ASSURANT INC (AIZ) Stock Fundamental Analysis
USA - NYSE:AIZ - US04621X1081 - Common Stock
205.44 USD
-3.05 (-1.46%)
205.44 USD
0 (0%)
AIZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 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. AIZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AIZ had positive earnings in the past year.
In the past year AIZ had a positive cash flow from operations.
In the past 5 years AIZ has always been profitable.
AIZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.02%, AIZ is in line with its industry, outperforming 52.05% of the companies in the same industry.
With a decent Return On Equity value of 13.04%, AIZ is doing good in the industry, outperforming 63.01% of the companies in the same industry.
AIZ has a Return On Invested Capital of 2.79%. This is comparable to the rest of the industry: AIZ outperforms 58.22% 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(2.79%), 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's Profit Margin of 5.83% is on the low side compared to the rest of the industry. AIZ is outperformed by 60.27% of its industry peers.
AIZ's Profit Margin has improved in the last couple of years.
The Operating Margin of AIZ (8.10%) is worse than 63.70% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIZ is destroying value.
AIZ has less shares outstanding than it did 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 2.15, which is a good value as it means it would take AIZ, 2.15 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 2.15, AIZ perfoms like the industry average, outperforming 50.68% of the companies in the same industry.
A Debt/Equity ratio of 0.38 indicates that AIZ is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.38, AIZ is not doing good in the industry: 61.64% of the companies in the same industry are doing better.
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/WACC0.35
WACC7.91%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.18%.
Measured over the past years, AIZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.42% on average per year.
AIZ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.46%.
AIZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.52% yearly.
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
AIZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.74% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.62, the valuation of AIZ can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as AIZ.
AIZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 10.10, the valuation of AIZ can be described as very reasonable.
AIZ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.71. AIZ is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
AIZ's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIZ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.7 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AIZ does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.22
PEG (5Y)0.88
EPS Next 2Y10.54%
EPS Next 3Y9.74%
5. Dividend
5.1 Amount
AIZ has a Yearly Dividend Yield of 6.32%, which is a nice return.
Compared to an average industry Dividend Yield of 3.43, AIZ pays a better dividend. On top of this AIZ pays more dividend than 88.36% of the companies listed in the same industry.
AIZ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
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 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
22.62% of the earnings are spent on dividend by AIZ. This is a low number and 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%
205.44
-3.05 (-1.46%)
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 Change2.55%
Market Cap10.37B
Analysts78.46
Price Target245.82 (19.66%)
Short Float %1.7%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
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)3.43%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)4.02%
EPS NY rev (1m)5.89%
EPS NY rev (3m)5.43%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 10.1 | ||
| P/S | 0.84 | ||
| P/FCF | 10.7 | ||
| P/OCF | 8.66 | ||
| P/B | 1.89 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)16.28
EY7.92%
EPS(NY)20.35
Fwd EY9.9%
FCF(TTM)19.2
FCFY9.35%
OCF(TTM)23.73
OCFY11.55%
SpS243.91
BVpS108.97
TBVpS46.33
PEG (NY)2.22
PEG (5Y)0.88
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
WACC7.91%
ROIC/WACC0.35
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%