SAFETY INSURANCE GROUP INC (SAFT)
US78648T1007 - Common Stock
Taking everything into account, SAFT scores 5 out of 10 in our fundamental rating. SAFT was compared to 140 industry peers in the Insurance industry. No worries on liquidiy or solvency for SAFT as it has an excellent financial health rating, but there are worries on the profitability. SAFT is valued expensive and it does not seem to be growing. 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.
Each year in the past 5 years SAFT has been profitable.
In the past 5 years SAFT always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.89%, SAFT perfoms like the industry average, outperforming 43.17% of the companies in the same industry.
With a Return On Equity value of 2.33%, SAFT is not doing good in the industry: 66.91% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 0.76%, SAFT perfoms like the industry average, outperforming 46.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SAFT is in line with the industry average of 4.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 2.33% | ||
| ROIC | 0.76% |
ROA(3y)3.15%
ROA(5y)4.22%
ROE(3y)7.4%
ROE(5y)10.03%
ROIC(3y)2.79%
ROIC(5y)4.03%
1.3 Margins
The Profit Margin of SAFT (2.02%) is worse than 65.47% of its industry peers.
In the last couple of years the Profit Margin of SAFT has declined.
SAFT's Operating Margin of 2.13% is on the low side compared to the rest of the industry. SAFT is outperformed by 71.94% of its industry peers.
SAFT's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.13% | ||
| PM (TTM) | 2.02% | ||
| GM | N/A |
OM growth 3Y-52.64%
OM growth 5Y-28.97%
PM growth 3Y-50.29%
PM growth 5Y-27.26%
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 remains at a similar level compared to 1 year ago.
The number of shares outstanding for SAFT has been reduced compared to 5 years ago.
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 89.21% of its industry peers.
The Debt to FCF ratio of SAFT is 0.60, which is an excellent value as it means it would take SAFT, only 0.60 years of fcf income to pay off all of its debts.
SAFT has a better Debt to FCF ratio (0.60) than 84.17% of its industry peers.
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 89.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.09
WACC8.83%
2.3 Liquidity
A Current Ratio of 2.99 indicates that SAFT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.99, SAFT belongs to the best of the industry, outperforming 92.81% of the companies in the same industry.
SAFT has a Quick Ratio of 2.99. This indicates that SAFT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.99, SAFT belongs to the best of the industry, outperforming 92.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.99 |
3. Growth
3.1 Past
SAFT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -83.63%.
SAFT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.08% yearly.
The Revenue has grown by 17.93% in the past year. This is quite good.
SAFT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.22% yearly.
EPS 1Y (TTM)-83.63%
EPS 3Y-54.32%
EPS 5Y-33.08%
EPS growth Q2Q-69.39%
Revenue 1Y (TTM)17.93%
Revenue growth 3Y3.28%
Revenue growth 5Y2.22%
Revenue growth Q2Q15.37%
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 178.83% on average per year.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y521.95%
EPS Next 2Y178.83%
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 97.88, the valuation of SAFT can be described as expensive.
Based on the Price/Earnings ratio, SAFT is valued a bit more expensive than the industry average as 77.70% of the companies are valued more cheaply.
SAFT is valuated expensively when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.74, which indicates a correct valuation of SAFT.
Based on the Price/Forward Earnings ratio, SAFT is valued a bit more expensive than the industry average as 63.31% of the companies are valued more cheaply.
SAFT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.88 | ||
| Fwd PE | 15.74 |
4.2 Price Multiples
SAFT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SAFT is more expensive than 62.59% of the companies in the same industry.
65.47% of the companies in the same industry are cheaper than SAFT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.66 | ||
| EV/EBITDA | 44.77 |
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.
A more expensive valuation may be justified as SAFT's earnings are expected to grow with 178.83% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y178.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.27%, SAFT is a good candidate for dividend investing.
SAFT's Dividend Yield is rather good when compared to the industry average which is at 4.28. SAFT pays more dividend than 82.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SAFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
5.2 History
The dividend of SAFT has a limited annual growth rate of 2.39%.
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)2.39%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
SAFT pays out 284.87% 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.
DP284.87%
EPS Next 2Y178.83%
EPS Next 3YN/A
SAFETY INSURANCE GROUP INC
NASDAQ:SAFT (5/17/2024, 7:24:59 PM)
After market: 80.26 0 (0%)80.26
-0.71 (-0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.88 | ||
| Fwd PE | 15.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 2.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.13% | ||
| PM (TTM) | 2.02% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.99 | ||
| Quick Ratio | 2.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-83.63%
EPS 3Y-54.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y521.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.93%
Revenue growth 3Y3.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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