HCI Group provides property and casualty insurance products in Florida. The company provides property and casualty insurance to homeowners, condominium owners, and tenants; and reinsurance. The company was founded in 2006 and is based in Tampa, Florida.
HCI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for HCI Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that HCI Group Inc ranked in the 73th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 182.5%. As for the metrics that stood out in our discounted cash flow analysis of HCI Group Inc, consider:
HCI Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 11.91% of tickers in our DCF set.
HCI Group Inc's effective tax rate, as measured by taxes paid relative to net income, is at 17 -- greater than 68.74% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Financial Services), HCI Group Inc has a reliance on debt greater than 54.94% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
STC, PGR, DGICA, TCPC, and TREE can be thought of as valuation peers to HCI, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
TAMPA, Fla., Jan. 22, 2021 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI), an InsurTech company with operations in insurance, software development and real estate, has entered into a renewal rights agreement, dated January 18, 2021, with United Insurance Holding Corp. (NASDAQ: UIHC) pursuant to which United is to transition to HCI all its personal lines insurance business in the states of Connecticut, New Jersey, Massachusetts and Rhode Island. “We’re excited to enter into this agreement with United,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “When fully consummated, these transactions will accelerate our strategic plan to expand nationally. We will acquire not only a seasoned book of business, but also an established agent network and important underlying data....
TAMPA, Fla., Jan. 20, 2021 (GLOBE NEWSWIRE) -- TypTap Insurance Company, a rapidly growing, technology-driven insurance company wholly owned by HCI Group, Inc. (NYSE: HCI), has received regulatory approval to write homeowners insurance in Michigan. The approval is part of TypTap’s planned nationwide expansion announced in August of 2020. TypTap has received approvals in eight states outside of Florida. About HCI Group, Inc.HCI Group, Inc. is an InsurTech company with operations in insurance, software development and real estate. HCI’s leading insurance operation, TypTap Insurance Company, currently provides homeowners insurance and flood insurance in Florida. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary,...
TAMPA, Fla., Jan. 19, 2021 (GLOBE NEWSWIRE) -- The board of directors of HCI Group, Inc. (NYSE:HCI), an InsurTech company with operations in insurance, software development and real estate, has declared a regular quarterly cash dividend in the amount of 40 cents per common share for the first quarter of 2021. The dividend will be paid March 19, 2021 to shareholders of record on the close of business February 19, 2021. About HCI Group, Inc.HCI Group, Inc. is an InsurTech company with operations in insurance, software development and real estate. HCI’s leading insurance operation, TypTap Insurance Company, is a rapidly growing, technology-driven insurance company, which provides homeowners’ insurance and flood insurance in Florida. TypTap’s operations are powered in large part by insuranc...
HCI Group (HCI) gains 1.3% after its TypTap Insurance unit gets regulatory approval to write homeowners insurance in Nevada, as it progresses with its nationwide expansion plan.The tech-driven insurance unit has received approvals in seven states outside of Florida.Previously (Dec. 17, 2020): United Insurance to transfer personal lines in four...