ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
USA - NASDAQ:ERIE - US29530P1021 - Common Stock
292.64 USD
-17 (-5.49%)
292.64 USD
0 (0%)
ERIE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. ERIE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ERIE is quite expensive at the moment. It does show a decent growth rate. These ratings would make ERIE suitable 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.
ERIE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERIE's Return On Assets of 19.98% is amongst the best of the industry. ERIE outperforms 99.32% of its industry peers.
ERIE's Return On Equity of 28.61% is amongst the best of the industry. ERIE outperforms 94.56% of its industry peers.
ERIE has a Return On Invested Capital of 24.43%. This is amongst the best in 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 4.49%.
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 85.03% of the companies in the same industry.
In the last couple of years the Profit Margin of ERIE has grown nicely.
ERIE has a better Operating Margin (17.57%) than 73.47% of its industry peers.
ERIE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 17.57%, ERIE belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
In the last couple of years the Gross Margin of ERIE has grown nicely.
| 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
ERIE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ERIE has about the same amout of shares outstanding than it did 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 13.96. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
ERIE has a Altman-Z score of 13.96. This is amongst the best in the industry. ERIE outperforms 98.64% 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 | 13.96 |
ROIC/WACC2.79
WACC8.75%
2.3 Liquidity
ERIE has a Current Ratio of 1.47. 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 Current ratio, with a value of 1.47, ERIE belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
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 86.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
ERIE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.00%, which is quite good.
ERIE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.63% yearly.
The Revenue has grown by 16.10% in the past year. This is quite good.
Measured over the past years, ERIE shows a quite strong growth in Revenue. The Revenue has been growing by 8.91% on average per year.
EPS 1Y (TTM)16%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%14.38%
Revenue 1Y (TTM)16.1%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%6.69%
3.2 Future
The Earnings Per Share is expected to grow by 6.51% on average over the next years.
Based on estimates for the next years, ERIE will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
EPS Next Y10.71%
EPS Next 2Y13.47%
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
Based on the Price/Earnings ratio of 23.60, the valuation of ERIE can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ERIE indicates a slightly more expensive valuation: ERIE is more expensive than 77.55% of the companies listed in the same industry.
ERIE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.80, 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 73.47% of the companies listed in the same industry.
ERIE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERIE is valued a bit more expensive than 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.13 | ||
| 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)2.2
PEG (5Y)1.73
EPS Next 2Y13.47%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.76%.
Compared to an average industry Dividend Yield of 3.34, ERIE has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, ERIE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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.
ERIE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.35%
EPS Next 2Y13.47%
EPS Next 3Y6.51%
292.64
-17 (-5.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners40.49%
Inst Owner Change0.01%
Ins Owners9.21%
Ins Owner Change0%
Market Cap15.30B
Revenue(TTM)3.80B
Net Income(TTM)624.96M
Analysts85.71
Price TargetN/A
Short Float %8.1%
Short Ratio16.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)-0.44%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 19.8 | ||
| P/S | 3.85 | ||
| P/FCF | 27.13 | ||
| P/OCF | 22.23 | ||
| P/B | 7 | ||
| P/tB | 7 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.4
EY4.24%
EPS(NY)14.78
Fwd EY5.05%
FCF(TTM)10.79
FCFY3.69%
OCF(TTM)13.16
OCFY4.5%
SpS75.99
BVpS41.78
TBVpS41.78
PEG (NY)2.2
PEG (5Y)1.73
Graham Number107.96
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%
ROICexgc growth 3Y18.69%
ROICexgc 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 | 13.96 |
F-Score7
WACC8.75%
ROIC/WACC2.79
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)16%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%14.38%
EPS Next Y10.71%
EPS Next 2Y13.47%
EPS Next 3Y6.51%
EPS Next 5YN/A
Revenue 1Y (TTM)16.1%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%6.69%
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%
ERIE INDEMNITY COMPANY-CL A / ERIE FAQ
What is the ChartMill fundamental rating of ERIE INDEMNITY COMPANY-CL A (ERIE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ERIE.
What is the valuation status for ERIE stock?
ChartMill assigns a valuation rating of 1 / 10 to ERIE INDEMNITY COMPANY-CL A (ERIE). This can be considered as Overvalued.
What is the profitability of ERIE stock?
ERIE INDEMNITY COMPANY-CL A (ERIE) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ERIE INDEMNITY COMPANY-CL A (ERIE) stock?
The Price/Earnings (PE) ratio for ERIE INDEMNITY COMPANY-CL A (ERIE) is 23.6 and the Price/Book (PB) ratio is 7.
What is the earnings growth outlook for ERIE INDEMNITY COMPANY-CL A?
The Earnings per Share (EPS) of ERIE INDEMNITY COMPANY-CL A (ERIE) is expected to grow by 10.71% in the next year.