Heritage Insurance Holdings (HRTG) AI Stock Analysis

• Market Cap: $837.70M
• Dividend Yield: N/A
• Average Volume (3M): 488.07K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.72
• Revenue Growth: 5.92%
• EPS Growth: 93.02%
• Country: US
• Employees: 540
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.56
• Shares Outstanding: 30,911,434
• 10 Day Avg. Volume: 557,596
• 30 Day Avg. Volume: 488,070
• 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: 1.05
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: 3.99
• 1Y Price Target: $35.50
• Price Target Upside: 31.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.3
• Revenue Forecast (FY): $842.23M

• Rating: 72 Outperform
• Price Target: $29.00 ▲(7.01% Upside)

Heritage Insurance Holdings' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The undervaluation indicated by the low P/E ratio further supports the stock's attractiveness. Technical analysis shows a positive trend, though cash flow challenges present a risk. Overall, the stock is well-positioned with room for growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful strategic initiatives and market expansion, enhancing long-term earnings potential.

Improved Net Loss Ratio

A significantly improved net loss ratio reflects effective cost management and risk mitigation, supporting sustainable profitability.

Record In-Force Premiums

Record in-force premiums demonstrate successful strategic initiatives and market penetration, ensuring stable future revenue streams.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth indicates potential liquidity issues, which may hinder investment in growth opportunities and financial flexibility.

Decline in Net Premiums Earned

A decline in net premiums earned suggests challenges in retaining revenue after reinsurance, which could impact profitability.

Increased Ceded Premium Ratio

An increased ceded premium ratio indicates higher reinsurance costs, which could pressure margins and reduce net income.

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. The company collects premiums from policyholders in exchange for coverage against various risks, which constitutes its main revenue stream. Additionally, HRTG benefits from investment income generated from the float of premiums collected before claims are paid out. The company may also engage in reinsurance arrangements to manage risk, which can provide further revenue opportunities. Strategic partnerships with agents and brokers help expand its distribution channels, enhancing market reach and customer acquisition. Overall, the combination of premium income, investment returns, and effective risk management practices contributes significantly to HRTG's earnings.

Heritage Insurance Holdings Financial Statement Overview

Summary

Heritage Insurance Holdings shows strong profitability and revenue growth, with efficient operational margins. The balance sheet indicates improved leverage and strong returns on equity. However, cash flow challenges, particularly in free cash flow growth, pose potential risks.

Income Statement

Heritage Insurance Holdings has demonstrated strong revenue growth with a TTM increase of 7.3%. The company maintains a healthy gross profit margin of 24.9% and a net profit margin of 17.7%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are robust at 24.8% and 25.1%, respectively, showcasing operational efficiency. However, the significant drop in gross profit margin from 2024 to TTM suggests potential volatility in cost structure.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.23 in the TTM period, down from 0.49 in 2024, indicating improved leverage. Return on equity is strong at 41.4%, suggesting effective use of equity to generate profits. However, the equity ratio is not provided, limiting a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth rate at -481% in the TTM period. The operating cash flow to net income ratio is not calculable due to zero net income, indicating potential cash flow issues. However, the free cash flow to net income ratio is strong at 97.7%, suggesting effective cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	842.28M	816.99M	735.50M	662.46M	631.56M	593.38M
Gross Profit	300.75M	178.75M	141.76M	4.99M	58.22M	91.72M
EBITDA	221.11M	103.16M	71.90M	-149.00M	-59.62M	18.29M
Net Income	149.21M	61.54M	45.31M	-154.36M	-74.73M	9.33M
Balance Sheet
Total Assets	2.37B	2.47B	2.12B	2.39B	1.98B	2.09B
Cash, Cash Equivalents and Short-Term Investments	666.38M	544.00M	553.17M	394.56M	1.03B	1.00B
Total Debt	101.66M	141.34M	148.19M	160.19M	151.93M	129.15M
Total Liabilities	1.93B	2.18B	1.90B	2.26B	1.64B	1.65B
Stockholders Equity	437.25M	290.80M	220.28M	131.04M	343.05M	442.34M
Cash Flow
Free Cash Flow	109.79M	78.86M	60.52M	-46.64M	59.12M	169.46M
Operating Cash Flow	112.35M	87.09M	70.42M	-34.26M	60.13M	170.21M
Investing Cash Flow	-18.86M	-91.60M	100.81M	-37.86M	-124.48M	22.06M
Financing Cash Flow	-40.66M	-5.19M	14.55M	-5.06M	-17.28M	-28.90M

Heritage Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRTG, the sentiment is Positive. The current price of 27.1 is above the 20-day moving average (MA) of 26.86, above the 50-day MA of 25.71, and above the 200-day MA of 21.03, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 13.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRTG.

Heritage Insurance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFCS	75 Outperform	$941.99M	8.71	13.21%	1.73%	12.22%	120.73%
SAFT	75 Outperform	$1.15B	13.07	9.97%	5.31%	13.35%	16.56%
UVE	74 Outperform	$935.71M	7.88	27.34%	2.29%	4.61%	73.40%
HRTG	72 Outperform	$837.70M	5.62	41.64%	―	5.92%	93.02%
ACIC	68 Neutral	$570.55M	6.75	29.35%	―	16.34%	-1.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DGICA	62 Neutral	$703.63M	8.14	15.10%	3.65%	0.93%	224.95%

Heritage Insurance Holdings Corporate Events

Heritage Insurance Reports Strong Q3 Earnings Growth

The recent earnings call for Heritage Insurance Holdings was marked by a largely positive sentiment, underscoring significant growth in net income, record in-force premiums, and substantial new business growth. Despite some challenges, such as a slight decline in net premiums earned and an increase in the ceded premium ratio, the overall tone was optimistic, buoyed by strategic progress and key metric improvements.

Heritage Insurance Holdings Reports Strong Q3 2025 Results

Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company, operating across multiple states in the U.S., including the northeast, southeast, Hawaii, and California, with a focus on personal and commercial residential insurance.

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.