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 145 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 is valued quite expensively, but it does show have an excellent growth rating. With these ratings, ERIE could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ERIE was profitable.
ERIE had a positive operating cash flow in the past year.
Each year in the past 5 years ERIE has been profitable.
Each year in the past 5 years ERIE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.69%, ERIE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 29.71%, ERIE belongs to the best of the industry, outperforming 96.55% 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 last Return On Invested Capital (25.35%) for ERIE is above the 3 year average (22.70%), which is a sign of increasing profitability.
| 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's Profit Margin of 15.73% is amongst the best of the industry. ERIE outperforms 83.45% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
ERIE's Operating Margin of 17.65% is fine compared to the rest of the industry. ERIE outperforms 77.24% of its industry peers.
ERIE's Operating Margin has improved in the last couple of years.
ERIE has a better Gross Margin (17.65%) than 87.59% of its industry peers.
ERIE's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, ERIE has more shares outstanding
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 16.04. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
ERIE's Altman-Z score of 16.04 is amongst the best of the industry. ERIE outperforms 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 | 16.04 |
ROIC/WACC2.79
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.38 indicates that ERIE should not have too much problems paying its short term obligations.
ERIE has a Current ratio of 1.38. This is amongst the best in the industry. ERIE outperforms 86.90% of its industry peers.
ERIE has a Quick 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.
The Quick ratio of ERIE (1.38) is better than 86.90% of its industry peers.
| 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.
The Earnings Per Share has been growing by 13.63% on average over the past years. This is quite good.
Looking at the last year, ERIE shows a quite strong growth in Revenue. The Revenue has grown by 14.91% in the last year.
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
Based on estimates for the next years, ERIE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.59% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 30.07 indicates a quite expensive valuation of ERIE.
ERIE's Price/Earnings ratio is a bit more expensive when compared to the industry. ERIE is more expensive than 75.17% of the companies in the same industry.
ERIE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
ERIE is valuated quite expensively with a Price/Forward Earnings ratio of 25.16.
75.86% of the companies in the same industry are cheaper than ERIE, based on the Price/Forward Earnings ratio.
ERIE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.07 | ||
| Fwd PE | 25.16 |
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 73.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.22 | ||
| 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.
ERIE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.7
PEG (5Y)2.21
EPS Next 2Y10.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.54%.
ERIE's Dividend Yield is comparable with the industry average which is at 3.48.
Compared to the average S&P500 Dividend Yield of 2.34, ERIE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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.
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
353.32
-0.85 (-0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners43.98%
Inst Owner Change-0.57%
Ins Owners9.21%
Ins Owner Change0%
Market Cap18.48B
Analysts82.5
Price TargetN/A
Short Float %6.55%
Short Ratio12.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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)-8.49%
Revenue NQ rev (1m)2.07%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.07 | ||
| Fwd PE | 25.16 | ||
| P/S | 4.73 | ||
| P/FCF | 36.22 | ||
| P/OCF | 28.77 | ||
| P/B | 8.94 | ||
| P/tB | 8.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.75
EY3.33%
EPS(NY)14.04
Fwd EY3.97%
FCF(TTM)9.76
FCFY2.76%
OCF(TTM)12.28
OCFY3.48%
SpS74.66
BVpS39.54
TBVpS39.54
PEG (NY)2.7
PEG (5Y)2.21
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 | 16.04 |
F-Score7
WACC9.08%
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)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%