Fundamentals snapshot
HGTY · NYQ · Financial Services · Insurance - Property & Casualty
Current price
$13.59
52-week range
$9.36 - $14.17
Market cap
$4.67B
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 $796.50M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Hagerty is a company for classic car enthusiasts that makes most of its money selling specialized car insurance. To build customer loyalty, it also operates a Drivers Club and a marketplace for buying and selling collectible cars. This creates a complete "ecosystem" (a network of related products and services from one company) that encourages customers to stay with the Hagerty brand for all their car-collecting needs.
Hagerty started in 1984 when Frank and Louise Hagerty couldn't find good insurance for their classic wooden boats, so they decided to create their own. [1, 2] They soon expanded into insuring classic cars, a market that traditional insurers didn't serve well. [1] Their son, McKeel, took over as CEO (Chief Executive Officer, the top manager of a company) in 2000 and began transforming the business from just an insurance provider into a broader brand for car lovers. [1] The company became publicly traded on the stock market in December 2021 through a merger with a special purpose acquisition company, or SPAC (a shell company set up to help private companies sell their shares to the public). [1, 2]
At its heart, Hagerty is a company built for people who are passionate about cars, especially classic and collector vehicles. [1] Its main business is providing specialized insurance that protects the value of these unique cars, which standard auto policies often don't cover properly. [2, 3] Beyond just insurance, Hagerty has created a whole world for car enthusiasts, including a membership club with roadside assistance, a magazine, and exclusive events. [4, 16] They also run online auctions and sales platforms where people can buy and sell collector cars. [8]
This is Hagerty's largest and original business, making up the vast majority of its revenue (the total money a company brings in from sales). [15] The company acts as a managing general agent (a specialized agent that can handle underwriting, or evaluating risk, and other services for insurance policies), focusing on insurance for enthusiast vehicles. [8] When customers buy an insurance policy, they are often also enrolled in the Hagerty Drivers Club, a membership program that provides benefits like a magazine, special discounts, and access to car valuation tools. [4, 8] This bundling strategy helps create loyal customers who see Hagerty as more than just an insurance company. [2]
This is a smaller but fast-growing part of Hagerty's business that helps people buy and sell collector cars. [8, 27] The marketplace includes online auctions, classified ad-style listings, and private sales arranged by Hagerty's brokers. [8, 17] People who want to sell their car can list it for free if they are a Hagerty Drivers Club member, giving them access to a large community of potential buyers. [9, 22] This segment creates a new way for the company to earn money from its community of car lovers, beyond their insurance policies. [29]
Management's main strategy is to build a complete ecosystem for car enthusiasts that keeps them engaged and loyal to the brand. [29] They are focused on growing the Hagerty Drivers Club, which provides a steady, predictable source of money known as recurring revenue. [12] The company is also investing in its technology to make its services more efficient and user-friendly. [32] Finally, Hagerty is expanding its reach by forming strategic partnerships with large, traditional insurance companies like State Farm to offer its specialized products to a wider audience. [28, 32]
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 $796.5M - more cash than debt. Interest coverage 17.0x.
Hagerty, Inc.'s profit covers its interest bill about 17.0 times over. which is stronger than most peers shown here.
Total debt $258.31M Interest coverage 17.01x This is the baseline the peer rows are being compared against.
Total debt $318.70M Interest coverage 95.43x +461% vs HGTY Carries about 5.6x more debt cushion than HGTY.
Total debt $295.77M Interest coverage 647.40x +3,707% vs HGTY Carries about 38.1x more debt cushion than HGTY.
Total debt $224.54M Interest coverage 60.58x +256% vs HGTY Carries about 3.6x more debt cushion than HGTY.
Total debt $106.91M Interest coverage 7.32x -57% vs HGTY Carries about 2.3x less debt cushion than HGTY.
Total debt $3.81B Interest coverage 2.32x -86% vs HGTY Carries about 7.3x less debt cushion than HGTY.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
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Debt comparison
What you should know