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Analyzing Hartford Financial Services Stock Performance

Hartford Financial Services logged a -2.1% change during today's evening session, and is now trading at a price of $128.94 per share.

Over the last year, Hartford Financial Services logged a 1.1% change, with its stock price reaching a high of $144.5 and a low of $119.61. Over the same period, the stock underperformed the S&P 500 index by -26.1%. AThe company's 50-day average price was $135.65. The Hartford Insurance 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 19,200 full time employees. Hartford Financial Services has offered a 1.7% dividend yield over the last 12 months.

Growing Revenues and Good EPS Growth:

2020 2021 2022 2023 2024 2025
Revenue (M) $20,523 $22,390 $22,362 $24,527 $26,535 $28,368
Interest Income (M) $236 $234 $213 $199 $199 $199
Operating Margins 10% 13% 10% 13% 15% 17%
Net Margins 8% 11% 8% 10% 12% 14%
Net Income (M) $1,737 $2,371 $1,819 $2,504 $3,111 $3,836
Depreciation & Amort. (M) $271 $282 $213 $204 $177 $187
Diluted Shares (M) 361 354 330 312 299 286
Earnings Per Share $4.76 $6.64 $5.46 $7.97 $10.35 $13.32
EPS Growth n/a 39.5% -17.77% 45.97% 29.86% 28.7%
Avg. Price $40.16 $61.33 $68.13 $80.38 $109.12 $136.02
P/E Ratio 8.38 9.11 12.3 9.94 10.38 10.07
Free Cash Flow (M) $3,757 $3,960 $3,833 $4,005 $5,764 $5,753
CAPEX (M) $114 $133 $175 $215 $145 $169
EV / EBITDA 7.74 8.33 10.75 8.91 9.09 8.69
Total Debt (M) $4,352 $4,944 $4,357 $4,362 $4,366 $4,371
Net Debt / EBITDA 1.72 1.45 1.62 1.27 1.03 0.85

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 a strong EPS growth trend. Furthermore, Hartford Financial Services has weak operating margins with a positive growth rate.

Hartford Financial Services Is Currently Under Priced:

Hartford Financial Services has a trailing twelve month P/E ratio of 9.5, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $14.41, the company has a forward P/E ratio of 9.4. According to the 17.1% compound average growth rate of Hartford Financial Services's historical and projected earnings per share, the company's PEG ratio is 0.56. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 12.6%. On this basis, the company's PEG ratio is 0.76. 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 1.91 is comparable to its sector average of 1.78. The company's shares are currently trading -8.5% above their Graham number.

Hartford Financial Services Has an Average Rating of Buy:

The 20 analysts following Hartford Financial Services have set target prices ranging from $135.0 to $165.0 per share, for an average of $149.45 with a buy rating.

Hartford Financial Services has a very low short interest because 0.0% of the company's shares are sold short. Institutions own 95.7% of the company's shares, and the insider ownership rate stands at 0.35%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 12% stake in the company is worth $4,092,772,038.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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