UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
NASDAQ:UFCS - Nasdaq - US9103401082 - Common Stock - Currency: USD
Overall UFCS gets a fundamental rating of 4 out of 10. We evaluated UFCS against 142 industry peers in the Insurance industry. UFCS may be in some trouble as it scores bad on both profitability and health. UFCS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
UFCS had positive earnings in the past year.
In the past year UFCS had a positive cash flow from operations.
In multiple years UFCS reported negative net income over the last 5 years.
UFCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
UFCS has a Return On Assets of 1.88%. This is comparable to the rest of the industry: UFCS outperforms 49.65% of its industry peers.
UFCS has a Return On Equity (8.09%) which is comparable to the rest of the industry.
UFCS has a Return On Invested Capital of 2.17%. This is comparable to the rest of the industry: UFCS outperforms 51.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.09% | ||
| ROIC | 2.17% |
ROA(3y)0.45%
ROA(5y)0.07%
ROE(3y)1.97%
ROE(5y)0.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 5.13%, UFCS is not doing good in the industry: 60.14% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of UFCS has grown nicely.
Looking at the Operating Margin, with a value of 7.10%, UFCS is doing worse than 62.94% of the companies in the same industry.
UFCS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.1% | ||
| PM (TTM) | 5.13% | ||
| GM | N/A |
OM growth 3Y-10.49%
OM growth 5Y36.75%
PM growth 3Y-13.2%
PM growth 5Y32.03%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
UFCS 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, UFCS has more shares outstanding
UFCS has more shares outstanding than it did 5 years ago.
UFCS has a worse debt/assets ratio than last year.
2.2 Solvency
UFCS has a debt to FCF ratio of 0.36. This is a very positive value and a sign of high solvency as it would only need 0.36 years to pay back of all of its debts.
The Debt to FCF ratio of UFCS (0.36) is better than 86.71% of its industry peers.
UFCS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
UFCS's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. UFCS outperforms 75.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | N/A |
ROIC/WACC0.25
WACC8.83%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
UFCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 458.67%, which is quite impressive.
Measured over the past years, UFCS shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.74% on average per year.
The Revenue has grown by 14.59% in the past year. This is quite good.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)458.67%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%25%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.86%
3.2 Future
The Earnings Per Share is expected to grow by 4.56% on average over the next years.
The Revenue is expected to grow by 10.10% on average over the next years. This is quite good.
EPS Next Y2.27%
EPS Next 2Y4.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.58%
Revenue Next 2Y10.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
UFCS is valuated reasonably with a Price/Earnings ratio of 10.58.
Based on the Price/Earnings ratio, UFCS is valued a bit cheaper than 65.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. UFCS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.20 indicates a reasonable valuation of UFCS.
UFCS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.15. UFCS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFCS is valued a bit cheaper than 72.03% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UFCS indicates a rather cheap valuation: UFCS is cheaper than 88.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.21 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UFCS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.67
PEG (5Y)0.32
EPS Next 2Y4.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
UFCS's Dividend Yield is a higher than the industry average which is at 3.09.
Compared to an average S&P500 Dividend Yield of 2.38, UFCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of UFCS decreases each year by -13.28%.
UFCS has paid a dividend for at least 10 years, which is a reliable track record.
UFCS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.28%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
UFCS pays out 24.53% of its income as dividend. This is a sustainable payout ratio.
DP24.53%
EPS Next 2Y4.56%
EPS Next 3YN/A
28.45
-0.26 (-0.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners65.66%
Inst Owner Change1.44%
Ins Owners18.09%
Ins Owner Change7.14%
Market Cap724.05M
Analysts77.78
Price Target30.6 (7.56%)
Short Float %1.09%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend0.64
Dividend Growth(5Y)-13.28%
DP24.53%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.77%
Min EPS beat(2)7.23%
Max EPS beat(2)62.32%
EPS beat(4)3
Avg EPS beat(4)-315.59%
Min EPS beat(4)-1472.55%
Max EPS beat(4)140.64%
EPS beat(8)6
Avg EPS beat(8)463.15%
EPS beat(12)7
Avg EPS beat(12)292.11%
EPS beat(16)10
Avg EPS beat(16)307.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)3.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)5
Avg Revenue beat(16)-3.27%
PT rev (1m)0%
PT rev (3m)7.14%
EPS NQ rev (1m)11.59%
EPS NQ rev (3m)50.98%
EPS NY rev (1m)1.05%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)-2.07%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-1.97%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.2 | ||
| P/S | 0.56 | ||
| P/FCF | 2.21 | ||
| P/OCF | 2.13 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 6.43 |
EPS(TTM)2.69
EY9.46%
EPS(NY)2.79
Fwd EY9.8%
FCF(TTM)12.89
FCFY45.31%
OCF(TTM)13.35
OCFY46.93%
SpS50.63
BVpS32.13
TBVpS31.98
PEG (NY)4.67
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.09% | ||
| ROCE | 2.7% | ||
| ROIC | 2.17% | ||
| ROICexc | 2.29% | ||
| ROICexgc | 2.63% | ||
| OM | 7.1% | ||
| PM (TTM) | 5.13% | ||
| GM | N/A | ||
| FCFM | 25.46% |
ROA(3y)0.45%
ROA(5y)0.07%
ROE(3y)1.97%
ROE(5y)0.28%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-7.23%
ROICexcg growth 5Y36.77%
ROICexc growth 3Y-9.08%
ROICexc growth 5Y34.39%
OM growth 3Y-10.49%
OM growth 5Y36.75%
PM growth 3Y-13.2%
PM growth 5Y32.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.36 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 109.64% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 332.38% | ||
| Profit Quality | 495.89% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.83%
ROIC/WACC0.25
Cap/Depr(3y)79.91%
Cap/Depr(5y)146.79%
Cap/Sales(3y)0.72%
Cap/Sales(5y)1.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)458.67%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%25%
EPS Next Y2.27%
EPS Next 2Y4.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.59%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.86%
Revenue Next Year9.58%
Revenue Next 2Y10.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y556.25%
EBIT growth 3Y-5.53%
EBIT growth 5Y37.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2856.76%
FCF growth 3Y174.38%
FCF growth 5Y39.85%
OCF growth 1Y3603.27%
OCF growth 3Y124.94%
OCF growth 5Y29.4%