Universal Insurance Holdings (UVE) AI Stock Analysis

• Market Cap: $962.92M
• Dividend Yield: 2.18%
• Average Volume (3M): 182.07K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.34
• Revenue Growth: 4.61%
• EPS Growth: 73.40%
• Country: US
• Employees: 1,068
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 2.17
• Shares Outstanding: 28,008,188
• 10 Day Avg. Volume: 250,078
• 30 Day Avg. Volume: 182,069
• PEG Ratio: 0.02
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 2.50
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 2.29
• 1Y Price Target: $40.00
• Price Target Upside: 16.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.5
• Revenue Forecast (FY): $2.21B

• Rating: 82 Outperform
• Price Target: $41.00 ▲(19.26% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by the sharp improvement in financial performance and cash generation in 2025, supported by a very low P/E valuation and constructive technical trend signals. The latest earnings call reinforces improved underwriting and capital positioning, while the main limiter is historical volatility in results and indications that some recent improvement reflects favorable prior-year catastrophe comparisons.

Positive Factors

Underwriting improvement

The sharp reduction in combined and loss ratios indicates durable underwriting and claims management improvements. Sustained lower loss costs and tighter pricing discipline support margin sustainability, reduce capital strain from claims volatility, and materially enhance long‑term underwriting profitability.

Stronger reinsurance & reserves

Substantial reinsurance placement combined with record reserve levels materially lowers catastrophe tail risk and capital volatility. Multiyear capacity for 2027 and a well‑funded reserve posture stabilize loss absorption, enabling more predictable underwriting and capacity to grow selectively without draining capital.

Robust cash generation & improved leverage

Strong operating and free cash flow, together with lower leverage, provide durable capital flexibility. Reliable cash generation funds reinsurance buys, reserve builds, dividends and buybacks, reduces reliance on external financing, and underpins the company’s ability to execute strategic capital management over the medium term.

Negative Factors

Earnings & cash‑flow volatility

Historic swings in profitability and cash flow highlight cyclical risk in underwriting outcomes. Such volatility can force reactive capital measures, constrain long‑term investment or expansion plans, and complicate reserve forecasting, increasing the probability of capital or pricing adjustments in stressed years.

Florida exposure and premium decline

A meaningful presence in Florida remains a structural vulnerability given hurricane risk and regulatory scrutiny. A decline in Florida premiums reduces top‑line and concentration relief, and ongoing regulatory or affordability pressures in the state can materially constrain pricing power and long‑term earnings stability.

Competitive & regulatory pressure; rising expense ratio

Rising expense ratio and acknowledged industry competition and regulatory risks pose structural margin pressure. Persistent price competition or regulatory actions limiting rate adequacy could erode underwriting margins over time, requiring continued operational discipline to maintain recent profitability levels.

Universal Insurance Holdings Business Overview & Revenue Model

Company Description

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. The company develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages. It also advises on actuarial issues, oversees distribution, administers claims payments, performs policy administration and underwriting, and assists with reinsurance negotiations; places and manages reinsurance programs for the insurance entities; and operates Clovered.com, an online platform in which consumers receive side-by-side quotes from various carriers across multiple states, as well as educational materials about homeowners' insurance policies. It offers its products through a network of independent agents, as well as Universal Direct, a direct-to-consumer online platform, which enables homeowners to directly purchase, pay for, and bind homeowners' policies. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida.

How the Company Makes Money

Universal Insurance Holdings generates revenue primarily through the underwriting of insurance policies. The company earns premiums from policyholders, which serve as the main revenue stream. These premiums are collected in exchange for providing coverage against risks such as property damage and liability. Additionally, UVE invests the collected premiums in various financial instruments, generating investment income. The company also benefits from strategic partnerships with independent agents and brokers, which help expand its market reach and drive policy sales. Overall, the combination of premium income and investment returns contributes significantly to UVE's earnings.

Universal Insurance Holdings Financial Statement Overview

Summary

Strong 2025 rebound with sharply higher revenue, materially improved margins, and robust free cash flow generation. Leverage is manageable with improved debt-to-equity and ROE rebounding strongly. The key offset is volatility across years (2022 losses and uneven cash-flow coverage in 2023–2024), which raises sustainability risk.

Income Statement

Revenue has grown strongly over the period, highlighted by a sharp acceleration in 2025 (annual revenue growth ~146%). Profitability also improved materially in 2025, with net margin rising to ~11.4% (vs. ~3.9% in 2024) and operating margin improving to ~15.6%. The key weakness is volatility: 2022 posted losses (negative operating and net margins), and margins were much lower prior to 2025—suggesting results can swing meaningfully with underwriting/claims conditions.

Balance Sheet

Leverage looks manageable, with debt-to-equity improving to ~0.18 in 2025 (down from ~0.27–0.36 in 2022–2024), which supports balance sheet flexibility. Returns on equity rebounded strongly to ~33% in 2025 (after ~16% in 2024 and negative in 2022), indicating much better profitability on the capital base. Offsetting this, equity has been uneven over time and total assets fluctuate significantly year-to-year, which can signal balance sheet variability for an insurer.

Cash Flow

Cash generation strengthened considerably in 2025, with operating cash flow of ~$381M and free cash flow of ~$377M, and free cash flow growth accelerating sharply. Free cash flow has tracked net income closely in most years (near ~95–99% in 2021–2025), supporting earnings quality. The main concern is historical volatility: operating cash flow coverage of net income was very low in 2023–2024, while 2022 was unusually high due to the net loss, underscoring that cash flow can swing materially year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.60B	1.52B	1.39B	1.22B	1.12B
Gross Profit	609.72M	199.73M	190.94M	70.00M	116.48M
EBITDA	256.56M	96.50M	101.48M	-14.04M	35.91M
Net Income	182.95M	58.93M	66.82M	-22.26M	20.41M
Balance Sheet
Total Assets	2.35B	2.84B	2.32B	2.89B	2.06B
Cash, Cash Equivalents and Short-Term Investments	477.84M	419.43M	1.46B	388.71M	250.51M
Total Debt	100.48M	101.24M	116.60M	102.77M	130.44M
Total Liabilities	1.80B	2.47B	1.98B	2.60B	1.63B
Stockholders Equity	551.03M	373.25M	341.30M	287.90M	429.70M
Cash Flow
Free Cash Flow	377.06M	129.99M	66.95M	319.62M	227.15M
Operating Cash Flow	381.49M	137.36M	70.97M	324.51M	234.38M
Investing Cash Flow	-113.61M	-228.09M	-15.25M	-148.86M	-229.40M
Financing Cash Flow	-52.12M	-47.13M	-47.12M	-37.46M	68.30M

Universal Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.38
• 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 UVE, the sentiment is Positive. The current price of 34.38 is above the 20-day moving average (MA) of 33.63, above the 50-day MA of 31.69, and above the 200-day MA of 28.71, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 35.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UVE.

Universal Insurance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVE	82 Outperform	$962.92M	5.15	37.99%	2.18%	4.61%	73.40%
UFCS	80 Outperform	$951.46M	6.27	13.50%	1.73%	12.22%	120.73%
HRTG	79 Outperform	$874.01M	4.62	47.28%	―	5.92%	93.02%
ACIC	70 Outperform	$552.73M	5.73	35.67%	―	16.34%	-1.26%
DGICA	69 Neutral	$623.02M	7.74	12.91%	3.51%	0.93%	224.95%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GBLI	67 Neutral	$412.01M	15.90	0.01%	5.01%	-0.04%	-33.45%

Universal Insurance Holdings Corporate Events

Universal Insurance Declares Regular Quarterly Cash Dividend

On February 4, 2026, Universal Insurance Holdings, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share on its common stock, payable on March 13, 2026 to shareholders of record as of March 6, 2026. The dividend declaration underscores the company’s ongoing capital return to shareholders and signals confidence in its financial position and ability to generate consistent cash flows from its core property and casualty insurance operations.

The most recent analyst rating on (UVE) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Universal Insurance Holdings stock, see the UVE Stock Forecast page.

Universal Insurance Launches $20 Million Share Repurchase Program

On January 7, 2026, Universal Insurance Holdings, Inc. announced that its Board of Directors had authorized a new share repurchase program allowing the company to buy back up to $20 million of its outstanding common stock through January 8, 2028, via open-market transactions conducted in accordance with securities regulations and its insider trading policy. The move signals management’s confidence in Universal’s financial position and may support earnings per share and shareholder returns over time, potentially strengthening the insurer’s capital management profile and positioning in the property and casualty insurance sector, particularly in its core Florida homeowners market.

The most recent analyst rating on (UVE) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Universal Insurance Holdings stock, see the UVE Stock Forecast page.