Heritage Insurance Holdings (HRTG) AI Stock Analysis

• Market Cap: $639.39M
• Dividend Yield: N/A
• Average Volume (3M): 404.03K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.90
• Revenue Growth: 11.41%
• EPS Growth: 53.85%
• Country: US
• Employees: 540
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.99
• Shares Outstanding: 30,993,270
• 10 Day Avg. Volume: 295,656
• 30 Day Avg. Volume: 404,027
• PEG Ratio: 0.32
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.86
• Enterprise Value/Market Cap: 0.33
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.56
• Enterprise Value/Ebitda: 1.50
• 1Y Price Target: $29.00
• Price Target Upside: 38.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $24.00 ▲(14.83%Upside)

Heritage Insurance Holdings exhibits a strong financial foundation with impressive earnings growth and efficient risk management. The technical indicators suggest a cautious outlook due to recent bearish trends, but the company's valuation remains attractive. Positive earnings guidance and strategic expansions reinforce the potential for future growth.

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 collection of insurance premiums from policyholders. The company's core revenue streams include premiums from personal residential insurance products such as homeowners, condo, and rental property insurance. Additionally, the company invests the premiums collected into various investment vehicles, including bonds and equities, to generate investment income. Heritage Insurance's earnings are influenced by factors such as underwriting profitability, investment performance, and effective risk management. Strategic partnerships with reinsurers also play a significant role in managing risk and stabilizing earnings, allowing the company to offer competitive insurance products while mitigating potential losses.

Heritage Insurance Holdings Financial Statement Overview

Summary

Heritage Insurance Holdings has demonstrated strong revenue growth and profitability, with a high gross profit margin and improved net profit margin. The company maintains a healthy balance sheet with conservative leverage and strong cash flow generation, contributing to a solid financial position.

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

Heritage Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.90
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 20.9 is below the 20-day moving average (MA) of 21.71, below the 50-day MA of 22.88, and above the 200-day MA of 15.82, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 41.41 is Neutral, neither overbought nor oversold. The STOCH value of 21.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HRTG.

Heritage Insurance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRTG	75 Outperform	$639.39M	8.26	27.59%	―	11.41%	53.85%
DGICA	71 Outperform	$613.52M	7.32	15.20%	4.01%	3.40%	978.24%
UVE	70 Neutral	$662.24M	10.29	15.60%	3.29%	5.51%	-17.95%
Sector *	67 Neutral	$17.06B	11.24	9.31%	3.84%	11.08%	-3.39%
GBLI	64 Neutral	$439.48M	15.42	4.14%	4.55%	-10.61%	-19.48%
ACIC	63 Neutral	$507.23M	6.83	31.11%	―	12.19%	5.12%
NODK	46 Neutral	$269.50M	53.31	2.40%	―	-6.46%	―

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.

The most recent analyst rating on (HRTG) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Heritage Insurance Holdings stock, see the HRTG Stock Forecast page.

Heritage Insurance Holdings 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.

The most recent analyst rating on (HRTG) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Heritage Insurance Holdings stock, see the HRTG Stock Forecast page.

Heritage Insurance Secures 2025-2026 Reinsurance Program

On May 8, 2025, Heritage Insurance Holdings announced the full placement of its 2025-2026 catastrophe excess-of-loss reinsurance program for its subsidiaries. The program includes a $2.479 billion limit, an increase from the previous year, with a cost rise of only $7.8 million. This placement reflects strong support from reinsurance partners and includes new catastrophe bonds, enhancing the company’s financial resilience and operational capacity in the face of catastrophic events.