Has Health Insurance Innovations, Inc. (NASDAQ:HIIQ) Improved Earnings In Recent Times?
Assessing Health Insurance Innovations, Inc.’s (NASDAQ:HIIQ) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess HIIQ’s latest performance announced on 30 September 2018 and evaluate these figures to its historical trend and industry movements.
Check out our latest analysis for Health Insurance Innovations
How Did HIIQ’s Recent Performance Stack Up Against Its Past?
HIIQ’s trailing twelve-month earnings (from 30 September 2018) of US$14m has declined by -0.5% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 70%, indicating the rate at which HIIQ is growing has slowed down. Why is this? Let’s examine what’s transpiring with margins and if the whole industry is feeling the heat.
In terms of returns from investment, Health Insurance Innovations has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 7.9% exceeds the US Insurance industry of 2.5%, indicating Health Insurance Innovations has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Health Insurance Innovations’s debt level, has increased over the past 3 years from 1.8% to 23%.
What does this mean?
Health Insurance Innovations’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors affecting its business. You should continue to research Health Insurance Innovations to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for HIIQ’s future growth? Take a look at our free research report of analyst consensus for HIIQ’s outlook.
Financial Health: Are HIIQ’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
