HCI Group (HCI) AI Stock Analysis

• Market Cap: $2.48B
• Dividend Yield: 0.82%
• Average Volume (3M): 137.40K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.52
• 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: 94,631
• 30 Day Avg. Volume: 137,396
• 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: 0.50
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 3.93
• 1Y Price Target: $221.25
• Price Target Upside: 20.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $223.00 ▲(21.27% Upside)

The score is driven primarily by solid underlying financial strength (high profitability, low leverage, strong ROE) and a very constructive earnings-call outlook with strong underwriting results and book-value catalysts. Technicals support the uptrend, though momentum appears somewhat stretched, while valuation is helped by a modest P/E but tempered by a low dividend yield.

Positive Factors

Strong Financial Performance

HCI's strong EPS and favorable ratios indicate robust operational efficiency and profitability, supporting long-term financial health.

Low Leverage

Minimal leverage enhances financial stability and flexibility, allowing HCI to navigate market fluctuations more effectively.

Exzeo IPO Success

The successful IPO of Exzeo boosts HCI's book value and capital base, providing resources for future growth and investment.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth may signal challenges in cash management, potentially affecting HCI's ability to fund operations and growth.

Negative EBIT Margin

A negative EBIT margin indicates potential inefficiencies in operations, which could impact profitability if not addressed.

Minor EPS Dilution from Exzeo IPO

While the IPO boosts capital, the slight EPS dilution may affect short-term earnings per share, impacting investor perception.

HCI Group Business Overview & Revenue Model

Company Description

HCI Group, Inc., together with its subsidiaries, engages in the property and casualty insurance, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners, fire, flood, and wind-only insurance to homeowners, condominium owners, and tenants for properties, as well as offers reinsurance programs. The company also owns and operates waterfront properties and retail shopping centers, and an office building, as well as commercial properties for investment purposes. In addition, it designs and develops web-based applications and products for mobile devices, including SAMS, an online policy administration platform; Harmony, a policy administration platform; ClaimColony, an end-to-end claims management platform; and AtlasViewer, a mapping and data visualization platform. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.

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: Neutral
• Last Price: 183.89
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCI, the sentiment is Neutral. The current price of 183.89 is below the 20-day moving average (MA) of 185.23, below the 50-day MA of 186.81, and above the 200-day MA of 165.28, indicating a neutral trend. The MACD of 2.43 indicates Negative momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 44.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$2.07B	14.39	16.06%	―	22.51%	2.19%
HCI	78 Outperform	$2.48B	11.74	31.94%	0.82%	8.71%	17.26%
HMN	78 Outperform	$1.88B	11.45	12.03%	3.01%	5.44%	58.05%
STC	74 Outperform	$2.10B	19.48	7.08%	2.88%	16.22%	69.80%
ROOT	70 Neutral	$1.12B	22.74	17.02%	―	38.50%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PRA	55 Neutral	$1.24B	36.70	2.66%	―	-3.35%	-21.82%

HCI Group Corporate Events

HCI Group CEO Extends Leadership Role and Equity Commitment

On December 9, 2025, Exzeo Group, Inc., a majority-owned subsidiary of HCI Group, executed an executive employment agreement, effective January 1, 2026, to retain Paresh Patel as chief executive officer, aligning his leadership across both Exzeo and HCI Group. The agreement sets Patel’s annual base salary at $950,000 with eligibility for discretionary bonuses, provides 12 months of base-salary severance in certain termination, good reason, or change-of-control scenarios, and includes standard confidentiality, non-solicitation and a two-year U.S. non-compete clause, underscoring the company’s intention to secure long-term executive stability. On December 18, 2025, Patel also adopted a Rule 10b5-1 trading plan to purchase up to 100,000 Exzeo shares or $2 million of stock by December 18, 2026, contingent on price thresholds, signaling a structured commitment to increase his equity stake and potentially aligning his incentives more closely with other shareholders.

The most recent analyst rating on (HCI) stock is a Hold with a $190.00 price target. To see the full list of analyst forecasts on HCI Group stock, see the HCI Stock Forecast page.