HCI Return On Equity vs. Profit Margin
| HCI Stock | USD 117.00 1.64 1.42% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.24329907 | Current Value 0.17 | Quarterly Volatility 0.17602101 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.74 | 0.9589 |
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For HCI profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HCI to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well HCI Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HCI's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HCI Group over time as well as its relative position and ranking within its peers.
HCI |
HCI's Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HCI. If investors know HCI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HCI listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 16.123 | Dividend Share 1.6 | Earnings Share 13.03 | Revenue Per Share 77.114 | Quarterly Revenue Growth 0.48 |
The market value of HCI Group is measured differently than its book value, which is the value of HCI that is recorded on the company's balance sheet. Investors also form their own opinion of HCI's value that differs from its market value or its book value, called intrinsic value, which is HCI's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HCI's market value can be influenced by many factors that don't directly affect HCI's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HCI's value and its price as these two are different measures arrived at by different means. Investors typically determine if HCI is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HCI's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
HCI Group Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining HCI's current stock value. Our valuation model uses many indicators to compare HCI value to that of its competitors to determine the firm's financial worth. HCI Group is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about 0.47 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for HCI Group is roughly 2.14 . As of now, HCI's Return On Equity is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the HCI's earnings, one of the primary drivers of an investment's value.HCI Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
HCI |
| = | 0.46 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
HCI |
| = | 0.22 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
HCI Profit Margin Comparison
HCI is currently under evaluation in profit margin category among its peers.
HCI Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in HCI, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HCI will eventually generate negative long term returns. The profitability progress is the general direction of HCI's change in net profit over the period of time. It can combine multiple indicators of HCI, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.2 M | -3 M | |
| Operating Income | 474.2 M | 497.9 M | |
| Income Before Tax | 117.7 M | 123.5 M | |
| Net Income | 76.4 M | 80.2 M | |
| Total Other Income Expense Net | 117.7 M | 123.5 M | |
| Net Loss | -52.7 M | -50 M | |
| Income Tax Expense | 28.4 M | 29.8 M | |
| Net Income From Continuing Ops | 89.3 M | 93.7 M | |
| Interest Income | 7 M | 9.6 M | |
| Net Interest Income | -11.1 M | -11.7 M | |
| Change To Netincome | 8.3 M | 5.3 M | |
| Net Income Per Share | 9.45 | 9.92 | |
| Income Quality | 3.06 | 4.02 | |
| Net Income Per E B T | 0.67 | 0.51 |
HCI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on HCI. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of HCI position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the HCI's important profitability drivers and their relationship over time.
Use HCI in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if HCI position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HCI will appreciate offsetting losses from the drop in the long position's value.HCI Pair Trading
HCI Group Pair Trading Analysis
The ability to find closely correlated positions to HCI could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HCI when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back HCI - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling HCI Group to buy it.
The correlation of HCI is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as HCI moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HCI Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for HCI can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your HCI position
In addition to having HCI in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Toys
Companies producing and distributing toys and different gaming products for kids. The Toys theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Toys Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
To fully project HCI's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of HCI Group at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include HCI's income statement, its balance sheet, and the statement of cash flows.