Hippo Holdings Inc.
$24.09
-5.2%Hippo Holdings Inc. provides home protection insurance in the United States and the District of Columbia. Its insurance products include homeowners' insurance against risks of fire, wind, and theft; and commercial and personal lines of products. The company distributes insurance products and services through its technology platform; and offers its policies online, over the phone, or through licensed insurance agents. It provides care and protection for homeowners, as well as operates an integrated home protection platform. The company is headquartered in Palo Alto, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 10.6).
Valuation inputs: P/E 10.6, earnings yield +9.5%, momentum -5.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +13.2%, ROIC -7.2%).
Profitability stack: net margin +12.3%, ROE +13.2%, ROIC -7.2%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +77.1%, momentum -5.2%, net margin +12.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Hippo Holdings Inc. Market vs Earnings Trajectory
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Hippo Holdings Inc. Fair Value Envelope
Hippo Holdings Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Hippo Holdings Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Hippo Holdings Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Hippo Holdings Inc. Street Expectations Map
Wall Street analysts project that HIPO stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 28.38, with estimates ranging from a low of 17.50 to a high of 45.00.
The consensus 1-year price target stands at 28.38, with estimates ranging from a low of 17.50 to a high of 45.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.
Hippo Holdings Inc. Insider Positioning
During the last 12 months, insiders have purchased $5K and sold $1.61M worth of HIPO shares, resulting in $1.61M of net selling activity.
3 Months
0
0.00
18.7K
490.76K
-491K
-$491K
3-6 Months
0
0.00
25.6K
766.42K
-766K
-$766K
6-9 Months
665
4.81K
10.2K
353.27K
-348K
-$348K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Zeltser Guy
Officer: Chief Financial Officer
$5K
Top Sellers
Mccathron Richard
Director, Officer: Chief Executive Officer
$847K
Ostergaard Torben
Officer: Ceo Spinnaker
$400K
Zeltser Guy
Officer: Chief Financial Officer
$242K
Stienstra Michael
Officer: Gm & Chief Insurance, Hhip
$121K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $1.61M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
4 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
HIPO has not reported any dividend yield values in the available annual periods.
hipo Dividend History
Learning Layer
Related Guides
Build conviction on HIPO by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.