HCI Group (HCI) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: 0.85%
• Average Volume (3M): 183.45K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.50
• Revenue Growth: 8.71%
• EPS Growth: 17.26%
• Country: US
• Employees: 552
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 4.90
• Shares Outstanding: 12,960,037
• 10 Day Avg. Volume: 150,896
• 30 Day Avg. Volume: 183,446
• PEG Ratio: 0.66
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 3.55
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.16
• Enterprise Value/Gross Profit: 6.46
• Enterprise Value/Ebitda: 8.22
• 1Y Price Target: $221.25
• Price Target Upside: 18.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 20.23
• Revenue Forecast (FY): $889.68M

• Rating: 73 Outperform
• Price Target: $202.00 ▲(7.75% Upside)

HCI Group's strong earnings call and robust financial performance are the primary drivers of its stock score. While technical indicators suggest some bearish momentum, the company's solid valuation and positive earnings outlook provide a balanced perspective.

Positive Factors

Strong Financial Performance

The strong EPS and favorable ratios indicate effective risk management and profitability, supporting long-term financial stability.

Real Estate Ventures

Successful real estate investments diversify revenue streams and enhance asset value, contributing to sustainable growth.

Exzeo IPO Success

The IPO boosts HCI's capital base, enabling further investments and growth opportunities, enhancing shareholder value.

Negative Factors

Negative EBIT Margin

A negative EBIT margin indicates inefficiencies in operations, which could hinder profitability and growth if not addressed.

Declining Free Cash Flow

Decreasing free cash flow growth may limit the company's ability to invest in new opportunities and manage financial obligations.

Minor Impact on EPS

While minor, the EPS impact from the IPO reflects dilution, potentially affecting short-term earnings performance.

HCI Group Business Overview & Revenue Model

Company Description

HCI Group, Inc. is a diversified insurance holding company based in Tampa, Florida. Primarily engaged in the property and casualty insurance sector, HCI operates through its subsidiaries, including Homeowners Choice Property & Casualty Insurance Company, Inc. and HCI Mortgage, LLC. The company focuses on providing homeowners insurance, primarily in Florida, and has expanded its offerings to include reinsurance and mortgage services, positioning itself strategically within the insurance and financial services markets.

How the Company Makes Money

HCI Group generates revenue primarily through its insurance premiums collected from policyholders. The core revenue stream comes from homeowners insurance, where the company underwrites policies and charges premiums based on risk assessments and coverage limits. Additionally, HCI earns income from investment activities, as it invests the premiums received in various financial instruments, including bonds and equities, which yield returns. The company also engages in reinsurance activities, which provide another layer of revenue by transferring some of its risks to other insurers for a fee. Partnerships with mortgage lenders and other financial institutions further enhance revenue opportunities through mortgage-related services. Overall, HCI's earnings are influenced by its underwriting performance, investment income, and strategic partnerships.

HCI Group Financial Statement Overview

Summary

HCI Group shows strong financial health with impressive profitability and a solid balance sheet. Revenue growth and high profit margins are notable, but the negative EBIT margin and declining free cash flow growth indicate areas for improvement.

Income Statement

HCI Group has demonstrated strong revenue growth with a 5.3% increase in TTM, supported by a solid gross profit margin of 46.97%. The net profit margin is impressive at 26.34%, indicating effective cost management and profitability. However, the negative EBIT margin in the TTM suggests operational challenges that need addressing.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.039, indicating minimal leverage and financial stability. The return on equity is strong at 33.64%, reflecting efficient use of equity to generate profits. The equity ratio of 35.02% suggests a solid capital structure.

Cash Flow

HCI Group's cash flow is healthy, with a high operating cash flow to net income ratio of 25.49, indicating strong cash generation relative to earnings. However, the decline in free cash flow growth by 15.35% in the TTM is a concern, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	816.85M	749.45M	550.01M	491.99M	402.55M	275.73M
Gross Profit	399.03M	275.34M	204.61M	15.55M	81.29M	61.84M
EBITDA	313.69M	191.01M	136.87M	-52.77M	23.08M	57.25M
Net Income	203.94M	109.95M	79.03M	-58.51M	1.86M	27.58M
Balance Sheet
Total Assets	2.35B	2.23B	1.81B	1.80B	1.18B	941.31M
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.05B	770.50M	500.22M	671.53M	503.06M
Total Debt	33.08M	186.44M	209.90M	212.41M	62.71M	184.28M
Total Liabilities	1.49B	1.76B	1.39B	1.55B	762.40M	740.18M
Stockholders Equity	821.78M	453.33M	324.84M	162.60M	323.37M	201.14M
Cash Flow
Free Cash Flow	404.78M	327.76M	224.16M	-10.15M	93.19M	70.87M
Operating Cash Flow	408.37M	331.82M	230.66M	-12.00K	96.50M	77.31M
Investing Cash Flow	67.22M	-260.11M	4.27M	-434.54M	36.85M	143.22M
Financing Cash Flow	-6.33M	-75.17M	67.12M	41.07M	64.30M	-16.70M

HCI Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 187.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCI, the sentiment is Positive. The current price of 187.47 is above the 20-day moving average (MA) of 175.58, below the 50-day MA of 187.47, and above the 200-day MA of 161.74, indicating a neutral trend. The MACD of -1.98 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 82.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HCI.

HCI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKWD	79 Outperform	$2.01B	14.71	16.06%	―	22.51%	2.19%
HMN	78 Outperform	$1.88B	11.71	12.03%	3.11%	5.44%	58.05%
STC	74 Outperform	$1.93B	19.18	7.08%	2.76%	16.22%	69.80%
HCI	73 Outperform	$2.27B	11.18	31.94%	0.85%	8.71%	17.26%
ROOT	70 Neutral	$1.29B	27.12	17.02%	―	38.50%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PRA	55 Neutral	$1.24B	36.72	2.66%	―	-3.35%	-21.82%

HCI Group Corporate Events

HCI Group’s Exzeo Plans IPO with SEC Filing

On September 25, 2025, HCI Group announced that its subsidiary, Exzeo Group, has filed a registration statement with the SEC for a proposed initial public offering of its common stock. The offering’s size and terms are yet to be determined and are subject to market conditions, with Truist Securities, Citizens Capital Markets, and William Blair acting as joint book-running managers.