Hippo Holdings (HIPO) AI Stock Analysis

• Market Cap: $898.26M
• Dividend Yield: N/A
• Average Volume (3M): 163.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 43.15%
• EPS Growth: 94.09%
• Country: US
• Employees: 478
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 3.77
• Shares Outstanding: 25,028,053
• 10 Day Avg. Volume: 117,631
• 30 Day Avg. Volume: 163,257
• PEG Ratio: 0.19
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 14.01
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 269.81
• Enterprise Value/Ebitda: 69.24
• 1Y Price Target: $39.67
• Price Target Upside: 4.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ―

Hippo Holdings exhibits strong revenue growth and improved operational efficiency, but ongoing net losses and challenges in profitability weigh on the overall score. Technical indicators suggest caution with the stock currently below key moving averages. The negative P/E ratio and lack of dividend yield further dampen valuation attractiveness. Conversely, the positive earnings call sentiment and optimistic guidance for 2025 provide some upside potential.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product acceptance, enhancing long-term business sustainability.

Operational Efficiency

Improved operational efficiency through cost reductions strengthens profitability potential and supports sustainable growth.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing for reinvestment in growth initiatives and risk management.

Negative Factors

Net Profitability Challenges

Ongoing net losses hinder financial health, requiring strategic adjustments to achieve sustainable profitability.

Legacy Portfolio Exposure

Exposure to older, less profitable policies poses risks to financial stability and requires strategic mitigation.

Historical Cash Flow Volatility

Inconsistent cash flow generation may impact long-term financial planning and operational resilience.

Hippo Holdings Business Overview & Revenue Model

Company Description

Hippo Holdings Inc. provides home protection insurance in the United States and the District of Columbia. Its insurance products include homeowners' insurance against risks of fire, wind, and theft; and commercial and personal lines of products. The company distributes insurance products and services through its technology platform; and offers its policies online, over the phone, or through licensed insurance agents. It provides care and protection for homeowners, as well as operates an integrated home protection platform. The company is headquartered in Palo Alto, California.

How the Company Makes Money

Hippo Holdings makes money primarily through underwriting homeowners insurance policies. The company generates revenue by collecting premiums from policyholders in exchange for providing insurance coverage. Hippo differentiates itself by using advanced data analytics and technology to assess risk and price policies more accurately than traditional insurers. Additionally, Hippo partners with reinsurers to manage its risk exposure, allowing it to share a portion of the premiums in exchange for risk transfer. The company may also earn revenue from investment income generated by investing the premiums it collects. Key factors contributing to Hippo's earnings include its ability to attract and retain policyholders, its underwriting expertise, the efficiency of its technology platform, and its strategic partnerships with reinsurers.

Hippo Holdings Financial Statement Overview

Summary

Hippo Holdings shows strong revenue growth and improved operational efficiency, with a significant increase in EBIT margin. However, challenges in achieving net profitability persist, as indicated by ongoing net losses. The balance sheet is stable with no debt, but the company struggles to generate sufficient returns on equity. Positive cash flow changes are encouraging, yet past fluctuations highlight potential concerns. Enhancing profitability and cash flow stability is crucial for future financial health.

Income Statement

Hippo Holdings has demonstrated notable revenue growth of 77.4% in 2024, reflecting robust top-line expansion. However, net profitability remains a challenge, with a negative net profit margin of -10.88% due to persistent losses. The EBIT margin has improved significantly to 58.98%, indicating better operational efficiency. Despite these improvements, the absence of EBITDA data limits comprehensive margin analysis.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 23.47%, although this has decreased from previous years. The debt-to-equity ratio stands at 0, highlighting negligible leverage, which is beneficial in minimizing financial risk. However, the negative ROE of -11.18% signals inefficiency in generating returns for shareholders, impacting the balance sheet strength.

Cash Flow

The cash flow statement shows a positive turnaround in free cash flow, growing from a negative position in previous years to $47.2 million in 2024. The operating cash flow to net income ratio is robust at 1.17, indicating effective cash generation relative to net income. However, historical volatility in cash flows suggests potential sustainability risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	450.10M	372.10M	209.70M	119.70M	91.20M	51.60M
Gross Profit	2.90M	74.30M	209.70M	119.70M	91.20M	51.60M
EBITDA	11.30M	-4.20M	0.00	-310.00M	-356.20M	-110.50M
Net Income	95.90M	-40.50M	-273.10M	-326.50M	-367.90M	-141.40M
Balance Sheet
Total Assets	1.87B	1.54B	1.52B	1.57B	1.64B	979.40M
Cash, Cash Equivalents and Short-Term Investments	247.70M	197.60M	142.10M	519.30M	784.70M	452.30M
Total Debt	0.00	10.00M	14.80M	28.90M	0.00	273.00M
Total Liabilities	1.45B	1.18B	1.14B	975.40M	19.90M	279.10M
Stockholders Equity	421.50M	362.10M	377.90M	589.90M	859.60M	-199.60M
Cash Flow
Free Cash Flow	-1.90M	47.20M	-139.10M	-181.20M	-141.90M	-74.80M
Operating Cash Flow	-400.00K	47.50M	-92.40M	-161.50M	-124.50M	-65.40M
Investing Cash Flow	42.30M	30.30M	57.60M	-405.90M	-30.00M	-2.30M
Financing Cash Flow	-600.00K	-40.10M	-14.60M	-6.80M	480.80M	518.10M

Hippo Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIPO, the sentiment is Positive. The current price of 37.85 is above the 20-day moving average (MA) of 35.93, above the 50-day MA of 35.71, and above the 200-day MA of 29.01, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 60.80 is Neutral, neither overbought nor oversold. The STOCH value of 56.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIPO.

Hippo Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITIC	75 Outperform	$500.45M	15.16	12.55%	5.60%	15.28%	26.05%
EIG	72 Outperform	$843.64M	14.77	5.86%	3.04%	1.69%	-52.43%
AMSF	72 Outperform	$759.63M	15.37	16.95%	11.37%	-1.73%	-18.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TIPT	60 Neutral	$691.80M	16.13	10.46%	2.77%	4.44%	22.40%
HIPO	55 Neutral	$898.26M	-85.19	-3.27%	―	43.15%	94.09%
AMBC	45 Neutral	$383.74M	―	-4.09%	―	-17.06%	-118.90%

Hippo Holdings Corporate Events

Hippo Holdings Terminates Palo Alto Lease Agreement

On April 14, 2025, Hippo Analytics Inc. entered into a Second Amendment to Lease with Tallwood Forest, LLC, terminating their lease agreement for the property at 150 Forest Ave., Palo Alto, California. The company agreed to surrender the property and make a one-time lease termination payment of $1,438,411. Hippo Analytics is in the process of securing new office space in San Jose, CA, which is expected to lead to significant annual cost savings.

Spark’s Take on HIPO Stock

According to Spark, TipRanks’ AI Analyst, HIPO is a Neutral.

Hippo Holdings’ overall score of 62 reflects strong technical indicators and positive earnings call sentiment, offset by valuation concerns due to ongoing losses and a negative P/E ratio. The company shows promising revenue growth and operational improvements but faces challenges in achieving profitability. The stock’s technical outlook is stable, supporting a moderate investment potential.

To see Spark’s full report on HIPO stock, click here.