ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
NASDAQ:ERIE - Nasdaq - US29530P1021 - Common Stock - Currency: USD
Overall ERIE gets a fundamental rating of 7 out of 10. We evaluated ERIE against 143 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 is valued quite expensively, but it does show have an excellent growth rating. These ratings would make ERIE suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ERIE was profitable.
In the past year ERIE had a positive cash flow from operations.
Each year in the past 5 years ERIE has been profitable.
ERIE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.78%, ERIE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of ERIE (30.21%) is better than 96.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.72%, ERIE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ERIE is significantly above the industry average of 4.27%.
The last Return On Invested Capital (25.72%) for ERIE is above the 3 year average (22.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.78% | ||
| ROE | 30.21% | ||
| ROIC | 25.72% |
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
ERIE has a Profit Margin of 15.82%. This is amongst the best in the industry. ERIE outperforms 83.92% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.82%, ERIE is in the better half of the industry, outperforming 75.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ERIE has grown nicely.
ERIE has a better Gross Margin (17.82%) than 87.41% of its industry peers.
ERIE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.82% | ||
| PM (TTM) | 15.82% | ||
| GM | 17.82% |
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.
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
ERIE has an Altman-Z score of 16.73. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 16.73, ERIE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 | 16.73 |
ROIC/WACC2.83
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.43 indicates that ERIE should not have too much problems paying its short term obligations.
The Current ratio of ERIE (1.43) is better than 86.01% of its industry peers.
A Quick Ratio of 1.43 indicates that ERIE should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.43, ERIE belongs to the best of the industry, outperforming 86.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.89% 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 13.63% yearly.
Looking at the last year, ERIE shows a quite strong growth in Revenue. The Revenue has grown by 16.10% 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)26.89%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%11.34%
Revenue 1Y (TTM)16.1%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%12.34%
3.2 Future
The Earnings Per Share is expected to grow by 10.59% on average over the next years. This is quite good.
Based on estimates for the next years, ERIE will show a quite strong growth in Revenue. The Revenue will grow by 8.65% on average per year.
EPS Next Y11.15%
EPS Next 2Y10.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.48%
Revenue Next 2Y8.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.40, ERIE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ERIE is valued a bit more expensive than 76.22% of the companies in the same industry.
ERIE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 26.28, which means the current valuation is very expensive for ERIE.
ERIE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ERIE is more expensive than 77.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, ERIE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 26.28 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERIE is valued a bit more expensive than the industry average as 78.32% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.66 | ||
| 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)2.82
PEG (5Y)2.3
EPS Next 2Y10.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
ERIE's Dividend Yield is comparable with the industry average which is at 3.17.
ERIE's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
On average, the dividend of ERIE grows each year by 7.09%, which is quite nice.
ERIE has paid a dividend for at least 10 years, which is 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
39.56% of the earnings are spent on dividend by ERIE. This is a low number and sustainable payout ratio.
ERIE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.56%
EPS Next 2Y10.59%
EPS Next 3YN/A
368.92
-3.79 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners38%
Inst Owner Change12.41%
Ins Owners9.26%
Ins Owner Change0%
Market Cap19.29B
Analysts82.5
Price TargetN/A
Short Float %5.85%
Short Ratio9.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend4.54
Dividend Growth(5Y)7.09%
DP39.56%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.35%
Min EPS beat(2)-0.66%
Max EPS beat(2)3.37%
EPS beat(4)3
Avg EPS beat(4)5.94%
Min EPS beat(4)-0.66%
Max EPS beat(4)19.17%
EPS beat(8)7
Avg EPS beat(8)8.91%
EPS beat(12)7
Avg EPS beat(12)3.62%
EPS beat(16)9
Avg EPS beat(16)1.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-0.51%
Revenue beat(4)2
Avg Revenue beat(4)1.18%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)3.97%
Revenue beat(8)6
Avg Revenue beat(8)2.13%
Revenue beat(12)10
Avg Revenue beat(12)1.8%
Revenue beat(16)10
Avg Revenue beat(16)1.08%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.64%
EPS NY rev (1m)-8.49%
EPS NY rev (3m)-6.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-2.01%
Revenue NY rev (3m)-1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 26.28 | ||
| P/S | 5.08 | ||
| P/FCF | 39.66 | ||
| P/OCF | 31.56 | ||
| P/B | 9.71 | ||
| P/tB | 9.71 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.75
EY3.18%
EPS(NY)14.04
Fwd EY3.81%
FCF(TTM)9.3
FCFY2.52%
OCF(TTM)11.69
OCFY3.17%
SpS72.58
BVpS38
TBVpS38
PEG (NY)2.82
PEG (5Y)2.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.78% | ||
| ROE | 30.21% | ||
| ROCE | 32.43% | ||
| ROIC | 25.72% | ||
| ROICexc | 30.37% | ||
| ROICexgc | 30.37% | ||
| OM | 17.82% | ||
| PM (TTM) | 15.82% | ||
| GM | 17.82% | ||
| FCFM | 12.82% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 81.02% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 16.73 |
F-Score7
WACC9.1%
ROIC/WACC2.83
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)26.89%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%11.34%
EPS Next Y11.15%
EPS Next 2Y10.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.1%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%12.34%
Revenue Next Year9.48%
Revenue Next 2Y8.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y30.02%
EBIT growth 3Y28.6%
EBIT growth 5Y13.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y68.56%
FCF growth 3Y24.18%
FCF growth 5Y13.13%
OCF growth 1Y60.35%
OCF growth 3Y14.91%
OCF growth 5Y10.89%