SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis
USA - NASDAQ:SIGI - US8163001071 - Common Stock
78.63 USD
+1.2 (+1.55%)
78.63 USD
0 (0%)
Taking everything into account, SIGI scores 5 out of 10 in our fundamental rating. SIGI was compared to 146 industry peers in the Insurance industry. While SIGI is still in line with the averages on profitability rating, there are concerns on its financial health. SIGI has a decent growth rate and is not valued too expensively. Finally SIGI also has an excellent dividend rating.
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.
1.2 Ratios
With a decent Return On Assets value of 2.59%, SIGI is doing good in the industry, outperforming 62.33% of the companies in the same industry.
With a Return On Equity value of 11.11%, SIGI perfoms like the industry average, outperforming 54.79% of the companies in the same industry.
SIGI's Return On Invested Capital of 2.89% is fine compared to the rest of the industry. SIGI outperforms 63.01% of its industry peers.
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 4.47%.
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 Rank | Sector 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%
1.3 Margins
SIGI's Profit Margin of 7.33% is in line compared to the rest of the industry. SIGI outperforms 50.68% of its industry peers.
SIGI's Profit Margin has declined in the last couple of years.
SIGI has a Operating Margin of 10.15%. This is comparable to the rest of the industry: SIGI outperforms 45.21% of its industry peers.
In the last couple of years the Operating Margin of SIGI has declined.
| Industry Rank | Sector 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
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.
Compared to 1 year ago, SIGI has more shares outstanding
SIGI has more shares outstanding than it did 5 years ago.
SIGI has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SIGI is 0.80, which is an excellent value as it means it would take SIGI, only 0.80 years of fcf income to pay off 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 73.97% of the companies in the same industry.
SIGI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, SIGI is in line with its industry, outperforming 58.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC8.37%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
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%.
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)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
SIGI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.97% yearly.
The Revenue is expected to grow by 6.69% on average over the next years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.91 indicates a correct valuation of SIGI.
SIGI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, SIGI is valued rather cheaply.
The Price/Forward Earnings ratio is 9.44, which indicates a very decent valuation of SIGI.
The rest of the industry has a similar Price/Forward Earnings ratio as SIGI.
The average S&P500 Price/Forward Earnings ratio is at 22.87. SIGI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 9.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SIGI.
76.03% of the companies in the same industry are more expensive than SIGI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.22 | ||
| EV/EBITDA | 10.34 |
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 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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.23%, SIGI is a good candidate for dividend investing.
SIGI's Dividend Yield is rather good when compared to the industry average which is at 3.44. SIGI pays more dividend than 89.73% of the companies in the same industry.
SIGI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
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 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
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%
78.63
+1.2 (+1.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.59%
Inst Owner Change1.58%
Ins Owners0.83%
Ins Owner Change1.58%
Market Cap4.78B
Analysts72.86
Price Target90.44 (15.02%)
Short Float %2.36%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.23% |
Yearly Dividend1.55
Dividend Growth(5Y)13.9%
DP26.11%
Div Incr Years11
Div Non Decr Years34
Ex-Date
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)1.53%
PT rev (3m)-6.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 9.44 | ||
| P/S | 0.94 | ||
| P/FCF | 4.22 | ||
| P/OCF | 4.09 | ||
| P/B | 1.42 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 10.34 |
EPS(TTM)6.09
EY7.75%
EPS(NY)8.33
Fwd EY10.59%
FCF(TTM)18.63
FCFY23.69%
OCF(TTM)19.24
OCFY24.46%
SpS83.96
BVpS55.37
TBVpS55.24
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.37%
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%