ASSURANT INC (AIZ)

US04621X1081 - Common Stock

188.39  +0.98 (+0.52%)

Fundamental Rating

5

AIZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. While AIZ is still in line with the averages on profitability rating, there are concerns on its financial health. AIZ is not valued too expensively and it also shows a decent growth rate.



6

1. Profitability

1.1 Basic Checks

In the past year AIZ was profitable.
AIZ had a positive operating cash flow in the past year.
Each year in the past 5 years AIZ has been profitable.
Each year in the past 5 years AIZ had a positive operating cash flow.

1.2 Ratios

The Return On Assets of AIZ (1.91%) is comparable to the rest of the industry.
The Return On Equity of AIZ (13.36%) is better than 64.03% of its industry peers.
AIZ has a Return On Invested Capital of 2.61%. This is in the better half of the industry: AIZ outperforms 64.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIZ is in line with the industry average of 4.02%.
The last Return On Invested Capital (2.61%) for AIZ is above the 3 year average (2.16%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.91%
ROE 13.36%
ROIC 2.61%
ROA(3y)2.25%
ROA(5y)1.7%
ROE(3y)14.91%
ROE(5y)11.65%
ROIC(3y)2.16%
ROIC(5y)1.88%

1.3 Margins

AIZ has a Profit Margin (5.77%) which is in line with its industry peers.
AIZ's Profit Margin has improved in the last couple of years.
AIZ has a Operating Margin of 8.35%. This is comparable to the rest of the industry: AIZ outperforms 49.64% of its industry peers.
In the last couple of years the Operating Margin of AIZ has grown nicely.
Industry RankSector Rank
OM 8.35%
PM (TTM) 5.77%
GM N/A
OM growth 3Y5.56%
OM growth 5Y9.17%
PM growth 3Y9.5%
PM growth 5Y14.44%
GM growth 3YN/A
GM growth 5YN/A

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIZ is destroying value.
The number of shares outstanding for AIZ has been reduced compared to 1 year ago.
AIZ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AIZ has an improved debt to assets ratio.

2.2 Solvency

The Debt to FCF ratio of AIZ is 2.22, which is a good value as it means it would take AIZ, 2.22 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 2.22, AIZ perfoms like the industry average, outperforming 55.40% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that AIZ is not too dependend on debt financing.
AIZ's Debt to Equity ratio of 0.43 is in line compared to the rest of the industry. AIZ outperforms 43.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 2.22
Altman-Z N/A
ROIC/WACC0.33
WACC8.01%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

5

3. Growth

3.1 Past

AIZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.77%, which is quite impressive.
AIZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.08% yearly.
Looking at the last year, AIZ shows a quite strong growth in Revenue. The Revenue has grown by 9.21% in the last year.
The Revenue has been growing slightly by 6.68% on average over the past years.
EPS 1Y (TTM)41.77%
EPS 3Y21.63%
EPS 5Y21.08%
EPS growth Q2Q41.8%
Revenue 1Y (TTM)9.21%
Revenue growth 3Y5.07%
Revenue growth 5Y6.68%
Revenue growth Q2Q12.17%

3.2 Future

Based on estimates for the next years, AIZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.05% on average per year.
The Revenue is expected to grow by 5.35% on average over the next years.
EPS Next Y1.2%
EPS Next 2Y5.06%
EPS Next 3Y8.05%
EPS Next 5YN/A
Revenue Next Year6.93%
Revenue Next 2Y5.16%
Revenue Next 3Y5.35%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.15, the valuation of AIZ can be described as correct.
AIZ's Price/Earnings ratio is in line with the industry average.
AIZ is valuated cheaply when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
AIZ is valuated correctly with a Price/Forward Earnings ratio of 12.00.
AIZ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.74. AIZ is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.15
Fwd PE 12

4.2 Price Multiples

AIZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIZ is cheaper than 66.19% of the companies in the same industry.
AIZ's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 10.47
EV/EBITDA 9.05

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AIZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)10.08
PEG (5Y)0.58
EPS Next 2Y5.06%
EPS Next 3Y8.05%

6

5. Dividend

5.1 Amount

AIZ has a Yearly Dividend Yield of 1.60%.
AIZ's Dividend Yield is comparable with the industry average which is at 4.13.
AIZ's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.6%

5.2 History

The dividend of AIZ has a limited annual growth rate of 2.25%.
AIZ has paid a dividend for at least 10 years, which is a reliable track record.
AIZ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.25%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

AIZ pays out 23.70% of its income as dividend. This is a sustainable payout ratio.
The dividend of AIZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.7%
EPS Next 2Y5.06%
EPS Next 3Y8.05%

ASSURANT INC

NYSE:AIZ (3/28/2024, 1:41:48 PM)

188.39

+0.98 (+0.52%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.79B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.6%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 12.15
Fwd PE 12
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)10.08
PEG (5Y)0.58
Profitability
Industry RankSector Rank
ROA 1.91%
ROE 13.36%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.35%
PM (TTM) 5.77%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)41.77%
EPS 3Y21.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.21%
Revenue growth 3Y5.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y