SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis
USA - NASDAQ:SIGI - US8163001071 - Common Stock
74.59 USD
-0.75 (-1%)
SIGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. SIGI has a medium profitability rating, but doesn't score so well on its financial health evaluation. SIGI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
SIGI had positive earnings in each of the past 5 years.
SIGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIGI's Return On Assets of 2.59% is fine compared to the rest of the industry. SIGI outperforms 60.27% of its industry peers.
SIGI's Return On Equity of 11.11% is in line compared to the rest of the industry. SIGI outperforms 53.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.89%, SIGI is in the better half of the industry, outperforming 60.96% 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 4.50%.
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 49.32% of its industry peers.
In the last couple of years the Profit Margin of SIGI has declined.
SIGI has a Operating Margin (10.15%) which is in line with 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
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.
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
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.
SIGI has a better Debt to FCF ratio (0.80) than 74.66% of its industry peers.
SIGI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
SIGI has a Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.33%
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.
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.
The Revenue has grown by 10.78% in the past year. This is quite good.
Measured over the past years, SIGI shows a quite strong growth in Revenue. The Revenue has been growing by 11.27% on average per year.
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
The Earnings Per Share is expected to grow by 36.95% 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 6.83% on average per year.
EPS Next Y126.46%
EPS Next 2Y60.81%
EPS Next 3Y36.95%
EPS Next 5YN/A
Revenue Next Year7.68%
Revenue Next 2Y7.39%
Revenue Next 3Y6.83%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 11.58, which indicates a very decent valuation of SIGI.
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 26.11.
The Price/Forward Earnings ratio is 8.88, which indicates a very decent valuation of SIGI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIGI indicates a somewhat cheap valuation: SIGI is cheaper than 62.33% of the companies listed in the same industry.
SIGI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIGI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SIGI is valued a bit cheaper than 76.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4 | ||
| EV/EBITDA | 9.97 |
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.
A more expensive valuation may be justified as SIGI's earnings are expected to grow with 36.95% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y60.81%
EPS Next 3Y36.95%
5. Dividend
5.1 Amount
SIGI has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.27, SIGI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, SIGI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of SIGI is nicely growing with an annual growth rate of 13.90%!
SIGI has been paying a dividend for at least 10 years, so it has 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
26.11% 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.
DP26.11%
EPS Next 2Y60.81%
EPS Next 3Y36.95%
NASDAQ:SIGI (11/3/2025, 12:44:24 PM)
74.59
-0.75 (-1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change-0.86%
Ins Owners0.82%
Ins Owner Change0.53%
Market Cap4.54B
Revenue(TTM)5.22B
Net Income(TTM)374.45M
Analysts73.85
Price Target88.06 (18.06%)
Short Float %3%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-2.63%
PT rev (3m)-8.8%
EPS NQ rev (1m)17.65%
EPS NQ rev (3m)14.97%
EPS NY rev (1m)3.58%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.89 | ||
| P/FCF | 4 | ||
| P/OCF | 3.88 | ||
| P/B | 1.35 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 9.97 |
EPS(TTM)6.44
EY8.63%
EPS(NY)8.4
Fwd EY11.27%
FCF(TTM)18.63
FCFY24.97%
OCF(TTM)19.24
OCFY25.79%
SpS83.96
BVpS55.37
TBVpS55.24
PEG (NY)0.09
PEG (5Y)N/A
Graham Number89.57
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%
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-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
WACC8.33%
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 Y126.46%
EPS Next 2Y60.81%
EPS Next 3Y36.95%
EPS Next 5YN/A
Revenue 1Y (TTM)10.78%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%17.49%
Revenue Next Year7.68%
Revenue Next 2Y7.39%
Revenue Next 3Y6.83%
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%
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 7 / 10 to SELECTIVE INSURANCE GROUP (SIGI). This can be considered as Undervalued.
How profitable is SELECTIVE INSURANCE GROUP (SIGI) stock?
SELECTIVE INSURANCE GROUP (SIGI) has a profitability rating of 5 / 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 26.11%.