Universal Insurance Holdings, Inc. (UVE) stock analysis

P/E below its 5-year median

Universal Insurance's P/E of 6.0 is below its own 5-year median of 8.8.

P/E below the industry

Universal Insurance's P/E of 6.0 is below the Fire, Marine, and Casualty Insurance median of 10.4.

P/S below the industry

Universal Insurance's price-to-sales of 0.80 is below the Fire, Marine, and Casualty Insurance median of 1.28.

P/B above the industry

Universal Insurance's price-to-book of 2.06 is above the Fire, Marine, and Casualty Insurance median of 1.62.

Trading below fair value

The share price of $48.13 is below our fair value estimate of $56.77.

Margin of safety under 20%

The price is 15.2% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 9.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 90.0% over the last twelve months, against a 5-year average of 57.1% a year.

Growing faster than the industry

Revenue grew 5.5% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 40.8% over the last twelve months and averaged 15.2% over five years.

Return on assets over 1%

Return on assets was 7.4%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Universal Insurance's return on equity of 40.8% is above the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings grew over 5 years

Net income grew 57.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 13.9% over the last twelve months, against a 5-year average of 4.0%.

Net margin above the industry

Universal Insurance's net margin of 13.9% is above the Fire, Marine, and Casualty Insurance median of 12.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Universal Insurance paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Universal Insurance yields 1.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 9.5% of net income.

Covered by free cash flow

Dividends take 6.1% of free cash flow.