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 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.
In the past 5 years ERIE always reported a positive cash flow from operatings.
1.2 Ratios
ERIE's Return On Assets of 20.69% is amongst the best of the industry. ERIE outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 29.71%, ERIE belongs to the best of the industry, outperforming 96.50% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.35%, ERIE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERIE is significantly above the industry average of 4.07%.
The 3 year average ROIC (22.70%) for ERIE is below the current ROIC(25.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.69% | ||
| ROE | 29.71% | ||
| ROIC | 25.35% |
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 15.73%. This is amongst the best in the industry. ERIE outperforms 83.22% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.65%, ERIE is doing good in the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of ERIE has grown nicely.
ERIE's Gross Margin of 17.65% is amongst the best of the industry. ERIE outperforms 87.41% of its industry peers.
In the last couple of years the Gross Margin of ERIE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.65% | ||
| PM (TTM) | 15.73% | ||
| GM | 17.65% |
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.
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.
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
ERIE has an Altman-Z score of 15.97. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ERIE (15.97) is better than 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 | 15.97 |
ROIC/WACC2.65
WACC9.58%
2.3 Liquidity
ERIE has a Current Ratio of 1.38. 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 better Current ratio (1.38) than 86.71% of its industry peers.
A Quick Ratio of 1.38 indicates that ERIE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.38, ERIE belongs to the top of the industry, outperforming 86.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.89% 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.
The Revenue has grown by 14.91% in the past year. This is quite good.
ERIE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.91% yearly.
EPS 1Y (TTM)26.89%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%11.34%
Revenue 1Y (TTM)14.91%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.67, which means the current valuation is very expensive for ERIE.
77.62% of the companies in the same industry are cheaper than ERIE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ERIE to the average of the S&P500 Index (26.34), we can say ERIE is valued inline with the index average.
The Price/Forward Earnings ratio is 24.83, which indicates a rather expensive current valuation of ERIE.
77.62% of the companies in the same industry are cheaper than ERIE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, ERIE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.67 | ||
| Fwd PE | 24.83 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERIE is valued a bit more expensive than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.73 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ERIE does not grow enough to justify the current Price/Earnings ratio.
ERIE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.66
PEG (5Y)2.18
EPS Next 2Y10.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
ERIE's Dividend Yield is comparable with the industry average which is at 3.46.
Compared to the average S&P500 Dividend Yield of 2.40, ERIE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of ERIE is nicely growing with an annual growth rate of 7.09%!
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
39.35% 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 earnings are growing more, so the dividend growth is sustainable.
DP39.35%
EPS Next 2Y10.59%
EPS Next 3YN/A
348.57
-2.88 (-0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners43.98%
Inst Owner Change12.39%
Ins Owners9.21%
Ins Owner Change0%
Market Cap18.23B
Analysts82.5
Price TargetN/A
Short Float %6.15%
Short Ratio10.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend4.54
Dividend Growth(5Y)7.09%
DP39.35%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.34%
Min EPS beat(2)-16.06%
Max EPS beat(2)3.37%
EPS beat(4)2
Avg EPS beat(4)1.45%
Min EPS beat(4)-16.06%
Max EPS beat(4)19.17%
EPS beat(8)6
Avg EPS beat(8)5.74%
EPS beat(12)7
Avg EPS beat(12)3.1%
EPS beat(16)9
Avg EPS beat(16)1.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)3.97%
Revenue beat(8)5
Avg Revenue beat(8)1.34%
Revenue beat(12)9
Avg Revenue beat(12)1.56%
Revenue beat(16)10
Avg Revenue beat(16)1.07%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.64%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.67 | ||
| Fwd PE | 24.83 | ||
| P/S | 4.67 | ||
| P/FCF | 35.73 | ||
| P/OCF | 28.38 | ||
| P/B | 8.82 | ||
| P/tB | 8.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.75
EY3.37%
EPS(NY)14.04
Fwd EY4.03%
FCF(TTM)9.76
FCFY2.8%
OCF(TTM)12.28
OCFY3.52%
SpS74.66
BVpS39.54
TBVpS39.54
PEG (NY)2.66
PEG (5Y)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.69% | ||
| ROE | 29.71% | ||
| ROCE | 31.96% | ||
| ROIC | 25.35% | ||
| ROICexc | 29.26% | ||
| ROICexgc | 29.26% | ||
| OM | 17.65% | ||
| PM (TTM) | 15.73% | ||
| GM | 17.65% | ||
| FCFM | 13.07% |
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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 83.05% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 15.97 |
F-Score7
WACC9.58%
ROIC/WACC2.65
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)14.91%
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 1Y25.6%
EBIT growth 3Y28.6%
EBIT growth 5Y13.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.51%
FCF growth 3Y24.18%
FCF growth 5Y13.13%
OCF growth 1Y64.41%
OCF growth 3Y14.91%
OCF growth 5Y10.89%