HCI Group Inc. Common Stock (HCI)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach insurers with Graham's caution: the income statement can be flattered by a benign loss year, so I start with balance-sheet conservatism and underwriting discipline. HCI Group sells homeowners property and casualty insurance and also runs Exzeo, a technology platform, plus reciprocal exchange and real estate operations. The filed record is impressive: FY2025 revenue was $900.9M, net income $299.0M, and diluted EPS $22.72, up sharply from FY2024 revenue $750.1M, net income $110.0M, EPS $8.89, and FY2023 revenue $550.7M, net income $79.0M, EPS $7.62. In Q2 2026, the quarter ended 2026-06-30, revenue was $246.7M, net income $73.8M, and diluted EPS $5.60. At the 2026-10-13 close of $198.88, FairStock calculates a P/E of 8.57, P/B of 2.30, ROE of 34.97%, ROCE of 11.62%, PEG of 0.01, and a Piotroski F-Score of 6/9. Debt is low with D/E 0.06, and the FairStock Score is 95/100. The market is pricing this as a cheap earnings stream, but for an insurer I need the underwriting margin, reserve development, and catastrophe exposure. The data omit the combined ratio, CET1, and net interest margin, so I cannot fully verify underwriting quality. The Lynch category is TURNAROUND — returned to profit after a loss within the last three years, which fits a business whose profits may be cyclical. I like the low leverage and high returns, but P/B of 2.30 means book value is not a bargain, and a single bad hurricane season could change the story. Growth is real, but I would demand a margin of safety because insurance earnings are not annuities.

In plain English: HCI Group sells home insurance and related insurance technology services. It has grown quickly and made strong profits recently, with very little debt. The stock price looks cheap compared with its recent profits, but insurance profits can swing sharply when storms hit, and some key insurance details are not shown.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer