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Hippo Holdings (HIPO)
NYSE:HIPO
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Hippo Holdings
(NYSE:HIPO)
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Rating:63Neutral
Price Target:
$32.00
▲(5.72% Upside)
Hippo Holdings shows strong earnings call performance and strategic growth initiatives, but faces challenges in cash flow management and technical indicators. The stock's undervaluation offers potential upside, but bearish momentum suggests caution.
Positive Factors
Revenue Growth
The significant premium growth indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.
Strategic Diversification
Diversification into casualty and commercial lines reduces reliance on homeowners insurance, enhancing resilience against market fluctuations.
Leadership Enhancement
Strengthened leadership with experienced members supports strategic growth, innovation, and improved risk management capabilities.
Negative Factors
Cash Flow Challenges
Persistent cash flow issues can limit operational flexibility and investment capacity, potentially hindering long-term growth.
Homeowners Premium Contraction
Contraction in homeowners premiums due to underwriting discipline may impact short-term revenue, highlighting competitive pressures.
Competition in E&S Market
Rising competition in the E&S market could pressure margins and limit growth in this segment, affecting overall profitability.
Hippo Holdings (HIPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$794.51M
Dividend YieldN/A
Average Volume (3M)163.26K
Price to Earnings (P/E)8.2
Beta (1Y)1.32
Revenue Growth34.48%
EPS GrowthN/A
CountryUS
Employees478
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)3.77
Shares Outstanding25,335,178
10 Day Avg. Volume117,631
30 Day Avg. Volume163,257
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.83
Price to Sales (P/S)1.78
P/FCF Ratio14.01
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.74
Enterprise Value/Gross Profit18.15
Enterprise Value/Ebitda7.15
Forecast
1Y Price Target
$34.00Price Target Upside12.32% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in premium and improvements in underwriting results, supported by a successful diversification strategy and key leadership appointments. Despite some challenges in the homeowners segment due to competition, the company's overall performance and future outlook remain strong.Q3-2025 Updates
Positive Updates
Significant Premium Growth
Hippo achieved a 33% year-over-year increase in gross written premium, reaching $311 million, with strong performance across most lines of business.
Improved Underwriting Results
The company's net loss ratio improved by 25 percentage points to 48%, and the net combined ratio improved by 28 percentage points to 100% year-over-year.
Successful Diversification Strategy
Casualty increased to 25% of gross written premium from 14% last year, and commercial multi-peril rose to 21% from 13%.
Raised Full-Year Guidance
Hippo raised full-year guidance for gross written premium to $1.09 billion to $1.11 billion and expects adjusted net income to be between $10 million and $14 million.
Appointments of Key Leaders
Robin Gordon was appointed as Chief Data Officer, and two new board members were added, enhancing leadership and expertise.
Negative Updates
Homeowners Premium Contraction
There was a small contraction in homeowners gross written premium as the company focused on underwriting discipline over premium growth.
Competition in E&S Homeowners Market
Increased competition and price softening in the E&S homeowners market were noted, impacting growth in that segment.
Company Guidance
During Hippo's Third Quarter 2025 earnings call, the company reported impressive financial metrics, highlighting its continued growth and strategic focus. Hippo achieved an adjusted net income of $18 million and experienced a 33% year-over-year increase in gross written premium, reaching $311 million for the quarter. The company's net loss ratio improved by 25 percentage points to 48%, and the net combined ratio saw a 28-point improvement, now at 100%. Hippo's strategic diversification efforts led to a significant shift in its portfolio, with casualty and commercial multi-peril lines increasing their share of gross written premium to 25% and 21%, respectively, while homeowners decreased to 32%. Additionally, Hippo raised its full-year guidance for 2025, with gross written premium expected to be between $1.09 billion and $1.11 billion, and adjusted net income projected to range from $10 million to $14 million. The company also emphasized its commitment to long-term profitable growth, leveraging technology to optimize risk management and expand its market reach.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.65
Positive
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.70
Positive
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.45
Neutral
| 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
Negative
30.27
Price Trends
31.97
Negative
33.71
Negative
29.78
Positive
Market Momentum
-0.22
Negative
41.88
Neutral
51.18
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 30.27 is below the 20-day moving average (MA) of 30.93, below the 50-day MA of 31.97, and above the 200-day MA of 29.78, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 51.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $479.26M | 13.14 | 13.12% | 4.20% | 13.47% | 26.15% | |
73 Outperform | $717.61M | 14.37 | 16.95% | 6.64% | -1.73% | -18.36% | |
69 Neutral | $1.00B | 17.30 | 5.86% | 2.94% | 1.69% | -52.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $794.51M | 8.21 | 25.65% | ― | 34.48% | ― | |
63 Neutral | $672.51M | 15.46 | 10.46% | 1.31% | 4.44% | 22.40% |
* Financial Sector Average
HIPO
Hippo Holdings
30.47
2.70
9.72%
AMSF
Amerisafe
38.09
-10.35
-21.37%
EIG
Employers Holdings
44.89
-3.94
-8.07%
ITIC
Investors Title Company
250.12
30.96
14.13%
TIPT
Tiptree Financial
17.72
-2.15
-10.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.