KEMPER CORP (KMPR) Stock Fundamental Analysis
NYSE:KMPR - New York Stock Exchange, Inc. - US4884011002 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KMPR. KMPR was compared to 142 industry peers in the Insurance industry. KMPR scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. KMPR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KMPR had positive earnings in the past year.
In the past year KMPR had a positive cash flow from operations.
In multiple years KMPR reported negative net income over the last 5 years.
In multiple years KMPR reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of KMPR (2.78%) is better than 64.79% of its industry peers.
KMPR's Return On Equity of 11.87% is in line compared to the rest of the industry. KMPR outperforms 58.45% of its industry peers.
KMPR has a better Return On Invested Capital (3.07%) than 65.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 11.87% | ||
| ROIC | 3.07% |
ROA(3y)-0.59%
ROA(5y)0.05%
ROE(3y)-3.4%
ROE(5y)-0.86%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KMPR has a Profit Margin (7.37%) which is comparable to the rest of the industry.
KMPR's Profit Margin has declined in the last couple of years.
KMPR has a Operating Margin of 9.55%. This is comparable to the rest of the industry: KMPR outperforms 47.18% of its industry peers.
In the last couple of years the Operating Margin of KMPR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.55% | ||
| PM (TTM) | 7.37% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y-4.87%
PM growth 3YN/A
PM growth 5Y-8.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMPR is destroying value.
KMPR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KMPR has been reduced compared to 5 years ago.
KMPR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that KMPR is in the distress zone and has some risk of bankruptcy.
KMPR has a better Altman-Z score (0.85) than 78.87% of its industry peers.
KMPR has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
KMPR has a Debt to FCF ratio (1.99) which is in line with its industry peers.
A Debt/Equity ratio of 0.32 indicates that KMPR is not too dependend on debt financing.
KMPR's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. KMPR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.41
WACC7.51%
2.3 Liquidity
A Current Ratio of 0.26 indicates that KMPR may have some problems paying its short term obligations.
KMPR has a Current ratio of 0.26. This is in the better half of the industry: KMPR outperforms 68.31% of its industry peers.
KMPR has a Quick Ratio of 0.26. This is a bad value and indicates that KMPR is not financially healthy enough and could expect problems in meeting its short term obligations.
KMPR's Quick ratio of 0.26 is fine compared to the rest of the industry. KMPR outperforms 68.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 462.61% over the past year.
KMPR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.21% yearly.
Looking at the last year, KMPR shows a decrease in Revenue. The Revenue has decreased by -1.92% in the last year.
KMPR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.11% yearly.
EPS 1Y (TTM)462.61%
EPS 3YN/A
EPS 5Y-1.21%
EPS Q2Q%54.21%
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y-6.52%
Revenue growth 5Y-1.11%
Sales Q2Q%5.43%
3.2 Future
The Earnings Per Share is expected to grow by 5.81% on average over the next years.
Based on estimates for the next years, KMPR will show a quite strong growth in Revenue. The Revenue will grow by 8.79% on average per year.
EPS Next Y7.18%
EPS Next 2Y7.29%
EPS Next 3Y5.81%
EPS Next 5YN/A
Revenue Next Year11.06%
Revenue Next 2Y11.61%
Revenue Next 3Y8.79%
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 9.73 indicates a reasonable valuation of KMPR.
Based on the Price/Earnings ratio, KMPR is valued a bit cheaper than 68.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, KMPR is valued rather cheaply.
The Price/Forward Earnings ratio is 9.29, which indicates a very decent valuation of KMPR.
KMPR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.06. KMPR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KMPR.
KMPR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.5 | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y7.29%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
KMPR has a Yearly Dividend Yield of 2.01%.
KMPR's Dividend Yield is comparable with the industry average which is at 3.09.
Compared to an average S&P500 Dividend Yield of 2.38, KMPR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of KMPR has a limited annual growth rate of 4.04%.
KMPR has paid a dividend for at least 10 years, which is a reliable track record.
KMPR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.04%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
23.34% of the earnings are spent on dividend by KMPR. This is a low number and sustainable payout ratio.
KMPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.34%
EPS Next 2Y7.29%
EPS Next 3Y5.81%
62.97
-0.54 (-0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.12%
Inst Owner Change2.81%
Ins Owners4.73%
Ins Owner Change0.81%
Market Cap4.03B
Analysts80
Price Target86.09 (36.72%)
Short Float %1.8%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend1.25
Dividend Growth(5Y)4.04%
DP23.34%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.14%
Min EPS beat(2)8.6%
Max EPS beat(2)29.68%
EPS beat(4)4
Avg EPS beat(4)17.47%
Min EPS beat(4)8.6%
Max EPS beat(4)29.68%
EPS beat(8)6
Avg EPS beat(8)11.08%
EPS beat(12)10
Avg EPS beat(12)10.89%
EPS beat(16)11
Avg EPS beat(16)-130.79%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)-2.1%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-2.26%
Max Revenue beat(4)3.64%
Revenue beat(8)3
Avg Revenue beat(8)-3.96%
Revenue beat(12)6
Avg Revenue beat(12)-2.74%
Revenue beat(16)10
Avg Revenue beat(16)-0.63%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.79%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)0.92%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)-2.42%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)-5.4%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.86 | ||
| P/FCF | 8.5 | ||
| P/OCF | 7.75 | ||
| P/B | 1.38 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)6.47
EY10.27%
EPS(NY)6.78
Fwd EY10.77%
FCF(TTM)7.41
FCFY11.77%
OCF(TTM)8.12
OCFY12.9%
SpS73.43
BVpS45.59
TBVpS26.05
PEG (NY)1.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 11.87% | ||
| ROCE | 3.82% | ||
| ROIC | 3.07% | ||
| ROICexc | 3.1% | ||
| ROICexgc | 3.62% | ||
| OM | 9.55% | ||
| PM (TTM) | 7.37% | ||
| GM | N/A | ||
| FCFM | 10.09% |
ROA(3y)-0.59%
ROA(5y)0.05%
ROE(3y)-3.4%
ROE(5y)-0.86%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-4.68%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.79%
OM growth 3YN/A
OM growth 5Y-4.87%
PM growth 3YN/A
PM growth 5Y-8.69%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 88.37% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 7.61 | ||
| Cash Conversion | 103.9% | ||
| Profit Quality | 137% | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 0.85 |
F-Score7
WACC7.51%
ROIC/WACC0.41
Cap/Depr(3y)78.11%
Cap/Depr(5y)77.87%
Cap/Sales(3y)0.93%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)462.61%
EPS 3YN/A
EPS 5Y-1.21%
EPS Q2Q%54.21%
EPS Next Y7.18%
EPS Next 2Y7.29%
EPS Next 3Y5.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.92%
Revenue growth 3Y-6.52%
Revenue growth 5Y-1.11%
Sales Q2Q%5.43%
Revenue Next Year11.06%
Revenue Next 2Y11.61%
Revenue Next 3Y8.79%
Revenue Next 5YN/A
EBIT growth 1Y84.77%
EBIT growth 3YN/A
EBIT growth 5Y-5.93%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y324.04%
FCF growth 3Y4.02%
FCF growth 5Y-6.04%
OCF growth 1Y378.17%
OCF growth 3Y2.97%
OCF growth 5Y-6.45%