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SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis

NASDAQ:SIGI - Nasdaq - US8163001071 - Common Stock - Currency: USD

87.57  -1.69 (-1.89%)

After market: 87.87 +0.3 (+0.34%)

Fundamental Rating

4

SIGI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. SIGI may be in some trouble as it scores bad on both profitability and health. SIGI has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

SIGI had positive earnings in the past year.
SIGI had a positive operating cash flow in the past year.
Each year in the past 5 years SIGI has been profitable.
In the past 5 years SIGI always reported a positive cash flow from operatings.
SIGI Yearly Net Income VS EBIT VS OCF VS FCFSIGI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

SIGI has a Return On Assets of 1.46%. This is comparable to the rest of the industry: SIGI outperforms 44.76% of its industry peers.
SIGI's Return On Equity of 6.34% is on the low side compared to the rest of the industry. SIGI is outperformed by 69.23% of its industry peers.
With a Return On Invested Capital value of 1.73%, SIGI perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
SIGI had an Average Return On Invested Capital over the past 3 years of 2.53%. This is in line with the industry average of 4.49%.
Industry RankSector Rank
ROA 1.46%
ROE 6.34%
ROIC 1.73%
ROA(3y)2.16%
ROA(5y)2.56%
ROE(3y)8.97%
ROE(5y)9.83%
ROIC(3y)2.53%
ROIC(5y)2.91%
SIGI Yearly ROA, ROE, ROICSIGI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

SIGI has a worse Profit Margin (4.07%) than 68.53% of its industry peers.
SIGI's Profit Margin has declined in the last couple of years.
SIGI has a worse Operating Margin (5.94%) than 68.53% of its industry peers.
SIGI's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.94%
PM (TTM) 4.07%
GM N/A
OM growth 3Y-27.44%
OM growth 5Y-14.64%
PM growth 3Y-29.7%
PM growth 5Y-15.65%
GM growth 3YN/A
GM growth 5YN/A
SIGI Yearly Profit, Operating, Gross MarginsSIGI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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3

2. Health

2.1 Basic Checks

SIGI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SIGI has more shares outstanding than it did 1 year ago.
SIGI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SIGI has an improved debt to assets ratio.
SIGI Yearly Shares OutstandingSIGI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
SIGI Yearly Total Debt VS Total AssetsSIGI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

SIGI has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
SIGI has a better Debt to FCF ratio (0.48) than 79.02% of its industry peers.
SIGI has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SIGI (0.16) is better than 73.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.48
Altman-Z N/A
ROIC/WACC0.2
WACC8.55%
SIGI Yearly LT Debt VS Equity VS FCFSIGI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
SIGI Yearly Current Assets VS Current LiabilitesSIGI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

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6

3. Growth

3.1 Past

The earnings per share for SIGI have decreased strongly by -36.22% in the last year.
Measured over the past years, SIGI shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.88% on average per year.
SIGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.88%.
SIGI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.27% yearly.
EPS 1Y (TTM)-36.22%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%32.33%
Revenue 1Y (TTM)14.88%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%11.1%

3.2 Future

The Earnings Per Share is expected to grow by 41.41% on average over the next years. This is a very strong growth
Based on estimates for the next years, SIGI will show a quite strong growth in Revenue. The Revenue will grow by 9.19% on average per year.
EPS Next Y130.37%
EPS Next 2Y62.81%
EPS Next 3Y41.41%
EPS Next 5YN/A
Revenue Next Year8.9%
Revenue Next 2Y8.29%
Revenue Next 3Y9.19%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
SIGI Yearly Revenue VS EstimatesSIGI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
SIGI Yearly EPS VS EstimatesSIGI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 23.80 indicates a rather expensive valuation of SIGI.
Based on the Price/Earnings ratio, SIGI is valued a bit more expensive than 70.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.78. SIGI is around the same levels.
The Price/Forward Earnings ratio is 10.16, which indicates a very decent valuation of SIGI.
The rest of the industry has a similar Price/Forward Earnings ratio as SIGI.
SIGI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.8
Fwd PE 10.16
SIGI Price Earnings VS Forward Price EarningsSIGI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIGI indicates a slightly more expensive valuation: SIGI is more expensive than 60.84% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SIGI is valued a bit cheaper than the industry average as 69.93% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.98
EV/EBITDA 18.01
SIGI Per share dataSIGI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

SIGI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SIGI's earnings are expected to grow with 41.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y62.81%
EPS Next 3Y41.41%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.70%, SIGI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.21, SIGI has a dividend in line with its industry peers.
SIGI's Dividend Yield is slightly below the S&P500 average, which is at 2.46.
Industry RankSector Rank
Dividend Yield 1.7%

5.2 History

On average, the dividend of SIGI grows each year by 13.90%, which is quite nice.
SIGI has paid a dividend for at least 10 years, which is a reliable track record.
SIGI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.9%
Div Incr Years11
Div Non Decr Years34
SIGI Yearly Dividends per shareSIGI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1

5.3 Sustainability

SIGI pays out 47.59% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SIGI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.59%
EPS Next 2Y62.81%
EPS Next 3Y41.41%
SIGI Yearly Income VS Free CF VS DividendSIGI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
SIGI Dividend Payout.SIGI Dividend Payout, showing the Payout Ratio.SIGI Dividend Payout.PayoutRetained Earnings

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SELECTIVE INSURANCE GROUP

NASDAQ:SIGI (4/25/2025, 8:00:01 PM)

After market: 87.87 +0.3 (+0.34%)

87.57

-1.69 (-1.89%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-16 2025-07-16/amc
Inst Owners85.34%
Inst Owner Change-36.89%
Ins Owners0.8%
Ins Owner Change2.45%
Market Cap5.32B
Analysts73.33
Price Target95.54 (9.1%)
Short Float %2.38%
Short Ratio3.33
Dividend
Industry RankSector Rank
Dividend Yield 1.7%
Yearly Dividend1.55
Dividend Growth(5Y)13.9%
DP47.59%
Div Incr Years11
Div Non Decr Years34
Ex-Date02-14 2025-02-14 (0.38)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.38%
Min EPS beat(2)-20.05%
Max EPS beat(2)-16.71%
EPS beat(4)0
Avg EPS beat(4)-59.79%
Min EPS beat(4)-172.62%
Max EPS beat(4)-16.71%
EPS beat(8)0
Avg EPS beat(8)-32.62%
EPS beat(12)0
Avg EPS beat(12)-24.42%
EPS beat(16)4
Avg EPS beat(16)-10.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-1.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)1.1%
Revenue beat(8)5
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.34%
Revenue beat(16)10
Avg Revenue beat(16)2.52%
PT rev (1m)-0.96%
PT rev (3m)-9.94%
EPS NQ rev (1m)-2.12%
EPS NQ rev (3m)-7.21%
EPS NY rev (1m)-1.5%
EPS NY rev (3m)-6.24%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.74%
Valuation
Industry RankSector Rank
PE 23.8
Fwd PE 10.16
P/S 1.09
P/FCF 4.98
P/OCF 4.84
P/B 1.71
P/tB 1.71
EV/EBITDA 18.01
EPS(TTM)3.68
EY4.2%
EPS(NY)8.62
Fwd EY9.84%
FCF(TTM)17.59
FCFY20.09%
OCF(TTM)18.1
OCFY20.67%
SpS80.01
BVpS51.34
TBVpS51.21
PEG (NY)0.18
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.46%
ROE 6.34%
ROCE 2.16%
ROIC 1.73%
ROICexc 1.73%
ROICexgc 1.96%
OM 5.94%
PM (TTM) 4.07%
GM N/A
FCFM 21.99%
ROA(3y)2.16%
ROA(5y)2.56%
ROE(3y)8.97%
ROE(5y)9.83%
ROIC(3y)2.53%
ROIC(5y)2.91%
ROICexc(3y)2.53%
ROICexc(5y)2.91%
ROICexgc(3y)2.82%
ROICexgc(5y)3.24%
ROCE(3y)3.16%
ROCE(5y)3.64%
ROICexcg growth 3Y-24.16%
ROICexcg growth 5Y-12.63%
ROICexc growth 3Y-24.74%
ROICexc growth 5Y-12.9%
OM growth 3Y-27.44%
OM growth 5Y-14.64%
PM growth 3Y-29.7%
PM growth 5Y-15.65%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.48
Debt/EBITDA 1.57
Cap/Depr 88.53%
Cap/Sales 0.63%
Interest Coverage 10.12
Cash Conversion 339.81%
Profit Quality 540.45%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC8.55%
ROIC/WACC0.2
Cap/Depr(3y)75.11%
Cap/Depr(5y)60.57%
Cap/Sales(3y)0.63%
Cap/Sales(5y)0.66%
Profit Quality(3y)369.06%
Profit Quality(5y)302.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-36.22%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%32.33%
EPS Next Y130.37%
EPS Next 2Y62.81%
EPS Next 3Y41.41%
EPS Next 5YN/A
Revenue 1Y (TTM)14.88%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%11.1%
Revenue Next Year8.9%
Revenue Next 2Y8.29%
Revenue Next 3Y9.19%
Revenue Next 5YN/A
EBIT growth 1Y-39.53%
EBIT growth 3Y-18%
EBIT growth 5Y-5.02%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y45.2%
FCF growth 3Y12.58%
FCF growth 5Y19.08%
OCF growth 1Y44.93%
OCF growth 3Y12.55%
OCF growth 5Y18.16%