EVEREST GROUP LTD (EG) Stock Fundamental Analysis
NYSE:EG - New York Stock Exchange, Inc. - BMG3223R1088 - Common Stock - Currency: USD
EG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. EG has a medium profitability rating, but doesn't score so well on its financial health evaluation. EG has a correct valuation and a medium growth rate. EG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EG was profitable.
EG had a positive operating cash flow in the past year.
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 (2.41%) which is in line with its industry peers.
The Return On Equity of EG (9.79%) is comparable to the rest of the industry.
EG has a Return On Invested Capital (2.31%) which is in line with its industry peers.
EG had an Average Return On Invested Capital over the past 3 years of 2.76%. This is in line with the industry average of 4.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 9.79% | ||
| ROIC | 2.31% |
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 has a Profit Margin of 7.86%. This is comparable to the rest of the industry: EG outperforms 53.85% of its industry peers.
EG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.50%, EG is in line with its industry, outperforming 46.15% of the companies in the same industry.
In the last couple of years the Operating Margin of EG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 7.86% | ||
| 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.
Compared to 5 years ago, EG has more shares outstanding
The debt/assets ratio for EG has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of EG is 0.72, which is an excellent value as it means it would take EG, only 0.72 years of fcf income to pay off all of its debts.
EG has a better Debt to FCF ratio (0.72) than 70.63% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that EG is not too dependend on debt financing.
EG has a better Debt to Equity ratio (0.26) than 66.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.72 | ||
| 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
The earnings per share for EG have decreased strongly by -66.06% in the last year.
Measured over the past 5 years, EG shows a small growth in Earnings Per Share. The EPS has been growing by 6.61% on average per year.
The Revenue has grown by 18.48% in the past year. This is quite good.
EG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.93% yearly.
EPS 1Y (TTM)-66.06%
EPS 3Y0.57%
EPS 5Y6.61%
EPS Q2Q%-60.48%
Revenue 1Y (TTM)18.48%
Revenue growth 3Y13.35%
Revenue growth 5Y15.93%
Sales Q2Q%3.1%
3.2 Future
EG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.84% yearly.
Based on estimates for the next years, EG will show a small growth in Revenue. The Revenue will grow by 6.90% on average per year.
EPS Next Y69.46%
EPS Next 2Y47.91%
EPS Next 3Y36.84%
EPS Next 5YN/A
Revenue Next Year4.32%
Revenue Next 2Y3.9%
Revenue Next 3Y6.9%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EG is valuated rather expensively with a Price/Earnings ratio of 17.84.
61.54% of the companies in the same industry are cheaper than EG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.22. EG is valued slightly cheaper when compared to this.
EG is valuated cheaply with a Price/Forward Earnings ratio of 5.42.
EG's Price/Forward Earnings ratio is rather cheap when compared to the industry. EG is cheaper than 80.42% of the companies in the same industry.
EG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 5.42 |
4.2 Price Multiples
78.32% of the companies in the same industry are more expensive than EG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.36 | ||
| 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.
A more expensive valuation may be justified as EG's earnings are expected to grow with 36.84% in the coming years.
PEG (NY)0.26
PEG (5Y)2.7
EPS Next 2Y47.91%
EPS Next 3Y36.84%
5. Dividend
5.1 Amount
EG has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.23, EG pays a bit more dividend than its industry peers.
EG's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
On average, the dividend of EG grows each year by 6.23%, which is quite nice.
EG has been paying a dividend for at least 10 years, so it has a reliable track record.
EG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.23%
Div Incr Years3
Div Non Decr Years23
5.3 Sustainability
EG pays out 24.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of EG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.59%
EPS Next 2Y47.91%
EPS Next 3Y36.84%
348.39
+11.01 (+3.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.92%
Inst Owner ChangeN/A
Ins Owners1.38%
Ins Owner Change4.25%
Market Cap16.65B
Analysts79.09
Price Target403.11 (15.71%)
Short Float %1.83%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend7.73
Dividend Growth(5Y)6.23%
DP24.59%
Div Incr Years3
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.34%
Min EPS beat(2)-14.48%
Max EPS beat(2)19.15%
EPS beat(4)1
Avg EPS beat(4)0.56%
Min EPS beat(4)-14.48%
Max EPS beat(4)19.15%
EPS beat(8)3
Avg EPS beat(8)3.13%
EPS beat(12)7
Avg EPS beat(12)6.5%
EPS beat(16)9
Avg EPS beat(16)9.68%
Revenue beat(2)0
Avg Revenue beat(2)-4.8%
Min Revenue beat(2)-6.71%
Max Revenue beat(2)-2.89%
Revenue beat(4)1
Avg Revenue beat(4)-4.52%
Min Revenue beat(4)-10.84%
Max Revenue beat(4)2.38%
Revenue beat(8)1
Avg Revenue beat(8)-5.22%
Revenue beat(12)4
Avg Revenue beat(12)-2.99%
Revenue beat(16)8
Avg Revenue beat(16)1.43%
PT rev (1m)-1.78%
PT rev (3m)-7.8%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-57.76%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-26.71%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-4.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 5.42 | ||
| P/S | 0.96 | ||
| P/FCF | 3.36 | ||
| P/OCF | 3.36 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)19.53
EY5.61%
EPS(NY)64.32
Fwd EY18.46%
FCF(TTM)103.75
FCFY29.78%
OCF(TTM)103.75
OCFY29.78%
SpS361.68
BVpS290.39
TBVpS290.39
PEG (NY)0.26
PEG (5Y)2.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 9.79% | ||
| ROCE | 2.92% | ||
| ROIC | 2.31% | ||
| ROICexc | 2.37% | ||
| ROICexgc | 2.71% | ||
| OM | 9.5% | ||
| PM (TTM) | 7.86% | ||
| GM | N/A | ||
| FCFM | 28.68% |
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-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 11.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 365.02% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
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 Y69.46%
EPS Next 2Y47.91%
EPS Next 3Y36.84%
EPS Next 5YN/A
Revenue 1Y (TTM)18.48%
Revenue growth 3Y13.35%
Revenue growth 5Y15.93%
Sales Q2Q%3.1%
Revenue Next Year4.32%
Revenue Next 2Y3.9%
Revenue Next 3Y6.9%
Revenue Next 5YN/A
EBIT growth 1Y-28.3%
EBIT growth 3Y0.57%
EBIT growth 5Y7.37%
EBIT Next Year11.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.85%
FCF growth 3Y8.95%
FCF growth 5Y21.76%
OCF growth 1Y8.85%
OCF growth 3Y8.95%
OCF growth 5Y21.76%