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%)
We assign a fundamental rating of 7 out of 10 to ERIE. ERIE was compared to 146 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 valied quite expensively at the moment, while 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.
ERIE had a positive operating cash flow in the past year.
Each year in the past 5 years ERIE has been profitable.
In the past 5 years ERIE always reported a positive cash flow from operatings.
1.2 Ratios
ERIE has a better Return On Assets (19.98%) than 99.32% of its industry peers.
ERIE has a better Return On Equity (28.61%) than 94.56% of its industry peers.
The Return On Invested Capital of ERIE (24.43%) is better than 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 4.50%.
The last Return On Invested Capital (24.43%) for ERIE is above the 3 year average (22.70%), which is a sign of increasing profitability.
| 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
ERIE has a better Profit Margin (15.73%) than 85.03% 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 17.57%, ERIE is in the better half of the industry, outperforming 73.47% 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 (17.57%) than 87.76% 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
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
An Altman-Z score of 13.39 indicates that ERIE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.39, ERIE belongs to the best of the industry, outperforming 98.64% 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 | 13.39 |
ROIC/WACC2.79
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ERIE should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.47, ERIE belongs to the best 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.
The Quick ratio of ERIE (1.47) is better than 86.39% of its industry peers.
| 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 16.00% 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.
ERIE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.10%.
The Revenue has been growing by 8.91% on average over the past years. This is quite good.
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
Based on estimates for the next years, ERIE will show a small growth in Earnings Per Share. The EPS will grow by 6.51% on average per year.
ERIE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
With a Price/Earnings ratio of 23.60, ERIE is valued on the expensive side.
75.51% of the companies in the same industry are cheaper than ERIE, based on the Price/Earnings ratio.
ERIE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.80, ERIE is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ERIE is valued a bit more expensive than 72.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, ERIE is valued at the same level.
| 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 the industry average as 63.27% of the companies are valued more cheaply.
| 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 ERIE does not grow enough to justify the current Price/Earnings ratio.
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
With a Yearly Dividend Yield of 1.76%, ERIE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, 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
The dividend of ERIE is nicely growing with an annual growth rate of 7.09%!
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
ERIE pays out 39.35% of its income as dividend. This is a 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 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 Change-0.07%
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%
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 | 13.39 |
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.