(HIPO) Hippo Holdings - Overview
Sector: Financial Services | Industry: Insurance - Property & Casualty | Exchange: NYSE (USA) | Market Cap: 671m USD | Total Return: 13.6% in 12m
Avg Turnover: 3.22M
Qual. Beats: 0
Rev. Trend: 96.9%
Qual. Beats: -1
Warnings
Below Avwap Earnings
Tailwinds
Confidence
Hippo Holdings Inc. (HIPO) is a San Jose-based property and casualty insurance provider that operates a multi-carrier platform across the United States. The company utilizes a technology-driven model to distribute homeowners, commercial multi-peril, and specialty insurance products through its own managing general agents (MGAs) and third-party partners. Its infrastructure supports both admitted and non-admitted (excess and surplus) markets, providing the regulatory licensing and reinsurance necessary for diverse insurance programs.
The company functions as an InsurTech entity, leveraging data and automation to streamline the underwriting process for small to mid-sized businesses and residential customers. By operating as both a carrier and an agency, Hippo captures value across the insurance lifecycle, from policy issuance to reinsurance placement. The excess and surplus (E&S) market segment allows the firm to cover higher-risk or specialized assets that traditional standard carriers typically decline.
Reviewing the historical performance and valuation metrics on ValueRay can provide further context for this business model. Hippo Holdings Inc. transitioned to its current corporate structure in August 2021 and continues to focus on integrating technology with traditional risk management services.
- Loss ratio improvements and underwriting discipline drive path toward GAAP profitability
- Expansion of insurance-as-a-service platform increases fee-based revenue and capital efficiency
- Catastrophic weather events and climate volatility impact net loss and reinsurance costs
- Strategic pivot toward high-margin agency and technology segments reduces capital intensity
- Regulatory shifts in homeowners insurance markets influence pricing power and market share
| Net Income: 112.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 2.70 > 1.0 |
| NWC/Revenue: 53.65% < 20% (prev 34.51%; Δ 19.14% < -1%) |
| CFO/TA 0.03 > 3% & CFO 53.3m > Net Income 112.5m |
| Net Debt (-464.7m) to EBITDA (136.5m): -3.40 < 3 |
| Current Ratio: 1.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (26.4m) vs 12m ago 5.51% < -2% |
| Gross Margin: 40.48% > 18% (prev -0.04%; Δ 4.05k% > 0.5%) |
| Asset Turnover: 26.64% > 50% (prev 25.79%; Δ 0.85% > 0%) |
| Interest Coverage Ratio: 145.1 > 6 (EBITDA TTM 136.5m / Interest Expense TTM 800k) |
| A: 0.12 (Total Current Assets 1.76b - Total Current Liabilities 1.50b) / Total Assets 2.06b |
| B: -0.59 (Retained Earnings -1.21b / Total Assets 2.06b) |
| C: 0.06 (EBIT TTM 116.1m / Avg Total Assets 1.80b) |
| D: -0.75 (Book Value of Equity -1.21b / Total Liabilities 1.61b) |
| Altman-Z'' = -1.45 = CCC |
| DSRI: 1.15 (Receivables 813.9m/585.5m, Revenue 479.8m/397.3m) |
| GMI: 1.00 (fallback, negative margins) |
| AQI: 0.88 (AQ_t 0.13 / AQ_t-1 0.15) |
| SGI: 1.21 (Revenue 479.8m / 397.3m) |
| TATA: 0.03 (NI 112.5m - CFO 53.3m) / TA 2.06b) |
| Beneish M = -2.79 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 26.20 with a total of 125,600 shares traded.
Over the past week, the price has changed by +0.58%,
over one month by -8.81%,
over three months by -4.52% and
over the past year by +13.57%.
Hippo Holdings has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy HIPO.
- StrongBuy: 1
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 38.3 | 46% |
P/E Trailing = 5.8591
P/S = 1.4027
P/B = 1.5081
Revenue TTM = 479.8m USD
EBIT TTM = 116.1m USD
EBITDA TTM = 136.5m USD
Long Term Debt = 47.9m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 55.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 3.60m
Net Debt = -464.7m USD (calculated: Debt 55.1m - CCE 519.8m)
Enterprise Value = 206.5m USD (671.2m + Debt 55.1m - CCE 519.8m)
Interest Coverage Ratio = 145.1 (Ebit TTM 116.1m / Interest Expense TTM 800k)
EV/FCF = 4.12x (Enterprise Value 206.5m / FCF TTM 50.1m)
FCF Yield = 24.26% (FCF TTM 50.1m / Enterprise Value 206.5m)
FCF Margin = 10.44% (FCF TTM 50.1m / Revenue TTM 479.8m)
Net Margin = 23.45% (Net Income TTM 112.5m / Revenue TTM 479.8m)
Gross Margin = 40.48% ((Revenue TTM 479.8m - Cost of Revenue TTM 285.6m) / Revenue TTM)
Gross Margin QoQ = 32.18% (prev 62.21%)
Tobins Q-Ratio = 0.10 (Enterprise Value 206.5m / Total Assets 2.06b)
Interest Expense / Debt = 1.45% (Interest Expense 800k / Debt 55.1m)
Taxrate = 1.39% (100k / 7.20m)
NOPAT = 114.5m (EBIT 116.1m * (1 - 1.39%))
Current Ratio = 1.17 (Total Current Assets 1.76b / Total Current Liabilities 1.50b)
Debt / Equity = 0.12 (Debt 55.1m / totalStockholderEquity, last quarter 448.7m)
Debt / EBITDA = -3.40 (Net Debt -464.7m / EBITDA 136.5m)
Debt / FCF = -9.28 (Net Debt -464.7m / FCF TTM 50.1m)
Total Stockholder Equity = 409.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.25% (Net Income 112.5m / Total Assets 2.06b)
RoE = 6.95% (Net Income TTM 112.5m / Total Stockholder Equity 1.62b)
RoCE = 6.96% (EBIT 116.1m / Capital Employed (Equity 1.62b + L.T.Debt 47.9m))
RoIC = 21.92% (NOPAT 114.5m / Invested Capital 522.2m)
WACC = 8.26% (E(671.2m)/V(726.3m) * Re(8.82%) + D(55.1m)/V(726.3m) * Rd(1.45%) * (1-Tc(0.01)))
Discount Rate = 8.82% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 3.96%
[DCF] Terminal Value 75.44% ; FCFF base≈50.1m ; Y1≈50.3m ; Y5≈53.3m
[DCF] Fair Price = 49.68 (EV 828.8m - Net Debt -464.7m = Equity 1.29b / Shares 26.0m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.27 | # QB: 0
Revenue Correlation: 96.88 | Revenue CAGR: 52.01% | SUE: -3.59 | # QB: -1
EPS current Quarter (2026-06-30): EPS=0.18 | Chg30d=N/A | Revisions=N/A | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.31 | Chg30d=N/A | Revisions=N/A | Analysts=4
EPS current Year (2026-12-31): EPS=1.89 | Chg30d=+12.50% | Revisions=+20% | GrowthEPS=+177.9% | GrowthRev=+21.3%
EPS next Year (2027-12-31): EPS=2.68 | Chg30d=+18.58% | Revisions=N/A | GrowthEPS=+41.8% | GrowthRev=+27.6%
[Analyst] Revisions Ratio: +20%