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 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. This makes ERIE very considerable 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.
ERIE had positive earnings in each of the past 5 years.
In the past 5 years ERIE always reported a positive cash flow from operatings.
1.2 Ratios
ERIE has a better Return On Assets (20.78%) than 100.00% of its industry peers.
ERIE has a Return On Equity of 30.21%. This is amongst the best in the industry. ERIE outperforms 95.10% of its industry peers.
With an excellent Return On Invested Capital value of 25.72%, ERIE belongs to the best 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 4.47%.
The 3 year average ROIC (22.70%) for ERIE is below the current ROIC(25.72%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 15.82%, ERIE belongs to the top of the industry, outperforming 81.12% of the companies in the same industry.
ERIE's Profit Margin has improved in the last couple of years.
ERIE's Operating Margin of 17.82% is fine compared to the rest of the industry. ERIE outperforms 72.03% of its industry peers.
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
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 remains at a similar level 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 16.15. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 16.15, ERIE belongs to the top 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 | 16.15 |
ROIC/WACC2.9
WACC8.87%
2.3 Liquidity
ERIE has a Current Ratio of 1.43. 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 Current ratio of 1.43. This is amongst the best in the industry. ERIE outperforms 86.01% of its industry peers.
ERIE has a Quick Ratio of 1.43. 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 Quick ratio, with a value of 1.43, ERIE belongs to the top 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.
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 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)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
Based on estimates for the next years, ERIE will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.96% on average per year.
The Revenue is expected to grow by 10.67% on average over the next years. This is quite good.
EPS Next Y21.46%
EPS Next 2Y14.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.73%
Revenue Next 2Y10.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
The Price/Earnings ratio is 30.52, which means the current valuation is very expensive for ERIE.
ERIE's Price/Earnings ratio is a bit more expensive when compared to the industry. ERIE is more expensive than 76.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.98. ERIE is around the same levels.
Based on the Price/Forward Earnings ratio of 23.64, the valuation of ERIE can be described as rather expensive.
72.73% of the companies in the same industry are cheaper than ERIE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ERIE to the average of the S&P500 Index (21.38), we can say ERIE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.52 | ||
| Fwd PE | 23.64 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERIE is valued a bit more expensive than the industry average as 70.63% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.55 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ERIE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ERIE has an outstanding profitability rating, which may justify a higher PE ratio.
ERIE's earnings are expected to grow with 14.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)2.24
EPS Next 2Y14.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.57%, ERIE has a reasonable but not impressive dividend return.
ERIE's Dividend Yield is comparable with the industry average which is at 3.22.
ERIE's Dividend Yield is slightly below the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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
ERIE pays out 39.56% of its income as dividend. This is a sustainable payout ratio.
ERIE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.56%
EPS Next 2Y14.96%
EPS Next 3YN/A
358.62
+2.8 (+0.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners38%
Inst Owner Change1.54%
Ins Owners9.26%
Ins Owner Change0%
Market Cap18.75B
Analysts82.5
Price TargetN/A
Short Float %5.54%
Short Ratio9.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)0%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.52 | ||
| Fwd PE | 23.64 | ||
| P/S | 4.94 | ||
| P/FCF | 38.55 | ||
| P/OCF | 30.68 | ||
| P/B | 9.44 | ||
| P/tB | 9.44 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.75
EY3.28%
EPS(NY)15.17
Fwd EY4.23%
FCF(TTM)9.3
FCFY2.59%
OCF(TTM)11.69
OCFY3.26%
SpS72.58
BVpS38
TBVpS38
PEG (NY)1.42
PEG (5Y)2.24
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 | 16.15 |
F-Score7
WACC8.87%
ROIC/WACC2.9
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 Y21.46%
EPS Next 2Y14.96%
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 Year11.73%
Revenue Next 2Y10.67%
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%