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 gets an excellent profitability rating and is at the same time showing great financial health properties. ERIE shows excellent growth, but is valued quite expensive already. With these ratings, ERIE could be worth investigating further 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.
In the past 5 years ERIE has always been profitable.
Each year in the past 5 years ERIE had a positive operating cash flow.
1.2 Ratios
ERIE has a Return On Assets of 19.70%. This is amongst the best in the industry. ERIE outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 29.00%, ERIE belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
ERIE's Return On Invested Capital of 24.99% is amongst the best of the industry. ERIE outperforms 100.00% 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 4.02%.
The last Return On Invested Capital (24.99%) for ERIE is above the 3 year average (19.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.7% | ||
| ROE | 29% | ||
| ROIC | 24.99% |
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 14.95%. This is in the better half of the industry: ERIE outperforms 78.42% of its industry peers.
In the last couple of years the Profit Margin of ERIE has grown nicely.
Looking at the Operating Margin, with a value of 17.04%, ERIE is in the better half of the industry, outperforming 71.94% of the companies in the same industry.
ERIE's Operating Margin has improved in the last couple of years.
ERIE has a better Gross Margin (17.04%) than 89.21% of its industry peers.
In the last couple of years the Gross Margin of ERIE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.04% | ||
| PM (TTM) | 14.95% | ||
| GM | 17.04% |
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
ERIE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ERIE has been increased compared to 1 year ago.
ERIE has more shares outstanding than it did 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 22.69. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
ERIE's Altman-Z score of 22.69 is amongst the best of the industry. ERIE outperforms 100.00% 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 | 22.69 |
ROIC/WACC2.9
WACC8.62%
2.3 Liquidity
ERIE has a Current Ratio of 1.32. This is a normal value and indicates that ERIE is financially healthy and should not expect problems in meeting its short term obligations.
ERIE's Current ratio of 1.32 is amongst the best of the industry. ERIE outperforms 87.05% of its industry peers.
ERIE has a Quick Ratio of 1.32. This is a normal value and indicates that ERIE is financially healthy and should not expect problems in meeting its short term obligations.
ERIE has a Quick ratio of 1.32. This is amongst the best in the industry. ERIE outperforms 87.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
ERIE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
The Earnings Per Share has been growing by 9.13% on average over the past years. This is quite good.
The Revenue has grown by 16.92% in the past year. This is quite good.
ERIE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
EPS 1Y (TTM)50%
EPS 3Y14.99%
EPS 5Y9.13%
EPS Q2Q%39.11%
Revenue 1Y (TTM)16.92%
Revenue growth 3Y8.82%
Revenue growth 5Y6.53%
Sales Q2Q%17.93%
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 15.84% yearly.
The Revenue is expected to grow by 14.32% on average over the next years. This is quite good.
EPS Next Y35.48%
EPS Next 2Y26.58%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue Next Year17.31%
Revenue Next 2Y14.32%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 52.07 indicates a quite expensive valuation of ERIE.
Based on the Price/Earnings ratio, ERIE is valued a bit more expensive than the industry average as 78.42% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 30.72, ERIE is valued quite expensively.
Based on the Price/Forward Earnings ratio of 38.63, the valuation of ERIE can be described as expensive.
Based on the Price/Forward Earnings ratio, ERIE is valued a bit more expensive than 79.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.18. ERIE is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.07 | ||
| Fwd PE | 38.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERIE indicates a slightly more expensive valuation: ERIE is more expensive than 77.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.82 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ERIE may justify a higher PE ratio.
A more expensive valuation may be justified as ERIE's earnings are expected to grow with 15.84% in the coming years.
PEG (NY)1.47
PEG (5Y)5.7
EPS Next 2Y26.58%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, ERIE is not a good candidate for dividend investing.
ERIE's Dividend Yield is slightly below the industry average, which is at 5.21.
With a Dividend Yield of 0.95, ERIE pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of ERIE grows each year by 7.15%, 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)7.15%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ERIE pays out 43.29% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ERIE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.29%
EPS Next 2Y26.58%
EPS Next 3Y15.84%
ERIE INDEMNITY COMPANY-CL A
NASDAQ:ERIE (10/8/2024, 9:47:56 AM)
527.965
+5.99 (+1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap27.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.07 | ||
| Fwd PE | 38.63 | ||
| 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)1.47
PEG (5Y)5.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.7% | ||
| ROE | 29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.04% | ||
| PM (TTM) | 14.95% | ||
| GM | 17.04% | ||
| 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 | 1.32 | ||
| Quick Ratio | 1.32 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y14.99%
EPS 5Y
EPS Q2Q%
EPS Next Y35.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.92%
Revenue growth 3Y8.82%
Revenue growth 5Y
Sales 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