EVEREST GROUP LTD (EG) Stock Fundamental Analysis
NYSE:EG - New York Stock Exchange, Inc. - BMG3223R1088 - Common Stock - Currency: USD
Taking everything into account, EG scores 4 out of 10 in our fundamental rating. EG was compared to 143 industry peers in the Insurance industry. EG may be in some trouble as it scores bad on both profitability and health. EG is not valued too expensively and it also shows a decent growth rate. Finally EG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EG was profitable.
In the past year EG had a positive cash flow from operations.
EG had positive earnings in each of the past 5 years.
In the past 5 years EG always reported a positive cash flow from operatings.
1.2 Ratios
EG has a Return On Assets (1.45%) which is comparable to the rest of the industry.
EG has a Return On Equity of 5.95%. This is in the lower half of the industry: EG underperforms 70.63% of its industry peers.
EG has a Return On Invested Capital (1.44%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for EG is in line with the industry average of 4.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 5.95% | ||
| ROIC | 1.44% |
ROA(3y)2.97%
ROA(5y)2.81%
ROE(3y)11.87%
ROE(5y)10.85%
ROIC(3y)2.76%
ROIC(5y)2.88%
1.3 Margins
EG's Profit Margin of 4.83% is on the low side compared to the rest of the industry. EG is outperformed by 60.14% of its industry peers.
In the last couple of years the Profit Margin of EG has declined.
With a Operating Margin value of 6.09%, EG is not doing good in the industry: 69.93% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of EG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 4.83% | ||
| GM | N/A |
OM growth 3Y-11.27%
OM growth 5Y-7.38%
PM growth 3Y-11.84%
PM growth 5Y-8.26%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for EG has been reduced compared to 1 year ago.
EG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EG has an improved debt to assets ratio.
2.2 Solvency
EG has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.75, EG is in the better half of the industry, outperforming 74.83% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that EG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, EG is in the better half of the industry, outperforming 64.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
EG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.06%.
The Earnings Per Share has been growing slightly by 6.61% on average over the past years.
EG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.76%.
The Revenue has been growing by 15.93% on average over the past years. This is quite good.
EPS 1Y (TTM)-66.06%
EPS 3Y0.57%
EPS 5Y6.61%
EPS Q2Q%-60.48%
Revenue 1Y (TTM)12.76%
Revenue growth 3Y13.35%
Revenue growth 5Y15.93%
Sales Q2Q%-6.84%
3.2 Future
EG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.72% yearly.
EG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
EPS Next Y60.93%
EPS Next 2Y46.67%
EPS Next 3Y34.72%
EPS Next 5YN/A
Revenue Next Year3.07%
Revenue Next 2Y3.56%
Revenue Next 3Y4.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.03, the valuation of EG can be described as rather expensive.
Based on the Price/Earnings ratio, EG is valued a bit more expensive than 62.94% of the companies in the same industry.
When comparing the Price/Earnings ratio of EG to the average of the S&P500 Index (27.61), we can say EG is valued slightly cheaper.
A Price/Forward Earnings ratio of 5.26 indicates a rather cheap valuation of EG.
79.72% of the companies in the same industry are more expensive than EG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.13, EG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 5.26 |
4.2 Price Multiples
EG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EG is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EG's earnings are expected to grow with 34.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)2.58
EPS Next 2Y46.67%
EPS Next 3Y34.72%
5. Dividend
5.1 Amount
EG has a Yearly Dividend Yield of 2.41%.
EG's Dividend Yield is a higher than the industry average which is at 3.29.
EG's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of EG is nicely growing with an annual growth rate of 6.23%!
EG has been paying a dividend for at least 10 years, so it has a reliable track record.
EG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.23%
Div Incr Years3
Div Non Decr Years23
5.3 Sustainability
EG pays out 40.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
EG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.78%
EPS Next 2Y46.67%
EPS Next 3Y34.72%
332.56
+0.28 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.44%
Inst Owner ChangeN/A
Ins Owners1.41%
Ins Owner Change4.84%
Market Cap14.14B
Analysts80
Price Target405.92 (22.06%)
Short Float %2.18%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend7.73
Dividend Growth(5Y)6.23%
DP40.78%
Div Incr Years3
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.14%
Min EPS beat(2)-17.8%
Max EPS beat(2)-14.48%
EPS beat(4)1
Avg EPS beat(4)-3.63%
Min EPS beat(4)-17.8%
Max EPS beat(4)19.15%
EPS beat(8)3
Avg EPS beat(8)2.43%
EPS beat(12)6
Avg EPS beat(12)4.49%
EPS beat(16)8
Avg EPS beat(16)6.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.83%
Min Revenue beat(2)-4.77%
Max Revenue beat(2)-2.89%
Revenue beat(4)0
Avg Revenue beat(4)-6.31%
Min Revenue beat(4)-10.84%
Max Revenue beat(4)-2.89%
Revenue beat(8)1
Avg Revenue beat(8)-5.03%
Revenue beat(12)3
Avg Revenue beat(12)-3.67%
Revenue beat(16)7
Avg Revenue beat(16)0.15%
PT rev (1m)0.65%
PT rev (3m)0.7%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-5.81%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)-1.86%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 5.26 | ||
| P/S | 0.81 | ||
| P/FCF | 2.96 | ||
| P/OCF | 2.96 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | N/A |
EPS(TTM)19.53
EY5.87%
EPS(NY)63.24
Fwd EY19.02%
FCF(TTM)112.46
FCFY33.82%
OCF(TTM)112.46
OCFY33.82%
SpS409.38
BVpS332.47
TBVpS332.47
PEG (NY)0.28
PEG (5Y)2.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 5.95% | ||
| ROCE | 1.83% | ||
| ROIC | 1.44% | ||
| ROICexc | 1.48% | ||
| ROICexgc | 1.7% | ||
| OM | 6.09% | ||
| PM (TTM) | 4.83% | ||
| GM | N/A | ||
| FCFM | 27.47% |
ROA(3y)2.97%
ROA(5y)2.81%
ROE(3y)11.87%
ROE(5y)10.85%
ROIC(3y)2.76%
ROIC(5y)2.88%
ROICexc(3y)2.85%
ROICexc(5y)2.97%
ROICexgc(3y)3.23%
ROICexgc(5y)3.37%
ROCE(3y)3.49%
ROCE(5y)3.65%
ROICexcg growth 3Y-11.77%
ROICexcg growth 5Y-7.25%
ROICexc growth 3Y-12%
ROICexc growth 5Y-7.2%
OM growth 3Y-11.27%
OM growth 5Y-7.38%
PM growth 3Y-11.84%
PM growth 5Y-8.26%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 7.21 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 568.73% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)391.86%
Profit Quality(5y)404.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-66.06%
EPS 3Y0.57%
EPS 5Y6.61%
EPS Q2Q%-60.48%
EPS Next Y60.93%
EPS Next 2Y46.67%
EPS Next 3Y34.72%
EPS Next 5YN/A
Revenue 1Y (TTM)12.76%
Revenue growth 3Y13.35%
Revenue growth 5Y15.93%
Sales Q2Q%-6.84%
Revenue Next Year3.07%
Revenue Next 2Y3.56%
Revenue Next 3Y4.11%
Revenue Next 5YN/A
EBIT growth 1Y-61.09%
EBIT growth 3Y0.57%
EBIT growth 5Y7.37%
EBIT Next Year11.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.21%
FCF growth 3Y8.95%
FCF growth 5Y21.76%
OCF growth 1Y22.21%
OCF growth 3Y8.95%
OCF growth 5Y21.76%