UNIVERSAL INSURANCE HOLDINGS INC Common Stock (UVE)

FairStock Score: 88/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I start with the filed numbers, not the story. Universal Insurance is a property-casualty insurer focused on personal residential cover. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $1.6B, net income of $183.0M and diluted EPS of $6.32. That is a sharp recovery from fiscal 2024, when net income was $58.9M and EPS $2.01. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $427.0M, net income of $59.2M and EPS $2.04, so momentum is still positive. At the 2026-10-26 close of $47.87, FairStock calculates a P/E of 6.29 and P/B of 2.09, with ROE of 40.16%, D/E of 0.15 and PEG of 0.09. FairStock also shows revenue growth of 6.72% and profit growth of 68.66%, while the Piotroski F-Score is 5/9. The low P/E and very low PEG suggest price is cheap relative to earnings, but P/B above 2 and ROCE of 5.68% remind me this is not a wide-moat compounder; it is a price-taker in a cyclical, catastrophe-exposed business. Leverage is low, and the dividend yield is 1.45% with beta 0.73. The Lynch category given is TURNAROUND because of a return to profit after a loss within the last three years, although the filed annual figures I see show positive net income in fiscal 2023, 2024 and 2025, so I would verify the trigger. I cannot judge combined ratio, loss reserves, CET1 or NIM because they are not in the data. As Graham would say, margin of safety depends on underwriting consistency, not just a low multiple. At 6.3x earnings, the market is pricing skepticism; if claims stay benign, it could be deserved, but one bad storm season changes the math.

In plain English: Universal Insurance sells home, renters, condo and similar property insurance, mostly to individuals. It looks strong right now because profits jumped in fiscal 2025 and the latest quarter was profitable, while the share price looks low compared with those profits. But insurance earnings can swing with storms and claims, and some important details about how risky its policies are are not in the data.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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