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Hagerty Inc Class A (HGTY)
NYSE:HGTY
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Hagerty Inc Class A
(NYSE:HGTY)
69Neutral
Hagerty Inc Class A (HGTY) vs. S&P 500 (SPY)
Market Cap
$3.13B
Dividend YieldN/A
Average Volume (3M)58.43K
Price to Earnings (P/E)84.8
Beta (1Y)0.58
Revenue Growth17.76%
EPS Growth-40.29%
CountryUS
Employees1,733
SectorFinancial
Sector Strength81
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.11
Shares Outstanding90,040,665
10 Day Avg. Volume88,646
30 Day Avg. Volume58,426
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.61
Price to Cash Flow (P/CF)-61.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside17.90% Upside
Rating ConsensusHold
Number of Analyst Covering2
Hagerty Inc Class A Business Overview & Revenue Model
Company DescriptionHagerty, Inc. provides insurance agency services worldwide. It offers automobile and boat insurance products; and reinsurance products. The company also provides Hagerty Media, which publishes contents through the HDC Magazine, video content, YouTube channel; HDC that offers subscription based products and services, including HDC Magazine, automotive enthusiast events, proprietary vehicle valuation tools, emergency roadside services, and special vehicle-related discounts; HVT, a valuation tool used by the customer to access current and historic pricing data of collector car, truck, SUV, and motorcycle models; and Hagerty Events, an eclectic mix of small and large events. In addition, it offers DriveShare, a peer-to-peer rental platform for collector and cool vehicles; Motorsport Reg, a motorsport membership, licensing, and event online management system that automates event listings, registration, and payment processing for various motorsport events; and Hagerty Garage + Social, a platform that provides clubhouses and car storage facilities. The company is headquartered in Traverse City, Michigan.
How the Company Makes MoneyHagerty Inc generates revenue through a multifaceted approach that includes insurance premiums, membership fees, and event-related income. The company's primary revenue stream comes from underwriting specialty insurance policies for classic and collectible vehicles, which involves charging premiums for coverage that is specifically tailored to the needs of vintage car owners. In addition to insurance, Hagerty's membership program, Hagerty Drivers Club, contributes to its earnings by offering subscribers a range of benefits such as exclusive content, roadside assistance, and discounts on automotive services, all for an annual fee. The company also capitalizes on its brand and community engagement by organizing automotive events and experiences, which not only enhance its brand visibility but also provide additional revenue channels through sponsorships and participant fees. Significant partnerships with automotive clubs and organizations further bolster its market presence and contribute to its financial performance.
Hagerty Inc Class A Financial Statement Overview
Summary
Hagerty Inc Class A demonstrates strong revenue growth and improving profit margins, supported by robust cash flows and low leverage. However, the low EBIT margin and declining stockholders' equity suggest areas for operational efficiency improvements and long-term equity growth.Income Statement
Hagerty Inc Class A has demonstrated strong revenue growth, increasing from $397.3 million in 2019 to $1.2 billion in 2024. The gross profit margin has remained solid at approximately 81.5% in 2024, indicating efficient cost management. The net profit margin improved significantly to 9.1% in 2024, reflecting enhanced profitability. Despite this, the EBIT margin is relatively low at 5.5%, suggesting potential areas for operational efficiency improvements.82
Very Positive
Balance Sheet
The company has a healthy equity ratio of 8.8% in 2024, indicating a strong asset base relative to liabilities. The debt-to-equity ratio has improved to 0.29, reflecting reduced leverage and financial risk. Return on equity has also increased to 72.6%, highlighting effective use of equity to generate profits. However, the overall stockholders' equity has decreased since 2019, which could be a concern for long-term financial stability.75
Positive
Cash Flow
Free cash flow has grown steadily, reaching $155.7 million in 2024, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.62, indicating efficient conversion of profits into cash. However, the free cash flow to net income ratio is 1.43, suggesting some reinvestment or debt repayment constraints. The company needs to maintain this positive cash flow trajectory to support growth and stability.79
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.20B | 1.01B | 829.49M | 576.54M | 499.55M | Gross Profit |
| 978.58M | 574.20M | 540.88M | 404.64M | 271.02M | EBIT |
| 66.42M | 10.41M | 41.12M | -91.29M | 15.85M | EBITDA |
| 168.40M | 69.04M | 0.00 | -32.46M | 27.65M | Net Income Common Stockholders |
| 17.02M | 20.23M | 4.08M | -61.35M | 10.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 232.84M | 108.33M | 95.17M | 275.33M | 38.11M | Total Assets |
| 1.71B | 1.59B | 1.31B | 1.04B | 610.71M | Total Debt |
| 43.18M | 181.14M | 196.61M | 135.50M | 69.00M | Net Debt |
| -189.67M | 72.81M | 101.44M | -139.83M | 30.89M | Total Liabilities |
| 1.19B | 1.09B | 945.15M | 771.07M | 493.39M | Stockholders Equity |
| 150.32M | 175.54M | 59.25M | -323.78M | 117.20M |
| Cash Flow | Free Cash Flow | |||
| 155.68M | 107.30M | 10.95M | -1.09M | 46.32M | Operating Cash Flow |
| 177.02M | 133.71M | 55.33M | 42.28M | 84.57M | Investing Cash Flow |
| -618.56M | -52.65M | -91.52M | -68.99M | -47.39M | Financing Cash Flow |
| -46.92M | 103.16M | -28.08M | 332.07M | 39.95M |
Hagerty Inc Class A Technical Analysis
Negative
9.33
Price Trends
9.74
Negative
10.27
Negative
10.56
Negative
Market Momentum
-0.18
Negative
43.01
Neutral
36.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGTY, the sentiment is Negative. The current price of 9.33 is below the 20-day moving average (MA) of 9.46, below the 50-day MA of 9.74, and below the 200-day MA of 10.56, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 36.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HGTY.
Hagerty Inc Class A Risk Analysis
Hagerty Inc Class A disclosed 67 risk factors in its most recent earnings report. Hagerty Inc Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hagerty Inc Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $23.10B | 10.09 | 17.61% | 2.21% | 13.22% | 24.83% | |
80 Outperform | $159.77B | 19.06 | 36.98% | 1.80% | 21.36% | 118.77% | |
75 Outperform | $59.46B | 12.09 | 18.94% | 1.60% | 12.23% | 68.50% | |
73 Outperform | $23.81B | 9.39 | 16.52% | ― | 5.17% | 35.36% | |
72 Outperform | $55.46B | 12.25 | 23.80% | 1.76% | 12.28% | ― | |
69 Neutral | $3.13B | 84.84 | 8.29% | ― | 17.76% | -40.29% | |
64 Neutral | $14.53B | 10.25 | 8.67% | 4.22% | 16.51% | -12.20% |
* Financial Sector Average
Performance Comparison
HGTY
Hagerty Inc Class A
9.33
0.18
1.97%
ALL
Allstate
209.29
39.69
23.40%
CINF
Cincinnati Financial
147.54
26.40
21.79%
MKL
Markel
1,871.56
350.08
23.01%
PGR
Progressive
274.67
72.03
35.55%
TRV
Travelers Companies
262.68
36.55
16.16%
Hagerty Inc Class A Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -6.79% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
Hagerty, Inc. reported strong revenue and membership growth, impressive operating income increases, and significant advancements in technology and digital transformation. Despite some setbacks from catastrophe claims and increased costs due to strategic investments, the company's positive outlook for 2025 and efforts to enhance scalability and efficiency point to a promising future.Highlights
Record Revenue and Growth
Hagerty, Inc. achieved a revenue growth of 20% in 2024, with a written premium gain of 15%. The company welcomed a record 279,000 new members, demonstrating strong performance in their recurring revenue model.
Impressive Operating Income Increase
Operating income increased sixfold to $66 million in 2024, despite a $27 million impact from Hurricane Celine and Milton.
Technology and Digital Transformation
Hagerty, Inc. is transitioning to a modern cloud-based architecture to drive future efficiency gains and scalable growth, with an investment of over $20 million in 2025 for technology replatforming.
Strong Membership and Marketplace Growth
Membership, marketplace, and other revenue grew 68% in the fourth quarter, reflecting successful expansion efforts, particularly with the Broad Arrow team and European business.
Positive 2025 Outlook
Hagerty, Inc. anticipates 13% to 14% growth in written premiums and 12% to 13% growth in total revenue for 2025, with a focus on expanding specialty insurance offerings and the State Farm Classic Plus program.
Lowlights
Impact of Catastrophe Claims
The company's loss ratio in the fourth quarter was affected by over a point due to catastrophe claims from the hurricane season. Full year loss ratio of 46% included six points of impact from cat losses.
Increased Costs and Investments
Hagerty, Inc. anticipates elevated investments in 2025, with $20 million in technology investments, causing a near-term slowdown in profit margin expansion due to operating two redundant systems.
Company Guidance
In the fourth quarter of 2024, Hagerty, Inc. reported robust financial performance, marking the eighth consecutive quarter of executing its strategic growth initiatives. The company achieved a 19% increase in total revenue, reaching $292 million, and a 13% rise in written premiums, driven by strong new business and a retention rate of 89%. Operating income soared sixfold to $66 million, despite a $27 million impact from natural disasters. The company's net income surged by 178% to $78 million, with adjusted EBITDA growing by 41% to $124 million. Looking ahead to 2025, Hagerty anticipates a 12% to 13% growth in total revenue and a 30% to 40% increase in net income, aiming for $102 million to $110 million. The company plans to invest over $20 million in technology upgrades to support scalable growth and enhance efficiency, with expectations to double its policy count to 3 million by 2030.Hagerty Inc Class A Corporate Events
Private Placements and Financing
Hagerty Inc Secures $375 Million Credit Facility
Positive
Mar 10, 2025
On March 7, 2025, The Hagerty Group, LLC secured a $375 million senior unsecured revolving credit facility from JPMorgan Chase Bank and other lenders, with a five-year term. This new facility allows for borrowings in foreign currencies and includes an uncommitted accordion feature, enhancing Hagerty’s financial flexibility. The proceeds were used to repay and terminate a prior credit agreement from December 2018, which had an outstanding balance of $50.3 million as of December 31, 2024.
Business Operations and StrategyFinancial Disclosures
Hagerty Inc Highlights Growth and New BMW Partnership
Positive
Mar 4, 2025
On March 4, 2025, Hagerty Inc announced an investor presentation on its website, highlighting its significant growth since joining the New York Stock Exchange three years ago. The company has nearly doubled its revenue to $1.2 billion and added 767,000 new members over three years, driven by its strong brand and service excellence. Hagerty’s strategic focus includes expanding partnerships, enhancing customer service, and increasing market share in the collectible car insurance sector. The company also announced a new partnership with BMW AG for an auction event at the prestigious Concorso d’Eleganza Villa d’Este in 2025, signaling its growing influence in the European auction market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.