ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
USA - NASDAQ:ERIE - US29530P1021 - Common Stock
320.73 USD
-1.08 (-0.34%)
320.73 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ERIE. ERIE was compared to 146 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. While showing a medium growth rate, ERIE is valued expensive at the moment. This makes ERIE very considerable for 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.
In the past 5 years ERIE has always been profitable.
In the past 5 years ERIE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.98%, ERIE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 28.61%, ERIE belongs to the best of the industry, outperforming 95.21% of the companies in the same industry.
ERIE's Return On Invested Capital of 24.43% is amongst the best of the industry. ERIE outperforms 99.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERIE is significantly above the industry average of 4.47%.
The 3 year average ROIC (22.70%) for ERIE is below the current ROIC(24.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 28.61% | ||
| ROIC | 24.43% |
ROA(3y)17.39%
ROA(5y)15.86%
ROE(3y)25.89%
ROE(5y)24.91%
ROIC(3y)22.7%
ROIC(5y)20.35%
1.3 Margins
Looking at the Profit Margin, with a value of 15.73%, ERIE belongs to the top of the industry, outperforming 84.93% of the companies in the same industry.
ERIE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.57%, ERIE is doing good in the industry, outperforming 72.60% of the companies in the same industry.
ERIE's Operating Margin has improved in the last couple of years.
ERIE has a Gross Margin of 17.57%. This is amongst the best in the industry. ERIE outperforms 87.67% of its industry peers.
ERIE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.57% | ||
| PM (TTM) | 15.73% | ||
| GM | 17.57% |
OM growth 3Y13.86%
OM growth 5Y4.33%
PM growth 3Y11.83%
PM growth 5Y4.34%
GM growth 3Y13.86%
GM growth 5Y4.33%
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.
The number of shares outstanding for ERIE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ERIE has more shares outstanding
There is no outstanding debt for ERIE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 14.32 indicates that ERIE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ERIE (14.32) is better than 99.32% of its industry peers.
There is no outstanding debt for ERIE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.32 |
ROIC/WACC2.81
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ERIE should not have too much problems paying its short term obligations.
The Current ratio of ERIE (1.47) is better than 86.99% of its industry peers.
A Quick Ratio of 1.47 indicates that ERIE should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.47, ERIE belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.95% over the past year.
Measured over the past years, ERIE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.63% on average per year.
Looking at the last year, ERIE shows a quite strong growth in Revenue. The Revenue has grown by 12.00% in the last year.
The Revenue has been growing by 8.91% on average over the past years. This is quite good.
EPS 1Y (TTM)17.95%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%6.71%
Revenue 1Y (TTM)12%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%7.03%
3.2 Future
The Earnings Per Share is expected to grow by 6.51% on average over the next years.
The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y10.44%
EPS Next 2Y10.51%
EPS Next 3Y6.51%
EPS Next 5YN/A
Revenue Next Year8.76%
Revenue Next 2Y8.44%
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 decreasing.
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
The Price/Earnings ratio is 26.82, which means the current valuation is very expensive for ERIE.
Based on the Price/Earnings ratio, ERIE is valued a bit more expensive than 76.71% of the companies in the same industry.
ERIE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.88, which indicates a rather expensive current valuation of ERIE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERIE indicates a slightly more expensive valuation: ERIE is more expensive than 73.97% of the companies listed in the same industry.
ERIE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 22.88 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERIE is valued a bit more expensive than 66.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.73 | ||
| 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.
PEG (NY)2.57
PEG (5Y)1.97
EPS Next 2Y10.51%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, ERIE has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, ERIE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
On average, the dividend of ERIE grows each year by 7.09%, which is quite nice.
ERIE has been paying a dividend for at least 10 years, so it has a reliable track record.
ERIE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
39.35% of the earnings are spent on dividend by ERIE. This is a low number and sustainable payout ratio.
The dividend of ERIE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.35%
EPS Next 2Y10.51%
EPS Next 3Y6.51%
320.73
-1.08 (-0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners44.04%
Inst Owner Change19.41%
Ins Owners9.21%
Ins Owner Change0%
Market Cap16.77B
Analysts82.5
Price TargetN/A
Short Float %7.32%
Short Ratio13.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend4.54
Dividend Growth(5Y)7.09%
DP39.35%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.91%
Min EPS beat(2)-16.06%
Max EPS beat(2)-5.77%
EPS beat(4)1
Avg EPS beat(4)-4.78%
Min EPS beat(4)-16.06%
Max EPS beat(4)3.37%
EPS beat(8)5
Avg EPS beat(8)3.04%
EPS beat(12)7
Avg EPS beat(12)2.94%
EPS beat(16)8
Avg EPS beat(16)0.8%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)-0.51%
Revenue beat(8)4
Avg Revenue beat(8)0.23%
Revenue beat(12)8
Avg Revenue beat(12)0.97%
Revenue beat(16)10
Avg Revenue beat(16)0.68%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 22.88 | ||
| P/S | 4.22 | ||
| P/FCF | 29.73 | ||
| P/OCF | 24.36 | ||
| P/B | 7.68 | ||
| P/tB | 7.68 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.96
EY3.73%
EPS(NY)14.02
Fwd EY4.37%
FCF(TTM)10.79
FCFY3.36%
OCF(TTM)13.16
OCFY4.1%
SpS75.99
BVpS41.78
TBVpS41.78
PEG (NY)2.57
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 28.61% | ||
| ROCE | 30.8% | ||
| ROIC | 24.43% | ||
| ROICexc | 29.53% | ||
| ROICexgc | 29.53% | ||
| OM | 17.57% | ||
| PM (TTM) | 15.73% | ||
| GM | 17.57% | ||
| FCFM | 14.2% |
ROA(3y)17.39%
ROA(5y)15.86%
ROE(3y)25.89%
ROE(5y)24.91%
ROIC(3y)22.7%
ROIC(5y)20.35%
ROICexc(3y)26.07%
ROICexc(5y)23.37%
ROICexgc(3y)26.07%
ROICexgc(5y)23.37%
ROCE(3y)28.61%
ROCE(5y)25.66%
ROICexcg growth 3Y18.69%
ROICexcg growth 5Y2.5%
ROICexc growth 3Y18.69%
ROICexc growth 5Y2.5%
OM growth 3Y13.86%
OM growth 5Y4.33%
PM growth 3Y11.83%
PM growth 5Y4.34%
GM growth 3Y13.86%
GM growth 5Y4.33%
F-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 90.25% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 14.32 |
F-Score7
WACC8.69%
ROIC/WACC2.81
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)2.83%
Cap/Sales(5y)3.27%
Profit Quality(3y)81.95%
Profit Quality(5y)85.8%
High Growth Momentum
Growth
EPS 1Y (TTM)17.95%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%6.71%
EPS Next Y10.44%
EPS Next 2Y10.51%
EPS Next 3Y6.51%
EPS Next 5YN/A
Revenue 1Y (TTM)12%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%7.03%
Revenue Next Year8.76%
Revenue Next 2Y8.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.44%
EBIT growth 3Y28.6%
EBIT growth 5Y13.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y58.57%
FCF growth 3Y24.18%
FCF growth 5Y13.13%
OCF growth 1Y56.47%
OCF growth 3Y14.91%
OCF growth 5Y10.89%