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 145 industry peers in the Insurance industry. UFCS has a bad profitability rating. Also its financial health evaluation is rather negative. UFCS is not valued too expensively and it also shows a decent growth rate.
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.
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
The Return On Assets of UFCS (1.88%) is comparable to the rest of the industry.
UFCS has a Return On Equity (8.09%) which is in line with its industry peers.
The Return On Invested Capital of UFCS (2.17%) 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
The Profit Margin of UFCS (5.13%) is comparable to the rest of the industry.
UFCS's Profit Margin has improved in the last couple of years.
The Operating Margin of UFCS (7.10%) is worse than 63.45% of its industry peers.
In the last couple of years the Operating Margin of UFCS has grown nicely.
| 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.
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 0.36. 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.
Looking at the Debt to FCF ratio, with a value of 0.36, UFCS belongs to the top of the industry, outperforming 86.90% of the companies in the same industry.
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 Debt to Equity ratio of 0.14. This is in the better half of the industry: UFCS outperforms 75.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | N/A |
ROIC/WACC0.25
WACC8.84%
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
Looking at the last year, UFCS shows a quite strong growth in Revenue. The Revenue has grown by 14.59% 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)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
Based on estimates for the next years, UFCS will show a small growth in Earnings Per Share. The EPS will grow by 4.56% on average per year.
The Revenue is expected to grow by 10.10% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 10.08 indicates a reasonable valuation of UFCS.
Based on the Price/Earnings ratio, UFCS is valued a bit cheaper than the industry average as 64.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, UFCS is valued rather cheaply.
A Price/Forward Earnings ratio of 9.73 indicates a reasonable valuation of UFCS.
UFCS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, UFCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
UFCS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UFCS is cheaper than 73.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UFCS is valued cheaply inside the industry as 88.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.1 | ||
| EV/EBITDA | 6.1 |
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)2.91
PEG (5Y)0.31
EPS Next 2Y4.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, UFCS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, UFCS pays a bit more dividend than its industry peers.
UFCS's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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
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
27.12
-0.39 (-1.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.45%
Inst Owner Change0%
Ins Owners18.01%
Ins Owner Change7.49%
Market Cap690.20M
Analysts77.78
Price Target30.6 (12.83%)
Short Float %1.01%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)0%
EPS NQ rev (3m)9.42%
EPS NY rev (1m)1.17%
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 | 10.08 | ||
| Fwd PE | 9.73 | ||
| P/S | 0.54 | ||
| P/FCF | 2.1 | ||
| P/OCF | 2.03 | ||
| P/B | 0.84 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)2.69
EY9.92%
EPS(NY)2.79
Fwd EY10.28%
FCF(TTM)12.89
FCFY47.53%
OCF(TTM)13.35
OCFY49.23%
SpS50.63
BVpS32.13
TBVpS31.98
PEG (NY)2.91
PEG (5Y)0.31
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
WACC8.84%
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)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%