SAFETY INSURANCE GROUP INC (SAFT) Stock Fundamental Analysis
NASDAQ:SAFT - Nasdaq - US78648T1007 - Common Stock - Currency: USD
Overall SAFT gets a fundamental rating of 5 out of 10. We evaluated SAFT against 143 industry peers in the Insurance industry. SAFT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SAFT has a correct valuation and a medium growth rate. 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
With a decent Return On Assets value of 3.10%, SAFT is doing good in the industry, outperforming 68.53% of the companies in the same industry.
SAFT has a Return On Equity of 8.50%. This is comparable to the rest of the industry: SAFT outperforms 41.26% of its industry peers.
SAFT has a Return On Invested Capital (2.57%) which is in line with 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 4.47%.
The last Return On Invested Capital (2.57%) for SAFT is above the 3 year average (1.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 8.5% | ||
| ROIC | 2.57% |
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 of 6.40%. This is comparable to the rest of the industry: SAFT outperforms 44.76% of its industry peers.
SAFT's Profit Margin has declined in the last couple of years.
SAFT has a Operating Margin of 6.49%. This is in the lower half of the industry: SAFT underperforms 62.24% of its industry peers.
SAFT's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.49% | ||
| PM (TTM) | 6.4% | ||
| 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
Compared to 1 year ago, SAFT has an improved debt to assets ratio.
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.
The Altman-Z score of SAFT (1.65) is better than 88.11% of its industry peers.
SAFT has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
SAFT has a Debt to FCF ratio of 0.24. This is amongst the best in the industry. SAFT outperforms 90.21% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that SAFT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.04, SAFT belongs to the top of the industry, outperforming 86.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.29
WACC8.78%
2.3 Liquidity
A Current Ratio of 2.34 indicates that SAFT has no problem at all paying its short term obligations.
SAFT has a better Current ratio (2.34) than 90.91% of its industry peers.
A Quick Ratio of 2.34 indicates that SAFT has no problem at all paying its short term obligations.
SAFT has a Quick ratio of 2.34. This is amongst the best in the industry. SAFT outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.34 |
3. Growth
3.1 Past
SAFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 458.54%, which is quite impressive.
The Earnings Per Share has been decreasing by -2.69% on average over the past years.
SAFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.93%.
Measured over the past years, SAFT shows a small growth in Revenue. The Revenue has been growing by 4.66% on average per year.
EPS 1Y (TTM)458.54%
EPS 3Y-13.31%
EPS 5Y-2.69%
EPS Q2Q%213.33%
Revenue 1Y (TTM)18.93%
Revenue growth 3Y8.39%
Revenue growth 5Y4.66%
Sales Q2Q%11.14%
3.2 Future
The Earnings Per Share is expected to grow by 24.86% on average over the next years. This is a very strong growth
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 3YN/A
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
A Price/Earnings ratio of 16.47 indicates a correct valuation of SAFT.
SAFT's Price/Earnings ratio is a bit more expensive when compared to the industry. SAFT is more expensive than 60.84% of the companies in the same industry.
SAFT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
SAFT is valuated correctly with a Price/Forward Earnings ratio of 12.33.
SAFT's Price/Forward Earnings ratio is in line with the industry average.
SAFT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
SAFT's Enterprise Value to EBITDA is on the same level as the industry average.
SAFT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.04 | ||
| EV/EBITDA | 13.41 |
4.3 Compensation for Growth
The 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 24.86% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y24.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SAFT has a Yearly Dividend Yield of 4.68%, which is a nice return.
SAFT's Dividend Yield is rather good when compared to the industry average which is at 3.28. SAFT pays more dividend than 83.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, SAFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.95%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
SAFT pays out 75.73% 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.
DP75.73%
EPS Next 2Y24.86%
EPS Next 3YN/A
75.44
-1.42 (-1.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.81%
Inst Owner Change0.53%
Ins Owners1.86%
Ins Owner Change0.04%
Market Cap1.12B
Analysts43.33
Price TargetN/A
Short Float %0.52%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
Yearly Dividend3.6
Dividend Growth(5Y)0.95%
DP75.73%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.1%
Min EPS beat(2)-22.97%
Max EPS beat(2)-21.23%
EPS beat(4)1
Avg EPS beat(4)27.86%
Min EPS beat(4)-22.97%
Max EPS beat(4)166.67%
EPS beat(8)1
Avg EPS beat(8)-26.56%
EPS beat(12)2
Avg EPS beat(12)-13.84%
EPS beat(16)6
Avg EPS beat(16)-2.88%
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)-4%
EPS NY rev (3m)-4%
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 | 16.47 | ||
| Fwd PE | 12.33 | ||
| P/S | 1.02 | ||
| P/FCF | 9.04 | ||
| P/OCF | 8.73 | ||
| P/B | 1.36 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 13.41 |
EPS(TTM)4.58
EY6.07%
EPS(NY)6.12
Fwd EY8.11%
FCF(TTM)8.35
FCFY11.07%
OCF(TTM)8.64
OCFY11.46%
SpS73.95
BVpS55.64
TBVpS53.97
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 8.5% | ||
| ROCE | 3.34% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.64% | ||
| ROICexgc | 3.01% | ||
| OM | 6.49% | ||
| PM (TTM) | 6.4% | ||
| GM | N/A | ||
| FCFM | 11.29% |
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%
ROICexcg growth 3Y-22.13%
ROICexcg 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 46.13% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 140.19 | ||
| Cash Conversion | 158.95% | ||
| Profit Quality | 176.55% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.34 | ||
| Altman-Z | 1.65 |
F-Score7
WACC8.78%
ROIC/WACC0.29
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)458.54%
EPS 3Y-13.31%
EPS 5Y-2.69%
EPS Q2Q%213.33%
EPS Next Y33.62%
EPS Next 2Y24.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.93%
Revenue growth 3Y8.39%
Revenue growth 5Y4.66%
Sales Q2Q%11.14%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y610.66%
EBIT growth 3Y-21%
EBIT growth 5Y-10.24%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y147.01%
FCF growth 3Y-2.27%
FCF growth 5Y3.85%
OCF growth 1Y146.94%
OCF growth 3Y-3.09%
OCF growth 5Y2.73%