35.94 USD
+0.31 (+0.87%)
At close: Jan 30, 2026
35.94 USD
0 (0%)
After Hours: 1/30/2026, 8:22:30 PM
We assign a fundamental rating of 5 out of 10 to UFCS. UFCS was compared to 148 industry peers in the Insurance industry. While UFCS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- UFCS had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: UFCS reported negative net income in multiple years.
- Of the past 5 years UFCS 4 years had a positive operating cash flow.
1.2 Ratios
- UFCS has a better Return On Assets (2.96%) than 64.19% of its industry peers.
- UFCS has a Return On Equity (12.38%) which is in line with its industry peers.
- UFCS has a better Return On Invested Capital (3.33%) than 62.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 12.38% | ||
| ROIC | 3.33% |
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 8.22%, UFCS perfoms like the industry average, outperforming 52.03% of the companies in the same industry.
- In the last couple of years the Profit Margin of UFCS has grown nicely.
- UFCS has a Operating Margin (11.07%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of UFCS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.07% | ||
| PM (TTM) | 8.22% | ||
| 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.
- The number of shares outstanding for UFCS has been increased compared to 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
- UFCS has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
- UFCS has a better Debt to FCF ratio (0.49) than 80.41% of its industry peers.
- UFCS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.16, UFCS is doing good in the industry, outperforming 72.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | N/A |
ROIC/WACC0.38
WACC8.73%
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 123.08% over the past year.
- 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.
- Looking at the last year, UFCS shows a quite strong growth in Revenue. The Revenue has grown by 12.12% in the last year.
- The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)123.08%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%85.19%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%9.62%
3.2 Future
- The Earnings Per Share is expected to grow by 13.44% 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 10.08% yearly.
EPS Next Y57.4%
EPS Next 2Y20.42%
EPS Next 3Y13.44%
EPS Next 5YN/A
Revenue Next Year8.41%
Revenue Next 2Y5.84%
Revenue Next 3Y10.08%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.26, which indicates a very decent valuation of UFCS.
- UFCS's Price/Earnings ratio is a bit cheaper when compared to the industry. UFCS is cheaper than 72.30% of the companies in the same industry.
- UFCS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- A Price/Forward Earnings ratio of 9.72 indicates a reasonable valuation of UFCS.
- UFCS's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, UFCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UFCS is valued a bit cheaper than the industry average as 77.03% of the companies are valued more expensively.
- UFCS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UFCS is cheaper than 82.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.08 | ||
| EV/EBITDA | 5.13 |
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 UFCS's earnings are expected to grow with 13.44% in the coming years.
PEG (NY)0.14
PEG (5Y)0.25
EPS Next 2Y20.42%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
- UFCS has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
- UFCS's Dividend Yield is comparable with the industry average which is at 2.41.
- UFCS's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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
- 14.63% of the earnings are spent on dividend by UFCS. This is a low number and sustainable payout ratio.
DP14.63%
EPS Next 2Y20.42%
EPS Next 3Y13.44%
UNITED FIRE GROUP INC / UFCS FAQ
What is the fundamental rating for UFCS stock?
ChartMill assigns a fundamental rating of 5 / 10 to UFCS.
Can you provide the valuation status for UNITED FIRE GROUP INC?
ChartMill assigns a valuation rating of 7 / 10 to UNITED FIRE GROUP INC (UFCS). This can be considered as Undervalued.
What is the profitability of UFCS stock?
UNITED FIRE GROUP INC (UFCS) has a profitability rating of 4 / 10.
What is the valuation of UNITED FIRE GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for UNITED FIRE GROUP INC (UFCS) is 8.26 and the Price/Book (PB) ratio is 1.02.
What is the expected EPS growth for UNITED FIRE GROUP INC (UFCS) stock?
The Earnings per Share (EPS) of UNITED FIRE GROUP INC (UFCS) is expected to grow by 57.4% in the next year.