Universal Insurance Holdings (UVE) AI Stock Analysis

• Market Cap: $918.88M
• Dividend Yield: 2.31%
• Average Volume (3M): 158.14K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.32
• Revenue Growth: 4.61%
• EPS Growth: 73.40%
• Country: US
• Employees: 1,068
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.36
• Shares Outstanding: 28,048,882
• 10 Day Avg. Volume: 125,656
• 30 Day Avg. Volume: 158,137
• PEG Ratio: -1.34
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 4.62
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 3.07
• Enterprise Value/Ebitda: 5.16
• 1Y Price Target: $29.00
• Price Target Upside: -12.17% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.64
• Revenue Forecast (FY): $2.14B

• Rating: 69 Neutral
• Price Target: $34.00 ▲(2.97% Upside)

Universal Insurance Holdings demonstrates strong financial performance and strategic management, as highlighted in the earnings call and corporate events. The stock's valuation is attractive, although technical indicators suggest mixed momentum. The company's challenges in profitability and cash flow growth are areas to watch, but the overall outlook remains positive.

Positive Factors

Strong Return on Equity

A high return on equity indicates efficient use of shareholder funds, suggesting strong management and potential for sustained profitability.

Core Revenue Growth

Consistent revenue growth reflects expanding market reach and effective business strategies, supporting long-term financial health.

Share Repurchase Program

Share repurchases indicate management's confidence in the company's future and enhance shareholder value by reducing share count.

Negative Factors

Decline in Florida Premiums

Decreasing premiums in Florida, a key market, could signal challenges in maintaining market share and revenue growth in the region.

Higher Net Expense Ratio

Rising expense ratios may impact profitability, indicating challenges in cost management and operational efficiency.

Competitive Market Challenges

Increased competition can pressure margins and market share, potentially affecting long-term growth and profitability.

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

Universal Insurance Holdings shows strong revenue growth and a stable balance sheet, but faces challenges in maintaining consistent profitability and cash flow growth. The company's low leverage and high return on equity are positive indicators, yet the volatility in profit margins and recent cash flow trends highlight areas for improvement.

Income Statement

Universal Insurance Holdings shows a mixed performance in its income statement. The company has experienced significant revenue growth, particularly in the TTM period with a 72.7% increase, indicating strong top-line expansion. However, profitability metrics such as the EBIT margin and net profit margin are relatively low, with the TTM EBIT margin being negative. This suggests challenges in managing operational costs effectively. The gross profit margin remains healthy, but the volatility in net income and EBIT margins could pose risks to sustained profitability.

Balance Sheet

The balance sheet of Universal Insurance Holdings reflects a stable financial position with a manageable debt-to-equity ratio of 0.20 in the TTM period, indicating low leverage. The return on equity has improved significantly to 27.99%, showcasing effective utilization of shareholder funds. However, the equity ratio is moderate, suggesting a balanced approach between debt and equity financing. Overall, the company maintains a solid balance sheet with potential for further strengthening.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth in the TTM period, which could impact liquidity. Despite this, the operating cash flow to net income ratio is robust, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also high, suggesting efficient conversion of earnings into cash. While the cash flow position is generally positive, the recent decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.52B	1.39B	1.22B	1.12B	1.07B
Gross Profit	281.62M	199.73M	190.94M	70.00M	116.48M	114.86M
EBITDA	167.69M	96.50M	101.48M	-14.04M	35.91M	29.43M
Net Income	122.38M	58.93M	66.82M	-22.26M	20.41M	19.11M
Balance Sheet
Total Assets	3.09B	2.84B	2.32B	2.89B	2.06B	1.76B
Cash, Cash Equivalents and Short-Term Investments	571.50M	419.43M	1.46B	388.71M	250.51M	987.02M
Total Debt	100.67M	101.24M	116.60M	102.77M	130.44M	67.86M
Total Liabilities	2.59B	2.47B	1.98B	2.60B	1.63B	1.31B
Stockholders Equity	495.04M	373.25M	341.30M	287.90M	429.70M	449.26M
Cash Flow
Free Cash Flow	249.82M	129.99M	66.95M	319.62M	227.15M	12.13M
Operating Cash Flow	254.07M	137.36M	70.97M	324.51M	234.38M	29.35M
Investing Cash Flow	-130.07M	-228.09M	-15.25M	-148.86M	-229.40M	22.04M
Financing Cash Flow	-52.10M	-47.13M	-47.12M	-37.46M	68.30M	-56.26M

Universal Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.02
• 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 33.02 is above the 20-day moving average (MA) of 32.64, above the 50-day MA of 31.39, and above the 200-day MA of 25.98, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 61.53 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
ACIC	73 Outperform	$590.06M	6.98	29.35%	―	16.34%	-1.26%
HRTG	72 Outperform	$898.90M	6.03	41.64%	―	5.92%	93.02%
UFCS	71 Outperform	$931.27M	8.61	13.21%	1.74%	12.22%	120.73%
UVE	69 Neutral	$918.88M	7.73	27.34%	2.31%	4.61%	73.40%
GBLI	68 Neutral	$406.68M	14.72	4.01%	5.00%	-0.04%	-33.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DGICA	62 Neutral	$720.09M	8.39	15.10%	3.54%	0.93%	224.95%

Universal Insurance Holdings Corporate Events

Universal Insurance Announces Special and Regular Dividends

On November 6, 2025, Universal Insurance Holdings announced a cash dividend of $0.29 per share, comprising a regular quarterly dividend of $0.16 and a special dividend of $0.13. This announcement brings the total dividends declared in 2025 to $0.77 per share, reflecting the company’s commitment to returning value to its shareholders.