Universal Insurance Holdings, Inc (NYSE:UVE) Extends Balance Sheet Strength, Positioning For Near-Term Capital Flexibility

Universal Insurance shows a pivot toward balance-sheet consolidation and distributable cash generation, creating a constructive backdrop for near-term operational optionality. Capital actions and strong cash metrics support a cautiously positive price bias.

Recent News

On April 10, 2026 the Board declared a quarterly cash dividend of $0.16 per share, payable May 15, 2026 to shareholders of record May 8, 2026.

On May 28, 2026 the company announced completion of its combined 2026–2027 reinsurance program effective June 1, 2026.

On June 16, 2026 Universal issued and sold $100.0 million of 7.75% Senior Unsecured Notes due 2031 and redeemed its $100.0 million 5.625% Senior Notes due 2026.

On June 22, 2026 KBRA assigned a BBB rating with a Stable outlook to the newly issued 2031 notes.

Technical Analysis

ADX at 22.01 signals an emerging trend strength that supports a near-term directional move rather than a prolonged trend; this level aligns with other momentum cues that favor continuation rather than a neutral market.

DI+ at 27.94 increasing and DI- at 15.55 decreasing produce a bullish directional-indicator profile, reinforcing upside bias from momentum measures.

MACD at 0.69 sits above its signal line at 0.30 and the MACD trend increases, constituting a bullish momentum confirmation for short-term price direction.

MRO positive at 21.82 and increasing indicates the market price sits above the technical target and carries potential for a corrective move; that creates a near-term reversion risk even as momentum reads bullish.

RSI at 53.34 and rising shows neutral-to-mild bullish relative-strength—momentum exists but the instrument does not yet register overbought conditions.

Price sits above key averages: close $41.83 exceeds the 20-day average $38.80, 50-day average $38.33 and the 200-day average $33.02, which supports a bullish price bias tied to the company’s valuation narrative.

Bollinger context shows price trading above the upper 1x band ($40.52) and approaching the upper 2x band ($42.24), indicating price strength but proximity to a short-term resistance envelope where volatility could compress.

Volume at 195,091 slightly exceeds the 10-day average of 155,554, supporting the latest directional move while 50- and 200-day averages sit near current trading activity, pointing to typical liquidity rather than exceptional flows.

 


Fundamental Analysis

Operating profitability remains solid: EBIT $73,110,000 and an EBIT margin of 18.58%, which sits marginally above the industry peer mean of 17.66%, and reflects a year-over-year improvement in margin of 28.93% despite a quarter-over-quarter contraction of 15.68%. The mixed intra-year movement signals seasonal or period-specific influences on underwriting and expense timing.

Earnings show a reported EPS of $2.00 versus an estimate of $1.39, an EPS surprise of roughly 43.9%, supported by net income from continuing operations of $54,291,000 and an operating cash flow of $154,822,000. Free cash flow stands at $153,242,000, producing a free-cash-flow yield of 16.45%, well above the industry peer mean of 3.32%, which materially supports the valuation designation.

Top-line dynamics display a mixed picture: reported revenue growth shows a nominal sequential change but a year-over-year decline of 33.74% in the labelled YoY metric; this top-line contraction contrasts with margin expansion and higher earnings per share, implying improved underwriting outcomes, investment gains, or reinsurance recoveries concentrated in the period.

Liquidity and leverage present strength: cash and short-term investments $740,548,000 against total debt $100,290,000, debt-to-assets 3.62% and debt-to-equity 17.15%, both below the industry peer means for those ratios. Interest expense remained modest ($1,418,000) and interest coverage stands high at 51.56x, reducing near-term refinancing pressure—an effect reinforced by the June 2026 private placement extending debt maturity to 2031.

Shareholder returns and capital allocation remain active: dividend yield about 0.53% with a dividend payout ratio near 9.04% and dividend coverage roughly 11.06x; these metrics show payout conservatism relative to earnings and cash flow. Book value per share stands at $20.95 and return on equity at 9.29%.

Valuation conclusion: the current valuation as determined by WMDST classifies the stock as under-valued. That determination rests on a combination of above-mean free-cash-flow yield, low net leverage, and an EPS outcome that exceeded consensus—factors that together support a valuation discount relative to realized cash generation.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-03-31
REPORT DATE: 2026-04-23
NEXT REPORT DATE: 2026-07-23
CASH FLOW  Begin Period Cash Flow 477.8 M
 Operating Cash Flow 154.8 M
 Capital Expenditures -1.58 M
 Change In Working Capital 100.5 M
 Dividends Paid -4.91 M
 Cash Flow Delta 120.6 M
 End Period Cash Flow 598.4 M
 
INCOME STATEMENT REVENUE
 Total Revenue 393.6 M
 Forward Revenue 55.6 M
COSTS
 Cost Of Revenue
 Depreciation
 Depreciation and Amortization
 Research and Development
 Total Operating Expenses 321.9 M
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT 73.1 M
 Operating Income
 Interest Income -177.00 K
 Interest Expense 1.4 M
 Net Interest Income -1.59 M
 Income Before Tax 71.7 M
 Tax Provision 17.4 M
 Tax Rate 24.3 %
 Net Income 54.3 M
 Net Income From Continuing Operations 54.3 M
EARNINGS
 EPS Estimate 1.39
 EPS Actual 2.00
 EPS Difference 0.61
 EPS Surprise 43.885 %
 Forward EPS 1.10
 
BALANCE SHEET ASSETS
 Total Assets 2.8 B
 Intangible Assets
 Net Tangible Assets 584.7 M
 Total Current Assets
 Cash and Short-Term Investments 740.5 M
 Cash 595.8 M
 Net Receivables 277.9 M
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable 135.8 M
 Short-Term Debt
 Total Current Liabilities
 Net Debt
 Total Debt 100.3 M
 Total Liabilities 2.2 B
EQUITY
 Total Equity 584.7 M
 Retained Earnings 807.1 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 20.95
 Shares Outstanding 27.905 M
 Revenue Per-Share 14.10
VALUATION
 Market Capitalization 931.5 M
 Enterprise Value 291.2 M
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R 0.74
CAPITAL STRUCTURE
 Asset To Equity 4.736
 Asset To Liability 1.268
 Debt To Capital 0.146
 Debt To Assets 0.036
Debt To Assets QoQ 2.346 %
Debt To Assets YoY -2.714 %
Debt To Assets IPRWA high: 0.135
median: 0.06
mean: 0.058
UVE: 0.036
low: 0.005
 Debt To Equity 0.172
Debt To Equity QoQ -5.945 %
Debt To Equity YoY -28.31 %
Debt To Equity IPRWA high: 0.65
median: 0.262
mean: 0.24
UVE: 0.172
low: 0.011
PRICE-BASED VALUATION
 Price To Book (P/B) 1.593
Price To Book QoQ 1.022 %
Price To Book YoY 9.766 %
Price To Book IPRWA high: 5.78
mean: 2.375
median: 1.963
UVE: 1.593
low: 0.308
 Price To Earnings (P/E) 16.691
Price To Earnings QoQ 16.744 %
Price To Earnings YoY 10.527 %
Price To Earnings IPRWA high: 119.255
mean: 45.027
median: 41.501
low: 19.674
UVE: 16.691
 PE/G Ratio -2.131
 Price To Sales (P/S) 2.367
Price To Sales QoQ 11.114 %
Price To Sales YoY 52.46 %
Price To Sales IPRWA high: 14.496
mean: 5.737
median: 5.424
UVE: 2.367
low: 1.646
FORWARD MULTIPLES
Forward P/E 32.699
Forward PE/G -4.174
Forward P/S 16.745
EFFICIENCY OPERATIONAL
 Operating Leverage 5.298
ASSET & SALES
 Asset Turnover Ratio 0.14
Asset Turnover Ratio QoQ 1.984 %
Asset Turnover Ratio YoY -1.266 %
Asset Turnover Ratio IPRWA high: 0.241
UVE: 0.14
mean: 0.108
median: 0.084
low: 0.008
 Receivables Turnover 1.342
Receivables Turnover Ratio QoQ 16.298 %
Receivables Turnover Ratio YoY 112.182 %
Receivables Turnover Ratio IPRWA high: 1.905
UVE: 1.342
mean: 0.699
median: 0.599
low: 0.067
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO) 67.994
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue -0.004
 CapEx To Depreciation
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 685.0 M
 Net Invested Capital 685.0 M
 Invested Capital 685.0 M
 Net Tangible Assets 584.7 M
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 1.064 %
 Interest Coverage Ratio 51.559
Interest Coverage Ratio QoQ -18.422 %
Interest Coverage Ratio YoY 30.05 %
Interest Coverage Ratio IPRWA high: 51.943
UVE: 51.559
mean: 29.887
median: 29.619
low: -27.9
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio 11.064
 Dividend Payout Ratio 0.09
 Dividend Rate 0.18
 Dividend Yield 0.005
PERFORMANCE GROWTH
 Asset Growth Rate -2.476 %
 Revenue Growth 1.732 %
Revenue Growth QoQ 0.0 %
Revenue Growth YoY -33.741 %
Revenue Growth IPRWA high: 20.657 %
UVE: 1.732 %
mean: -1.747 %
median: -2.349 %
low: -11.415 %
 Earnings Growth -7.834 %
Earnings Growth QoQ -113.153 %
Earnings Growth YoY -101.646 %
Earnings Growth IPRWA high: 62.069 %
UVE: -7.834 %
mean: -11.509 %
median: -16.107 %
low: -66.667 %
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin 18.576 %
EBIT Margin QoQ -15.682 %
EBIT Margin YoY 28.928 %
EBIT Margin IPRWA high: 47.822 %
UVE: 18.576 %
mean: 17.661 %
median: 16.43 %
low: -12.265 %
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF) 153.2 M
 Free Cash Flow Yield 16.451 %
Free Cash Flow Yield QoQ 471.811 %
Free Cash Flow Yield YoY -45.649 %
Free Cash Flow Yield IPRWA UVE: 16.451 %
high: 7.237 %
median: 3.501 %
mean: 3.317 %
low: -4.372 %
 Free Cash Growth 512.894 %
Free Cash Growth QoQ -966.551 %
Free Cash Growth YoY -282.204 %
Free Cash Growth IPRWA UVE: 512.894 %
high: 196.35 %
mean: -8.168 %
median: -15.291 %
low: -133.645 %
 Free Cash To Net Income 2.823
 Cash Flow Margin -9.25 %
 Cash Flow To Earnings -0.671
VALUE & RETURNS
 Economic Value Added 0.04
 Return On Assets (ROA) 1.936 %
Return On Assets QoQ -13.802 %
Return On Assets YoY 29.759 %
Return On Assets IPRWA high: 4.47 %
UVE: 1.936 %
mean: 1.481 %
median: 1.303 %
low: -1.844 %
 Return On Capital Employed (ROCE)
 Return On Equity (ROE) 0.093
Return On Equity QoQ -23.163 %
Return On Equity YoY -5.361 %
Return On Equity IPRWA high: 0.11
UVE: 0.093
mean: 0.056
median: 0.053
low: -0.069
 DuPont ROE 9.56 %
 Return On Invested Capital (ROIC) 8.082 %
Return On Invested Capital QoQ -22.176 %
Return On Invested Capital YoY -0.492 %
Return On Invested Capital IPRWA UVE: 8.082 %
high: 7.411 %
mean: 4.73 %
median: 4.375 %
low: -4.85 %

Six-Week Outlook

Momentum indicators (MACD crossing above its signal, rising DI+) favor continued near-term upside, with price above the 20- and 50-day averages and an ADX that indicates an emerging trend. Offsetting that constructive picture, a positive MRO and price trading near the upper Bollinger band raise the probability of a short-term pullback or consolidation. Low realized volatility and muted beta limit abrupt directional expansion, while the recent extension of debt maturity and completed reinsurance program reduce idiosyncratic financing and catastrophe funding risk.

For short-horizon traders, technical momentum supports trend continuation but signals for mean reversion deserve attention; monitor momentum persistence versus MRO and price behavior around the $38.25 super-trend support and the 20-day average to gauge whether momentum maintains or a corrective leg develops.

About Universal Insurance Holdings, Inc.

Universal Insurance Holdings, Inc. (NYSE:UVE) develops and markets a range of personal residential insurance products across the United States. The company underwrites policies for homeowners, renters, condo unit owners, and provides coverage for dwelling/fire risks. It also offers allied lines, covering additional structures, personal property, liability, and personal articles. Universal Insurance Holdings manages the entire insurance process, from policy administration and underwriting to claims payments and actuarial consulting. It advises on reinsurance negotiations and manages reinsurance programs for its insurance entities. Through Clovered.com, a digital agency, the company facilitates direct-to-consumer online solutions, utilizing digital applications for claims adjustments and partnering with various carriers. Universal Insurance Holdings distributes its products via a network of independent agents, enhancing its reach and accessibility. Originally incorporated in 1990 and headquartered in Fort Lauderdale, Florida, the company rebranded from Universal Heights, Inc. to its current name in January 2001.



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