Heritage Insurance Holdings, Inc. (HRTG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+528.4%

$226.46

vs $36.04 price

Levered DCF

$160.84

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.76

Distress zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	4.62×	6.02×	3.77×	-0.31×	-2.19×	30.7×	13.52×	14.02×
P/B	1.79×	1.27×	0.78×	0.36×	0.48×	0.64×	0.86×	0.9×
P/S	1.07×	0.45×	0.23×	0.07×	0.26×	0.48×	0.76×	0.8×
EV / EBITDA	1.59×	0.57×	-2.01×	0.49×	0.74×	-1.55×	4.28×	3.26×
Gross margin	63.0%	21.9%	19.3%	0.8%	9.2%	15.5%	25.4%	32.9%
Operating margin	30.6%	10.1%	7.1%	-25.1%	-12.0%	0.4%	8.0%	8.1%
Net margin	23.1%	7.5%	6.2%	-23.3%	-11.8%	1.6%	5.6%	5.7%
Current ratio	0.86×	0.81×	0.78×	0.74×	1.07×	0×	0×	6.07×
Debt / equity	0.2×	0.49×	0.67×	1.22×	0.44×	0.29×	0.31×	0.35×
Interest coverage	32.87×	7.56×	4.64×	-18.86×	-9.54×	0.28×	4.81×	1.95×
Dividend yield	0.0%	0.0%	0.0%	10.1%	4.1%	2.4%	1.8%	1.7%
Payout ratio	0.0%	0.1%	0.0%	-3.1%	-9.0%	73.5%	24.3%	23.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	38.7%	21.2%	20.6%	-117.8%	-21.8%	2.1%	6.4%	6.4%
Return on invested capital	32.3%	14.2%	13.5%	-53.0%	-15.1%	3.2%	36.1%	1.5%
Return on assets	8.9%	2.5%	2.1%	-6.5%	-3.8%	0.4%	1.5%	1.5%
Free cash flow yield	19.3%	21.3%	35.4%	-98.4%	36.2%	59.8%	29.6%	24.4%
Earnings yield	21.6%	16.6%	26.5%	-325.5%	-45.7%	3.3%	7.4%	7.1%
Enterprise value	$444.4M	$58.9M	-$144.7M	-$73.3M	-$43.9M	-$28.4M	$256.4M	$280.5M
Net debt / EBITDA	-1.64×	-3.02×	-4.39×	0.81×	3.48×	-17.05×	-2.18×	-1.18×
Cash conversion cycle (days)	-107	238	185	383	76	161	197	-653