📊 HRTG Key Takeaways
Is Heritage Insurance Holdings, Inc. (HRTG) a Good Investment?
Heritage Insurance demonstrates strong profitability with 23.9% operating margins and a fortress balance sheet (0.15x debt/equity, $517.1M cash), but returns on capital remain modest at 7% ROE and 1.8% ROA. The significant gap between net income ($36.5M) and free cash flow ($23.0M) raises concerns about earnings quality and capital deployment efficiency.
Heritage demonstrates strong core profitability with high operating and net margins, robust ROE, and excellent interest coverage, supported by low leverage. Cash generation and liquidity are solid, with free cash flow covering modest capex and debt comfortably. While results may be cyclical given catastrophe exposure and reinsurance dynamics, the balance sheet and cash flows support continued earnings power.
Why Buy Heritage Insurance Holdings, Inc. Stock? HRTG Key Strengths
- Exceptional operating margin of 23.9% demonstrates strong underwriting discipline and pricing power
- Conservative capital structure with 0.15x debt/equity ratio and 18.0x interest coverage provides stability
- Substantial liquidity with $517.1M cash position relative to $520.4M equity, enabling strategic flexibility
- Strong operating and net margins with high ROE
- Low leverage and exceptional interest coverage
- Healthy free cash flow and cash exceeding debt
HRTG Stock Risks: Heritage Insurance Holdings, Inc. Investment Risks
- Suboptimal capital efficiency with ROE of 7% and ROA of 1.8% well below insurance industry standards
- Free cash flow of $23.0M trails net income by 37%, suggesting either working capital drains or earnings quality concerns
- Absence of year-over-year trends prevents assessment of growth trajectory or margin sustainability
- High catastrophe exposure leading to earnings volatility
- Reinsurance cost/availability and retention risk
- Reserve adequacy and potential adverse development
Key Metrics to Watch
- Operating cash flow to net income ratio convergence - critical indicator of earnings quality
- Return on equity trajectory - must exceed 10%+ to justify capital retention
- Combined ratio and underwriting profitability metrics - foundational health indicators for insurance operations
- Combined ratio (including catastrophe losses)
- Reinsurance cost/coverage and retention levels
Heritage Insurance Holdings, Inc. (HRTG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HRTG Profit Margin, ROE & Profitability Analysis
HRTG vs Finance Sector: How Heritage Insurance Holdings, Inc. Compares
How Heritage Insurance Holdings, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Heritage Insurance Holdings, Inc. Stock Overvalued? HRTG Valuation Analysis 2026
Based on fundamental analysis, Heritage Insurance Holdings, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Heritage Insurance Holdings, Inc. Balance Sheet: HRTG Debt, Cash & Liquidity
HRTG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Heritage Insurance Holdings, Inc.'s revenue has grown significantly by 34% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.73 reflects profitable operations.
HRTG Revenue Growth, EPS Growth & YoY Performance
HRTG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $211.5M | $30.5M | $0.99 |
| Q3 2025 | $211.8M | $8.2M | $0.27 |
| Q2 2025 | $203.6M | $14.2M | $0.61 |
| Q1 2025 | $191.3M | $14.2M | $0.47 |
| Q3 2024 | $186.3M | -$7.4M | $0.27 |
| Q2 2024 | $185.3M | $7.8M | $0.30 |
| Q1 2024 | $176.9M | $14.0M | $0.47 |
| Q3 2023 | $165.5M | -$7.4M | $-0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Heritage Insurance Holdings, Inc. Dividends, Buybacks & Capital Allocation
HRTG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Heritage Insurance Holdings, Inc. (CIK: 0001598665)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HRTG
What is the AI rating for HRTG?
Heritage Insurance Holdings, Inc. (HRTG) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HRTG's key strengths?
Claude: Exceptional operating margin of 23.9% demonstrates strong underwriting discipline and pricing power. Conservative capital structure with 0.15x debt/equity ratio and 18.0x interest coverage provides stability. ChatGPT: Strong operating and net margins with high ROE. Low leverage and exceptional interest coverage.
What are the risks of investing in HRTG?
Claude: Suboptimal capital efficiency with ROE of 7% and ROA of 1.8% well below insurance industry standards. Free cash flow of $23.0M trails net income by 37%, suggesting either working capital drains or earnings quality concerns. ChatGPT: High catastrophe exposure leading to earnings volatility. Reinsurance cost/availability and retention risk.
What is HRTG's revenue and growth?
Heritage Insurance Holdings, Inc. reported revenue of $212.7M.
Does HRTG pay dividends?
Heritage Insurance Holdings, Inc. pays dividends, with $0.0M distributed to shareholders in the trailing twelve months.
Where can I find HRTG SEC filings?
Official SEC filings for Heritage Insurance Holdings, Inc. (CIK: 0001598665) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HRTG's EPS?
Heritage Insurance Holdings, Inc. has a diluted EPS of $1.19.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HRTG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Heritage Insurance Holdings, Inc. has a BUY rating with 71% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HRTG stock overvalued or undervalued?
Valuation metrics for HRTG: ROE of 7.0% (sector avg: 12%), net margin of 17.2% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy HRTG stock in 2026?
Our dual AI analysis gives Heritage Insurance Holdings, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HRTG's free cash flow?
Heritage Insurance Holdings, Inc.'s operating cash flow is $24.9M, with capital expenditures of $1.8M. FCF margin is 10.8%.
How does HRTG compare to other Finance stocks?
Vs Finance sector averages: Net margin 17.2% (avg: 25%), ROE 7.0% (avg: 12%), current ratio N/A (avg: 1.2).