Hippo Holdings (HIPO) AI Stock Analysis

• Market Cap: $898.26M
• Dividend Yield: N/A
• Average Volume (3M): 163.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 34.48%
• EPS Growth: N/A
• Country: US
• Employees: 478
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 3.77
• Shares Outstanding: 25,028,053
• 10 Day Avg. Volume: 117,631
• 30 Day Avg. Volume: 163,257
• PEG Ratio: 0.19
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 14.01
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 18.15
• Enterprise Value/Ebitda: 7.15
• 1Y Price Target: $39.00
• Price Target Upside: 19.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $34.00 ▲(3.82% Upside)

Hippo Holdings' overall stock score is driven by strong earnings call results and an attractive valuation. However, the score is tempered by technical indicators suggesting bearish momentum and significant cash flow challenges. The company's strategic focus and raised guidance provide a positive outlook, but operational cash flow management remains a critical area for improvement.

Positive Factors

Revenue Growth

The significant growth in gross written premium indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.

Leadership Enhancements

The appointment of a new Chief Data Officer enhances strategic capabilities in data analytics, potentially driving innovation and competitive advantage.

Diversification Strategy

Successful diversification into casualty and commercial lines reduces reliance on homeowners, mitigating risks and stabilizing revenue streams.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues can hinder investment in growth opportunities and strain financial flexibility, impacting long-term sustainability.

Homeowners Segment Contraction

Contraction in the homeowners segment due to competitive pressures may limit growth in a key product line, affecting overall market position.

Competition in Homeowners Market

Intensified competition in the homeowners market could pressure margins and slow growth, challenging Hippo's market share and profitability.

Hippo Holdings Business Overview & Revenue Model

Company Description

Hippo Holdings (HIPO) is a technology-driven insurance company specializing in home insurance products. The company aims to modernize the insurance experience by leveraging advanced technology and data analytics to provide homeowners with tailored coverage options, streamlined claims processing, and proactive risk management services. Operating in the insurtech sector, Hippo focuses on simplifying the insurance process and enhancing customer engagement through its digital platform, which offers instant quotes and policy management.

How the Company Makes Money

Hippo Holdings generates revenue primarily through the sale of home insurance policies. The company's revenue model is based on underwriting premiums from policyholders, which are collected on an annual or monthly basis. Key revenue streams include direct premiums written, which reflect the total amount of insurance premiums collected from customers, as well as investment income from the reserves held to cover potential claims. Additionally, Hippo may engage in partnerships with real estate platforms and agents, enhancing its distribution channels and customer acquisition strategies. The company's innovative use of technology for efficient claims management and customer service also contributes to its competitive advantage, potentially leading to increased customer retention and policy renewals.

Hippo Holdings Financial Statement Overview

Summary

Hippo Holdings shows improved profitability and revenue growth, but faces significant cash flow challenges. The balance sheet is stable with low leverage, but operational cash flow needs attention for long-term sustainability.

Income Statement

Hippo Holdings shows a positive revenue growth rate of 5.91% TTM, indicating a recovery from previous periods. The net profit margin has improved significantly to 21.31% TTM, reflecting enhanced profitability. However, the gross profit margin remains low at 6.44% TTM, suggesting cost management challenges. The EBIT and EBITDA margins are strong at 23.02% and 24.31% TTM, respectively, indicating operational efficiency improvements.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.13 TTM, indicating prudent financial leverage. Return on equity has improved to 26.66% TTM, showcasing effective use of equity capital. However, the equity ratio is not explicitly provided, but the overall balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

Cash flow performance is concerning, with negative operating cash flow and free cash flow TTM. The free cash flow growth rate is negative, indicating cash flow challenges. The free cash flow to net income ratio is high at 4.75 TTM, suggesting reliance on non-operational sources for cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	450.10M	372.10M	209.70M	119.70M	91.20M	51.60M
Gross Profit	43.10M	74.30M	-83.40M	-59.40M	-14.70M	16.60M
EBITDA	109.40M	-4.20M	-242.70M	-310.00M	-157.30M	-110.50M
Net Income	95.90M	-40.50M	-273.10M	-333.40M	-371.40M	-141.50M
Balance Sheet
Total Assets	1.87B	1.54B	1.52B	1.57B	1.64B	979.40M
Cash, Cash Equivalents and Short-Term Investments	520.90M	197.60M	490.90M	640.40M	784.70M	452.30M
Total Debt	53.20M	10.00M	14.80M	28.90M	0.00	273.00M
Total Liabilities	1.45B	1.18B	1.14B	975.40M	781.00M	1.18B
Stockholders Equity	421.50M	362.10M	377.90M	589.90M	859.60M	-199.60M
Cash Flow
Free Cash Flow	-1.90M	47.20M	-139.10M	-181.20M	-141.90M	-74.80M
Operating Cash Flow	-400.00K	47.50M	-92.40M	-161.50M	-124.50M	-65.40M
Investing Cash Flow	42.30M	30.30M	57.60M	-405.90M	-30.00M	-2.30M
Financing Cash Flow	-600.00K	-40.10M	-14.60M	-6.80M	480.80M	518.10M

Hippo Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIPO, the sentiment is Negative. The current price of 32.75 is below the 20-day moving average (MA) of 33.89, below the 50-day MA of 35.04, and above the 200-day MA of 29.34, indicating a neutral trend. The MACD of -0.78 indicates Positive momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 58.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIPO.

Hippo Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITIC	80 Outperform	$532.33M	14.83	13.12%	5.62%	13.47%	26.15%
AMSF	72 Outperform	$786.69M	15.92	16.95%	11.37%	-1.73%	-18.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EIG	67 Neutral	$843.64M	14.77	5.86%	3.18%	1.69%	-52.43%
HIPO	65 Neutral	$898.26M	-85.19	25.65%	―	34.48%	―
TIPT	60 Neutral	$708.06M	16.51	10.46%	2.60%	4.44%	22.40%
AMBC	48 Neutral	$394.75M	―	-4.14%	―	-37.46%	-117.36%

Hippo Holdings Corporate Events

Hippo Holdings Reports Strong Q3 2025 Financial Turnaround

Hippo Holdings Inc., a technology-enabled insurance platform, specializes in providing tailored coverage across personal and commercial lines through its advanced underwriting and diversified risk management strategies.

Hippo Holdings Inc. Earnings Call Highlights Growth

Hippo Holdings Inc. recently held its earnings call, revealing a positive sentiment driven by substantial growth in premium and improved underwriting results. The company showcased its successful diversification strategy and key leadership appointments, which have bolstered its performance. Despite facing challenges in the homeowners segment due to competitive pressures, Hippo’s overall outlook remains robust.

Hippo Holdings Expands Board with New Appointments

On September 10, 2025, Hippo Holdings Inc. expanded its Board of Directors from nine to ten members, appointing Laura Hay and Susan Holliday effective October 1, 2025. Both appointees bring extensive experience in insurance and financial services, with Ms. Hay having served as Global Head of Insurance for KPMG International and Ms. Holliday having held leadership roles at Swiss Re and other organizations. Their appointments are expected to enhance Hippo’s growth, innovation, and risk management capabilities, aligning with the company’s focus on customer-centric innovation and sustainable growth.

The most recent analyst rating on (HIPO) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Hippo Holdings stock, see the HIPO Stock Forecast page.