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 144 industry peers in the Insurance industry. UFCS has a bad profitability rating. Also its financial health evaluation is rather negative. UFCS has a correct valuation and a medium growth rate.
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.
UFCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
UFCS has a Return On Assets (1.88%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.09%, UFCS is in line with its industry, outperforming 42.36% of the companies in the same industry.
UFCS has a Return On Invested Capital of 2.17%. This is comparable to the rest of the industry: UFCS outperforms 52.08% 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 perfoms like the industry average, outperforming 40.28% 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 of 7.10%. This is in the lower half of the industry: UFCS underperforms 63.19% 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.
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
The Debt to FCF ratio of UFCS is 0.36, which is an excellent value as it means it would take UFCS, only 0.36 years of fcf income to pay off all of its debts.
UFCS has a better Debt to FCF ratio (0.36) than 86.81% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that UFCS is not too dependend on debt financing.
UFCS has a better Debt to Equity ratio (0.14) than 75.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | N/A |
ROIC/WACC0.23
WACC9.38%
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 458.67% 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
The Revenue has grown by 14.59% in the past year. This is quite good.
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)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
UFCS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.56% yearly.
UFCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.10% yearly.
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.
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 10.58, the valuation of UFCS can be described as very reasonable.
Based on the Price/Earnings ratio, UFCS is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UFCS to the average of the S&P500 Index (26.86), we can say UFCS is valued rather cheaply.
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.
UFCS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.43.
| 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 the industry average as 74.31% 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 88.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.21 | ||
| EV/EBITDA | 6.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.05
PEG (5Y)0.32
EPS Next 2Y4.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
UFCS's Dividend Yield is comparable with the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.43, UFCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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
24.53% of the earnings are spent on dividend by UFCS. This is a low number and sustainable payout ratio.
DP24.53%
EPS Next 2Y4.56%
EPS Next 3YN/A
28.45
+0.65 (+2.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.45%
Inst Owner Change1.6%
Ins Owners18.01%
Ins Owner Change7.12%
Market Cap724.05M
Analysts77.78
Price Target30.6 (7.56%)
Short Float %1.04%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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)-1.95%
EPS NQ rev (3m)9.42%
EPS NY rev (1m)1.17%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0%
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 | 6.27 |
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)3.05
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
WACC9.38%
ROIC/WACC0.23
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 Y3.47%
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%