UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
USA - NASDAQ:UFCS - US9103401082 - Common Stock
31.29 USD
-1.21 (-3.72%)
31.29 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to UFCS. UFCS was compared to 146 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 evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
UFCS had positive earnings in the past year.
UFCS had a positive operating cash flow in the past year.
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
The Return On Assets of UFCS (2.51%) is better than 60.27% of its industry peers.
The Return On Equity of UFCS (10.86%) is comparable to the rest of the industry.
UFCS has a Return On Invested Capital of 2.87%. This is in the better half of the industry: UFCS outperforms 61.64% 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
UFCS has a Profit Margin of 6.94%. This is comparable to the rest of the industry: UFCS outperforms 47.26% of its industry peers.
UFCS's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 9.49%, UFCS perfoms like the industry average, outperforming 43.84% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UFCS is destroying value.
UFCS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for UFCS has been increased compared to 5 years ago.
Compared to 1 year ago, UFCS has a worse debt to assets ratio.
2.2 Solvency
UFCS has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
The Debt to FCF ratio of UFCS (0.40) is better than 83.56% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that UFCS is not too dependend on debt financing.
The Debt to Equity ratio of UFCS (0.14) is better than 72.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC8.6%
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.
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 14.18% in the last year.
UFCS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
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.
Based on estimates for the next years, UFCS will show a quite strong growth in Revenue. The Revenue will grow by 12.56% on average per year.
EPS Next Y18.8%
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
With a Price/Earnings ratio of 8.55, the valuation of UFCS can be described as very reasonable.
Based on the Price/Earnings ratio, UFCS is valued a bit cheaper than 71.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of UFCS to the average of the S&P500 Index (27.38), we can say UFCS is valued rather cheaply.
A Price/Forward Earnings ratio of 9.90 indicates a reasonable valuation of UFCS.
The rest of the industry has a similar Price/Forward Earnings ratio as UFCS.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, UFCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 9.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UFCS is valued a bit cheaper than the industry average as 79.45% of the companies are valued more expensively.
85.62% of the companies in the same industry are more expensive than UFCS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.74 | ||
| EV/EBITDA | 5.26 |
4.3 Compensation for Growth
UFCS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.45
PEG (5Y)0.26
EPS Next 2Y11.36%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, UFCS has a reasonable but not impressive dividend return.
UFCS's Dividend Yield is comparable with the industry average which is at 3.44.
UFCS's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 17.70% of its income as dividend. This is a sustainable payout ratio.
DP17.7%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
31.29
-1.21 (-3.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.36%
Inst Owner Change0.53%
Ins Owners18.01%
Ins Owner Change1.26%
Market Cap797.58M
Analysts77.78
Price Target32.64 (4.31%)
Short Float %1.38%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)6.67%
PT rev (3m)6.67%
EPS NQ rev (1m)-6.71%
EPS NQ rev (3m)-10.32%
EPS NY rev (1m)0%
EPS NY rev (3m)14.82%
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 | 8.55 | ||
| Fwd PE | 9.9 | ||
| P/S | 0.6 | ||
| P/FCF | 2.74 | ||
| P/OCF | 2.64 | ||
| P/B | 0.94 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 5.26 |
EPS(TTM)3.66
EY11.7%
EPS(NY)3.16
Fwd EY10.11%
FCF(TTM)11.44
FCFY36.56%
OCF(TTM)11.84
OCFY37.85%
SpS51.89
BVpS33.18
TBVpS33.04
PEG (NY)0.45
PEG (5Y)0.26
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
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-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
WACC8.6%
ROIC/WACC0.33
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 Y18.8%
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%