SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis
USA - NASDAQ:SIGI - US8163001071 - Common Stock
82.5 USD
+0.72 (+0.88%)
SIGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. SIGI has a medium profitability rating, but doesn't score so well on its financial health evaluation. SIGI has a correct valuation and a medium growth rate.
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.
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's Return On Assets of 2.59% is fine compared to the rest of the industry. SIGI outperforms 61.38% of its industry peers.
The Return On Equity of SIGI (11.11%) is comparable to the rest of the industry.
SIGI's Return On Invested Capital of 2.89% is fine compared to the rest of the industry. SIGI outperforms 61.38% 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 4.40%.
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
The Profit Margin of SIGI (7.33%) is comparable to the rest of the industry.
SIGI's Profit Margin has declined in the last couple of years.
SIGI has a Operating Margin (10.15%) which is comparable to the rest of the industry.
SIGI's Operating Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, SIGI has more shares outstanding
SIGI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SIGI has an improved debt to assets ratio.
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.
SIGI's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. SIGI outperforms 74.48% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that SIGI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, SIGI is in line with its industry, outperforming 57.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.3%
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.
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.
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
Based on estimates for the next years, SIGI will show a very strong growth in Earnings Per Share. The EPS will grow by 32.35% on average per year.
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 Y118.63%
EPS Next 2Y60.92%
EPS Next 3Y32.35%
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.
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
SIGI is valuated correctly with a Price/Earnings ratio of 13.55.
SIGI's Price/Earnings ratio is in line with the industry average.
SIGI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
SIGI is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
The rest of the industry has a similar Price/Forward Earnings ratio as SIGI.
The average S&P500 Price/Forward Earnings ratio is at 22.57. SIGI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
SIGI's Enterprise Value to EBITDA is on the same level as the industry average.
74.48% 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 | 4.43 | ||
| EV/EBITDA | 10.69 |
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 32.35% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y60.92%
EPS Next 3Y32.35%
5. Dividend
5.1 Amount
SIGI has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.54, SIGI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, SIGI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
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 2Y60.92%
EPS Next 3Y32.35%
NASDAQ:SIGI (10/13/2025, 2:47:01 PM)
82.5
+0.72 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change0.19%
Ins Owners0.82%
Ins Owner Change1.58%
Market Cap5.02B
Analysts73.85
Price Target90.44 (9.62%)
Short Float %2.33%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)0%
PT rev (3m)-6.34%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)-4.13%
EPS NY rev (1m)1.91%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.98 | ||
| P/FCF | 4.43 | ||
| P/OCF | 4.29 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 10.69 |
EPS(TTM)6.09
EY7.38%
EPS(NY)8.42
Fwd EY10.2%
FCF(TTM)18.63
FCFY22.58%
OCF(TTM)19.24
OCFY23.32%
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
WACC8.3%
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)65.49%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%219.09%
EPS Next Y118.63%
EPS Next 2Y60.92%
EPS Next 3Y32.35%
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%