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UVE Stock Analysis: Top Small-Cap Buy (Score 62.6/100) | Blank Capital Research | Blank Capital Research
UVE
UNIVERSAL INSURANCE HOLDINGS, INC.
$34.39
-0.84 (-2.38%)
Score62.6
Data as of Apr 6, 2026
UVE
UNIVERSAL INSURANCE HOLDINGS, INC.
FinancialsInsurance
$34.39
-0.84 (-2.38%)
Open $35.07High $35.20Low $34.15Prev $35.23Vol ---52W: $20.83 – $36.60
Buy
Composite score
01234567890123456789.0123456789
Global rank
#23
Percentile
Top 1%
Business quality
74th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
UVE: Navigating the Florida Insurance Market Turnaround
Blank Capital Research Team
•
Executive Summary
Universal Insurance Holdings, Inc. (UVE) is a leading provider of property and casualty (P&C) insurance, primarily operating in the notoriously difficult Florida market. Following aggressive legislative reforms and multiple years of rate increases, UVE is poised to reap the benefits of a significantly improved underwriting environment.
Investment Thesis
The Florida home insurance market has been fundamentally restructured by recent legislative changes aimed at curbing rampant litigation abuse. Universal, as a survivor of the crisis, is now writing business with much stronger pricing power and dramatically lower legal tail risks. Furthermore, its vertically integrated model (owning the MGA and claims adjustment businesses) allows it to capture fee income even in tough underwriting years. We view UVE as a high-leverage turnaround play on the normalization of the Florida P&C market.
Key Growth Drivers
Legislative Tailwinds
Recent Florida legislation eliminating one-way attorney fees and assignment of benefits (AOB) abuses has structurally improved the profitability profile of property insurers in the state.
Aggressive Rate Realization
UVE has successfully pushed through multiple rounds of double-digit rate increases. As these earn into the book, the combined ratio is expected to drop significantly, driving earnings expansion.
Vertically Integrated Fee Income
Unlike pure risk-bearing entities, UVE generates substantial, steady fee income through its wholly-owned managing general agency (MGA) and claims adjusting subsidiaries, providing a buffer against underwriting volatility.
Valuation & Financial Modeling
UVE trades at a single-digit forward P/E, reflecting lingering market skepticism regarding Florida hurricane risk. However, normalizing the combined ratio to historical averages (pre-litigation crisis) implies massive embedded earnings power. The stock is deeply undervalued relative to its normalized earnings potential.
Risk Factors & Bear Case
Catastrophic weather events (hurricanes) remain the existential risk. While UVE utilizes extensive reinsurance, a massive, unmodeled storm or a sequence of mid-sized events could blow through retention layers and impair capital. Additionally, the cost and availability of reinsurance are persistent headwinds.
Conclusion
Universal Insurance is a high-risk, high-reward special situation. With the structural legal issues in Florida largely resolved, the company is positioned to print substantial cash flow, provided it can navigate hurricane season. It is a 'Speculative Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
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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: 74.2GRADE 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
18.2%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.93%
Trailing Yield
$2.93
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
28%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) receives a "Buy" rating with a composite score of 62.6/100, ranked #23 out of 4446 stocks. Key factor scores: Quality 74/100, Value 80/100, Momentum 60/100. This is quantitative analysis only — not investment advice.
UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does UNIVERSAL INSURANCE HOLDINGS, INC. Do?
Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. The company develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages. It also advises on actuarial issues, oversees distribution, administers claims payments, performs policy administration and underwriting, and assists with reinsurance negotiations; places and manages reinsurance programs for the insurance entities; and operates Clovered.com, an online platform in which consumers receive side-by-side quotes from various carriers across multiple states, as well as educational materials about homeowners' insurance policies. It offers its products through a network of independent agents, as well as Universal Direct, a direct-to-consumer online platform, which enables homeowners to directly purchase, pay for, and bind homeowners' policies. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida. UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) is classified as a small-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Stephen J. Donaghy and employs approximately 1,220 people, headquartered in FORT LAUDERDALE, Florida. With a market capitalization of $909M, UVE is one of the notable companies in the Financials sector.
As of April 2026, UNIVERSAL INSURANCE HOLDINGS, INC. receives a Buy rating with a composite score of 62.6/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.UVE ranks #23 out of 4,446 stocks in our coverage universe. Within the Financials sector, UNIVERSAL INSURANCE HOLDINGS, INC. ranks #14 of 891 stocks, placing it in the top 10% 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%).
UVE Stock Price and 52-Week Range
UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) currently trades at $34.39. The stock lost $0.84 (2.4%) in the most recent trading session. The 52-week high for UVE is $36.60, which means the stock is currently trading -6.0% from its annual peak. The 52-week low is $20.83, putting the stock 65.1% above its annual trough. Recent trading volume was 136K shares, suggesting relatively thin trading activity.
Is UVE Overvalued or Undervalued? — Valuation Analysis
UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) carries a value factor score of 80/100 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 9.66x, compared to the Financials sector average of 14.88x — a discount of 35%. The price-to-book ratio stands at 1.76x, versus the sector average of 1.22x. The price-to-sales ratio is 0.61x, compared to 0.90x for the average Financials stock. On an enterprise value basis, UVE trades at 7.48x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, UNIVERSAL INSURANCE HOLDINGS, 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.
UNIVERSAL INSURANCE HOLDINGS, INC. Profitability — ROE, Margins, and Quality Score
UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) earns a quality factor score of 74/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 18.2%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 3.5% versus the sector average of 1.2%.
On a margin basis, UNIVERSAL INSURANCE HOLDINGS, INC. reports gross margins of 0.0%. The operating margin is 8.9% (sector: 21.8%). Net profit margin stands at 6.3%, versus 17.7% for the average Financials stock. Revenue growth is running at 5.5% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
UVE Debt, Balance Sheet, and Financial Health
UNIVERSAL INSURANCE HOLDINGS, INC. has a debt-to-equity ratio of 18.0%, 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 1.24x, suggesting adequate working capital coverage. Total debt on the balance sheet is $100M. Cash and equivalents stand at $405M.
UVE has a beta of 0.41, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for UNIVERSAL INSURANCE HOLDINGS, INC. is 76/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
UNIVERSAL INSURANCE HOLDINGS, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, UNIVERSAL INSURANCE HOLDINGS, INC. reported revenue of $1.58B and earnings per share (EPS) of $6.56. Net income for the quarter was $100M. Gross margin was 0.0%. Operating income came in at $143M.
In FY 2025, UNIVERSAL INSURANCE HOLDINGS, INC. reported revenue of $1.60B and earnings per share (EPS) of $6.56. Net income for the quarter was $183M. Revenue grew 5.5% year-over-year compared to FY 2024. Operating income came in at $249M.
In Q3 2025, UNIVERSAL INSURANCE HOLDINGS, INC. reported revenue of $401M and earnings per share (EPS) of $1.43. Net income for the quarter was $40M. Revenue grew 3.5% year-over-year compared to Q3 2024. Operating income came in at $54M.
In Q2 2025, UNIVERSAL INSURANCE HOLDINGS, INC. reported revenue of $400M and earnings per share (EPS) of $1.25. Net income for the quarter was $35M. Revenue grew 5.2% year-over-year compared to Q2 2024. Operating income came in at $48M.
Over the past 8 quarters, UNIVERSAL INSURANCE HOLDINGS, INC. has demonstrated a growth trajectory, with revenue expanding from $380M to $1.58B. Investors analyzing UVE stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
UVE Dividend Yield and Income Analysis
UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) currently pays a dividend yield of 2.9%. At this yield, a $10,000 investment in UVE stock would generate approximately $$293.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning UVE offers above-average income for its sector. The net margin of 6.3% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
UVE Momentum and Technical Analysis Profile
UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) has a momentum factor score of 60/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 26/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
UVE vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing UVE against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full UVE vs S&P 500 (SPY) comparison to assess how UNIVERSAL INSURANCE HOLDINGS, INC. stacks up against the broader market across all factor dimensions.
UVE Next Earnings Date
No upcoming earnings date has been announced for UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy UVE? — Investment Thesis Summary
The bull case for UNIVERSAL INSURANCE HOLDINGS, INC. rests on several quantitative strengths. The quality score of 74/100 indicates above-average profitability and business fundamentals. The value score of 80/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 60/100, suggesting the trend favors buyers. Low volatility (stability score 76/100) reduces downside risk.
In summary, UNIVERSAL INSURANCE HOLDINGS, INC. (UVE) earns a Buy rating with a composite score of 62.6/100 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 UVE stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
5.5%
Sector: 9.4%
-42% VS SCTR
Gross Margin
Core pricing power
0.0%
Sector: 0.0%
-NaN% VS SCTR
Operating Margin
Operating efficiency
8.9%
Sector: 21.8%
-59% VS SCTR
Net Margin
Bottom-line conversion
6.3%
Sector: 17.7%
-65% VS SCTR
Return on Equity
Equity capital efficiency
18.2%
Sector: 8.5%
+113% VS SCTR
Return on Assets
Asset base utilization
3.5%
Sector: 1.2%
+187% VS SCTR
Debt/Equity
Financial leverage load
18.0%
Sector: 121.0%
+85% VS SCTR
Dividend Yield
Direct cash return
2.9%
Sector: 2.5%
+18% VS SCTR
+44%
Price / Sales
0.6x
-32%
UNIVERSAL INSURANCE HOLDINGS, INC. exhibits a 27% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.5%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
8.9%
Sector: 21.8%
Net Margin
Bottom-line profitability
6.3%
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.
Sector Avg Yield2.48%
Yield Delta+18%
Income Projection audit
A $10,000 investment would generate approximately $293 annually in dividends at the current trailing rate.