SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis
NASDAQ:SIGI - Nasdaq - US8163001071 - Common Stock - Currency: USD
SIGI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. SIGI may be in some trouble as it scores bad on both profitability and health. SIGI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SIGI had positive earnings in the past year.
In the past year SIGI had a positive cash flow from operations.
In the past 5 years SIGI has always been profitable.
In the past 5 years SIGI always reported a positive cash flow from operatings.
1.2 Ratios
SIGI's Return On Assets of 1.59% is in line compared to the rest of the industry. SIGI outperforms 47.59% of its industry peers.
SIGI has a worse Return On Equity (6.91%) than 69.66% of its industry peers.
With a Return On Invested Capital value of 1.86%, SIGI perfoms like the industry average, outperforming 46.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SIGI is in line with the industry average of 4.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 6.91% | ||
| ROIC | 1.86% |
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
With a Profit Margin value of 4.52%, SIGI is not doing good in the industry: 62.76% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SIGI has declined.
SIGI's Operating Margin of 6.57% is on the low side compared to the rest of the industry. SIGI is outperformed by 68.28% of its industry peers.
In the last couple of years the Operating Margin of SIGI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.57% | ||
| PM (TTM) | 4.52% | ||
| 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.
SIGI has more shares outstanding than it did 1 year ago.
SIGI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SIGI has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of SIGI is 0.73, which is an excellent value as it means it would take SIGI, only 0.73 years of fcf income to pay off all of its debts.
SIGI has a better Debt to FCF ratio (0.73) than 75.86% of its industry peers.
SIGI has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.28, SIGI perfoms like the industry average, outperforming 59.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.21
WACC8.67%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
SIGI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.22%.
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 13.41%.
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)13.41%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%7.25%
3.2 Future
The Earnings Per Share is expected to grow by 41.15% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.03% on average over the next years. This is quite good.
EPS Next Y123.43%
EPS Next 2Y62.59%
EPS Next 3Y41.15%
EPS Next 5YN/A
Revenue Next Year8.46%
Revenue Next 2Y7.94%
Revenue Next 3Y9.03%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.44, the valuation of SIGI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SIGI indicates a slightly more expensive valuation: SIGI is more expensive than 68.28% of the companies listed in the same industry.
SIGI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 10.04, the valuation of SIGI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIGI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SIGI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 10.04 |
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 73.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.25 | ||
| EV/EBITDA | 17 |
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 41.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y62.59%
EPS Next 3Y41.15%
5. Dividend
5.1 Amount
SIGI has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.64, SIGI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, SIGI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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 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
5.3 Sustainability
42.46% of the earnings are spent on dividend by SIGI. 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.
DP42.46%
EPS Next 2Y62.59%
EPS Next 3Y41.15%
86.25
-0.16 (-0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.25%
Inst Owner Change-0.05%
Ins Owners0.82%
Ins Owner Change3.89%
Market Cap5.24B
Analysts74.29
Price Target96.56 (11.95%)
Short Float %3.04%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend1.55
Dividend Growth(5Y)13.9%
DP42.46%
Div Incr Years11
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.3%
Min EPS beat(2)-20.05%
Max EPS beat(2)-6.55%
EPS beat(4)0
Avg EPS beat(4)-53.98%
Min EPS beat(4)-172.62%
Max EPS beat(4)-6.55%
EPS beat(8)0
Avg EPS beat(8)-32.02%
EPS beat(12)0
Avg EPS beat(12)-24.47%
EPS beat(16)3
Avg EPS beat(16)-14.54%
Revenue beat(2)0
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)-0.15%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.51%
Revenue beat(16)9
Avg Revenue beat(16)1.68%
PT rev (1m)0.53%
PT rev (3m)0.1%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-10.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 10.04 | ||
| P/S | 1.05 | ||
| P/FCF | 4.25 | ||
| P/OCF | 4.13 | ||
| P/B | 1.61 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 17 |
EPS(TTM)3.68
EY4.27%
EPS(NY)8.59
Fwd EY9.96%
FCF(TTM)20.27
FCFY23.51%
OCF(TTM)20.89
OCFY24.22%
SpS81.98
BVpS53.62
TBVpS53.49
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 6.91% | ||
| ROCE | 2.33% | ||
| ROIC | 1.86% | ||
| ROICexc | 1.86% | ||
| ROICexgc | 2.09% | ||
| OM | 6.57% | ||
| PM (TTM) | 4.52% | ||
| GM | N/A | ||
| FCFM | 24.73% |
ROA(3y)2.16%
ROA(5y)2.56%
ROE(3y)8.97%
ROE(5y)9.83%
ROIC(3y)2.53%
ROIC(5y)2.91%
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-Score4
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.73 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 107.97% | ||
| Cap/Sales | 0.76% | ||
| Interest Coverage | 11.45 | ||
| Cash Conversion | 350.66% | ||
| Profit Quality | 547.11% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC8.67%
ROIC/WACC0.21
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 Y123.43%
EPS Next 2Y62.59%
EPS Next 3Y41.15%
EPS Next 5YN/A
Revenue 1Y (TTM)13.41%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%7.25%
Revenue Next Year8.46%
Revenue Next 2Y7.94%
Revenue Next 3Y9.03%
Revenue Next 5YN/A
EBIT growth 1Y-30.09%
EBIT growth 3Y-18%
EBIT growth 5Y-5.02%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y49.94%
FCF growth 3Y12.58%
FCF growth 5Y19.08%
OCF growth 1Y50.17%
OCF growth 3Y12.55%
OCF growth 5Y18.16%