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Universal Insurance (UVE)
:UVE
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Universal Insurance Holdings
(NYSE:UVE)
74Outperform
Universal Insurance Holdings (UVE) vs. S&P 500 (SPY)
Market Cap
$581.02M
Dividend Yield3.09%
Average Volume (3M)161.54K
Price to Earnings (P/E)10.3
Beta (1Y)0.64
Revenue Growth9.27%
EPS Growth-8.09%
CountryUS
Employees1,244
SectorFinancial
Sector Strength81
IndustryInsurance
Share Statistics
EPS (TTM)1.99
Shares Outstanding28,095,823
10 Day Avg. Volume167,192
30 Day Avg. Volume161,542
Financial Highlights & Ratios
PEG Ratio1.20
Price to Book (P/B)N/A
Price to Sales (P/S)0.38
Price to Cash Flow (P/CF)-1.40
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
$27.00Price Target Upside26.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Universal Insurance Holdings Business Overview & Revenue Model
Company DescriptionUniversal Insurance Holdings, Inc. operates as a holding company offering property and casualty insurance and value-added insurance services. It develops, markets and underwrites insurance products for consumers in the personal residential homeowners lines of business and perform substantially all other insurance-related services for primary insurance entities, including risk management, claims management, and distribution. The company was founded by Bradley I. Meier on November 13, 1990 and is headquartered in Fort Lauderdale, FL.
How the Company Makes MoneyUniversal Insurance Holdings generates revenue primarily through the underwriting of insurance policies and the collection of premiums from policyholders. The company's key revenue streams include the premiums earned from its homeowners' insurance products, which constitute the majority of its income. UVE also invests a portion of the premiums it collects, generating additional income from investment activities. The company's earnings are influenced by factors such as underwriting profitability, loss ratios, and investment performance. Significant partnerships with reinsurance companies help UVE manage risk and stabilize its financial outcomes, contributing to its overall revenue model.
Universal Insurance Holdings Financial Statement Overview
Summary
Universal Insurance Holdings shows a strong financial position with impressive cash flow growth and a solid equity base. Despite a decline in net and EBIT margins, the company's overall revenue growth and cash generation capabilities position it well for future opportunities. The absence of debt enhances financial stability, though attention should be given to maintaining equity growth and improving profitability.Income Statement
Universal Insurance Holdings demonstrated solid revenue growth with a 9.25% increase from 2023 to 2024. The company maintains a healthy gross profit margin of 100%, reflecting efficient revenue generation relative to cost of goods sold. However, net profit margin decreased from 4.8% in 2023 to 3.87% in 2024, indicating a reduction in profitability. Despite a decline in EBIT margin from 78.14% in 2023 to 5.99% in 2024, the company maintains a consistent EBITDA margin of 5.99%, showcasing operational efficiency.72
Positive
Balance Sheet
The company exhibits a strong equity base with an equity ratio of 27.23% in 2024, though it decreased from 27.47% in 2023. The balance sheet shows no debt, enhancing financial stability and reducing leverage risk. However, the declining trend in stockholders' equity from $341.3M in 2023 to $373.3M in 2024 may indicate challenges in maintaining equity growth. Return on equity decreased from 19.58% in 2023 to 15.78% in 2024, suggesting a reduction in profitability relative to equity.65
Positive
Cash Flow
The cash flow statement reflects strong operational efficiency with a significant increase in operating cash flow from $70.97M in 2023 to $137.36M in 2024. Free cash flow also grew substantially by 94.18%, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 2.33 in 2024, highlighting efficient conversion of income to cash. Free cash flow to net income ratio is 2.21, further supporting a strong cash position relative to net earnings.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.52B | 1.39B | 1.22B | 1.12B | 1.07B | Gross Profit |
| 1.52B | 1.39B | 1.22B | 1.03B | 982.14M | EBIT |
| 91.09M | 1.09B | -12.51M | 20.78M | 15.73M | EBITDA |
| 91.09M | 102.19M | -14.04M | 35.98M | 29.44M | Net Income Common Stockholders |
| 58.92M | 66.82M | -22.26M | 20.41M | 19.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.53B | 491.57M | 388.71M | 250.51M | 167.16M | Total Assets |
| 2.84B | 2.32B | 2.89B | 2.06B | 1.76B | Total Debt |
| 101.24M | 116.60M | 102.77M | 103.68M | 8.46M | Net Debt |
| -262.08M | -280.70M | -285.94M | -146.83M | -158.70M | Total Liabilities |
| 2.47B | 1.98B | 2.60B | 1.63B | 1.31B | Stockholders Equity |
| 373.25M | 341.30M | 287.90M | 429.70M | 449.26M |
| Cash Flow | Free Cash Flow | |||
| 129.99M | 66.95M | 319.62M | 227.15M | 12.13M | Operating Cash Flow |
| 137.36M | 70.97M | 324.51M | 234.38M | 29.35M | Investing Cash Flow |
| -228.09M | -15.25M | -148.86M | -229.40M | 22.04M | Financing Cash Flow |
| -47.13M | -47.12M | -37.46M | 68.30M | -56.26M |
Universal Insurance Holdings Technical Analysis
Positive
21.33
Price Trends
20.11
Positive
20.52
Positive
19.92
Positive
Market Momentum
0.31
Positive
56.66
Neutral
27.39
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 21.33 is above the 20-day moving average (MA) of 20.89, above the 50-day MA of 20.11, and above the 200-day MA of 19.92, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 27.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UVE.
Universal Insurance Holdings Risk Analysis
Universal Insurance Holdings disclosed 30 risk factors in its most recent earnings report. Universal Insurance Holdings 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
Universal Insurance Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.65B | 16.31 | 8.35% | 3.36% | 6.92% | 129.52% | |
74 Outperform | $581.02M | 10.28 | 16.49% | 3.09% | 9.27% | -8.09% | |
72 Outperform | $1.49B | 15.60 | 28.26% | 1.15% | 36.21% | 18.17% | |
71 Outperform | $6.79B | 19.78 | 23.56% | 0.79% | 18.31% | 13.13% | |
63 Neutral | $13.85B | 10.47 | 9.22% | 4.23% | 17.31% | -7.79% | |
42 Neutral | $215.34M | ― | -29.78% | ― | 6.55% | -120.38% |
* Financial Sector Average
Performance Comparison
UVE
Universal Insurance Holdings
21.33
2.35
12.38%
HMN
Horace Mann Educators
40.98
7.27
21.57%
KFS
Kingsway Financial Services
7.43
-0.95
-11.34%
RLI
RLI
74.40
3.52
4.97%
HCI
HCI Group
137.05
26.92
24.44%
Universal Insurance Holdings Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 4.76% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view: while there was significant growth in premiums and successful placement of reinsurance, the company faced challenges with decreased earnings, higher combined and loss ratios, and increased expenses.Highlights
Growth in Premiums
Direct premiums written were $470.9 million, up 8.8% from the prior year quarter, with 0.8% growth in Florida and 38.4% growth in other states, reflecting higher policies in force and inflation adjustments.
Reinsurance Program Progress
92% of the first event catastrophe tower for 2025 reinsurance program already placed, with significant multiyear capacity secured for the 2026 hurricane season.
Dividend Declaration
Declared a regular quarterly cash dividend of $0.16 per common share, payable on March 14, 2025.
Lowlights
Decrease in Earnings
Adjusted diluted earnings per common share decreased to $0.25 from $0.43 in the prior year quarter, primarily due to lower underwriting income.
Increased Combined and Loss Ratios
The net combined ratio increased to 107.9%, up 4.2 points, and the loss ratio increased to 82.3%, up 0.4 points, primarily due to higher weather losses from Hurricane Milton.
Higher Expense Ratios
The net expense ratio increased to 25.6%, up 3.8 points from the prior year quarter, driven by higher policy acquisition costs and operating costs.
Company Guidance
During Universal's Fourth Quarter 2024 earnings call, several key metrics and guidance details were highlighted. The company reported an adjusted diluted earnings per common share of $0.25, a decrease from $0.43 the previous year, largely due to lower underwriting income offset by higher net investment income and commission revenue. Core revenue increased by 5.7% to $386.4 million, driven by higher net premiums earned and investment income. Direct premiums written rose by 8.8% to $470.9 million, with notable growth in non-Florida states at 38.4%. The net combined ratio increased by 4.2 points to 107.9%, reflecting a higher loss ratio of 82.3% due to weather-related losses. The company repurchased 370,000 shares costing $7.7 million and declared a quarterly dividend of $0.16 per share. Universal also reported significant progress in securing reinsurance for 2025, with 92% of their first event catastrophe tower placed and additional capacity secured for 2026.Universal Insurance Holdings Corporate Events
Dividends
Universal Insurance Declares Quarterly Cash Dividend
Positive
Feb 6, 2025
On February 6, 2025, Universal Insurance Holdings declared a quarterly cash dividend of $0.16 per share, payable on March 14, 2025, to shareholders recorded by March 7, 2025. This announcement underscores Universal’s ongoing commitment to returning value to its shareholders and maintaining its financial stability within the property and casualty insurance industry.
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.