SAFETY INSURANCE GROUP INC (SAFT) Stock Fundamental Analysis
USA - NASDAQ:SAFT - US78648T1007 - Common Stock
76.82 USD
+0.05 (+0.07%)
76.82 USD
0 (0%)
SAFT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 146 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.
In the past year SAFT had a positive cash flow from operations.
SAFT had positive earnings in each of the past 5 years.
SAFT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAFT has a better Return On Assets (3.57%) than 71.23% of its industry peers.
SAFT has a Return On Equity (9.67%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.11%, SAFT perfoms like the industry average, outperforming 59.59% of the companies in the same industry.
SAFT had an Average Return On Invested Capital over the past 3 years of 1.68%. This is below the industry average of 4.51%.
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's Profit Margin of 7.15% is in line compared to the rest of the industry. SAFT outperforms 46.58% of its industry peers.
SAFT's Profit Margin has declined in the last couple of years.
SAFT has a worse Operating Margin (7.65%) than 66.44% of its industry peers.
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.
The number of shares outstanding for SAFT has been increased compared to 1 year ago.
Compared to 5 years ago, SAFT has less shares outstanding
The debt/assets ratio for SAFT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that SAFT is in the distress zone and has some risk of bankruptcy.
SAFT's Altman-Z score of 1.69 is amongst the best of the industry. SAFT outperforms 87.67% of its industry peers.
SAFT has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of 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 91.10% of the companies in the same industry.
SAFT has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
SAFT has a better Debt to Equity ratio (0.03) than 86.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.36
WACC8.53%
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.
SAFT has a Current ratio of 3.32. This is amongst the best in the industry. SAFT outperforms 94.52% of its industry peers.
SAFT has a Quick Ratio of 3.32. This indicates that SAFT is financially healthy and has no problem in meeting its short term obligations.
SAFT's Quick ratio of 3.32 is amongst the best of the industry. SAFT outperforms 94.52% of its industry peers.
| 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%.
The Revenue has been growing slightly by 4.66% on average over the past years.
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
SAFT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.95% yearly.
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
Based on the Price/Earnings ratio of 15.46, the valuation of SAFT can be described as correct.
60.27% of the companies in the same industry are cheaper than SAFT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.91. SAFT is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.76, which indicates a very decent valuation of SAFT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAFT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, SAFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAFT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAFT indicates a somewhat cheap valuation: SAFT is cheaper than 63.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 11.34 |
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.
A more expensive valuation may be justified as SAFT's earnings are expected to grow with 15.95% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y24.86%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
SAFT has a Yearly Dividend Yield of 5.01%, which is a nice return.
Compared to an average industry Dividend Yield of 3.46, SAFT pays a better dividend. On top of this SAFT pays more dividend than 83.56% of the companies listed in the same industry.
SAFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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
SAFT pays out 63.13% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SAFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.13%
EPS Next 2Y24.86%
EPS Next 3Y15.95%
76.82
+0.05 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.65%
Inst Owner Change-0.13%
Ins Owners2.03%
Ins Owner Change0.53%
Market Cap1.14B
Revenue(TTM)1.18B
Net Income(TTM)84.47M
Analysts43.33
Price TargetN/A
Short Float %0.73%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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 | 15.46 | ||
| Fwd PE | 10.76 | ||
| P/S | 0.97 | ||
| P/FCF | 7.21 | ||
| P/OCF | 7.16 | ||
| P/B | 1.31 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 11.34 |
EPS(TTM)4.97
EY6.47%
EPS(NY)7.14
Fwd EY9.29%
FCF(TTM)10.65
FCFY13.86%
OCF(TTM)10.73
OCFY13.96%
SpS79.34
BVpS58.65
TBVpS57.01
PEG (NY)0.46
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 | 1.69 |
F-Score7
WACC8.53%
ROIC/WACC0.36
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%
SAFETY INSURANCE GROUP INC / SAFT FAQ
What is the fundamental rating for SAFT stock?
ChartMill assigns a fundamental rating of 6 / 10 to SAFT.
What is the valuation status of SAFETY INSURANCE GROUP INC (SAFT) stock?
ChartMill assigns a valuation rating of 5 / 10 to SAFETY INSURANCE GROUP INC (SAFT). This can be considered as Fairly Valued.
Can you provide the profitability details for SAFETY INSURANCE GROUP INC?
SAFETY INSURANCE GROUP INC (SAFT) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SAFT stock?
The Price/Earnings (PE) ratio for SAFETY INSURANCE GROUP INC (SAFT) is 15.46 and the Price/Book (PB) ratio is 1.31.
What is the financial health of SAFETY INSURANCE GROUP INC (SAFT) stock?
The financial health rating of SAFETY INSURANCE GROUP INC (SAFT) is 8 / 10.