HCI Group (HCI) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: 0.8%
• Average Volume (3M): 185.48K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.56
• 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: 12,959,794
• 10 Day Avg. Volume: 217,608
• 30 Day Avg. Volume: 185,480
• 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: 1.10
• Enterprise Value/Revenue: 3.16
• Enterprise Value/Gross Profit: 17.13
• Enterprise Value/Ebitda: 8.12
• 1Y Price Target: $221.25
• Price Target Upside: 17.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 16.92
• Revenue Forecast (FY): $894.79M

• Rating: 73 Outperform
• Price Target: $202.00 ▲(7.10% 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., 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 the underwriting of various insurance products, collecting premiums from policyholders in exchange for coverage against specified risks. A significant portion of its income is derived from property and casualty insurance premiums, where the company assesses risks and sets pricing accordingly. Additionally, HCI Group earns investment income from managing the premiums collected until claims are paid out, as well as from its real estate holdings and investments. The company may also benefit from strategic partnerships with other financial institutions and agents, enhancing its distribution channels and expanding its market reach, which contributes to its overall earnings.

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	816.80M	749.45M	550.01M	491.99M	402.55M	275.73M
Gross Profit	150.58M	275.34M	204.61M	15.55M	81.29M	61.84M
EBITDA	317.55M	191.01M	136.87M	-52.77M	23.08M	57.25M
Net Income	206.32M	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	1.55B	1.05B	770.50M	500.22M	671.53M	503.06M
Total Debt	32.08M	230.44M	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	409.56M	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	-57.41M	-260.11M	4.27M	-434.54M	36.85M	143.22M
Financing Cash Flow	-5.47M	-75.17M	67.12M	41.07M	64.30M	-16.70M

HCI Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 188.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 188.6 is below the 20-day moving average (MA) of 198.82, below the 50-day MA of 189.32, and above the 200-day MA of 155.52, indicating a neutral trend. The MACD of 1.36 indicates Positive momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.44 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
HMN	74 Outperform	$1.85B	11.49	12.03%	3.07%	5.44%	58.05%
STC	74 Outperform	$1.93B	19.18	7.08%	2.84%	16.22%	69.80%
SKWD	74 Outperform	$1.92B	14.05	16.06%	―	22.51%	2.19%
HCI	73 Outperform	$2.35B	11.58	31.94%	0.80%	8.71%	17.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ROOT	67 Neutral	$1.23B	25.36	17.02%	―	38.50%	―
PRA	64 Neutral	$1.24B	36.72	2.66%	―	-3.35%	-21.82%

HCI Group Corporate Events

HCI Group’s Earnings Call Highlights Robust Growth

The recent earnings call for HCI Group, Inc. painted a picture of robust financial health and strategic achievements. The sentiment was overwhelmingly positive, driven by significant milestones such as the Exzeo IPO, successful real estate ventures, and a notable increase in insurance policies. Despite a minor negative impact on earnings per share from the Exzeo IPO, the overall outlook remains optimistic.

HCI Group Reports Strong Q3 2025 Earnings Growth

HCI Group, Inc. is a diversified holding company operating in the insurance and technology sectors, with a focus on property and casualty insurance and innovative insurance technology solutions. The company is listed on the New York Stock Exchange under the ticker symbol ‘HCI’.

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.

The most recent analyst rating on (HCI) stock is a Buy with a $205.00 price target. To see the full list of analyst forecasts on HCI Group stock, see the HCI Stock Forecast page.

HCI Group’s Earnings Call: Strong Growth and Strategic Plans

HCI Group’s recent earnings call painted a picture of robust financial health and strategic foresight. The company reported strong earnings growth, improved financial ratios, and significant premium growth, all driven by strategic technology implementation and debt reduction efforts. Despite minor challenges such as a slight increase in the gross loss ratio and a soft condo market, the overall sentiment remains positive, buoyed by plans for Exzeo’s IPO and strategic positioning in competitive markets.

HCI Group Reports Strong Q2 2025 Earnings

HCI Group, Inc. is a diversified holding company operating in the insurance and technology sectors, with a focus on property and casualty insurance and innovative insurance technology solutions. The company is listed on the New York Stock Exchange under the ticker symbol ‘HCI’.