profitability Score
WeakHIPO struggles to sustain strong margins.
Key Financial Metrics
Is HIPO Expensive or Cheap?
P/E Ratio
HIPO trades at 29.98 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HIPO's PEG of -0.44 indicates potential undervaluation.
Price to Book
The market values Hippo Holdings Inc. at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.74 times EBITDA. This signals the market has high growth expectations.
How Well Does HIPO Make Money?
Net Profit Margin
For every $100 in sales, Hippo Holdings Inc. keeps $5.90 as profit after all expenses.
Operating Margin
Core operations generate 6.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.04 in profit for every $100 of shareholder equity.
ROA
Hippo Holdings Inc. generates $1.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hippo Holdings Inc. produces operating cash flow of $126.87M, showing steady but balanced cash generation.
Free Cash Flow
Hippo Holdings Inc. generates strong free cash flow of $119.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.53 in free cash annually.
FCF Yield
HIPO converts 12.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How HIPO Stacks Against Its Sector Peers
| Metric | HIPO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.98 | 20.15 | Worse (Expensive) |
| ROE | 7.04% | 630.00% | Weak |
| Net Margin | 5.90% | -696.00% (disorted) | Weak |
| Debt/Equity | 0.10 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 1.21 | 803.39 | Neutral |
| ROA | 1.16% | 286.00% | Weak |
HIPO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hippo Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.00%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
105.61%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
101.94%
Industry Style: Value, Dividend, Cyclical
High Growth