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HGTY Stock Analysis: Top Small-Cap Hold (Score 58.0/100) | Blank Capital Research | Blank Capital Research
HGTY
Hagerty, Inc.
$11.12
+0.01 (+0.09%)
Score58.0
Data as of Apr 6, 2026
HGTY
Hagerty, Inc.
FinancialsInsurance
$11.12
+0.01 (+0.09%)
Open $11.06High $11.16Low $10.96Prev $11.11Vol ---52W: $8.03 – $14.00
Hold
Composite score
01234567890123456789.0123456789
Global rank
#1,097
Percentile
Top 25%
Business quality
75th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 74.7GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
21.1%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Hagerty, Inc. (HGTY) receives a "Hold" rating with a composite score of 58.0/100, ranked #1097 out of 4446 stocks. Key factor scores: Quality 75/100, Value 77/100, Momentum 45/100. This is quantitative analysis only — not investment advice.
Hagerty, Inc. (HGTY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Hagerty, Inc. Do?
Hagerty, Inc. provides insurance agency services worldwide. It offers automobile and boat insurance products; and reinsurance products. The company also provides Hagerty Media, which publishes contents through the HDC Magazine, video content, YouTube channel; HDC that offers subscription based products and services, including HDC Magazine, automotive enthusiast events, proprietary vehicle valuation tools, emergency roadside services, and special vehicle-related discounts; HVT, a valuation tool used by the customer to access current and historic pricing data of collector car, truck, SUV, and motorcycle models; and Hagerty Events, an eclectic mix of small and large events. In addition, it offers DriveShare, a peer-to-peer rental platform for collector and cool vehicles; Motorsport Reg, a motorsport membership, licensing, and event online management system that automates event listings, registration, and payment processing for various motorsport events; and Hagerty Garage + Social, a platform that provides clubhouses and car storage facilities. The company is headquartered in Traverse City, Michigan. Hagerty, Inc. (HGTY) is classified as a small-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO McKeel O. Hagerty and employs approximately 1,670 people. With a market capitalization of $1.1B, HGTY is one of the notable companies in the Financials sector.
Hagerty, Inc. (HGTY) Stock Rating — Hold (April 2026)
As of April 2026, Hagerty, Inc. receives a Hold rating with a composite score of 58.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.HGTY ranks #1,097 out of 4,446 stocks in our coverage universe. Within the Financials sector, Hagerty, Inc. ranks #340 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
HGTY Stock Price and 52-Week Range
Hagerty, Inc. (HGTY) currently trades at $11.12. The stock gained $0.01 (0.1%) in the most recent trading session. The 52-week high for HGTY is $14.00, which means the stock is currently trading -20.6% from its annual peak. The 52-week low is $8.03, putting the stock 38.5% above its annual trough. Recent trading volume was 214K shares, suggesting relatively thin trading activity.
Is HGTY Overvalued or Undervalued? — Valuation Analysis
Hagerty, Inc. (HGTY) carries a value factor score of 77/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 8.22x, compared to the Financials sector average of 14.88x — a discount of 45%. The price-to-book ratio stands at 1.74x, versus the sector average of 1.22x. The price-to-sales ratio is 0.82x, compared to 0.90x for the average Financials stock. On an enterprise value basis, HGTY trades at 11.25x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, Hagerty, Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Hagerty, Inc. Profitability — ROE, Margins, and Quality Score
Hagerty, Inc. (HGTY) earns a quality factor score of 75/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 21.1%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 6.7% versus the sector average of 1.2%.
On a margin basis, Hagerty, Inc. reports gross margins of 82.0%. The operating margin is 8.3% (sector: 21.8%). Net profit margin stands at 9.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 21.3% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
HGTY Debt, Balance Sheet, and Financial Health
Hagerty, Inc. has a debt-to-equity ratio of 27.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.55x, suggesting adequate working capital coverage. Total debt on the balance sheet is $178M. Cash and equivalents stand at $160M.
HGTY has a beta of 0.56, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Hagerty, Inc. is 68/100, reflecting average volatility within the normal range for its sector.
Hagerty, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Hagerty, Inc. reported revenue of $1.39B. Net income for the quarter was $140M. Gross margin was 82.0%. Operating income came in at $118M.
In FY 2025, Hagerty, Inc. reported revenue of $1.46B. Net income for the quarter was $149M. Revenue grew 21.4% year-over-year compared to FY 2024. Operating income came in at $180M.
In Q3 2025, Hagerty, Inc. reported revenue of $380M. Net income for the quarter was $46M. Revenue grew 17.5% year-over-year compared to Q3 2024. Operating income came in at $34M.
In Q2 2025, Hagerty, Inc. reported revenue of $369M. Net income for the quarter was $47M. Revenue grew 17.7% year-over-year compared to Q2 2024. Operating income came in at $48M.
Over the past 8 quarters, Hagerty, Inc. has demonstrated a growth trajectory, with revenue expanding from $313M to $1.39B. Investors analyzing HGTY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
HGTY Dividend Yield and Income Analysis
Hagerty, Inc. (HGTY) does not currently pay a dividend. This is common among smaller companies in the Insurance industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
HGTY Momentum and Technical Analysis Profile
Hagerty, Inc. (HGTY) has a momentum factor score of 45/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 34/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
HGTY vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing HGTY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full HGTY vs S&P 500 (SPY) comparison to assess how Hagerty, Inc. stacks up against the broader market across all factor dimensions.
HGTY Next Earnings Date
No upcoming earnings date has been announced for Hagerty, Inc. (HGTY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy HGTY? — Investment Thesis Summary
Hagerty, Inc. presents a balanced picture with arguments on both sides. The quality score of 75/100 indicates above-average profitability and business fundamentals. The value score of 77/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 68/100) reduces downside risk.
In summary, Hagerty, Inc. (HGTY) earns a Hold rating with a composite score of 58.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on HGTY stock.
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Institutional Research Dossier
Hagerty, Inc. (HGTY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Hagerty, Inc. (HGTY). While the company exhibits strong growth and profitability metrics compared to the broader financials sector, its niche focus on collector car insurance and related services introduces unique risks and uncertainties that temper our enthusiasm. The current valuation, while seemingly attractive based on P/E and EV/EBITDA multiples, necessitates a cautious approach given the potential for cyclicality within the collector car market and the company's reliance on maintaining its brand reputation and specialized expertise.
Hagerty's impressive revenue growth and high gross margins are encouraging, but the relatively lower operating and net margins compared to the sector suggest areas for improvement in operational efficiency. The company's strategic investments in expanding its service offerings, such as Hagerty Garage + Social and MotorsportReg, are positive steps toward diversifying revenue streams and enhancing customer engagement. However, the long-term success of these initiatives and their impact on overall profitability remain to be seen, warranting a neutral stance at this time.
Business Strategy & Overview
Hagerty operates within the niche market of collector car insurance and enthusiast services, differentiating itself from traditional insurance providers by focusing on the unique needs of classic and collectible vehicle owners. The company's core business revolves around providing specialized insurance policies tailored to the valuation, usage, and storage requirements of these vehicles. This includes coverage for agreed value, spare parts, and events, which are not typically offered by standard auto insurance companies.
Beyond insurance, Hagerty has strategically expanded its service offerings to create a comprehensive ecosystem for car enthusiasts. Hagerty Media produces content through HDC Magazine, video content, and a YouTube channel, aiming to engage and inform the collector car community. Hagerty Drivers Club (HDC) offers subscription-based products and services, including automotive enthusiast events, proprietary vehicle valuation tools (HVT), emergency roadside services, and special vehicle-related discounts. These initiatives not only generate additional revenue streams but also strengthen customer loyalty and brand recognition.
Further diversification is evident in Hagerty's investments in platforms like DriveShare, a peer-to-peer rental platform for collector vehicles, and MotorsportReg, an online management system for motorsport events. These platforms cater to different aspects of the collector car hobby, providing opportunities for enthusiasts to connect, participate in events, and share their passion for classic vehicles. The Hagerty Garage + Social platform offers clubhouses and car storage facilities, further enhancing the company's value proposition for its target market.
Hagerty's strategic positioning centers on becoming the go-to resource for all things related to collector cars. By combining insurance expertise with media content, enthusiast events, and specialized services, the company aims to create a strong brand identity and a loyal customer base. This integrated approach allows Hagerty to capture a larger share of the collector car market and build a sustainable competitive advantage. The company's success hinges on its ability to maintain its reputation for specialized knowledge, exceptional customer service, and a deep understanding of the collector car community.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
21.3%
Sector: 9.4%
+127% VS SCTR
Economic Moat Analysis
Hagerty possesses a Narrow economic moat, primarily derived from its brand reputation and specialized expertise within the collector car insurance market. The company has cultivated a strong brand identity over several decades, becoming synonymous with collector car insurance and related services. This brand recognition provides a competitive advantage in attracting and retaining customers who value specialized knowledge and tailored coverage options.
The specialized expertise required to accurately assess the value and risk associated with collector cars also contributes to Hagerty's moat. Unlike standard auto insurance, collector car insurance requires a deep understanding of vehicle valuation, restoration costs, and the unique usage patterns of classic vehicles. Hagerty's team of experts possesses this knowledge, allowing the company to offer competitive pricing and customized coverage options that are not readily available from general insurance providers.
However, the moat is not considered Wide due to the potential for new entrants and the increasing availability of information and resources related to collector car valuation and insurance. While Hagerty has a first-mover advantage and a well-established brand, other insurance companies could potentially develop specialized expertise and offer competing products and services. The rise of online resources and valuation tools also reduces the information asymmetry that previously favored Hagerty.
Furthermore, the collector car market is subject to cyclical trends and economic fluctuations, which could impact demand for Hagerty's products and services. A downturn in the economy could lead to a decrease in discretionary spending on collector cars, potentially affecting insurance premiums and related revenue streams. This cyclicality introduces a degree of uncertainty that limits the strength of Hagerty's economic moat.
While Hagerty's brand reputation and specialized expertise provide a competitive advantage, the potential for new entrants, the increasing availability of information, and the cyclical nature of the collector car market prevent it from achieving a Wide economic moat. The company must continue to innovate and differentiate its offerings to maintain its competitive position and strengthen its moat over time.
Financial Health & Profitability
Hagerty's financial health appears robust, characterized by strong revenue growth and improving profitability. The company's revenue has increased significantly over the past few years, from $1.00 billion in FY2023 to $1.46 billion in FY2025, representing a compound annual growth rate (CAGR) of approximately 20.9%. This growth is indicative of the company's successful expansion into new markets and service offerings, as well as the increasing demand for collector car insurance and related services.
The company's gross margin is exceptionally high at 82.0%, significantly exceeding the sector average of 0.0%. This reflects Hagerty's ability to command premium pricing for its specialized insurance products and services. However, the operating margin of 8.3% and net margin of 9.8% are lower than the sector averages of 22.0% and 17.8%, respectively. This suggests that Hagerty may have opportunities to improve its operational efficiency and reduce its operating expenses.
Hagerty's return on equity (ROE) of 21.2% is significantly higher than the sector average of 8.5%, indicating that the company is effectively utilizing its equity to generate profits. The company's debt-to-equity (D/E) ratio of 27.00 is considerably lower than the sector average of 115.00, suggesting a conservative approach to leverage and a strong balance sheet. The current ratio of 1.55 indicates that Hagerty has sufficient liquid assets to cover its short-term liabilities.
Analyzing the quarterly financial history reveals a consistent trend of revenue growth and improving profitability. Both revenue and net income have increased steadily over the past several quarters, demonstrating the company's ability to execute its growth strategy and generate sustainable earnings. The operating margin has also shown improvement, indicating progress in operational efficiency. The company's free cash flow (FCF) of $106.94 million further strengthens its financial position and provides flexibility for future investments and acquisitions.
Overall, Hagerty's financial health is strong, characterized by robust revenue growth, high gross margins, and improving profitability. The company's conservative approach to leverage and strong balance sheet provide a solid foundation for future growth and expansion. While there is room for improvement in operating and net margins, the company's financial performance is generally positive and indicative of a well-managed business.
Valuation Assessment
Hagerty's valuation presents a mixed picture. On the one hand, the company's P/E ratio of 7.6x and EV/EBITDA multiple of 1.7x are significantly lower than the sector averages of 15.5x and 3.5x, respectively. This suggests that the stock may be undervalued relative to its peers. However, it is important to consider the company's unique business model and growth prospects when assessing its valuation.
The company's strong revenue growth of 21.3% is a positive factor that supports a higher valuation. However, the relatively lower operating and net margins compared to the sector suggest that the company's profitability may not be as high as its revenue growth would imply. This could be due to higher operating expenses or lower pricing power in certain segments of the business.
The company's free cash flow (FCF) yield is another important valuation metric to consider. While the exact FCF yield cannot be calculated without the market cap, the FCF of $106.94 million suggests a reasonable yield given the market cap of $1.06 billion. This indicates that the company is generating sufficient cash flow to support its operations and future investments.
However, the valuation must also account for the inherent risks associated with the collector car market, including cyclicality and potential changes in consumer preferences. A downturn in the economy or a shift in consumer tastes could negatively impact demand for Hagerty's products and services, potentially leading to a decline in revenue and earnings.
Considering all these factors, Hagerty's valuation appears to be fair at the current levels. While the company's P/E and EV/EBITDA multiples are attractive, the relatively lower operating and net margins and the inherent risks associated with the collector car market warrant a cautious approach. The company's strong revenue growth and FCF generation are positive factors, but the valuation should be closely monitored to ensure that it remains aligned with the company's financial performance and growth prospects.
Risk & Uncertainty
Hagerty faces several specific risks and uncertainties that could impact its business and financial performance. One of the primary risks is the cyclicality of the collector car market. Demand for collector cars and related services is often correlated with economic conditions, and a downturn in the economy could lead to a decrease in discretionary spending on these items. This could negatively impact Hagerty's insurance premiums, event attendance, and other revenue streams.
Another risk is the potential for increased competition in the collector car insurance market. While Hagerty has a strong brand reputation and specialized expertise, other insurance companies could potentially enter the market and offer competing products and services. This could lead to price competition and a decrease in Hagerty's market share. The company's ability to maintain its competitive advantage will depend on its ability to continue innovating and differentiating its offerings.
Hagerty's reliance on maintaining its brand reputation is also a significant risk. The company's brand is closely associated with quality, expertise, and customer service. Any negative publicity or decline in customer satisfaction could damage the brand and lead to a loss of customers. The company must invest in maintaining its brand reputation and ensuring that its products and services continue to meet the needs of its customers.
The company's expansion into new service offerings, such as Hagerty Garage + Social and MotorsportReg, also introduces new risks. These ventures require significant investments and may not generate the expected returns. The company must carefully manage these investments and ensure that they are aligned with its overall strategic goals. Furthermore, the company's reliance on third-party partners and vendors introduces operational risks. Any disruptions in these relationships could negatively impact the company's ability to deliver its products and services.
Bulls Say / Bears Say
The Bull Case
BULL VIEWHagerty's dominant position in the niche collector car insurance market, coupled with its expanding ecosystem of enthusiast services, creates a powerful brand and loyal customer base, driving sustainable revenue growth.
BULL VIEWThe company's high gross margins and improving operational efficiency will lead to significant earnings growth, making the current valuation highly attractive compared to the broader financials sector.
BULL VIEWHagerty's strategic investments in platforms like DriveShare and MotorsportReg will unlock new revenue streams and further solidify its position as the go-to resource for all things related to collector cars.
The Bear Case
BEAR VIEWThe collector car market is inherently cyclical, and a potential economic downturn could significantly reduce demand for Hagerty's insurance and related services, impacting revenue and profitability.
BEAR VIEWIncreased competition from larger insurance companies and the commoditization of collector car valuation data could erode Hagerty's competitive advantage and pressure margins.
BEAR VIEWHagerty's expansion into new service offerings is dilutive to its core insurance business and may not generate the expected returns, leading to a decline in overall profitability and shareholder value.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score HGTY and 4,400+ other equities.
Hagerty, Inc. exhibits a 59% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
6.7%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
82.0%
Sector: 0.0%
Operating Margin
Core business profitability
8.3%
Sector: 21.8%
Net Margin
Bottom-line profitability
9.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
