📊 UVE Key Takeaways
Is Universal Insurance Holdings, Inc.. (UVE) a Good Investment?
Universal Insurance demonstrates solid financial fundamentals with exceptional free cash flow generation (38.9% FCF margin), conservative leverage (0.17x Debt/Equity), and strong operational margins. However, weak revenue growth (5.5% YoY), inadequate returns on capital (ROE 9.3%, ROA 2.0%), and suboptimal capital deployment limit investment appeal despite financial stability.
Universal Insurance Holdings, Inc.. Key Strengths (UVE)
- Exceptional free cash flow generation with 38.9% FCF margin and $153.2M operating cash conversion
- Conservative capital structure with 0.17x Debt/Equity ratio and 44.9x interest coverage ratio
- Strong liquidity position with $595.8M cash nearly equaling stockholders' equity
- Solid profitability metrics with 18.2% operating margin and 13.8% net margin
- Consistent revenue growth at 5.5% YoY with positive earnings trajectory
UVE Stock Risks: Universal Insurance Holdings, Inc.. Investment Risks
- Severely inadequate returns on capital with ROE of 9.3% and ROA of 2.0% indicating poor capital efficiency
- Modest revenue growth suggests limited expansion and market share gains in competitive insurance sector
- Exposure to catastrophic losses, underwriting risks, and weather volatility inherent to fire/marine/casualty insurance
- Questionable sustainability of 214.4% EPS growth, likely driven by depressed prior-year baseline rather than operational improvements
- Excess cash position ($595.8M) relative to capital needs suggests inefficient capital deployment
Key Metrics to Watch
- Return on Equity trajectory - currently below cost of capital threshold
- Revenue growth acceleration - monitor if 5.5% rate can sustain or improve
- Combined loss ratio and underwriting margins - core insurance profitability indicator
- Free cash flow margin sustainability above 35%
- Capital allocation strategy - dividend policy and share buyback execution
Universal Insurance Holdings, Inc.. (UVE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 38.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
UVE Profit Margin, ROE & Profitability Analysis
UVE vs Finance Sector: How Universal Insurance Holdings, Inc.. Compares
How Universal Insurance Holdings, Inc.. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Universal Insurance Holdings, Inc.. Stock Overvalued? UVE Valuation Analysis 2026
Based on fundamental analysis, Universal 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.
Universal Insurance Holdings, Inc.. Balance Sheet: UVE Debt, Cash & Liquidity
UVE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Universal Insurance Holdings, Inc..'s revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.22 reflects profitable operations.
UVE Revenue Growth, EPS Growth & YoY Performance
UVE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $393.6M | $41.4M | $1.44 |
| Q3 2025 | $387.6M | -$16.2M | $-0.57 |
| Q2 2025 | $380.2M | $33.7M | $1.21 |
| Q1 2025 | $368.0M | $33.7M | $1.14 |
| Q3 2024 | $360.0M | -$5.9M | $-0.20 |
| Q2 2024 | $339.6M | $24.2M | $0.93 |
| Q1 2024 | $316.5M | $24.2M | $0.79 |
| Q3 2023 | $312.8M | -$5.9M | $-0.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Universal Insurance Holdings, Inc.. Dividends, Buybacks & Capital Allocation
UVE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Universal Insurance Holdings, Inc.. (CIK: 0000891166)
📋 Recent SEC Filings
❓ Frequently Asked Questions about UVE
What is the AI rating for UVE?
Universal Insurance Holdings, Inc.. (UVE) has an AI grade of B with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are UVE's key strengths?
Claude: Exceptional free cash flow generation with 38.9% FCF margin and $153.2M operating cash conversion. Conservative capital structure with 0.17x Debt/Equity ratio and 44.9x interest coverage ratio.
What are the risks of investing in UVE?
Claude: Severely inadequate returns on capital with ROE of 9.3% and ROA of 2.0% indicating poor capital efficiency. Modest revenue growth suggests limited expansion and market share gains in competitive insurance sector.
What is UVE's revenue and growth?
Universal Insurance Holdings, Inc.. reported revenue of $393.6M.
Does UVE pay dividends?
Universal Insurance Holdings, Inc.. pays dividends, with $4.9M distributed to shareholders in the trailing twelve months.
Where can I find UVE SEC filings?
Official SEC filings for Universal Insurance Holdings, Inc.. (CIK: 0000891166) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is UVE's EPS?
Universal Insurance Holdings, Inc.. has a diluted EPS of $1.88.
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 grade reflects both perspectives for balanced insights.
What is UVE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Universal Insurance Holdings, Inc.. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is UVE stock overvalued or undervalued?
Valuation metrics for UVE: ROE of 9.3% (sector avg: 12%), net margin of 13.8% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is UVE's AI grade for 2026?
Our dual AI analysis gives Universal Insurance Holdings, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is UVE's free cash flow?
Universal Insurance Holdings, Inc..'s operating cash flow is $154.8M, with capital expenditures of $1.6M. FCF margin is 38.9%.
How does UVE compare to other Finance stocks?
Vs Finance sector averages: Net margin 13.8% (avg: 25%), ROE 9.3% (avg: 12%), current ratio N/A (avg: 1.2).