SAFETY INSURANCE GROUP INC (SAFT) Stock Fundamental Analysis
USA - NASDAQ:SAFT - US78648T1007 - Common Stock
70.13 USD
+0.61 (+0.88%)
70.13 USD
0 (0%)
Taking everything into account, SAFT scores 6 out of 10 in our fundamental rating. SAFT was compared to 147 industry peers in the Insurance industry. While SAFT has a great health rating, its profitability is only average at the moment. SAFT is not valued too expensively and it also shows a decent growth rate. Finally SAFT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SAFT was profitable.
SAFT had a positive operating cash flow in the past year.
Each year in the past 5 years SAFT has been profitable.
SAFT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAFT has a Return On Assets of 3.57%. This is in the better half of the industry: SAFT outperforms 72.79% of its industry peers.
SAFT has a Return On Equity (9.67%) which is comparable to the rest of the industry.
SAFT has a Return On Invested Capital of 3.11%. This is in the better half of the industry: SAFT outperforms 63.27% of its industry peers.
SAFT had an Average Return On Invested Capital over the past 3 years of 1.68%. This is below the industry average of 4.46%.
The last Return On Invested Capital (3.11%) for SAFT is above the 3 year average (1.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.67% | ||
| ROIC | 3.11% |
ROA(3y)2.12%
ROA(5y)3.86%
ROE(3y)5.52%
ROE(5y)9.28%
ROIC(3y)1.68%
ROIC(5y)3.49%
1.3 Margins
SAFT has a Profit Margin (7.15%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SAFT has declined.
Looking at the Operating Margin, with a value of 7.65%, SAFT is doing worse than 66.67% of the companies in the same industry.
SAFT's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.65% | ||
| PM (TTM) | 7.15% | ||
| GM | N/A |
OM growth 3Y-27.11%
OM growth 5Y-14.24%
PM growth 3Y-25.04%
PM growth 5Y-10.77%
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 SAFT is destroying value.
SAFT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SAFT has been reduced compared to 5 years ago.
SAFT has a better debt/assets ratio than last year.
2.2 Solvency
SAFT has an Altman-Z score of 1.65. This is a bad value and indicates that SAFT is not financially healthy and even has some risk of bankruptcy.
SAFT's Altman-Z score of 1.65 is amongst the best of the industry. SAFT outperforms 87.76% of its industry peers.
The Debt to FCF ratio of SAFT is 0.19, which is an excellent value as it means it would take SAFT, only 0.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.19, SAFT belongs to the top of the industry, outperforming 91.16% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that SAFT is not too dependend on debt financing.
The Debt to Equity ratio of SAFT (0.03) is better than 86.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.37
WACC8.42%
2.3 Liquidity
SAFT has a Current Ratio of 3.32. This indicates that SAFT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SAFT (3.32) is better than 94.56% of its industry peers.
A Quick Ratio of 3.32 indicates that SAFT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.32, SAFT belongs to the top of the industry, outperforming 94.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 |
3. Growth
3.1 Past
SAFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.90%, which is quite impressive.
SAFT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.69% yearly.
SAFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.83%.
SAFT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.66% yearly.
EPS 1Y (TTM)44.9%
EPS 3Y-13.31%
EPS 5Y-2.69%
EPS Q2Q%22.88%
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.39%
Revenue growth 5Y4.66%
Sales Q2Q%14.56%
3.2 Future
The Earnings Per Share is expected to grow by 15.95% on average over the next years. This is quite good.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y33.62%
EPS Next 2Y24.86%
EPS Next 3Y15.95%
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
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.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
SAFT is valuated correctly with a Price/Earnings ratio of 14.11.
SAFT's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.57. SAFT is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.82 indicates a reasonable valuation of SAFT.
The rest of the industry has a similar Price/Forward Earnings ratio as SAFT.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, SAFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
SAFT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SAFT is valued a bit cheaper than the industry average as 65.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.59 | ||
| EV/EBITDA | 10.34 |
4.3 Compensation for Growth
SAFT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SAFT's earnings are expected to grow with 15.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y24.86%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.39%, SAFT is a good candidate for dividend investing.
SAFT's Dividend Yield is rather good when compared to the industry average which is at 3.31. SAFT pays more dividend than 86.39% of the companies in the same industry.
SAFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
5.2 History
The dividend of SAFT has a limited annual growth rate of 0.95%.
SAFT has paid a dividend for at least 10 years, which is a reliable track record.
SAFT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.95%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
63.13% of the earnings are spent on dividend by SAFT. This is not a sustainable payout ratio.
SAFT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.13%
EPS Next 2Y24.86%
EPS Next 3Y15.95%
70.13
+0.61 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.65%
Inst Owner Change0.14%
Ins Owners2.03%
Ins Owner Change0.53%
Market Cap1.04B
Revenue(TTM)1.18B
Net Income(TTM)84.47M
Analysts43.33
Price TargetN/A
Short Float %0.66%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend3.6
Dividend Growth(5Y)0.95%
DP63.13%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.46%
Min EPS beat(2)-11.15%
Max EPS beat(2)16.08%
EPS beat(4)1
Avg EPS beat(4)-9.82%
Min EPS beat(4)-22.97%
Max EPS beat(4)16.08%
EPS beat(8)2
Avg EPS beat(8)1.55%
EPS beat(12)2
Avg EPS beat(12)-18.65%
EPS beat(16)5
Avg EPS beat(16)-4.8%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 9.82 | ||
| P/S | 0.88 | ||
| P/FCF | 6.59 | ||
| P/OCF | 6.54 | ||
| P/B | 1.2 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 10.34 |
EPS(TTM)4.97
EY7.09%
EPS(NY)7.14
Fwd EY10.18%
FCF(TTM)10.65
FCFY15.19%
OCF(TTM)10.73
OCFY15.3%
SpS79.34
BVpS58.65
TBVpS57.01
PEG (NY)0.42
PEG (5Y)N/A
Graham Number80.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.67% | ||
| ROCE | 3.99% | ||
| ROIC | 3.11% | ||
| ROICexc | 3.18% | ||
| ROICexgc | 3.61% | ||
| OM | 7.65% | ||
| PM (TTM) | 7.15% | ||
| GM | N/A | ||
| FCFM | 13.42% |
ROA(3y)2.12%
ROA(5y)3.86%
ROE(3y)5.52%
ROE(5y)9.28%
ROIC(3y)1.68%
ROIC(5y)3.49%
ROICexc(3y)1.71%
ROICexc(5y)3.59%
ROICexgc(3y)1.92%
ROICexgc(5y)3.94%
ROCE(3y)2.16%
ROCE(5y)4.49%
ROICexgc growth 3Y-22.13%
ROICexgc growth 5Y-12.04%
ROICexc growth 3Y-23.26%
ROICexc growth 5Y-12.45%
OM growth 3Y-27.11%
OM growth 5Y-14.24%
PM growth 3Y-25.04%
PM growth 5Y-10.77%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.19 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 13.21% | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 161.16% | ||
| Profit Quality | 187.73% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 | ||
| Altman-Z | 1.65 |
F-Score7
WACC8.42%
ROIC/WACC0.37
Cap/Depr(3y)34.53%
Cap/Depr(5y)70.89%
Cap/Sales(3y)0.29%
Cap/Sales(5y)0.6%
Profit Quality(3y)178.45%
Profit Quality(5y)141.71%
High Growth Momentum
Growth
EPS 1Y (TTM)44.9%
EPS 3Y-13.31%
EPS 5Y-2.69%
EPS Q2Q%22.88%
EPS Next Y33.62%
EPS Next 2Y24.86%
EPS Next 3Y15.95%
EPS Next 5YN/A
Revenue 1Y (TTM)16.83%
Revenue growth 3Y8.39%
Revenue growth 5Y4.66%
Sales Q2Q%14.56%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y116.8%
EBIT growth 3Y-21%
EBIT growth 5Y-10.24%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y443.06%
FCF growth 3Y-2.27%
FCF growth 5Y3.85%
OCF growth 1Y411.96%
OCF growth 3Y-3.09%
OCF growth 5Y2.73%