Universal Insurance Holdings (UVE) AI Stock Analysis

• Market Cap: $864.47M
• Dividend Yield: 2.5%
• Average Volume (3M): 206.85K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.52
• Revenue Growth: 4.61%
• EPS Growth: 73.40%
• Country: US
• Employees: 1,068
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.36
• Shares Outstanding: 28,048,882
• 10 Day Avg. Volume: 226,562
• 30 Day Avg. Volume: 206,846
• PEG Ratio: -1.34
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 4.62
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: 5.30
• 1Y Price Target: $29.00
• Price Target Upside: -5.91% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $35.00 ▲(13.56% Upside)

Universal Insurance Holdings shows a promising outlook with strong earnings call results and attractive valuation metrics. The technical analysis supports a positive momentum, although financial performance indicates areas for improvement in profitability and cash flow stability. The overall score reflects a balanced view of growth potential and existing challenges.

Universal Insurance Holdings Business Overview & Revenue Model

Company Description

Universal Insurance Holdings, Inc. (UVE) is a property and casualty insurance holding company based in the United States, primarily focused on providing personal and commercial insurance products. The company operates through its subsidiaries, offering a range of services including homeowners, renters, and auto insurance. UVE primarily targets markets in Florida, but also has a presence in other states, leveraging technology to enhance customer experience and operational efficiency.

How the Company Makes Money

Universal Insurance Holdings generates revenue primarily through the collection of premiums from policyholders in its various insurance lines. The company's revenue model is heavily reliant on the underwriting of insurance policies, where it assesses risk and sets premium rates accordingly. Additionally, UVE earns income from investment activities, utilizing the premiums collected to invest in a diversified portfolio that includes bonds and equities. Key revenue streams include the sale of homeowners and auto insurance, as well as associated policy fees. The company's strong performance is also supported by strategic partnerships with independent agents and brokers, which facilitate broader market reach and customer acquisition.

Universal Insurance Holdings Financial Statement Overview

Summary

Universal Insurance Holdings demonstrates solid financial health with a strong cash flow position and a low leverage balance sheet, indicating stability and prudent financial management. The income statement shows steady revenue growth and profitability, although there is room for margin improvement. Overall, the financial statements reflect a well-managed company with a promising outlook, particularly in terms of cash flow and financial stability.

Income Statement

The income statement reflects a strong gross profit margin of approximately 74.4% for TTM, indicating efficient cost management and strong pricing power. The net profit margin is 4.3%, showing profitability but with room for improvement. Revenue growth from 2024 to TTM is approximately 1.6%, which is moderate. The EBIT margin is 6.3%, and the EBITDA margin is 4.1%, suggesting some operational efficiency but potential areas for cost reduction. Overall, the company shows stable revenue growth and profitability, with potential for higher margins.

Balance Sheet

The balance sheet is relatively strong with a debt-to-equity ratio of 0.24, indicating low leverage and a conservative capital structure. The return on equity for TTM is around 15.8%, showcasing effective use of equity to generate profits. The equity ratio is 19.8%, which reflects a moderate level of financial stability. However, the company's total assets have decreased since 2024, primarily due to reduced cash and equivalents. The overall balance sheet indicates a financially stable company with low leverage but room for improving the equity base.

Cash Flow

The cash flow statement is robust, with a significant operating cash flow to net income ratio of about 3.62 for TTM, demonstrating strong cash generation relative to profits. The free cash flow to net income ratio is high at 3.49, indicating excellent cash conversion. Free cash flow grew substantially from 2024 to TTM by approximately 78.9%, showing improved cash management. Overall, the cash flow analysis highlights strong liquidity and efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.52B	1.39B	1.22B	1.12B	1.07B
Gross Profit	384.81M	1.52B	1.39B	1.22B	116.48M	982.14M
EBITDA	162.03M	96.50M	101.48M	-14.04M	35.98M	29.44M
Net Income	122.37M	58.93M	66.82M	-22.26M	20.41M	19.11M
Balance Sheet
Total Assets	1.52B	2.84B	2.32B	2.89B	2.06B	1.76B
Cash, Cash Equivalents and Short-Term Investments	474.22M	1.53B	1.46B	388.71M	250.51M	167.16M
Total Debt	100.67M	101.24M	116.60M	102.77M	130.44M	67.86M
Total Liabilities	2.59B	2.47B	1.98B	2.60B	1.63B	1.31B
Stockholders Equity	495.04M	373.25M	341.30M	287.90M	429.70M	449.26M
Cash Flow
Free Cash Flow	249.82M	129.99M	66.95M	319.62M	227.15M	12.13M
Operating Cash Flow	254.07M	137.36M	70.97M	324.51M	234.38M	29.35M
Investing Cash Flow	-130.07M	-228.09M	-15.25M	-148.86M	-229.40M	22.04M
Financing Cash Flow	-52.10M	-47.13M	-47.12M	-37.46M	68.30M	-56.26M

Universal Insurance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.82
• 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 UVE, the sentiment is Positive. The current price of 30.82 is above the 20-day moving average (MA) of 29.79, above the 50-day MA of 27.09, and above the 200-day MA of 24.26, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 61.95 is Neutral, neither overbought nor oversold. The STOCH value of 64.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UVE.

Universal Insurance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRTG	―	$732.95M	6.82	33.49%	―	9.35%	77.04%
UVE	―	$864.47M	7.28	27.34%	2.50%	4.61%	73.40%
DGICA	―	$665.47M	7.73	15.10%	3.79%	0.93%	224.95%
UFCS	―	$770.62M	8.60	11.68%	2.12%	14.28%	148.61%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GBLI	―	$418.17M	15.16	4.01%	4.79%	-0.04%	-33.45%
ACIC	―	$577.38M	7.18	31.54%	―	23.68%	16.14%

Universal Insurance Holdings Corporate Events

Universal Insurance Shines in Earnings Call

Universal Insurance’s recent earnings call painted a picture of strong financial performance, marked by significant improvements in return on equity and earnings per share. Despite facing challenges such as decreased premiums in Florida, increased expenses, and a competitive market environment, the company emphasized positive aspects of financial growth and strategic management.