Hartford Financial Services logged a -6.8% change during today's morning session, and is now trading at a price of $112.26 per share.
Hartford Financial Services returned gains of 54.5% last year, with its stock price reaching a high of $123.23 and a low of $71.16. Over the same period, the stock outperformed the S&P 500 index by 15.2%. More recently, the company's 50-day average price was $116.19. The Hartford Financial Services Group, Inc., together with its subsidiaries, provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Based in Hartford, CT, the Large-Cap Finance company has 18,700 full time employees. Hartford Financial Services has offered a 1.6% dividend yield over the last 12 months.
Growing Revenues and a Positive EPS Growth Rate:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $18,955 | $20,740 | $20,523 | $22,390 | $22,362 | $24,527 |
| Interest Income (M) | $298 | $259 | $236 | $234 | $213 | $199 |
| Operating Margins | 9% | 12% | 10% | 13% | 10% | 13% |
| Net Margins | 10% | 10% | 8% | 11% | 8% | 10% |
| Net Income (M) | $1,807 | $2,085 | $1,737 | $2,371 | $1,819 | $2,504 |
| Depreciation & Amort. (M) | $467 | $451 | $562 | $680 | $625 | $510 |
| Diluted Shares (M) | 364 | 365 | 361 | 354 | 330 | 312 |
| Earnings Per Share | $4.95 | $5.66 | $4.76 | $6.64 | $5.46 | $7.97 |
| EPS Growth | n/a | 14.34% | -15.9% | 39.5% | -17.77% | 45.97% |
| Avg. Price | $44.98 | $49.68 | $40.16 | $61.33 | $68.13 | $112.26 |
| P/E Ratio | 8.94 | 8.69 | 8.38 | 9.11 | 12.3 | 13.88 |
| Free Cash Flow (M) | $2,721 | $3,384 | $3,757 | $3,960 | $3,833 | $4,005 |
| CAPEX (M) | $122 | $105 | $114 | $133 | $175 | $215 |
| EV / EBITDA | 9.29 | 7.48 | 6.93 | 7.44 | 9.26 | 10.94 |
| Total Debt (M) | $4,678 | $4,848 | $4,352 | $4,944 | $4,357 | $4,362 |
| Net Debt / EBITDA | 2.06 | 1.55 | 1.57 | 1.32 | 1.43 | 1.18 |
Hartford Financial Services has growing revenues and increasing reinvestment in the business and generally positive cash flows. Additionally, the company's financial statements display low leverage levels and positive EPS growth. Furthermore, Hartford Financial Services has weak operating margins with a stable trend.
a Very Low P/E Ratio but Priced Beyond Its Margin of Safety:
Hartford Financial Services has a trailing twelve month P/E ratio of 11.7, compared to an average of 20.04 for the Finance sector. Based on its EPS guidance of $11.55, the company has a forward P/E ratio of 10.1. The 12.9% compound average growth rate of Hartford Financial Services's historical and projected earnings per share yields a PEG ratio of 0.91. This suggests that its shares are undervalued. The market is placing a fair value on Hartford Financial Services's equity, since its P/B ratio of 1.96 is comparable to its sector average of 1.86. The company's shares are currently trading 19.5% below their Graham number.
Analysts Give Hartford Financial Services an Average Rating of Buy:
The 19 analysts following Hartford Financial Services have set target prices ranging from $85.5 to $144.0 per share, for an average of $121.97 with a buy rating. The company is trading -8.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Hartford Financial Services has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 95.1% of the company's shares, and the insider ownership rate stands at 0.28%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 13% stake in the company is worth $4,191,866,837.
