UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
USA - NASDAQ:UFCS - US9103401082 - Common Stock
30.71 USD
-0.39 (-1.25%)
31.34 USD
+0.63 (+2.05%)
Overall UFCS gets a fundamental rating of 5 out of 10. We evaluated UFCS against 147 industry peers in the Insurance industry. UFCS has a medium profitability rating, but doesn't score so well on its financial health evaluation. UFCS is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year UFCS was profitable.
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
Looking at the Return On Assets, with a value of 2.51%, UFCS is in line with its industry, outperforming 59.18% of the companies in the same industry.
UFCS has a Return On Equity (10.86%) which is comparable to the rest of the industry.
UFCS's Return On Invested Capital of 2.87% is in line compared to the rest of the industry. UFCS outperforms 59.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 10.86% | ||
| ROIC | 2.87% |
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
Looking at the Profit Margin, with a value of 6.94%, UFCS is in line with its industry, outperforming 46.26% of the companies in the same industry.
UFCS's Profit Margin has improved in the last couple of years.
UFCS has a Operating Margin of 9.49%. This is comparable to the rest of the industry: UFCS outperforms 42.86% of its industry peers.
UFCS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.49% | ||
| PM (TTM) | 6.94% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UFCS is destroying value.
UFCS has more shares outstanding than it did 1 year ago.
UFCS has more shares outstanding than it did 5 years ago.
UFCS has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of UFCS is 0.40, which is an excellent value as it means it would take UFCS, only 0.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UFCS (0.40) is better than 84.35% 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.
Looking at the Debt to Equity ratio, with a value of 0.14, UFCS is in the better half of the industry, outperforming 72.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC8.46%
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 152.41%, which is quite impressive.
UFCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.74% yearly.
Looking at the last year, UFCS shows a quite strong growth in Revenue. The Revenue has grown by 14.18% in the last year.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)152.41%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%1385.71%
Revenue 1Y (TTM)14.18%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.39%
3.2 Future
The Earnings Per Share is expected to grow by 11.87% on average over the next years. This is quite good.
UFCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.56% yearly.
EPS Next Y21.2%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
EPS Next 5YN/A
Revenue Next Year10.6%
Revenue Next 2Y12.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
A Price/Earnings ratio of 8.39 indicates a reasonable valuation of UFCS.
UFCS's Price/Earnings ratio is a bit cheaper when compared to the industry. UFCS is cheaper than 70.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.57. UFCS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.71 indicates a reasonable valuation of UFCS.
The rest of the industry has a similar Price/Forward Earnings ratio as UFCS.
The average S&P500 Price/Forward Earnings ratio is at 23.09. UFCS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFCS is valued a bit cheaper than 77.55% 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 87.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.68 | ||
| EV/EBITDA | 5.15 |
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.
PEG (NY)0.4
PEG (5Y)0.26
EPS Next 2Y11.36%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 2.11%.
UFCS's Dividend Yield is comparable with the industry average which is at 3.31.
Compared to an average S&P500 Dividend Yield of 2.32, UFCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
The dividend of UFCS decreases each year by -13.28%.
UFCS has been paying a dividend for at least 10 years, so it has 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 17.70% of its income as dividend. This is a sustainable payout ratio.
DP17.7%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
30.71
-0.39 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.03%
Inst Owner Change0.35%
Ins Owners17.97%
Ins Owner Change2.4%
Market Cap782.80M
Revenue(TTM)1.32B
Net Income(TTM)91.84M
Analysts80
Price Target32.64 (6.28%)
Short Float %1.12%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend0.64
Dividend Growth(5Y)-13.28%
DP17.7%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.31%
Min EPS beat(2)7.23%
Max EPS beat(2)63.4%
EPS beat(4)4
Avg EPS beat(4)68.4%
Min EPS beat(4)7.23%
Max EPS beat(4)140.64%
EPS beat(8)7
Avg EPS beat(8)626.23%
EPS beat(12)8
Avg EPS beat(12)301.27%
EPS beat(16)10
Avg EPS beat(16)198.29%
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-2.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)3.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.46%
Revenue beat(12)5
Avg Revenue beat(12)0.15%
Revenue beat(16)5
Avg Revenue beat(16)-2.57%
PT rev (1m)0%
PT rev (3m)6.67%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-10.97%
EPS NY rev (1m)2.02%
EPS NY rev (3m)17.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.59 | ||
| P/FCF | 2.68 | ||
| P/OCF | 2.59 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)3.66
EY11.92%
EPS(NY)3.16
Fwd EY10.3%
FCF(TTM)11.44
FCFY37.25%
OCF(TTM)11.84
OCFY38.56%
SpS51.89
BVpS33.18
TBVpS33.04
PEG (NY)0.4
PEG (5Y)0.26
Graham Number52.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 10.86% | ||
| ROCE | 3.56% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.04% | ||
| ROICexgc | 3.48% | ||
| OM | 9.49% | ||
| PM (TTM) | 6.94% | ||
| GM | N/A | ||
| FCFM | 22.05% |
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
ROICexgc growth 3Y-7.23%
ROICexgc 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-Score9
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 101.86% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 12.78 | ||
| Cash Conversion | 222.65% | ||
| Profit Quality | 317.53% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.46%
ROIC/WACC0.34
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)152.41%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%1385.71%
EPS Next Y21.2%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
EPS Next 5YN/A
Revenue 1Y (TTM)14.18%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.39%
Revenue Next Year10.6%
Revenue Next 2Y12.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y155.96%
EBIT growth 3Y-5.53%
EBIT growth 5Y37.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y550.92%
FCF growth 3Y174.38%
FCF growth 5Y39.85%
OCF growth 1Y475%
OCF growth 3Y124.94%
OCF growth 5Y29.4%