ASSURANT INC (AIZ) Stock Fundamental Analysis
NYSE:AIZ - New York Stock Exchange, Inc. - US04621X1081 - Common Stock - Currency: USD
AIZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. There are concerns on the financial health of AIZ while its profitability can be described as average. AIZ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AIZ was profitable.
In the past year AIZ had a positive cash flow from operations.
AIZ had positive earnings in each of the past 5 years.
Each year in the past 5 years AIZ had a positive operating cash flow.
1.2 Ratios
AIZ has a Return On Assets of 2.17%. This is comparable to the rest of the industry: AIZ outperforms 49.65% of its industry peers.
With a Return On Equity value of 14.89%, AIZ perfoms like the industry average, outperforming 59.44% of the companies in the same industry.
AIZ has a better Return On Invested Capital (2.98%) than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIZ is below the industry average of 4.47%.
The 3 year average ROIC (2.34%) for AIZ is below the current ROIC(2.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.89% | ||
| ROIC | 2.98% |
ROA(3y)1.64%
ROA(5y)1.97%
ROE(3y)11.6%
ROE(5y)13.34%
ROIC(3y)2.34%
ROIC(5y)2.2%
1.3 Margins
The Profit Margin of AIZ (6.40%) is comparable to the rest of the industry.
AIZ's Profit Margin has improved in the last couple of years.
AIZ has a Operating Margin (8.92%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AIZ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.92% | ||
| PM (TTM) | 6.4% | ||
| GM | N/A |
OM growth 3Y0.17%
OM growth 5Y3.56%
PM growth 3Y-21.67%
PM growth 5Y10.86%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIZ is destroying value.
Compared to 1 year ago, AIZ has less shares outstanding
The number of shares outstanding for AIZ has been reduced compared to 5 years ago.
The debt/assets ratio for AIZ has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of AIZ is 1.87, which is an excellent value as it means it would take AIZ, only 1.87 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AIZ (1.87) is comparable to the rest of the industry.
AIZ has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.41, AIZ is doing worse than 60.14% of the companies in the same industry.
Although AIZ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC8.1%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.35% over the past year.
The Earnings Per Share has been growing by 14.42% on average over the past years. This is quite good.
AIZ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.65%.
AIZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.52% yearly.
EPS 1Y (TTM)7.35%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%4.59%
Revenue 1Y (TTM)6.65%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%4.08%
3.2 Future
Based on estimates for the next years, AIZ will show a small growth in Earnings Per Share. The EPS will grow by 7.47% on average per year.
The Revenue is expected to grow by 4.25% on average over the next years.
EPS Next Y-3.39%
EPS Next 2Y8.36%
EPS Next 3Y7.47%
EPS Next 5YN/A
Revenue Next Year5.76%
Revenue Next 2Y4.76%
Revenue Next 3Y4.25%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.04 indicates a reasonable valuation of AIZ.
Compared to the rest of the industry, the Price/Earnings ratio of AIZ is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.29, AIZ is valued rather cheaply.
The Price/Forward Earnings ratio is 11.43, which indicates a very decent valuation of AIZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIZ is on the same level as its industry peers.
AIZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIZ is valued a bit cheaper than 62.94% of the companies in the same industry.
AIZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 7.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y8.36%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
AIZ has a Yearly Dividend Yield of 1.69%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, AIZ has a dividend in line with its industry peers.
AIZ's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of AIZ has a limited annual growth rate of 1.71%.
AIZ has been paying a dividend for at least 10 years, so it has a reliable track record.
AIZ has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.71%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
AIZ pays out 20.51% 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.
DP20.51%
EPS Next 2Y8.36%
EPS Next 3Y7.47%
183.87
-5.1 (-2.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change0.6%
Ins Owners0.47%
Ins Owner Change2.3%
Market Cap9.35B
Analysts76.67
Price Target237.25 (29.03%)
Short Float %2.04%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend3.03
Dividend Growth(5Y)1.71%
DP20.51%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.3%
Min EPS beat(2)14.79%
Max EPS beat(2)17.8%
EPS beat(4)4
Avg EPS beat(4)16.59%
Min EPS beat(4)11.59%
Max EPS beat(4)22.16%
EPS beat(8)8
Avg EPS beat(8)27.55%
EPS beat(12)10
Avg EPS beat(12)20.41%
EPS beat(16)13
Avg EPS beat(16)18.51%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.94%
Revenue beat(4)3
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)0.94%
Revenue beat(8)7
Avg Revenue beat(8)1.56%
Revenue beat(12)8
Avg Revenue beat(12)-0.17%
Revenue beat(16)10
Avg Revenue beat(16)0.19%
PT rev (1m)0%
PT rev (3m)-0.26%
EPS NQ rev (1m)-3.17%
EPS NQ rev (3m)-42.17%
EPS NY rev (1m)-3.54%
EPS NY rev (3m)-11.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 11.43 | ||
| P/S | 0.79 | ||
| P/FCF | 8.42 | ||
| P/OCF | 7.02 | ||
| P/B | 1.83 | ||
| P/tB | 4.78 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)16.65
EY9.06%
EPS(NY)16.08
Fwd EY8.75%
FCF(TTM)21.85
FCFY11.88%
OCF(TTM)26.2
OCFY14.25%
SpS233.49
BVpS100.39
TBVpS38.43
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.89% | ||
| ROCE | 3.69% | ||
| ROIC | 2.98% | ||
| ROICexc | 3.18% | ||
| ROICexgc | 5.67% | ||
| OM | 8.92% | ||
| PM (TTM) | 6.4% | ||
| GM | N/A | ||
| FCFM | 9.36% |
ROA(3y)1.64%
ROA(5y)1.97%
ROE(3y)11.6%
ROE(5y)13.34%
ROIC(3y)2.34%
ROIC(5y)2.2%
ROICexc(3y)2.49%
ROICexc(5y)2.35%
ROICexgc(3y)4.34%
ROICexgc(5y)4.11%
ROCE(3y)2.9%
ROCE(5y)2.73%
ROICexcg growth 3Y6.82%
ROICexcg growth 5Y13.88%
ROICexc growth 3Y4.87%
ROICexc growth 5Y15.01%
OM growth 3Y0.17%
OM growth 5Y3.56%
PM growth 3Y-21.67%
PM growth 5Y10.86%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 99.02% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.88% | ||
| Profit Quality | 146.2% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.1%
ROIC/WACC0.37
Cap/Depr(3y)101.5%
Cap/Depr(5y)99.54%
Cap/Sales(3y)1.84%
Cap/Sales(5y)1.72%
Profit Quality(3y)146.68%
Profit Quality(5y)154.63%
High Growth Momentum
Growth
EPS 1Y (TTM)7.35%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%4.59%
EPS Next Y-3.39%
EPS Next 2Y8.36%
EPS Next 3Y7.47%
EPS Next 5YN/A
Revenue 1Y (TTM)6.65%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%4.08%
Revenue Next Year5.76%
Revenue Next 2Y4.76%
Revenue Next 3Y4.25%
Revenue Next 5YN/A
EBIT growth 1Y13.9%
EBIT growth 3Y5.43%
EBIT growth 5Y8.24%
EBIT Next Year22.3%
EBIT Next 3Y10.05%
EBIT Next 5YN/A
FCF growth 1Y18.79%
FCF growth 3Y23.2%
FCF growth 5Y-3.13%
OCF growth 1Y17.1%
OCF growth 3Y19.46%
OCF growth 5Y-1.17%