ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. HCI Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 24.27%.
As of today (2026-06-25), HCI Group's WACC % is 9.95%. HCI Group's ROIC % is 24.32% (calculated using TTM income statement data).
HCI Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
HCI Group (NYSE:HCI) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, HCI Group's WACC % is 9.95%. HCI Group's ROIC % is 24.32% (calculated using TTM income statement data).
HCI Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
HCI Group ROIC % Related Terms
HCI Group ROIC % Historical Data
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The historical data trend for HCI Group's ROIC % can be seen below:
* 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.
For the Insurance - Property & Casualty subindustry, HCI Group's ROIC %, along with its competitors' market caps and ROIC % 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.
HCI Group ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, HCI Group's ROIC % distribution charts can be found below:
* The bar in red indicates where HCI Group's ROIC % falls into.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
HCI Group (HCI) has a ROIC % of 24.27% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on HCI Group and its competitors.
Is HCI Group's ROIC % too high?
HCI Group's current ROIC % is 24.27%. The Insurance industry median ROIC % is 3.36. HCI Group's value of 24.27% is 622.3% above this industry median. Overall, HCI Group has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HCI Group's ROIC % compare to STC and SLDE?
HCI Group's ROIC % of 24.27% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.36. HCI Group's value of 24.27% is 622.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Insurance company?
The median ROIC % among Insurance companies is 3.36, based on 368 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HCI Group's current ROIC % of 24.27% is 622.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on HCI Group and its competitors. For the Insurance industry, the median ROIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HCI Group's current ROIC % is 24.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HCI Group stock overvalued right now?
Based on GuruFocus' analysis, HCI Group (HCI) is currently considered Significantly Undervalued. The stock's GF Value™ is $248.48, compared to a current price of $174.47 — trading 29.8% below its estimated fair value. The current ROIC % is 24.27% and 622.3% above the Insurance industry median of 3.36. HCI Group's overall GF Score™ is 69/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For HCI Group (HCI), the current ROIC % is 24.27% as of Mar. 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 HCI Group (HCI) Overvalued in 2026?
Based on GuruFocus' analysis, HCI Group stock appears to be undervalued.
The current stock price of $174.47 is trading 29.8% below its estimated GF Value™ of $248.48.
GuruFocus considers HCI Group to be Significantly Undervalued.
Key valuation signals for HCI:
ROIC %: 24.27%
GF Value™: $248.48 vs. price of $174.47 (29.8% below fair value)
Industry Position: 622.3% above the Insurance median
No single metric tells the full story. See the HCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HCI Group Inc is engaged in the property and casualty insurance business through two Florida domiciled insurance companies, Homeowners Choice Property & Casualty Insurance Company (HCPCI) and TypTap Insurance Company (TypTap). Both HCPCI and TypTap are authorized to underwrite various homeowners' property and casualty insurance products and allied lines business in the state of Florida and other states. The operating segments of the group are insurance operations, TypTap Group, reciprocal exchange operations, real estate operations, and corporate and other. It derives key revenue from the HCPCI Insurance operation segment.
69GF Score
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