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 valued correctly, but it does not seem to be growing.
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 1.92%. This is comparable to the rest of the industry: AIZ outperforms 51.05% of its industry peers.
The Return On Equity of AIZ (12.81%) is better than 63.64% of its industry peers.
AIZ has a Return On Invested Capital of 2.71%. This is comparable to the rest of the industry: AIZ outperforms 58.04% 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 4.07%.
The last Return On Invested Capital (2.71%) for AIZ is above the 3 year average (2.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 12.81% | ||
| ROIC | 2.71% |
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 (5.55%) is comparable to the rest of the industry.
AIZ's Profit Margin has improved in the last couple of years.
AIZ's Operating Margin of 7.83% is on the low side compared to the rest of the industry. AIZ is outperformed by 60.14% of its industry peers.
AIZ's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.83% | ||
| PM (TTM) | 5.55% | ||
| 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
AIZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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 1.47, which is an excellent value as it means it would take AIZ, only 1.47 years of fcf income to pay off all of its debts.
AIZ's Debt to FCF ratio of 1.47 is in line compared to the rest of the industry. AIZ outperforms 50.35% of its industry peers.
AIZ has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, AIZ is doing worse than 60.84% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for AIZ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC8.19%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.00%.
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 6.18%.
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)-13%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%-29.08%
Revenue 1Y (TTM)6.18%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%6.44%
3.2 Future
AIZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.55% yearly.
Based on estimates for the next years, AIZ will show a small growth in Revenue. The Revenue will grow by 4.48% on average per year.
EPS Next Y0.23%
EPS Next 2Y8.83%
EPS Next 3Y7.55%
EPS Next 5YN/A
Revenue Next Year5.73%
Revenue Next 2Y5.11%
Revenue Next 3Y4.48%
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
AIZ is valuated correctly with a Price/Earnings ratio of 13.05.
AIZ's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.60, AIZ is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.10, the valuation of AIZ can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as AIZ.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, AIZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 10.1 |
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 a bit cheaper when compared to the industry. AIZ is cheaper than 60.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.12 | ||
| EV/EBITDA | 8.83 |
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)56.36
PEG (5Y)0.91
EPS Next 2Y8.83%
EPS Next 3Y7.55%
5. Dividend
5.1 Amount
AIZ has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.10, AIZ has a dividend in line with its industry peers.
AIZ's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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
AIZ pays out 23.78% 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.
DP23.78%
EPS Next 2Y8.83%
EPS Next 3Y7.55%
199.2
+2.66 (+1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change0.87%
Ins Owners0.47%
Ins Owner Change2.93%
Market Cap10.10B
Analysts78.33
Price Target237.66 (19.31%)
Short Float %2.67%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend3.03
Dividend Growth(5Y)1.71%
DP23.78%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.39%
Min EPS beat(2)14.79%
Max EPS beat(2)21.99%
EPS beat(4)4
Avg EPS beat(4)16.54%
Min EPS beat(4)11.59%
Max EPS beat(4)21.99%
EPS beat(8)8
Avg EPS beat(8)28.11%
EPS beat(12)10
Avg EPS beat(12)19.79%
EPS beat(16)13
Avg EPS beat(16)16.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.09%
Max Revenue beat(4)0.94%
Revenue beat(8)6
Avg Revenue beat(8)1.25%
Revenue beat(12)8
Avg Revenue beat(12)0.26%
Revenue beat(16)10
Avg Revenue beat(16)0.28%
PT rev (1m)2.46%
PT rev (3m)0.17%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)-4.04%
EPS NY rev (1m)3.75%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 10.1 | ||
| P/S | 0.84 | ||
| P/FCF | 7.12 | ||
| P/OCF | 6.15 | ||
| P/B | 1.93 | ||
| P/tB | 4.9 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)15.26
EY7.66%
EPS(NY)19.72
Fwd EY9.9%
FCF(TTM)27.98
FCFY14.05%
OCF(TTM)32.4
OCFY16.26%
SpS238.15
BVpS103.24
TBVpS40.65
PEG (NY)56.36
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 12.81% | ||
| ROCE | 3.35% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.88% | ||
| ROICexgc | 5.13% | ||
| OM | 7.83% | ||
| PM (TTM) | 5.55% | ||
| GM | N/A | ||
| FCFM | 11.75% |
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 | 0.4 | ||
| Debt/FCF | 1.47 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 97.52% | ||
| Cap/Sales | 1.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.82% | ||
| Profit Quality | 211.62% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.19%
ROIC/WACC0.33
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)-13%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%-29.08%
EPS Next Y0.23%
EPS Next 2Y8.83%
EPS Next 3Y7.55%
EPS Next 5YN/A
Revenue 1Y (TTM)6.18%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%6.44%
Revenue Next Year5.73%
Revenue Next 2Y5.11%
Revenue Next 3Y4.48%
Revenue Next 5YN/A
EBIT growth 1Y-12.59%
EBIT growth 3Y5.43%
EBIT growth 5Y8.24%
EBIT Next Year16.38%
EBIT Next 3Y12.28%
EBIT Next 5YN/A
FCF growth 1Y21.88%
FCF growth 3Y23.2%
FCF growth 5Y-3.13%
OCF growth 1Y20.99%
OCF growth 3Y19.46%
OCF growth 5Y-1.17%