Fundamentals snapshot
HCI · NYQ · Financial Services · Insurance - Property & Casualty
Current price
$186.29
52-week range
$144.75 - $210.50
Market cap
$2.32B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net cash $804.87M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
HCI Group is primarily a homeowners' insurance company, making money by collecting regular payments (called premiums) from customers who want financial protection if their homes are damaged. It also has smaller businesses developing real estate and selling insurance-related software to other firms. The company's financial success depends on collecting more in premiums than it pays out for customer damage claims, which can be a challenge in states with high hurricane risk.
HCI Group was founded in 2006, originally named Homeowners Choice, Inc., during a turbulent time for Florida's insurance market. After major hurricanes, many large insurance companies scaled back, leaving homeowners with fewer options. HCI stepped in to fill this gap, growing by providing property insurance and taking on policies from Florida's state-run insurer of last resort. As the company grew beyond just one line of insurance, it renamed itself HCI Group to reflect its more diverse operations.
At its core, HCI Group is an insurance company that you would turn to for homeowners insurance, which protects you financially if your house is damaged. Think of it as a company that sells promises to pay for repairs or rebuilding after a fire, storm, or other disaster, in exchange for regular payments called premiums. Beyond just selling insurance, the company also develops and sells technology to help other insurance companies operate more efficiently and invests in commercial real estate.
This is HCI's main business, making up the largest part of the company. It provides property and casualty insurance, primarily for homeowners, which covers losses or damage to their houses and belongings. Customers, who are individual homeowners, pay regular fees (premiums) to the company. In return, HCI promises to cover the costs if the customer's property is damaged by an event covered in their policy, like a hurricane or fire.
This is the technology side of the company, which sells software and services to other insurance businesses. For example, it offers platforms that help manage insurance policies and handle claims (requests for payment after a loss) more efficiently. The customers here are other insurance companies, not individual homeowners, who pay HCI for access to this technology to improve their own operations. This is a smaller but important part of the business.
This segment operates a type of insurance organization known as a reciprocal exchange. Think of it as a group where the policyholders are also the owners, essentially insuring each other. HCI manages these exchanges, called CORE and Tailrow, earning fees for its services. So, instead of HCI taking all the risk, it helps a group of people or companies pool their money and risk together.
This is a smaller part of HCI's business that buys, develops, and manages commercial properties. The company earns money from this segment by leasing these properties to other businesses or holding them as investments with the hope their value will increase. These properties can include office buildings or other commercial spaces.
The company's leadership is focused on growing its core insurance business by attracting more policyholders and potentially expanding into new states like California. They are also heavily invested in technology, aiming to use their Exzeo platforms to make the insurance process more efficient for themselves and other companies. A key part of their strategy involves maintaining a strong balance sheet (a snapshot of a company's financial health), ensuring they have the financial stability to pay claims and invest in new opportunities.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net cash $804.9M - more cash than debt. Interest coverage 47.9x.
HCI Group, Inc.'s profit covers its interest bill about 47.9 times over. which is stronger than most peers shown here.
Total debt $67.47M Interest coverage 47.89x This is the baseline the peer rows are being compared against.
Total debt $97.85M Interest coverage 43.54x -9% vs HCI Has roughly the same debt cushion as HCI.
Total debt $91.83M Interest coverage 33.87x -29% vs HCI Carries about 1.4x less debt cushion than HCI.
Total debt $295.77M Interest coverage 647.40x +1,252% vs HCI Carries about 13.5x more debt cushion than HCI.
Total debt $152.54M Interest coverage 14.20x -70% vs HCI Carries about 3.4x less debt cushion than HCI.
Total debt $224.54M Interest coverage 60.58x +26% vs HCI Carries about 1.3x more debt cushion than HCI.
What you should know
The numbers
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Valuation
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What you should know