SAFETY INSURANCE GROUP INC (SAFT) Stock Fundamental Analysis
NASDAQ:SAFT - Nasdaq - US78648T1007 - Common Stock - Currency: USD
Overall SAFT gets a fundamental rating of 6 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 decent growth rate and is not valued too expensively. 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.
In the past 5 years SAFT has always been profitable.
Each year in the past 5 years SAFT had a positive operating cash flow.
1.2 Ratios
SAFT's Return On Assets of 3.15% is fine compared to the rest of the industry. SAFT outperforms 69.93% of its industry peers.
With a Return On Equity value of 8.49%, SAFT perfoms like the industry average, outperforming 41.96% of the companies in the same industry.
SAFT has a Return On Invested Capital of 2.89%. This is in the better half of the industry: SAFT outperforms 64.34% 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 4.06%.
The 3 year average ROIC (1.68%) for SAFT is below the current ROIC(2.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 8.49% | ||
| ROIC | 2.89% |
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
The Profit Margin of SAFT (6.32%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SAFT has declined.
SAFT's Operating Margin of 7.16% is on the low side compared to the rest of the industry. SAFT is outperformed by 63.64% of its industry peers.
SAFT's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 6.32% | ||
| 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.
Compared to 1 year ago, SAFT has more shares outstanding
SAFT has less shares outstanding than it did 5 years ago.
SAFT has a better debt/assets ratio than last year.
2.2 Solvency
SAFT has an Altman-Z score of 1.67. This is a bad value and indicates that SAFT is not financially healthy and even has some risk of bankruptcy.
SAFT has a better Altman-Z score (1.67) than 90.21% of its industry peers.
The Debt to FCF ratio of SAFT is 0.20, which is an excellent value as it means it would take SAFT, only 0.20 years of fcf income to pay off all of its debts.
SAFT has a better Debt to FCF ratio (0.20) than 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 85.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.33
WACC8.7%
2.3 Liquidity
A Current Ratio of 3.59 indicates that SAFT has no problem at all paying its short term obligations.
The Current ratio of SAFT (3.59) is better than 95.10% of its industry peers.
A Quick Ratio of 3.59 indicates that SAFT has no problem at all paying its short term obligations.
SAFT has a Quick ratio of 3.59. This is amongst the best in the industry. SAFT outperforms 95.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 3.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.10% over the past year.
The Earnings Per Share has been decreasing by -2.69% on average over the past years.
Looking at the last year, SAFT shows a quite strong growth in Revenue. The Revenue has grown by 17.64% in the last year.
The Revenue has been growing slightly by 4.66% on average over the past years.
EPS 1Y (TTM)54.1%
EPS 3Y-13.31%
EPS 5Y-2.69%
EPS Q2Q%8.82%
Revenue 1Y (TTM)17.64%
Revenue growth 3Y8.39%
Revenue growth 5Y4.66%
Sales Q2Q%15.92%
3.2 Future
SAFT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.86% 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 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 15.10, the valuation of SAFT can be described as correct.
Based on the Price/Earnings ratio, SAFT is valued a bit more expensive than 60.14% of the companies in the same industry.
SAFT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.94, the valuation of SAFT can be described as very reasonable.
SAFT's Price/Forward Earnings ratio is in line with the industry average.
SAFT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
SAFT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAFT indicates a somewhat cheap valuation: SAFT is cheaper than 60.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.98 | ||
| EV/EBITDA | 11.28 |
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)0.45
PEG (5Y)N/A
EPS Next 2Y24.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SAFT has a Yearly Dividend Yield of 5.17%, which is a nice return.
Compared to an average industry Dividend Yield of 3.30, SAFT pays a better dividend. On top of this SAFT pays more dividend than 83.92% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
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
73.76% 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.
DP73.76%
EPS Next 2Y24.86%
EPS Next 3YN/A
70.95
-0.25 (-0.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.96%
Inst Owner Change-0.5%
Ins Owners2%
Ins Owner Change0.04%
Market Cap1.06B
Analysts43.33
Price TargetN/A
Short Float %0.91%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
Yearly Dividend3.6
Dividend Growth(5Y)0.95%
DP73.76%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.58%
Min EPS beat(2)-21.23%
Max EPS beat(2)16.08%
EPS beat(4)1
Avg EPS beat(4)-9.78%
Min EPS beat(4)-22.97%
Max EPS beat(4)16.08%
EPS beat(8)2
Avg EPS beat(8)-1.38%
EPS beat(12)3
Avg EPS beat(12)-11.2%
EPS beat(16)6
Avg EPS beat(16)-2.79%
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 | 15.1 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.92 | ||
| P/FCF | 6.98 | ||
| P/OCF | 6.91 | ||
| P/B | 1.24 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)4.7
EY6.62%
EPS(NY)7.14
Fwd EY10.06%
FCF(TTM)10.17
FCFY14.33%
OCF(TTM)10.28
OCFY14.48%
SpS76.7
BVpS57.13
TBVpS55.48
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 8.49% | ||
| ROCE | 3.7% | ||
| ROIC | 2.89% | ||
| ROICexc | 2.98% | ||
| ROICexgc | 3.4% | ||
| OM | 7.16% | ||
| PM (TTM) | 6.32% | ||
| GM | N/A | ||
| FCFM | 13.25% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 17.84% | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 168.36% | ||
| Profit Quality | 209.56% | ||
| Current Ratio | 3.59 | ||
| Quick Ratio | 3.59 | ||
| Altman-Z | 1.67 |
F-Score7
WACC8.7%
ROIC/WACC0.33
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)54.1%
EPS 3Y-13.31%
EPS 5Y-2.69%
EPS Q2Q%8.82%
EPS Next Y33.62%
EPS Next 2Y24.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.64%
Revenue growth 3Y8.39%
Revenue growth 5Y4.66%
Sales Q2Q%15.92%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y93.46%
EBIT growth 3Y-21%
EBIT growth 5Y-10.24%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y237.87%
FCF growth 3Y-2.27%
FCF growth 5Y3.85%
OCF growth 1Y227.62%
OCF growth 3Y-3.09%
OCF growth 5Y2.73%