Equity Research Analysis: UNIVERSAL INSURANCE HOLDINGS, INC. (UVE)
|Blank Capital Research Unit|Spot: $33.41
Price$33.41
Composite Score48.2/100
RatingREDUCE (2★)
Rank#2295 OF 7,333
Market Cap$745M
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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2295
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Insurance
$745M
Stephen J. Donaghy
Universal Insurance Holdings, Inc. develops, markets, and underwrites insurance products for homeowners, renters/tenants, condo unit owners, and dwelling/fire. It offers its products through a network of independent agents, as well as Universal Direct, a direct-to-consumer online platform. The company was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = UVE ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$UVE UNIVERSAL INSURANCE HOLDINGS, INC. | 48 | 30 | 51 | 72 | 8.7x | 6.8x | 20.2% | 3.2% | 0.0% | 8.9% | 6.3% | 5.5% | 2.9% | 20.0x | $745M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) receives a "Reduce" rating with a composite score of 48.2/100. It ranks #2295 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for UVE.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 30 | 32 | -2NEUTRAL |
| MOMENTUM | 72 | 80 | -8DRAG |
| VALUATION | 51 | 69 | -18DRAG |
| INVESTMENT | 40 | 75 | -35DRAG |
| STABILITY | 55 | 57 | -2NEUTRAL |
| SHORT INT | 33 | 24 | +9ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 20.2% (sector 9.0%)
GM 0% vs sector 78%, OM 9% vs sector 18%
Capital turnover N/A
Rev growth 5%, 10yr history
Interest coverage 33.9x, Net debt/EBITDA -5.6x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) as a Reduce with a composite score of 48.2/100 at a current price of $33.41. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
UNIVERSAL INSURANCE HOLDINGS, INC. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.2/100 places it at rank #2295 in our full universe.
The near-term outlook is constructive, with revenue growing at 5% and momentum in the 72th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Low
Exemplary
Fair Value
Returns on equity of 20.2% exceed cost of capital.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
UNIVERSAL INSURANCE HOLDINGS, INC. represents a reduce based on multi-factor quantitative performance.
UNIVERSAL INSURANCE HOLDINGS, INC. receives a Reduce rating from our analysis, with a composite score of 48.2/100 and 2 out of 5 stars, ranking #2295 out of 7,333 stocks. UVE's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
UVE's quality score of 30/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 20.2% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 6.3% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
UVE's value score of 51/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 8.71x, an EV/EBITDA of 6.81x, a P/B ratio of 1.76x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 40/100, UVE exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 5.5% vs. a sector average of 10.7% and a return on assets of 3.2% (sector: 1.3%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
UVE shows strong momentum characteristics with a score of 72/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 5.5% year-over-year, while a beta of 0.44 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 55/100, UVE exhibits average financial resilience. Key stability metrics include a beta of 0.44 and a debt-to-equity ratio of 20.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
UNIVERSAL INSURANCE HOLDINGS, INC.'s short interest score of 33/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 20.00x), small-cap liquidity risk. At $745M (small-cap), UVE carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
UVE pays a solid dividend yield of 2.9%, contributing an income component to total returns. This compares to a sector average dividend yield of 2.0%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
UNIVERSAL INSURANCE HOLDINGS, INC. is a small-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2295 of 7,333 overall (69th percentile). Key comparisons include ROE of 20.2% exceeding the 9.0% sector median and operating margins of 8.9% below the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While UVE currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Quality (30) would have the largest impact on the composite score.
EV/EBITDA 12% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 125% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 100% BELOW SECTOR MEDIAN
Envestnet Asset Management Inc. has taken a new position in Universal Insurance Holdings Inc (NYSE:UVE) by acquiring 8,970 shares worth $249,000 in Q2. Institutional ownership of the company stands at 66.61%, and Universal Insurance recently reported an earnings beat and strong profitability metrics. Despite a recent special dividend announcement, company insiders have been net sellers of the stock.
Above 50MA
37.18%
Net New Highs
+51081
