Federated National Holding Company engages in insurance underwriting, distribution, and claims processing in the United States. The company was formerly known as 21st Century Holding Company and changed its name to Federated National Holding Company in September 2012. The company was founded in 1991 and is based in Sunrise, Florida.
FNHC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for FedNat Holding Co. To summarize, we found that FedNat Holding Co ranked in the 68th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 167.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for FedNat Holding Co ended up being:
As a business, FNHC is generating more cash flow than just 22.8% of positive cash flow stocks in the Financial Services.
45% of the company's capital comes from equity, which is greater than just 23.06% of stocks in our cash flow based forecasting set.
FedNat Holding Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.48. This coverage rate is greater than that of just 13.9% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UIHC, SG, SIGI, CNFR, and ORI can be thought of as valuation peers to FNHC, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
SUNRISE, Fla., July 30, 2020 (GLOBE NEWSWIRE) -- FedNat Holding Company (Nasdaq: FNHC), a regional insurance holding company, today announced that its board of directors declared a quarterly dividend of $0.09 per share of FedNat common stock, payable on September 1, 2020 to stockholders of record at the close of business on August 14, 2020. About the CompanyFedNat is a regional insurance holding company that controls substantially all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and contractual relationships with independent agents and general agents. The Company, through our wholly owned subsidiaries including FedNat Insurance Company, Maison Insurance Company, and Monarch National Insurance Company, is focused on providing homeown...