Heritage Insurance Holdings (HRTG) AI Stock Analysis

• Market Cap: $692.08M
• Dividend Yield: N/A
• Average Volume (3M): 514.95K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.89
• Revenue Growth: 11.41%
• EPS Growth: 53.85%
• Country: US
• Employees: 540
• Sector: Financial
• Sector Strength: 74
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.99
• Shares Outstanding: 30,993,270
• 10 Day Avg. Volume: 440,429
• 30 Day Avg. Volume: 514,950
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.02
• Enterprise Value/Market Cap: -0.09
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.09
• Enterprise Value/Ebitda: -0.16
• 1Y Price Target: $29.00
• Price Target Upside: 29.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $27.00 ▲(20.91%Upside)

Heritage Insurance Holdings is well-positioned in the insurance industry, demonstrating strong financial performance and growth prospects. The stock benefits from low valuation metrics indicating potential undervaluation. Technical indicators show strong momentum, although caution is advised due to potential overbought conditions. The company's strategic focus and favorable legislative changes support future growth, offsetting environmental risk challenges.

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. (HRTG) is a property and casualty insurance company based in Clearwater, Florida. Founded in 2012, the company primarily provides personal residential insurance, including homeowners and condominium owners' policies. Heritage Insurance Holdings operates across several U.S. states, offering a range of insurance products designed to protect against risks such as fire, theft, and natural disasters. The company is committed to delivering customer-focused services and leveraging technology to enhance its underwriting capabilities.

How the Company Makes Money

Heritage Insurance Holdings makes money primarily through the collection of premiums paid by policyholders for its insurance products. These premiums constitute the main source of revenue and are calculated based on underwriting assessments of risk associated with insuring homes and properties. Additionally, the company invests a portion of the premiums collected in various financial instruments to generate investment income. Heritage Insurance Holdings also works with a network of independent agents and brokers to distribute its insurance products, which can help drive sales and expand its customer base. The company's revenue is influenced by factors such as claims experience, reinsurance costs, and regulatory changes in the insurance industry.

Heritage Insurance Holdings Financial Statement Overview

Summary

Heritage Insurance Holdings shows strong revenue and profit growth with improved operational efficiency. The balance sheet is solid with no debt and improved equity returns, though low equity ratio and past volatility in cash flows pose some risks.

Income Statement

Heritage Insurance Holdings has shown strong revenue growth with a 11.1% increase in 2024 compared to 2023, and a significant improvement in profitability metrics. Gross profit margin stands at 100%, and net profit margin improved to 7.5% from 6.2% a year prior. EBIT and EBITDA margins also increased, indicating better operational efficiency. However, past volatility in EBIT and net income suggests potential risks in sustaining these margins.

Balance Sheet

The company has a strong balance sheet with a notable absence of total debt in 2024, resulting in a sound debt-to-equity ratio of 0.00. The equity ratio is 11.8%, indicating a relatively low level of equity financing compared to total assets. Return on equity improved to 21.2% in 2024, reflecting better profitability. Despite these strengths, the low equity ratio points to potential risks related to leverage in the insurance industry.

Cash Flow

Operating cash flow has grown significantly by 23.7% from 2023 to 2024, and free cash flow also showed healthy growth. The operating cash flow to net income ratio is 1.42, indicating robust cash generation relative to net earnings. Free cash flow to net income ratio is also strong at 1.42. However, fluctuations in past cash flows highlight potential volatility in cash generation.

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
	EBIT
105.98M	93.61M	63.22M	-157.36M	-90.89M	-11.75M
	EBITDA
118.63M	103.16M	71.90M	-157.36M	-59.62M	18.29M
	Net Income Common Stockholders
77.79M	61.54M	45.31M	-154.36M	-74.73M	9.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
425.91M	452.67M	553.17M	916.45M	1.03B	1.00B
	Total Assets
2.21B	2.47B	2.15B	2.39B	1.98B	2.09B
	Total Debt
0.00	141.34M	148.19M	170.19M	151.93M	121.00M
	Net Debt
-425.91M	-311.33M	-315.45M	-110.69M	-207.41M	-319.96M
	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
81.29M	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: Neutral
• Last Price: 22.33
• 50DMA: Positive
• 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 22.33 is below the 20-day moving average (MA) of 23.71, above the 50-day MA of 21.75, and above the 200-day MA of 14.74, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 28.76 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
UVE	78 Outperform	$741.61M	11.53	16.95%	2.44%	7.24%	-9.28%
HRTG	76 Outperform	$692.08M	8.82	27.59%	―	11.41%	53.85%
DGICA	74 Outperform	$672.91M	9.27	13.11%	3.85%	5.29%	1200.44%
GBLI	69 Neutral	$461.36M	16.18	4.14%	4.33%	-10.61%	-19.48%
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
ACIC	61 Neutral	$488.85M	6.67	31.11%	―	12.19%	5.12%
NODK	46 Neutral	$258.94M	51.78	2.40%	―	-6.46%	―

Heritage Insurance Holdings Corporate Events

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.