Universal Insurance Holdings (UVE) AI Stock Analysis

• Market Cap: $775.67M
• Dividend Yield: 2.32%
• Average Volume (3M): 264.32K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.52
• Revenue Growth: 7.24%
• EPS Growth: -9.28%
• Country: US
• Employees: 1,068
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.44
• Shares Outstanding: 28,144,678
• 10 Day Avg. Volume: 187,905
• 30 Day Avg. Volume: 264,317
• PEG Ratio: 0.70
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $27.00
• Price Target Upside: -1.57% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $31.00 ▲(13.01%Upside)

Universal Insurance Holdings shows a strong technical position and positive earnings outlook, supported by strategic corporate actions. Financial performance is solid, though there is potential for margin improvement. Valuation metrics suggest the stock is fairly valued, and the dividend yield is attractive.

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 makes money primarily through the underwriting of insurance policies and investment income. The company's key revenue streams include premiums collected from policyholders for homeowners insurance coverage. UVE assesses risk and sets premium rates accordingly, ensuring that it can cover potential claims while generating a profit. Additionally, the company invests premiums and reserves in various financial instruments, generating investment income that contributes to its overall earnings. UVE's financial performance is also influenced by its ability to effectively manage claims and expenses, as well as maintain a balanced portfolio of investments. The company may engage in strategic partnerships with reinsurers to mitigate risk and enhance its financial stability.

Universal Insurance Holdings Financial Statement Overview

Summary

Universal Insurance Holdings demonstrates solid financial health with a strong cash flow position and a low leverage balance sheet, indicating stability and prudent financial management. The income statement shows steady revenue growth and profitability, although there is room for margin improvement. Overall, the financial statements reflect a well-managed company with a promising outlook, particularly in terms of cash flow and financial stability.

Income Statement

The income statement reflects a strong gross profit margin of approximately 74.4% for TTM, indicating efficient cost management and strong pricing power. The net profit margin is 4.3%, showing profitability but with room for improvement. Revenue growth from 2024 to TTM is approximately 1.6%, which is moderate. The EBIT margin is 6.3%, and the EBITDA margin is 4.1%, suggesting some operational efficiency but potential areas for cost reduction. Overall, the company shows stable revenue growth and profitability, with potential for higher margins.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.24, indicating low leverage and a conservative capital structure. The return on equity for TTM is around 15.8%, showcasing effective use of equity to generate profits. The equity ratio is 19.8%, which reflects a moderate level of financial stability. However, the company's total assets have decreased since 2024, primarily due to reduced cash and equivalents. The overall balance sheet indicates a financially stable company with low leverage but room for improving the equity base.

Cash Flow

The cash flow statement is robust, with a significant operating cash flow to net income ratio of about 3.62 for TTM, demonstrating strong cash generation relative to profits. The free cash flow to net income ratio is high at 3.49, indicating excellent cash conversion. Free cash flow grew substantially from 2024 to TTM by approximately 78.9%, showing improved cash management. Overall, the cash flow analysis highlights strong liquidity and efficient cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.55B	1.52B	1.39B	1.22B	1.12B	1.07B
	Gross Profit
1.55B	1.52B	1.39B	1.22B	1.03B	982.14M
	EBIT
96.73M	91.09M	1.09B	-12.51M	20.78M	15.73M
	EBITDA
63.70M	91.09M	102.19M	-14.04M	35.98M	29.44M
	Net Income Common Stockholders
66.71M	58.93M	66.82M	-22.26M	20.41M	19.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
254.67M	419.43M	491.57M	388.71M	250.51M	167.16M
	Total Assets
1.30B	2.84B	2.32B	2.89B	2.06B	1.76B
	Total Debt
12.50M	101.24M	116.60M	102.77M	103.68M	8.46M
	Net Debt
-232.17M	-158.20M	-280.70M	-285.94M	-146.83M	-158.70M
	Total Liabilities
830.61M	2.47B	1.98B	2.60B	1.63B	1.31B
	Stockholders Equity
465.09M	373.25M	341.30M	287.90M	429.70M	449.26M
Cash Flow		Free Cash Flow
232.62M	129.99M	66.95M	319.62M	227.15M	12.13M
	Operating Cash Flow
241.21M	137.36M	70.97M	324.51M	234.38M	29.35M
	Investing Cash Flow
-195.26M	-228.09M	-15.25M	-148.86M	-229.40M	22.04M
	Financing Cash Flow
-44.09M	-47.13M	-47.12M	-37.46M	68.30M	-56.26M

Universal Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.43
• 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 27.43 is above the 20-day moving average (MA) of 26.62, above the 50-day MA of 24.61, and above the 200-day MA of 21.47, indicating a bullish trend. The MACD of 0.89 indicates Positive momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 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
UFCS	79 Outperform	$722.55M	11.18	8.51%	2.28%	14.60%	―
UVE	78 Outperform	$775.67M	12.01	16.95%	2.32%	7.24%	-9.28%
HRTG	76 Outperform	$762.74M	9.50	27.59%	―	11.41%	53.85%
DGICA	74 Outperform	$702.26M	9.75	13.11%	3.59%	5.29%	1200.44%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.31%	-7.69%
ACIC	61 Neutral	$578.31M	7.75	31.11%	―	12.19%	5.12%
HIPO	55 Neutral	$631.94M	―	-15.58%	―	77.44%	85.53%

Universal Insurance Holdings Corporate Events

Universal Insurance Completes 2025-2026 Reinsurance Program

Universal Insurance Holdings has announced the completion of its 2025-2026 reinsurance program for its subsidiaries UPCIC and APPCIC, effective June 1, 2025. This program includes significant coverage for catastrophic events, with a first event retention of $45 million and a coverage tower extending to $2.526 billion. The program also features enhanced reinstatement capacity and specific event coverage to protect against multiple catastrophic events, reflecting the company’s strategic efforts to strengthen its financial resilience and operational stability.

The most recent analyst rating on (UVE) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Universal Insurance Holdings stock, see the UVE Stock Forecast page.

Universal Insurance Announces $20M Share Buyback Program

On May 1, 2025, Universal Insurance Holdings announced a new share repurchase program, authorizing the repurchase of up to $20 million of its outstanding common stock by May 1, 2027. This move, conducted in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, is expected to impact the company’s market operations and potentially influence shareholder value.

Universal Insurance Announces Quarterly Dividend

On April 14, 2025, Universal Insurance Holdings announced a quarterly cash dividend of $0.16 per share, payable on May 16, 2025, to shareholders of record by May 9, 2025. The company also revealed plans to release its first quarter earnings on April 24, 2025, followed by an earnings call on April 25, 2025, which may impact investor perceptions and market positioning.