Heritage Insurance Holdings (HRTG) AI Stock Analysis

• Market Cap: $716.20M
• Dividend Yield: N/A
• Average Volume (3M): 585.36K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.90
• Revenue Growth: 9.35%
• EPS Growth: 77.04%
• Country: US
• Employees: 540
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.55
• Shares Outstanding: 31,017,570
• 10 Day Avg. Volume: 493,542
• 30 Day Avg. Volume: 585,362
• PEG Ratio: 0.37
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 4.69
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 1.54
• Enterprise Value/Ebitda: 5.72
• 1Y Price Target: $35.00
• Price Target Upside: 51.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $26.00 ▲(12.60% Upside)

Heritage Insurance Holdings demonstrates strong financial performance and attractive valuation, supported by positive earnings call insights. Technical indicators suggest caution due to potential short-term weakness, but the overall outlook remains positive due to strategic growth initiatives and robust financial health.

Positive Factors

Revenue Growth

The growth in gross premiums earned indicates expanding market penetration and effective pricing strategies, contributing to long-term revenue stability.

Cash Flow Management

Robust cash flow growth enhances financial flexibility, allowing for reinvestment in strategic initiatives and providing a buffer against economic downturns.

Net Income Improvement

Significant net income improvement reflects effective strategic initiatives and operational efficiencies, strengthening the company's financial foundation.

Negative Factors

Policy Contraction

The ongoing decrease in policies in-force could limit future revenue growth, as fewer policies may reduce premium income despite strategic rate adjustments.

Investment Income Decline

A decline in investment income due to lower interest rates may impact overall profitability, as investment returns are a key component of revenue.

Equity Fluctuations

Fluctuations in equity can signal potential financial instability, affecting investor confidence and the company's ability to leverage equity for growth.

Heritage Insurance Holdings Business Overview & Revenue Model

Company Description

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance. It also provides restoration, and emergency and recovery services; and property management, and reinsurance services. The company writes personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as indirectly to approximately 1,500 retail locations through eight wholesale agency relationships; and personal and commercial insurance policies through a network of approximately 70 independent agencies. Heritage Insurance Holdings, Inc. was founded in 2012 and is headquartered in Tampa, Florida.

How the Company Makes Money

Heritage Insurance Holdings generates revenue primarily through the sale of insurance premiums. When customers purchase insurance policies, they pay a premium that serves as the company's main source of income. The company also benefits from investment income derived from the premiums collected, which are invested in various financial instruments until claims are paid out. Additionally, HRTG may engage in reinsurance arrangements to mitigate risk, allowing them to manage large claims while still generating revenue from policyholders. Strategic partnerships with agents and brokers also help expand their market reach, contributing to overall sales and profitability.

Heritage Insurance Holdings Financial Statement Overview

Summary

Heritage Insurance Holdings shows strong revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet reflects conservative leverage and effective equity utilization, although historical fluctuations in equity warrant attention.

Income Statement

Heritage Insurance Holdings has demonstrated strong revenue growth with a 10.8% increase from 2023 to 2024. The company has maintained a high gross profit margin of 99.9% in 2024, indicating efficient cost management. The net profit margin improved to 7.5% in 2024 from 6.1% in 2023, reflecting enhanced profitability. However, the company faced challenges in earlier years with negative EBIT and net income, indicating past volatility.

Balance Sheet

The company has a healthy equity ratio of 11.8% in 2024, showing a solid equity base relative to total assets. The debt-to-equity ratio is low at 0.49, indicating conservative leverage. Return on equity improved to 21.2% in 2024, showcasing effective use of equity to generate profits. Despite these strengths, the stockholders' equity has fluctuated over the years, reflecting potential instability.

Cash Flow

Heritage Insurance Holdings has shown robust cash flow management with a significant free cash flow growth of 30.3% from 2023 to 2024. The operating cash flow to net income ratio is 1.42, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.28, reflecting efficient capital expenditure management. The company has consistently generated positive free cash flow, enhancing financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	842.42M	817.74M	737.73M	662.46M	631.56M	593.38M
Gross Profit	577.68M	816.99M	735.50M	662.46M	631.56M	593.38M
EBITDA	155.63M	103.16M	71.90M	-157.36M	-59.62M	18.29M
Net Income	106.94M	61.54M	45.31M	-154.36M	-74.73M	9.33M
Balance Sheet
Total Assets	2.54B	2.47B	2.15B	2.39B	1.98B	2.09B
Cash, Cash Equivalents and Short-Term Investments	473.46M	452.67M	553.17M	916.45M	1.03B	1.00B
Total Debt	115.49M	141.34M	148.19M	170.19M	151.93M	121.00M
Total Liabilities	2.15B	2.18B	1.93B	2.26B	1.64B	1.65B
Stockholders Equity	383.30M	290.80M	220.28M	131.04M	343.05M	442.34M
Cash Flow
Free Cash Flow	-28.82M	78.86M	60.52M	-46.64M	59.12M	169.46M
Operating Cash Flow	-25.31M	87.09M	70.42M	-34.26M	60.13M	170.21M
Investing Cash Flow	50.32M	-91.60M	100.81M	-37.86M	-124.48M	22.06M
Financing Cash Flow	-29.96M	-5.19M	14.55M	-5.06M	-17.28M	-28.90M

Heritage Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.09
• 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 HRTG, the sentiment is Negative. The current price of 23.09 is below the 20-day moving average (MA) of 24.51, below the 50-day MA of 24.20, and above the 200-day MA of 19.59, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRTG.

Heritage Insurance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVE	―	$883.82M	7.37	27.34%	2.47%	4.47%	73.40%
DGICA	―	$673.53M	7.97	15.20%	3.74%	3.40%	978.24%
SAFT	―	$1.03B	12.07	10.08%	5.25%	18.52%	65.66%
HRTG	―	$716.20M	6.67	33.49%	―	9.35%	77.04%
UFCS	―	$782.35M	8.73	11.68%	2.09%	14.28%	148.61%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACIC	―	$567.14M	7.05	31.54%	―	23.68%	16.14%

Heritage Insurance Holdings Corporate Events

Heritage Insurance Director Mark Berset Retires

On September 23, 2025, Mark Berset announced his immediate retirement from the Board of Directors of Heritage Insurance Holdings to pursue other opportunities. The company confirmed there were no disagreements with Mr. Berset regarding its operations, policies, or practices, and expressed gratitude for his service.

The most recent analyst rating on (HRTG) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Heritage Insurance Holdings stock, see the HRTG Stock Forecast page.

Heritage Insurance Holdings Reports Strong Q2 2025 Results

Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company that operates across multiple states in the U.S., focusing on personal and commercial residential insurance. The company is known for its extensive network of experienced agents and its strategic focus on underwriting discipline and rate adequacy.

Heritage Insurance Holdings Reports Robust Q2 Earnings

The recent earnings call for Heritage Insurance Holdings conveyed a positive sentiment, highlighting significant improvements in net income and a better net loss ratio. The company also reported strong new business growth, which, along with strategic reinsurance and credit refinancing strategies, provided optimism for future growth. Despite some setbacks, such as decreased investment income and a reduction in policies in-force, these were counterbalanced by strategic initiatives and market opportunities.