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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
The industry rank for Heritage Insurance Holdings's Net-Net Working Capital or its related term are showing as below:
HRTG's Price-to-Net-Net-Working-Capital is not ranked *
in the Insurance industry.
Industry Median: 7.915 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Heritage Insurance Holdings (NYSE:HRTG) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Heritage Insurance Holdings Net-Net Working Capital Related Terms
Heritage Insurance Holdings Net-Net Working Capital Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Heritage Insurance Holdings Net-Net Working Capital Chart
HRTG vs ROOT, HIPO, DGICA: Net-Net Working Capital Comparison
For the Insurance - Property & Casualty subindustry, Heritage Insurance Holdings's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Heritage Insurance Holdings Price-to-Net-Net-Working-Capital vs Insurance Industry
For the Insurance industry and Financial Services sector, Heritage Insurance Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Heritage Insurance Holdings's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-29.25 mean?
Heritage Insurance Holdings (HRTG) has a Net-Net Working Capital of $-29.25 as of Jun. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Heritage Insurance Holdings According to the industry distribution chart, Heritage Insurance Holdings ranks #999999 out of 62 companies in the Insurance industry.
Is Heritage Insurance Holdings' Net-Net Working Capital too high?
Heritage Insurance Holdings' current Net-Net Working Capital is $-29.25. Based on the distribution chart, Heritage Insurance Holdings ranks #999999 out of 62 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Heritage Insurance Holdings has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Heritage Insurance Holdings' Net-Net Working Capital compare to ROOT and HIPO?
According to the Insurance industry distribution chart, Heritage Insurance Holdings ranks #999999 out of 62 companies for Net-Net Working Capital. This places Heritage Insurance Holdings in the lower half of its industry. The industry median Net-Net Working Capital is 7.92. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Insurance company?
The median Net-Net Working Capital among Insurance companies is 7.92, based on 62 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Heritage Insurance Holdings For the Insurance industry, the median Net-Net Working Capital is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heritage Insurance Holdings's current Net-Net Working Capital is $-29.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heritage Insurance Holdings stock overvalued right now?
Based on GuruFocus' analysis, Heritage Insurance Holdings (HRTG) is currently considered Modestly Overvalued. The stock's GF Value™ is $26.87, compared to a current price of $33.33 — trading 24% above its estimated fair value. The current Net-Net Working Capital is $-29.25. Heritage Insurance Holdings' overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Heritage Insurance Holdings (HRTG), the current Net-Net Working Capital is $-29.25 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Heritage Insurance Holdings (HRTG) Overvalued in 2026?
Based on GuruFocus' analysis, Heritage Insurance Holdings stock appears to be overvalued.
The current stock price of $33.33 is trading 24% above its estimated GF Value™ of $26.87.
GuruFocus considers Heritage Insurance Holdings to be Modestly Overvalued.
Key valuation signals for HRTG:
Net-Net Working Capital: $-29.25
GF Value™: $26.87 vs. price of $33.33 (24% above fair value)
No single metric tells the full story. See the HRTG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heritage Insurance Holdings Inc is a regional property and casualty insurance company that offers a variety of personal and commercial insurance products. Through its subsidiaries, Heritage Property & Casualty Insurance, Narragansett Bay Insurance, and Zephyr Insurance, the company issues personal residential property insurance across various states in the U.S. It also offers commercial residential insurance predominantly for its Florida properties. Heritage Insurance manages insurance underwriting, customer services, actuarial analysis, distribution, and claims processing internally. The company operates in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, and South Carolina.
63GF Score
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Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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