Universal Insurance Holdings (UVE) AI Stock Analysis

• Market Cap: $684.18M
• Dividend Yield: 3.13%
• Average Volume (3M): 230.12K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.42
• Revenue Growth: 5.64%
• EPS Growth: -17.95%
• Country: US
• Employees: 1,068
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.23
• Shares Outstanding: 28,318,558
• 10 Day Avg. Volume: 144,779
• 30 Day Avg. Volume: 230,124
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.04
• Enterprise Value/Ebitda: 9.73
• 1Y Price Target: $29.00
• Price Target Upside: 19.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $27.00 ▲(11.11% Upside)

Universal Insurance Holdings shows strong financial performance with robust cash flow and low leverage, contributing significantly to the overall score. The positive sentiment from the earnings call and fair valuation further support the stock's attractiveness. However, technical indicators suggest some caution in the short term.

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 collection of premiums from policyholders in its various insurance lines. The company's revenue model is heavily reliant on the underwriting of insurance policies, where it assesses risk and sets premium rates accordingly. Additionally, UVE earns income from investment activities, utilizing the premiums collected to invest in a diversified portfolio that includes bonds and equities. Key revenue streams include the sale of homeowners and auto insurance, as well as associated policy fees. The company's strong performance is also supported by strategic partnerships with independent agents and brokers, which facilitate broader market reach and customer acquisition.

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.

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	1.57B	1.52B	1.39B	1.22B	1.12B	1.07B
Gross Profit	869.57M	1.52B	1.39B	1.22B	116.48M	982.14M
EBITDA	93.18M	96.50M	101.48M	-14.04M	35.98M	29.44M
Net Income	66.38M	58.93M	66.82M	-22.26M	20.41M	19.11M
Balance Sheet
Total Assets	3.28B	2.84B	2.32B	2.89B	2.06B	1.76B
Cash, Cash Equivalents and Short-Term Investments	563.41M	1.53B	1.46B	388.71M	250.51M	167.16M
Total Debt	100.86M	101.24M	116.60M	102.77M	130.44M	67.86M
Total Liabilities	2.82B	2.47B	1.98B	2.60B	1.63B	1.31B
Stockholders Equity	457.81M	373.25M	341.30M	287.90M	429.70M	449.26M
Cash Flow
Free Cash Flow	269.52M	129.99M	66.95M	319.62M	227.15M	12.13M
Operating Cash Flow	274.28M	137.36M	70.97M	324.51M	234.38M	29.35M
Investing Cash Flow	-144.27M	-228.09M	-15.25M	-148.86M	-229.40M	22.04M
Financing Cash Flow	-46.16M	-47.13M	-47.12M	-37.46M	68.30M	-56.26M

Universal Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 24.3 is above the 20-day moving average (MA) of 23.96, below the 50-day MA of 24.70, and above the 200-day MA of 22.79, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 60.98 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	$793.31M	8.85	11.68%	2.05%	14.28%	148.61%
HRTG	76 Outperform	$676.49M	6.42	33.49%	―	9.35%	77.04%
UVE	72 Outperform	$684.18M	10.58	15.60%	3.13%	5.64%	-17.95%
DGICA	69 Neutral	$621.57M	7.31	15.20%	4.04%	3.40%	978.24%
GBLI	69 Neutral	$419.88M	14.83	4.13%	4.75%	-3.71%	-21.68%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
ACIC	67 Neutral	$511.55M	6.49	31.54%	―	23.68%	16.14%

Universal Insurance Holdings Corporate Events

Universal Insurance Announces Quarterly Dividend

On July 9, 2025, Universal Insurance Holdings announced a quarterly cash dividend of $0.16 per share, payable on August 8, 2025, to shareholders recorded by August 1, 2025. The company also revealed plans to release its second quarter earnings on July 24, 2025, followed by an earnings call on July 25, 2025, indicating a proactive approach to engaging with stakeholders and maintaining transparency in its financial operations.

Universal Insurance Holdings Shareholder Meeting Outcomes Announced

On June 12, 2025, Universal Insurance Holdings held its annual shareholder meeting where shareholders voted on several key proposals. The election of directors saw the appointment of multiple individuals to the company’s Board of Directors. Additionally, shareholders approved the compensation of the company’s named executive officers and ratified the appointment of Plante & Moran, PLLC as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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.