SAFETY INSURANCE GROUP INC (SAFT) Stock Fundamental Analysis
NASDAQ:SAFT - Nasdaq - US78648T1007 - Common Stock - Currency: USD
SAFT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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
Looking at the Return On Assets, with a value of 3.15%, SAFT is in the better half of the industry, outperforming 72.03% of the companies in the same industry.
With a Return On Equity value of 8.49%, SAFT perfoms like the industry average, outperforming 42.66% of the companies in the same industry.
The Return On Invested Capital of SAFT (2.89%) is better than 62.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAFT is below the industry average of 4.13%.
The last Return On Invested Capital (2.89%) for SAFT is above the 3 year average (1.68%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 6.32%, SAFT is in line with its industry, outperforming 44.06% of the companies in the same industry.
SAFT's Profit Margin has declined in the last couple of years.
SAFT has a worse Operating Margin (7.16%) than 60.84% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SAFT is destroying value.
The number of shares outstanding for SAFT has been increased compared to 1 year ago.
SAFT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SAFT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that SAFT is in the distress zone and has some risk of bankruptcy.
SAFT has a better Altman-Z score (1.74) than 89.51% 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.
Looking at the Debt to FCF ratio, with a value of 0.20, SAFT belongs to the top of the industry, outperforming 89.51% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that SAFT is not too dependend on debt financing.
SAFT's Debt to Equity ratio of 0.04 is amongst the best of the industry. SAFT outperforms 88.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.33
WACC8.87%
2.3 Liquidity
SAFT has a Current Ratio of 3.59. This indicates that SAFT is financially healthy and has no problem in meeting its short term obligations.
SAFT has a better Current ratio (3.59) than 95.10% of its industry peers.
SAFT has a Quick Ratio of 3.59. This indicates that SAFT is financially healthy and has no problem in meeting its short term obligations.
SAFT's Quick ratio of 3.59 is amongst the best of 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
SAFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.10%, which is quite impressive.
Measured over the past years, SAFT shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.69% on average per year.
SAFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.64%.
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
Based on estimates for the next years, SAFT will show a very strong growth in Earnings Per Share. The EPS will grow by 24.86% on average per year.
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
With a Price/Earnings ratio of 17.48, SAFT is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SAFT indicates a slightly more expensive valuation: SAFT is more expensive than 60.84% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. SAFT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.50, the valuation of SAFT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAFT is on the same level as its industry peers.
SAFT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 11.5 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.08 | ||
| EV/EBITDA | 13.17 |
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 24.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y24.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.35%, SAFT is a good candidate for dividend investing.
SAFT's Dividend Yield is rather good when compared to the industry average which is at 3.20. SAFT pays more dividend than 82.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SAFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
The dividend of SAFT has a limited annual growth rate of 0.95%.
SAFT has been paying a dividend for at least 10 years, so it has 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
82.14
-0.58 (-0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.81%
Inst Owner Change1.36%
Ins Owners1.86%
Ins Owner Change0.04%
Market Cap1.22B
Analysts43.33
Price TargetN/A
Short Float %0.72%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
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 | 17.48 | ||
| Fwd PE | 11.5 | ||
| P/S | 1.07 | ||
| P/FCF | 8.08 | ||
| P/OCF | 7.99 | ||
| P/B | 1.44 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 13.17 |
EPS(TTM)4.7
EY5.72%
EPS(NY)7.14
Fwd EY8.69%
FCF(TTM)10.17
FCFY12.38%
OCF(TTM)10.28
OCFY12.51%
SpS76.7
BVpS57.13
TBVpS55.48
PEG (NY)0.52
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 | 1.74 |
F-Score7
WACC8.87%
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%