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Hippo Holdings Inc (HIPO)
:HIPO
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Hippo Holdings
(NYSE:HIPO)
55Neutral
Hippo Holdings (HIPO) vs. S&P 500 (SPY)
Market Cap
$615.25M
Dividend YieldN/A
Average Volume (3M)196.50K
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth77.44%
EPS Growth85.53%
CountryUS
Employees478
SectorFinancial
Sector Strength76
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)-1.68
Shares Outstanding25,081,710
10 Day Avg. Volume199,480
30 Day Avg. Volume196,496
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.78
Price to Cash Flow (P/CF)-25.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.00Price Target Upside14.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Hippo Holdings Business Overview & Revenue Model
Company DescriptionHippo Holdings Inc. provides home protection insurance in the United States and the District of Columbia. Its insurance products include homeowners' insurance against risks of fire, wind, and theft; and commercial and personal lines of products. The company distributes insurance products and services through its technology platform; and offers its policies online, over the phone, or through licensed insurance agents. It provides care and protection for homeowners, as well as operates an integrated home protection platform. The company is headquartered in Palo Alto, California.
How the Company Makes MoneyHippo Holdings makes money primarily through underwriting homeowners insurance policies. The company generates revenue by collecting premiums from policyholders in exchange for providing insurance coverage. Hippo differentiates itself by using advanced data analytics and technology to assess risk and price policies more accurately than traditional insurers. Additionally, Hippo partners with reinsurers to manage its risk exposure, allowing it to share a portion of the premiums in exchange for risk transfer. The company may also earn revenue from investment income generated by investing the premiums it collects. Key factors contributing to Hippo's earnings include its ability to attract and retain policyholders, its underwriting expertise, the efficiency of its technology platform, and its strategic partnerships with reinsurers.
Hippo Holdings Financial Statement Overview
Summary
Hippo Holdings shows strong revenue growth and improved EBIT margin, reflecting better operational efficiency. However, persistent net losses and negative ROE indicate challenges in profitability. The balance sheet remains stable with no debt, but the company struggles with generating returns on equity. Positive cash flow changes are encouraging, yet historical volatility in cash flows suggests potential sustainability risks.Income Statement
Hippo Holdings has demonstrated notable revenue growth of 77.4% in 2024, reflecting robust top-line expansion. However, net profitability remains a challenge, with a negative net profit margin of -10.88% due to persistent losses. The EBIT margin has improved significantly to 58.98%, indicating better operational efficiency. Despite these improvements, the absence of EBITDA data limits comprehensive margin analysis.60
Neutral
Balance Sheet
The company maintains a strong equity base with an equity ratio of 23.47%, although this has decreased from previous years. The debt-to-equity ratio stands at 0, highlighting negligible leverage, which is beneficial in minimizing financial risk. However, the negative ROE of -11.18% signals inefficiency in generating returns for shareholders, impacting the balance sheet strength.50
Neutral
Cash Flow
The cash flow statement shows a positive turnaround in free cash flow, growing from a negative position in previous years to $47.2 million in 2024. The operating cash flow to net income ratio is robust at 1.17, indicating effective cash generation relative to net income. However, historical volatility in cash flows suggests potential sustainability risks.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 372.10M | 209.70M | 119.70M | 91.20M | 51.60M | Gross Profit |
| 372.10M | 209.70M | 119.70M | 91.20M | 51.60M | EBIT |
| 0.00 | -1.90M | -329.60M | -370.70M | -143.30M | EBITDA |
| 0.00 | 0.00 | -310.00M | -356.20M | -110.50M | Net Income Common Stockholders |
| -40.50M | -273.10M | -326.50M | -367.90M | -141.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 197.60M | 142.10M | 519.30M | 784.70M | 452.30M | Total Assets |
| 1.54B | 1.52B | 1.57B | 1.64B | 979.40M | Total Debt |
| 10.00M | 14.80M | 28.90M | 0.00 | 273.00M | Net Debt |
| -187.60M | -127.30M | -165.60M | -775.60M | -179.30M | Total Liabilities |
| 1.18B | 1.14B | 975.40M | 19.90M | 279.10M | Stockholders Equity |
| 362.10M | 377.90M | 589.90M | 859.60M | -199.60M |
| Cash Flow | Free Cash Flow | |||
| 47.20M | -139.10M | -181.20M | -141.90M | -74.80M | Operating Cash Flow |
| 47.50M | -92.40M | -161.50M | -124.50M | -65.40M | Investing Cash Flow |
| 30.30M | 57.60M | -405.90M | -30.00M | -2.30M | Financing Cash Flow |
| -40.10M | -14.60M | -6.80M | 480.80M | 518.10M |
Hippo Holdings Technical Analysis
Neutral
24.53
Price Trends
26.76
Negative
27.41
Negative
23.49
Positive
Market Momentum
-0.79
Negative
48.11
Neutral
83.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIPO, the sentiment is Neutral. The current price of 24.53 is above the 20-day moving average (MA) of 24.30, below the 50-day MA of 26.76, and above the 200-day MA of 23.49, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 83.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HIPO.
Hippo Holdings Risk Analysis
Hippo Holdings disclosed 75 risk factors in its most recent earnings report. Hippo Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hippo Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $421.15M | 13.59 | 12.35% | 0.82% | 14.93% | 43.88% | |
70 Outperform | $821.87M | 16.87 | 12.19% | 1.11% | 24.23% | 280.49% | |
68 Neutral | $930.61M | 16.88 | 20.17% | 3.07% | 0.71% | -10.39% | |
68 Neutral | $1.18B | 10.30 | 11.39% | 2.54% | 3.50% | 5.37% | |
63 Neutral | $12.07B | 9.35 | 8.15% | 79.57% | 12.85% | -5.13% | |
55 Neutral | $615.25M | ― | -10.95% | ― | 77.44% | 85.53% | |
48 Neutral | $375.52M | 5.07 | 2.04% | ― | 46.32% | 640.18% |
* Financial Sector Average
Performance Comparison
HIPO
Hippo Holdings
24.15
3.13
14.89%
AMSF
Amerisafe
49.25
2.39
5.10%
EIG
Employers Holdings
48.51
4.73
10.80%
ITIC
Investors Title Company
231.23
76.89
49.82%
AMBC
Ambac Financial
7.62
-6.92
-47.59%
TIPT
Tiptree Financial
21.92
5.97
37.43%
Hippo Holdings Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -17.10% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment with significant achievements in revenue growth, profitability, and operational efficiency. The company successfully navigated through challenges such as the wildfires and legacy portfolio issues, and remains optimistic about future growth and profitability.Highlights
Record-Breaking Year and Quarter
2024 was declared the most successful year and quarter in Hippo's history. The company achieved positive adjusted EBITDA in Q4, doubled annual revenue, and improved gross loss ratio by nearly 30 percentage points.
Positive Adjusted EBITDA
Hippo achieved a positive adjusted EBITDA of $8.5 million in Q4 2024, ahead of guidance, marking a significant milestone for the company.
Revenue Growth
Revenue grew by 58% year-over-year to $102 million in Q4 2024, driven by higher premium retention and volume increases across segments.
Improved Loss Ratios
HHIP gross loss ratio improved by three percentage points year-over-year to 50%, with the non-PCS loss ratio improving by 20 percentage points to 43%.
Spinnaker Fronting Business Growth
The Insurance as a Service segment grew by 22% year-over-year, demonstrating consistent long-term growth and profitability.
Future Guidance
2025 revenue guidance raised to $465 million, with expectations to turn net income profitable by Q4 2025.
Lowlights
Impact of Wildfires
The preliminary pretax estimates of cat losses from wildfires in Los Angeles were approximately $42 million, affecting financial results in Q1 2025.
Legacy Portfolio Exposure
The losses from the wildfires were related to legacy HHIP policies, highlighting a continued exposure to older, less profitable policies.
Decline in Hippo Home Insurance Program
An 8% decline in the Hippo home insurance program segment due to efforts to manage exposure to high cat geographies.
Company Guidance
During Hippo's fourth quarter 2024 earnings call, the company provided optimistic guidance for 2025, emphasizing their goal of achieving net income profitability by the end of the year. Despite a $42 million pretax loss from Los Angeles wildfires, Hippo reported a strong Q4 2024, achieving an adjusted EBITDA of $8.5 million and a revenue run rate of approximately $410 million. For 2025, Hippo raised its revenue guidance to $465 million, indicating a projected annual growth rate of 25% and 27% when excluding the First Connect platform. The company improved its HHIP gross loss ratio to 73% for 2024, with a non-cat loss ratio below 45% in Q4, and expects further improvement in 2025. Hippo also saw a 10% year-over-year increase in total generated premium, reaching $295 million, driven by a 22% growth in their Insurance as a Service segment. Additionally, sales and marketing, technology, and general administrative expenses decreased by 19% year-over-year, reflecting an increased operating efficiency.Hippo Holdings Corporate Events
Business Operations and Strategy
Hippo Holdings Terminates Palo Alto Lease Agreement
Neutral
Apr 18, 2025
On April 14, 2025, Hippo Analytics Inc. entered into a Second Amendment to Lease with Tallwood Forest, LLC, terminating their lease agreement for the property at 150 Forest Ave., Palo Alto, California. The company agreed to surrender the property and make a one-time lease termination payment of $1,438,411. Hippo Analytics is in the process of securing new office space in San Jose, CA, which is expected to lead to significant annual cost savings.
Spark’s Take on HIPO Stock
According to Spark, TipRanks’ AI Analyst, HIPO is a Neutral.
Hippo Holdings’ overall score of 62 reflects strong technical indicators and positive earnings call sentiment, offset by valuation concerns due to ongoing losses and a negative P/E ratio. The company shows promising revenue growth and operational improvements but faces challenges in achieving profitability. The stock’s technical outlook is stable, supporting a moderate investment potential.
To see Spark’s full report on HIPO stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.