Hippo Holdings (HIPO) AI Stock Analysis

• Market Cap: $782.60M
• Dividend Yield: N/A
• Average Volume (3M): 163.26K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.33
• 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: 25,335,178
• 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: 1.00
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 18.15
• Enterprise Value/Ebitda: 7.15
• 1Y Price Target: $39.50
• Price Target Upside: 27.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $32.00 ▲(3.59% 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 Business Overview & Revenue Model

Company Description

Hippo 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 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: Neutral
• Last Price: 30.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 30.89 is below the 20-day moving average (MA) of 31.23, below the 50-day MA of 33.39, and above the 200-day MA of 29.49, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 62.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$479.90M	13.37	13.12%	4.15%	13.47%	26.15%
AMSF	72 Outperform	$739.19M	14.96	16.95%	6.55%	-1.73%	-18.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EIG	67 Neutral	$965.25M	16.90	5.86%	2.93%	1.69%	-52.43%
TIPT	64 Neutral	$688.39M	16.05	10.46%	1.32%	4.44%	22.40%
HIPO	63 Neutral	$782.60M	8.38	25.65%	―	34.48%	―
AMBC	48 Neutral	―	―	-4.14%	―	-37.46%	-117.36%

Hippo Holdings Corporate Events

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.