SAFETY INSURANCE GROUP INC (SAFT) Stock Fundamental Analysis
USA - NASDAQ:SAFT - US78648T1007 - Common Stock
73.94 USD
-1.02 (-1.36%)
73.94 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 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
SAFT had positive earnings in the past year.
In the past year SAFT had a positive cash flow from operations.
In the past 5 years SAFT has always 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 72.60% of its industry peers.
SAFT's Return On Equity of 9.67% is in line compared to the rest of the industry. SAFT outperforms 46.58% of its industry peers.
SAFT has a better Return On Invested Capital (3.11%) than 65.07% 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 4.47%.
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
Looking at the Profit Margin, with a value of 7.15%, SAFT is in line with its industry, outperforming 48.63% of the companies in the same industry.
In the last couple of years the Profit Margin of SAFT has declined.
SAFT has a Operating Margin of 7.65%. This is in the lower half of the industry: SAFT underperforms 65.07% 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
SAFT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Based on the Altman-Z score of 1.67, we must say that SAFT is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.67, SAFT belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
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.
SAFT has a Debt to FCF ratio of 0.19. This is amongst the best in the industry. SAFT outperforms 90.41% of its industry peers.
SAFT has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
SAFT's Debt to Equity ratio of 0.03 is amongst the best of the industry. SAFT outperforms 86.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.37
WACC8.5%
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 better Current ratio (3.32) than 94.52% 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 94.52% 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.
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 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
With a Price/Earnings ratio of 14.88, SAFT is valued correctly.
SAFT's Price/Earnings ratio is in line with the industry average.
SAFT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.36, the valuation of SAFT can be described as very reasonable.
SAFT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, SAFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAFT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SAFT is valued a bit cheaper than 65.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.94 | ||
| EV/EBITDA | 10.91 |
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 15.95% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y24.86%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.91%, SAFT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.53, SAFT pays a better dividend. On top of this SAFT pays more dividend than 82.19% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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 63.13% of its income as dividend. 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%
73.94
-1.02 (-1.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.96%
Inst Owner Change-0.29%
Ins Owners2%
Ins Owner Change0.52%
Market Cap1.10B
Analysts43.33
Price TargetN/A
Short Float %1.02%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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 | 14.88 | ||
| Fwd PE | 10.36 | ||
| P/S | 0.93 | ||
| P/FCF | 6.94 | ||
| P/OCF | 6.89 | ||
| P/B | 1.26 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)4.97
EY6.72%
EPS(NY)7.14
Fwd EY9.66%
FCF(TTM)10.65
FCFY14.4%
OCF(TTM)10.73
OCFY14.51%
SpS79.34
BVpS58.65
TBVpS57.01
PEG (NY)0.44
PEG (5Y)N/A
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%
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 | 0.03 | ||
| 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 | 1.67 |
F-Score7
WACC8.5%
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%