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SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis

NASDAQ:SIGI - US8163001071 - Common Stock

78.13 USD
-0.91 (-1.15%)
Last: 8/28/2025, 4:11:42 PM
78.13 USD
0 (0%)
After Hours: 8/28/2025, 4:11:42 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to SIGI. SIGI was compared to 143 industry peers in the Insurance industry. There are concerns on the financial health of SIGI while its profitability can be described as average. SIGI has a decent growth rate and is not valued too expensively. Finally SIGI also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year SIGI was profitable.
In the past year SIGI had a positive cash flow from operations.
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's Return On Assets of 2.59% is fine compared to the rest of the industry. SIGI outperforms 62.24% of its industry peers.
With a Return On Equity value of 11.11%, SIGI perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
SIGI has a better Return On Invested Capital (2.89%) than 65.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SIGI is in line with the industry average of 4.11%.
The last Return On Invested Capital (2.89%) for SIGI is above the 3 year average (2.53%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.59%
ROE 11.11%
ROIC 2.89%
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's Profit Margin of 7.33% is in line compared to the rest of the industry. SIGI outperforms 51.75% of its industry peers.
SIGI's Profit Margin has declined in the last couple of years.
SIGI's Operating Margin of 10.15% is in line compared to the rest of the industry. SIGI outperforms 46.15% of its industry peers.
SIGI's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 10.15%
PM (TTM) 7.33%
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

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SIGI is destroying value.
SIGI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SIGI has been increased compared to 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 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.80, SIGI is in the better half of the industry, outperforming 73.43% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that SIGI is not too dependend on debt financing.
SIGI has a Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 0.8
Altman-Z N/A
ROIC/WACC0.34
WACC8.46%
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

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 65.49% over the past year.
SIGI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.88% yearly.
SIGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.21%.
The Revenue has been growing by 11.27% on average over the past years. This is quite good.
EPS 1Y (TTM)65.49%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%219.09%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%5.1%

3.2 Future

The Earnings Per Share is expected to grow by 34.97% on average over the next years. This is a very strong growth
Based on estimates for the next years, SIGI will show a small growth in Revenue. The Revenue will grow by 6.69% on average per year.
EPS Next Y114.52%
EPS Next 2Y60.08%
EPS Next 3Y34.97%
EPS Next 5YN/A
Revenue Next Year8.06%
Revenue Next 2Y7.5%
Revenue Next 3Y6.69%
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 decreasing: in the next years the growth will be less 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 1B 2B 3B 4B 5B
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

6

4. Valuation

4.1 Price/Earnings Ratio

SIGI is valuated correctly with a Price/Earnings ratio of 12.83.
SIGI's Price/Earnings ratio is in line with the industry average.
SIGI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
The Price/Forward Earnings ratio is 9.38, which indicates a very decent valuation of SIGI.
The rest of the industry has a similar Price/Forward Earnings ratio as SIGI.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, SIGI is valued rather cheaply.
Industry RankSector Rank
PE 12.83
Fwd PE 9.38
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

SIGI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SIGI is valued a bit cheaper than the industry average as 75.52% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.19
EV/EBITDA 10.38
SIGI Per share dataSIGI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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.
SIGI's earnings are expected to grow with 34.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y60.08%
EPS Next 3Y34.97%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.95%, SIGI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, SIGI has a dividend in line with its industry peers.
SIGI's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.95%

5.2 History

The dividend of SIGI is nicely growing with an annual growth rate of 13.90%!
SIGI has paid a dividend for at least 10 years, which is a reliable track record.
SIGI has not decreased their dividend for at least 10 years, which is a reliable track record.
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 26.11% of its income as dividend. This is a sustainable payout ratio.
The dividend of SIGI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26.11%
EPS Next 2Y60.08%
EPS Next 3Y34.97%
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

SELECTIVE INSURANCE GROUP

NASDAQ:SIGI (8/28/2025, 4:11:42 PM)

After market: 78.13 0 (0%)

78.13

-0.91 (-1.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)07-23 2025-07-23/amc
Earnings (Next)10-20 2025-10-20/amc
Inst Owners86.59%
Inst Owner Change1.58%
Ins Owners0.83%
Ins Owner Change1.79%
Market Cap4.75B
Analysts74.29
Price Target90.44 (15.76%)
Short Float %2.53%
Short Ratio2.79
Dividend
Industry RankSector Rank
Dividend Yield 1.95%
Yearly Dividend1.55
Dividend Growth(5Y)13.9%
DP26.11%
Div Incr Years11
Div Non Decr Years34
Ex-Date08-15 2025-08-15 (0.38)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.65%
Min EPS beat(2)-14.75%
Max EPS beat(2)-6.55%
EPS beat(4)0
Avg EPS beat(4)-14.52%
Min EPS beat(4)-20.05%
Max EPS beat(4)-6.55%
EPS beat(8)0
Avg EPS beat(8)-33.62%
EPS beat(12)0
Avg EPS beat(12)-25.12%
EPS beat(16)2
Avg EPS beat(16)-18.25%
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-4.76%
Max Revenue beat(2)-3.24%
Revenue beat(4)0
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-4.76%
Max Revenue beat(4)-1.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.9%
Revenue beat(12)6
Avg Revenue beat(12)0.53%
Revenue beat(16)8
Avg Revenue beat(16)1.13%
PT rev (1m)-6.34%
PT rev (3m)-5.84%
EPS NQ rev (1m)-3.34%
EPS NQ rev (3m)-8.96%
EPS NY rev (1m)-3.6%
EPS NY rev (3m)-3.99%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.37%
Valuation
Industry RankSector Rank
PE 12.83
Fwd PE 9.38
P/S 0.93
P/FCF 4.19
P/OCF 4.06
P/B 1.41
P/tB 1.41
EV/EBITDA 10.38
EPS(TTM)6.09
EY7.79%
EPS(NY)8.33
Fwd EY10.66%
FCF(TTM)18.63
FCFY23.84%
OCF(TTM)19.24
OCFY24.62%
SpS83.96
BVpS55.37
TBVpS55.24
PEG (NY)0.11
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.59%
ROE 11.11%
ROCE 3.61%
ROIC 2.89%
ROICexc 2.89%
ROICexgc 3.22%
OM 10.15%
PM (TTM) 7.33%
GM N/A
FCFM 22.18%
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-Score7
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 0.8
Debt/EBITDA 1.64
Cap/Depr 117.46%
Cap/Sales 0.73%
Interest Coverage 18.13
Cash Conversion 212.75%
Profit Quality 302.67%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC8.46%
ROIC/WACC0.34
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)65.49%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%219.09%
EPS Next Y114.52%
EPS Next 2Y60.08%
EPS Next 3Y34.97%
EPS Next 5YN/A
Revenue 1Y (TTM)12.21%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%5.1%
Revenue Next Year8.06%
Revenue Next 2Y7.5%
Revenue Next 3Y6.69%
Revenue Next 5YN/A
EBIT growth 1Y62.67%
EBIT growth 3Y-18%
EBIT growth 5Y-5.02%
EBIT Next Year86.17%
EBIT Next 3Y30.95%
EBIT Next 5YN/A
FCF growth 1Y36.37%
FCF growth 3Y12.58%
FCF growth 5Y19.08%
OCF growth 1Y37.3%
OCF growth 3Y12.55%
OCF growth 5Y18.16%