Heritage Insurance Holdings (HRTG) AI Stock Analysis

• Market Cap: $665.64M
• Dividend Yield: N/A
• Average Volume (3M): 440.71K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.86
• Revenue Growth: 9.35%
• EPS Growth: 77.04%
• Country: US
• Employees: 540
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.55
• Shares Outstanding: 31,017,570
• 10 Day Avg. Volume: 627,809
• 30 Day Avg. Volume: 440,706
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 7.20
• 1Y Price Target: $27.00
• Price Target Upside: 17.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $24.00 ▲(4.03% Upside)

Heritage Insurance Holdings demonstrates strong financial performance and positive earnings call sentiment, driving the overall score. The undervalued P/E ratio further supports the stock's potential. Technical indicators present a mixed view, slightly dampening the overall score.

Positive Factors

Earnings Performance

Heritage Insurance Holdings reported operating EPS of $0.61, beating both the analyst's estimate of $0.48 and the consensus of $0.41.

Profitability

The company now appears to be solidly profitable after several years of price increases and more recent moderating claims inflation.

Valuation

The stock is trading at approximately 100% of book value and 4.6 times forward earnings, suggesting an attractive valuation.

Negative Factors

Capital Constraints

Capital remains tight, as confirmed by the Board’s continued suspension of the quarterly dividend and the lack of any buyback activity.

Growth Limitations

Excess capital is limited, which could limit growth potential and increase wind season risk.

Peer Comparison

Shares of HRTG currently trade at about 1.0x tangible book value, compared to a peer median of 2.3x, indicating that the shares are fairly valued at current levels.

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 exhibits a positive financial trajectory with 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	837.96M	817.74M	737.73M	662.46M	631.56M	593.38M
Gross Profit	691.98M	816.99M	735.50M	662.46M	631.56M	593.38M
EBITDA	123.69M	103.16M	71.90M	-157.36M	-59.62M	18.29M
Net Income	77.79M	61.54M	45.31M	-154.36M	-74.73M	9.33M
Balance Sheet
Total Assets	2.21B	2.47B	2.15B	2.39B	1.98B	2.09B
Cash, Cash Equivalents and Short-Term Investments	542.33M	452.67M	553.17M	916.45M	1.03B	1.00B
Total Debt	118.88M	141.34M	148.19M	170.19M	151.93M	121.00M
Total Liabilities	1.88B	2.18B	1.93B	2.26B	1.64B	1.65B
Stockholders Equity	329.00M	290.80M	220.28M	131.04M	343.05M	442.34M
Cash Flow
Free Cash Flow	79.19M	78.86M	60.52M	-46.64M	59.12M	169.46M
Operating Cash Flow	83.62M	87.09M	70.42M	-34.26M	60.13M	170.21M
Investing Cash Flow	-11.77M	-91.60M	100.81M	-37.86M	-124.48M	22.06M
Financing Cash Flow	-29.95M	-5.19M	14.55M	-5.06M	-17.28M	-28.90M

Heritage Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 23.07 is above the 20-day moving average (MA) of 21.30, above the 50-day MA of 22.02, and above the 200-day MA of 16.69, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 85.70 is Negative, 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
HRTG	76 Outperform	$665.64M	6.62	33.49%	―	9.35%	77.04%
DGICA	73 Outperform	$621.45M	7.30	15.20%	4.05%	3.40%	978.24%
UVE	72 Outperform	$676.53M	10.46	15.60%	3.15%	5.64%	-17.95%
GBLI	69 Neutral	$414.59M	14.64	4.13%	4.83%	-3.71%	-21.68%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%
ACIC	65 Neutral	$532.03M	6.69	31.54%	―	23.68%	16.14%
NODK	46 Neutral	$254.10M	171.60	0.65%	―	-15.27%	-65.08%

Heritage Insurance Holdings Corporate Events

Heritage Insurance Expands Credit Facilities to $200M

On July 22, 2025, Heritage Insurance Holdings, Inc. entered into an Amended and Restated Credit Agreement, increasing its senior secured credit facilities to $200 million and extending the maturity to July 2030. The agreement reduces loan margins and amends covenants to offer more operational flexibility, allowing the company to repay $78 million in outstanding principal from the prior agreement, potentially enhancing its financial position and strategic capabilities.

Heritage Insurance Holdings Announces Board and Committee Changes

On June 10, 2025, Heritage Insurance Holdings, Inc. held its Annual Meeting of Stockholders, where several key decisions were made. The election of directors resulted in the appointment of Ernie Garateix, Richard Widdicombe, Panagiotis Apostolou, Irini Barlas, Mark Berset, Joseph Vattamattam, and Paul L. Whiting to the Board until the 2026 meeting. Additionally, the stockholders ratified the appointment of Plante & Moran, PLLC as the independent registered public accounting firm for 2025. The compensation of the company’s named executive officers was approved on an advisory basis, and an amendment to the 2023 Omnibus Incentive Plan was passed to increase authorized shares by 1,800,000. Following the meeting, the Board approved changes to committee assignments, with Irini Barlas, Panagiotis Apostolou, and Paul L. Whiting taking on key roles in the Audit, Corporate Governance and Nominating, and Compensation Committees, respectively.