HCI

HCI is firing on every fundamental cylinder: FY2025 revenue grew 20.1% to $901M, net income jumped 171.9% to $299M, diluted EPS hit $22.72 (+155.6%), and the company earned a 33.2% net margin and 28.7% ROE. The balance sheet got dramatically stronger in the same year — stockholders' equity more than doubled (+129.6% to $1.04B), cash more than doubled (+127.3% to $1.21B, exceeding total liabilities), and total liabilities fell 19.7%, dropping leverage to a comfortable 1.36x. Operating cash flow of $444M against negligible capex ($3.63M) confirms the earnings are cash-real, not accounting artifacts. At $178.41 the stock trades at just 7.9x trailing EPS and 2.6x sales — a low-single-digit multiple on a business compounding book value and paying a growing dividend.

The growth engine is structural, not lucky: the 10-K describes a deliberate strategy of assuming policies from Florida's state-backed Citizens via legislatively mandated take-out programs plus selective third-party assumptions, supplemented by the Exzeo technology stack that lets management 'identify profitable underwriting opportunities' and the AIF/reciprocal-exchange business. That gives HCI a repeatable, capital-light path to grow premium and fee income beyond pure organic expansion.