The Chaikin Power Gauge RatingTM for Universal Insurance Holdings, Inc. UVE is bullish due to very attractive financial metrics and bullish price/volume activity. The rating also reflects very weak earnings performance. UVE’s financial metrics are excellent due to a low price to book value and relatively high cash flow.
Financial Metrics Rating – Very Bullish
UVE’s financial metrics are excellent. The company may be undervalued and generates high free cash flow relative to market capitalization. The rank is based on a low long-term debt to equity ratio relative to its industry group, low price to book value, high return on equity, low price to sales ratio and relatively high cash flow.
Earnings Performance Rating – Very Bearish
UVE’s earnings performance has been very weak. The company experienced relatively poor earnings growth in the past 12 months and has an erratic 5 year earnings trend. The rank is based on high earnings growth over the past 3-5 years, a relatively poor trend in earnings this year and inconsistent earnings over the past 5 years.
Price/Volume Activity Rating – Bullish
Price and volume activity for UVE is bullish. UVE has a rising price trend and is trading on higher volume than its 90 day average volume. The rank for UVE is based on its relative weakness versus the market, a positive Chaikin price trend and an increasing volume trend.
Expert opinions about UVE are neutral. Insiders are net buyers of UVE’s stock and analysts are lowering their EPS estimates for UVE. The rank for UVE is based on insiders purchasing stock.