SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis
USA - NASDAQ:SIGI - US8163001071 - Common Stock
77.76 USD
-0.68 (-0.87%)
77.76 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SIGI. SIGI was compared to 147 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 correct valuation and a medium growth rate. SIGI also has an excellent dividend rating.
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.
In the past 5 years SIGI has always been profitable.
SIGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIGI has a Return On Assets of 2.65%. This is comparable to the rest of the industry: SIGI outperforms 59.18% of its industry peers.
SIGI has a Return On Equity (11.39%) which is comparable to the rest of the industry.
SIGI's Return On Invested Capital of 2.95% is in line compared to the rest of the industry. SIGI outperforms 57.82% 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 4.44%.
The 3 year average ROIC (2.53%) for SIGI is below the current ROIC(2.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 11.39% | ||
| ROIC | 2.95% |
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
The Profit Margin of SIGI (7.61%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SIGI has declined.
With a Operating Margin value of 10.50%, SIGI perfoms like the industry average, outperforming 45.58% of the companies in the same industry.
SIGI's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.5% | ||
| PM (TTM) | 7.61% | ||
| 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.
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 0.78, which is an excellent value as it means it would take SIGI, only 0.78 years of fcf income to pay off all of its debts.
SIGI has a better Debt to FCF ratio (0.78) than 75.51% of its industry peers.
SIGI has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.26, SIGI is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
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 80.39% 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.
The Revenue has grown by 10.78% in the past year. This is quite good.
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)80.39%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%25%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%17.49%
3.2 Future
Based on estimates for the next years, SIGI will show a very strong growth in Earnings Per Share. The EPS will grow by 39.89% on average per year.
Based on estimates for the next years, SIGI will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
EPS Next Y119.71%
EPS Next 2Y57.96%
EPS Next 3Y39.89%
EPS Next 5YN/A
Revenue Next Year7.15%
Revenue Next 2Y5.71%
Revenue Next 3Y5.34%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.07, which indicates a correct valuation of SIGI.
SIGI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.56. SIGI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.59, which indicates a very decent valuation of SIGI.
SIGI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, SIGI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
SIGI's Enterprise Value to EBITDA is on the same level as the industry average.
SIGI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SIGI is cheaper than 75.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.1 | ||
| EV/EBITDA | 9.79 |
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 39.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y57.96%
EPS Next 3Y39.89%
5. Dividend
5.1 Amount
SIGI has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 3.51, SIGI has a dividend in line with its industry peers.
SIGI's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
On average, the dividend of SIGI grows each year by 13.90%, which is quite nice.
SIGI has been paying a dividend for at least 10 years, so it has 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
25.02% of the earnings are spent on dividend by SIGI. This is a low number and sustainable payout ratio.
The dividend of SIGI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.02%
EPS Next 2Y57.96%
EPS Next 3Y39.89%
77.76
-0.68 (-0.87%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change0.08%
Ins Owners0.82%
Ins Owner Change0.73%
Market Cap4.73B
Revenue(TTM)5.22B
Net Income(TTM)397.51M
Analysts53.33
Price Target88.06 (13.25%)
Short Float %3%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend1.55
Dividend Growth(5Y)13.9%
DP25.02%
Div Incr Years11
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.5%
Min EPS beat(2)-14.75%
Max EPS beat(2)-10.25%
EPS beat(4)0
Avg EPS beat(4)-12.9%
Min EPS beat(4)-20.05%
Max EPS beat(4)-6.55%
EPS beat(8)0
Avg EPS beat(8)-34.08%
EPS beat(12)0
Avg EPS beat(12)-24.55%
EPS beat(16)1
Avg EPS beat(16)-19.77%
Revenue beat(2)1
Avg Revenue beat(2)1.59%
Min Revenue beat(2)-4.76%
Max Revenue beat(2)7.94%
Revenue beat(4)1
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-4.76%
Max Revenue beat(4)7.94%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)7
Avg Revenue beat(12)1.26%
Revenue beat(16)8
Avg Revenue beat(16)1.08%
PT rev (1m)-2.63%
PT rev (3m)-1.15%
EPS NQ rev (1m)-3.83%
EPS NQ rev (3m)-3.76%
EPS NY rev (1m)0.5%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-0.84%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.91 | ||
| P/FCF | 4.1 | ||
| P/OCF | 3.98 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)6.44
EY8.28%
EPS(NY)8.11
Fwd EY10.43%
FCF(TTM)18.94
FCFY24.36%
OCF(TTM)19.54
OCFY25.13%
SpS85.86
BVpS57.35
TBVpS57.22
PEG (NY)0.1
PEG (5Y)N/A
Graham Number91.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 11.39% | ||
| ROCE | 3.69% | ||
| ROIC | 2.95% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 3.3% | ||
| OM | 10.5% | ||
| PM (TTM) | 7.61% | ||
| GM | N/A | ||
| FCFM | 22.06% |
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%
ROICexgc growth 3Y-24.16%
ROICexgc 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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 115.85% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 38.35 | ||
| Cash Conversion | 205.11% | ||
| Profit Quality | 289.98% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.37%
ROIC/WACC0.35
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)80.39%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%25%
EPS Next Y119.71%
EPS Next 2Y57.96%
EPS Next 3Y39.89%
EPS Next 5YN/A
Revenue 1Y (TTM)10.78%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%17.49%
Revenue Next Year7.15%
Revenue Next 2Y5.71%
Revenue Next 3Y5.34%
Revenue Next 5YN/A
EBIT growth 1Y70.89%
EBIT growth 3Y-18%
EBIT growth 5Y-5.02%
EBIT Next Year86.17%
EBIT Next 3Y30.95%
EBIT Next 5YN/A
FCF growth 1Y40.52%
FCF growth 3Y12.58%
FCF growth 5Y19.08%
OCF growth 1Y41.66%
OCF growth 3Y12.55%
OCF growth 5Y18.16%
SELECTIVE INSURANCE GROUP / SIGI FAQ
What is the ChartMill fundamental rating of SELECTIVE INSURANCE GROUP (SIGI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SIGI.
Can you provide the valuation status for SELECTIVE INSURANCE GROUP?
ChartMill assigns a valuation rating of 6 / 10 to SELECTIVE INSURANCE GROUP (SIGI). This can be considered as Fairly Valued.
How profitable is SELECTIVE INSURANCE GROUP (SIGI) stock?
SELECTIVE INSURANCE GROUP (SIGI) has a profitability rating of 4 / 10.
What is the financial health of SELECTIVE INSURANCE GROUP (SIGI) stock?
The financial health rating of SELECTIVE INSURANCE GROUP (SIGI) is 3 / 10.
Can you provide the dividend sustainability for SIGI stock?
The dividend rating of SELECTIVE INSURANCE GROUP (SIGI) is 7 / 10 and the dividend payout ratio is 25.02%.