ERIE INDEMNITY COMPANY-CL A (ERIE)
US29530P1021 - Common Stock
We assign a fundamental rating of 7 out of 10 to ERIE. ERIE was compared to 141 industry peers in the Insurance industry. ERIE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ERIE shows excellent growth, but is valued quite expensive already. These ratings would make ERIE suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
ERIE had positive earnings in the past year.
In the past year ERIE had a positive cash flow from operations.
ERIE had positive earnings in each of the past 5 years.
In the past 5 years ERIE always reported a positive cash flow from operatings.
1.2 Ratios
ERIE has a Return On Assets of 18.04%. This is amongst the best in the industry. ERIE outperforms 98.57% of its industry peers.
With an excellent Return On Equity value of 26.82%, ERIE belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
ERIE has a better Return On Invested Capital (23.42%) than 99.29% of its industry peers.
ERIE had an Average Return On Invested Capital over the past 3 years of 19.35%. This is significantly above the industry average of 4.12%.
The 3 year average ROIC (19.35%) for ERIE is below the current ROIC(23.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 26.82% | ||
| ROIC | 23.42% |
ROA(3y)14.89%
ROA(5y)14.85%
ROE(3y)23.22%
ROE(5y)24.46%
ROIC(3y)19.35%
ROIC(5y)19.18%
1.3 Margins
ERIE has a Profit Margin of 13.64%. This is in the better half of the industry: ERIE outperforms 75.71% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
ERIE has a Operating Margin of 15.92%. This is in the better half of the industry: ERIE outperforms 72.86% of its industry peers.
In the last couple of years the Operating Margin of ERIE has grown nicely.
The Gross Margin of ERIE (15.92%) is better than 88.57% of its industry peers.
In the last couple of years the Gross Margin of ERIE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.92% | ||
| PM (TTM) | 13.64% | ||
| GM | 15.92% |
OM growth 3Y6.08%
OM growth 5Y1.94%
PM growth 3Y5.67%
PM growth 5Y2.44%
GM growth 3Y6.08%
GM growth 5Y1.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ERIE is creating value.
Compared to 1 year ago, ERIE has more shares outstanding
The number of shares outstanding for ERIE has been increased compared to 5 years ago.
ERIE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 18.51 indicates that ERIE is not in any danger for bankruptcy at the moment.
ERIE has a Altman-Z score of 18.51. This is amongst the best in the industry. ERIE outperforms 100.00% of its industry peers.
ERIE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.51 |
ROIC/WACC2.52
WACC9.31%
2.3 Liquidity
ERIE has a Current Ratio of 1.31. This is a normal value and indicates that ERIE is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.31, ERIE belongs to the best of the industry, outperforming 86.43% of the companies in the same industry.
ERIE has a Quick Ratio of 1.31. This is a normal value and indicates that ERIE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.31, ERIE belongs to the top of the industry, outperforming 86.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.65% over the past year.
ERIE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.13% yearly.
Looking at the last year, ERIE shows a quite strong growth in Revenue. The Revenue has grown by 15.10% in the last year.
Measured over the past years, ERIE shows a small growth in Revenue. The Revenue has been growing by 6.53% on average per year.
EPS 1Y (TTM)49.65%
EPS 3Y14.99%
EPS 5Y9.13%
EPS growth Q2Q69.6%
Revenue 1Y (TTM)15.1%
Revenue growth 3Y8.82%
Revenue growth 5Y6.53%
Revenue growth Q2Q16.71%
3.2 Future
ERIE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.93% yearly.
The Revenue is expected to grow by 11.61% on average over the next years. This is quite good.
EPS Next Y17.13%
EPS Next 2Y12.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.99%
Revenue Next 2Y11.61%
Revenue Next 3YN/A
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 44.75 indicates a quite expensive valuation of ERIE.
Based on the Price/Earnings ratio, ERIE is valued a bit more expensive than 72.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERIE to the average of the S&P500 Index (24.84), we can say ERIE is valued expensively.
With a Price/Forward Earnings ratio of 38.21, ERIE can be considered very expensive at the moment.
ERIE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ERIE is more expensive than 74.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.35. ERIE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.75 | ||
| Fwd PE | 38.21 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERIE is valued a bit more expensive than the industry average as 72.14% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.18 | ||
| EV/EBITDA | N/A |
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 excellent profitability rating of ERIE may justify a higher PE ratio.
ERIE's earnings are expected to grow with 12.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.61
PEG (5Y)4.9
EPS Next 2Y12.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.34%.
Compared to an average industry Dividend Yield of 4.21, ERIE has a dividend in line with its industry peers.
With a Dividend Yield of 1.34, ERIE pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of ERIE is nicely growing with an annual growth rate of 7.15%!
ERIE has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ERIE decreased in the last 3 years.
Dividend Growth(5Y)7.15%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
49.70% of the earnings are spent on dividend by ERIE. This is a bit on the high side, but may be sustainable.
ERIE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.7%
EPS Next 2Y12.93%
EPS Next 3YN/A
ERIE INDEMNITY COMPANY-CL A
NASDAQ:ERIE (4/26/2024, 7:00:02 PM)
After market: 381.74 0 (0%)381.74
+1.48 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.75 | ||
| Fwd PE | 38.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.61
PEG (5Y)4.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 26.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.92% | ||
| PM (TTM) | 13.64% | ||
| GM | 15.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)49.65%
EPS 3Y14.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.1%
Revenue growth 3Y8.82%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y