SAFETY INSURANCE GROUP INC (SAFT) Stock Fundamental Analysis
USA - NASDAQ:SAFT - US78648T1007 - Common Stock
69.52 USD
-0.21 (-0.3%)
69.52 USD
0 (0%)
Overall SAFT gets a fundamental rating of 6 out of 10. We evaluated SAFT against 147 industry peers in the Insurance industry. SAFT has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
SAFT had positive earnings in each of the past 5 years.
In the past 5 years SAFT always reported a positive cash flow from operatings.
1.2 Ratios
SAFT's Return On Assets of 3.57% is fine compared to the rest of the industry. SAFT outperforms 72.79% of its industry peers.
The Return On Equity of SAFT (9.67%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 3.11%, SAFT is doing good in the industry, outperforming 63.27% 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 4.46%.
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
With a Profit Margin value of 7.15%, SAFT perfoms like the industry average, outperforming 47.62% 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 (7.65%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of SAFT has declined.
| 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.
SAFT has more shares outstanding than it did 1 year ago.
SAFT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SAFT has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.65, SAFT belongs to the top of the industry, outperforming 87.76% 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 91.16% 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.
Looking at the Debt to Equity ratio, with a value of 0.03, SAFT belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.37
WACC8.43%
2.3 Liquidity
A Current Ratio of 3.32 indicates that SAFT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.32, SAFT belongs to the best of the industry, outperforming 94.56% of the companies in the same industry.
A Quick Ratio of 3.32 indicates that SAFT has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.32, SAFT belongs to the best of the industry, outperforming 94.56% 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.
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.
The Revenue has grown by 16.83% in the past year. This is quite good.
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
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
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 13.99, the valuation of SAFT can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as SAFT.
The average S&P500 Price/Earnings ratio is at 27.77. SAFT is valued slightly cheaper when compared to this.
SAFT is valuated reasonably with a Price/Forward Earnings ratio of 9.74.
SAFT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SAFT to the average of the S&P500 Index (23.23), we can say SAFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 9.74 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAFT indicates a somewhat cheap valuation: SAFT is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.53 | ||
| EV/EBITDA | 10.25 |
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)0.42
PEG (5Y)N/A
EPS Next 2Y24.86%
EPS Next 3Y15.95%
5. Dividend
5.1 Amount
SAFT has a Yearly Dividend Yield of 5.39%, which is a nice return.
Compared to an average industry Dividend Yield of 3.31, SAFT pays a better dividend. On top of this SAFT pays more dividend than 86.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SAFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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
63.13% 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.
DP63.13%
EPS Next 2Y24.86%
EPS Next 3Y15.95%
69.52
-0.21 (-0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.65%
Inst Owner Change0.14%
Ins Owners2.03%
Ins Owner Change0.53%
Market Cap1.04B
Analysts43.33
Price TargetN/A
Short Float %0.66%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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 | 13.99 | ||
| Fwd PE | 9.74 | ||
| P/S | 0.88 | ||
| P/FCF | 6.53 | ||
| P/OCF | 6.48 | ||
| P/B | 1.19 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 10.25 |
EPS(TTM)4.97
EY7.15%
EPS(NY)7.14
Fwd EY10.27%
FCF(TTM)10.65
FCFY15.32%
OCF(TTM)10.73
OCFY15.43%
SpS79.34
BVpS58.65
TBVpS57.01
PEG (NY)0.42
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 | 1.65 |
F-Score7
WACC8.43%
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%