ASSURANT INC (AIZ) Stock Fundamental Analysis
NYSE:AIZ - US04621X1081 - Common Stock
213.92 USD
-2 (-0.93%)
213.92 USD
0 (0%)
Overall AIZ gets a fundamental rating of 4 out of 10. We evaluated AIZ against 143 industry peers in the Insurance industry. AIZ has a medium profitability rating, but doesn't score so well on its financial health evaluation. AIZ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AIZ was profitable.
AIZ had a positive operating cash flow in the past year.
In the past 5 years AIZ has always been profitable.
Each year in the past 5 years AIZ had a positive operating cash flow.
1.2 Ratios
AIZ has a Return On Assets (2.02%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 13.04%, AIZ is doing good in the industry, outperforming 62.24% of the companies in the same industry.
The Return On Invested Capital of AIZ (2.79%) is better than 60.14% of its industry peers.
AIZ had an Average Return On Invested Capital over the past 3 years of 2.34%. This is in line with the industry average of 4.11%.
The 3 year average ROIC (2.34%) for AIZ is below the current ROIC(2.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 13.04% | ||
| ROIC | 2.79% |
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
AIZ has a Profit Margin of 5.83%. This is comparable to the rest of the industry: AIZ outperforms 40.56% of its industry peers.
AIZ's Profit Margin has improved in the last couple of years.
AIZ's Operating Margin of 8.10% is on the low side compared to the rest of the industry. AIZ is outperformed by 62.94% of its industry peers.
In the last couple of years the Operating Margin of AIZ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 5.83% | ||
| 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.
The number of shares outstanding for AIZ has been reduced compared to 1 year ago.
The number of shares outstanding for AIZ has been reduced compared to 5 years ago.
Compared to 1 year ago, AIZ has an improved debt to assets ratio.
2.2 Solvency
AIZ has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as AIZ would need 2.15 years to pay back of all of its debts.
The Debt to FCF ratio of AIZ (2.15) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.38 indicates that AIZ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.38, AIZ is doing worse than 60.84% 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 | 0.38 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC8.11%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for AIZ have decreased by -8.18% in the last year.
AIZ shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.42% yearly.
The Revenue has been growing slightly by 6.46% in the past year.
Measured over the past years, AIZ shows a small growth in Revenue. The Revenue has been growing by 4.52% on average per year.
EPS 1Y (TTM)-8.18%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%25%
Revenue 1Y (TTM)6.46%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%7.98%
3.2 Future
The Earnings Per Share is expected to grow by 9.74% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y5.68%
EPS Next 2Y10.54%
EPS Next 3Y9.74%
EPS Next 5YN/A
Revenue Next Year6.68%
Revenue Next 2Y5.74%
Revenue Next 3Y5.33%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.14, AIZ is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AIZ is on the same level as its industry peers.
AIZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.03.
AIZ is valuated reasonably with a Price/Forward Earnings ratio of 10.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIZ is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, AIZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AIZ.
AIZ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.14 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AIZ may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)0.91
EPS Next 2Y10.54%
EPS Next 3Y9.74%
5. Dividend
5.1 Amount
AIZ has a Yearly Dividend Yield of 1.49%.
Compared to an average industry Dividend Yield of 3.52, AIZ has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, AIZ is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of AIZ has a limited annual growth rate of 1.71%.
AIZ has paid a dividend for at least 10 years, which is a reliable track record.
AIZ has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.71%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
AIZ pays out 22.62% of its income as dividend. This is a sustainable payout ratio.
AIZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.62%
EPS Next 2Y10.54%
EPS Next 3Y9.74%
213.92
-2 (-0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.93%
Inst Owner Change-6.15%
Ins Owners0.57%
Ins Owner Change2.77%
Market Cap10.79B
Analysts78.33
Price Target245.82 (14.91%)
Short Float %1.47%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend3.03
Dividend Growth(5Y)1.71%
DP22.62%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.06%
Min EPS beat(2)12.14%
Max EPS beat(2)21.99%
EPS beat(4)4
Avg EPS beat(4)16.68%
Min EPS beat(4)12.14%
Max EPS beat(4)21.99%
EPS beat(8)8
Avg EPS beat(8)23.4%
EPS beat(12)11
Avg EPS beat(12)21.43%
EPS beat(16)13
Avg EPS beat(16)16.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.14%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-1.09%
Max Revenue beat(4)0.94%
Revenue beat(8)6
Avg Revenue beat(8)0.98%
Revenue beat(12)9
Avg Revenue beat(12)0.72%
Revenue beat(16)10
Avg Revenue beat(16)-0.02%
PT rev (1m)3.34%
PT rev (3m)5.98%
EPS NQ rev (1m)4.02%
EPS NQ rev (3m)3.97%
EPS NY rev (1m)5.89%
EPS NY rev (3m)5.43%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 10.51 | ||
| P/S | 0.88 | ||
| P/FCF | 11.14 | ||
| P/OCF | 9.02 | ||
| P/B | 1.96 | ||
| P/tB | 4.62 | ||
| EV/EBITDA | 9.3 |
EPS(TTM)16.28
EY7.61%
EPS(NY)20.35
Fwd EY9.51%
FCF(TTM)19.2
FCFY8.98%
OCF(TTM)23.73
OCFY11.09%
SpS243.91
BVpS108.97
TBVpS46.33
PEG (NY)2.31
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 13.04% | ||
| ROCE | 3.46% | ||
| ROIC | 2.79% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 5.12% | ||
| OM | 8.1% | ||
| PM (TTM) | 5.83% | ||
| GM | N/A | ||
| FCFM | 7.87% |
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-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 95.93% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.89% | ||
| Profit Quality | 135.12% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.11%
ROIC/WACC0.34
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)-8.18%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%25%
EPS Next Y5.68%
EPS Next 2Y10.54%
EPS Next 3Y9.74%
EPS Next 5YN/A
Revenue 1Y (TTM)6.46%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%7.98%
Revenue Next Year6.68%
Revenue Next 2Y5.74%
Revenue Next 3Y5.33%
Revenue Next 5YN/A
EBIT growth 1Y-10.14%
EBIT growth 3Y5.43%
EBIT growth 5Y8.24%
EBIT Next Year16.46%
EBIT Next 3Y12.3%
EBIT Next 5YN/A
FCF growth 1Y-17.42%
FCF growth 3Y23.2%
FCF growth 5Y-3.13%
OCF growth 1Y-12.61%
OCF growth 3Y19.46%
OCF growth 5Y-1.17%