UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
NASDAQ:UFCS - Nasdaq - US9103401082 - Common Stock - Currency: USD
UFCS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 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
In the past year UFCS was profitable.
UFCS had a positive operating cash flow in the past year.
In multiple years UFCS reported negative net income over the last 5 years.
Of the past 5 years UFCS 4 years had a positive operating cash flow.
1.2 Ratios
UFCS's Return On Assets of 1.88% is in line compared to the rest of the industry. UFCS outperforms 49.65% of its industry peers.
UFCS has a worse Return On Equity (8.09%) than 60.14% of its industry peers.
UFCS has a Return On Invested Capital (2.17%) which is comparable to the rest of the industry.
| 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
Looking at the Profit Margin, with a value of 5.13%, UFCS is doing worse than 60.14% of the companies in the same industry.
UFCS's Profit Margin has improved in the last couple of years.
The Operating Margin of UFCS (7.10%) is worse than 64.34% of its industry peers.
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
Compared to 5 years ago, UFCS has more shares outstanding
The debt/assets ratio for UFCS is higher compared to a year ago.
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.
UFCS's Debt to FCF ratio of 0.36 is amongst the best of the industry. UFCS outperforms 87.41% 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 has a better Debt to Equity ratio (0.14) than 74.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | N/A |
ROIC/WACC0.25
WACC8.66%
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 152.41% over the past year.
The Earnings Per Share has been growing by 32.74% on average over the past years. This is a very strong growth
Looking at the last year, UFCS shows a quite strong growth in Revenue. The Revenue has grown by 14.41% in the last year.
Measured over the past years, UFCS shows a small growth in Revenue. The Revenue has been growing by 0.85% on average per year.
EPS 1Y (TTM)152.41%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%1385.71%
Revenue 1Y (TTM)14.41%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.39%
3.2 Future
The Earnings Per Share is expected to grow by 4.56% on average over the next years.
Based on estimates for the next years, UFCS will show a quite strong growth in Revenue. The Revenue will grow by 10.10% on average per year.
EPS Next Y3.47%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 7.85, the valuation of UFCS can be described as very cheap.
74.83% of the companies in the same industry are more expensive than UFCS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.99. UFCS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.30, the valuation of UFCS can be described as reasonable.
UFCS's Price/Forward Earnings ratio is in line with the industry average.
UFCS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFCS is valued a bit cheaper than the industry average as 68.53% of the companies are valued more expensively.
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 | 2.23 | ||
| EV/EBITDA | 6.5 |
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)2.26
PEG (5Y)0.24
EPS Next 2Y4.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.39%, UFCS has a reasonable but not impressive dividend return.
UFCS's Dividend Yield is a higher than the industry average which is at 3.37.
Compared to an average S&P500 Dividend Yield of 2.40, UFCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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 24.53% of its income as dividend. This is a sustainable payout ratio.
DP24.53%
EPS Next 2Y4.56%
EPS Next 3YN/A
28.72
+1.92 (+7.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.45%
Inst Owner Change0.1%
Ins Owners18.01%
Ins Owner Change7.49%
Market Cap730.92M
Analysts77.78
Price Target30.6 (6.55%)
Short Float %1.65%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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)0%
EPS NQ rev (1m)7.29%
EPS NQ rev (3m)17.39%
EPS NY rev (1m)0%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.85 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.57 | ||
| P/FCF | 2.23 | ||
| P/OCF | 2.15 | ||
| P/B | 0.89 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 6.5 |
EPS(TTM)3.66
EY12.74%
EPS(NY)2.79
Fwd EY9.71%
FCF(TTM)12.89
FCFY44.88%
OCF(TTM)13.35
OCFY46.49%
SpS50.63
BVpS32.13
TBVpS31.98
PEG (NY)2.26
PEG (5Y)0.24
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
WACC8.66%
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)152.41%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%1385.71%
EPS Next Y3.47%
EPS Next 2Y4.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.41%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.39%
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%