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 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.
In the past year UFCS had a positive cash flow from operations.
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's Return On Assets of 1.78% is in line compared to the rest of the industry. UFCS outperforms 48.95% of its industry peers.
UFCS has a Return On Equity (7.93%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.04%, UFCS perfoms like the industry average, outperforming 50.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 7.93% | ||
| ROIC | 2.04% |
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 4.94%, UFCS is not doing good in the industry: 62.94% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of UFCS has grown nicely.
With a Operating Margin value of 6.73%, UFCS is not doing good in the industry: 60.84% of the companies in the same industry are doing better.
UFCS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.73% | ||
| PM (TTM) | 4.94% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UFCS is destroying value.
Compared to 1 year ago, UFCS has more shares outstanding
The number of shares outstanding for UFCS has been increased compared to 5 years ago.
The debt/assets ratio for UFCS is higher compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 0.36, UFCS belongs to the top of the industry, outperforming 86.71% of the companies in the same industry.
UFCS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.15, UFCS is in the better half of the industry, outperforming 76.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | N/A |
ROIC/WACC0.23
WACC8.79%
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 458.67%, 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.
UFCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.41%.
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)14.41%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.87%
3.2 Future
The Earnings Per Share is expected to grow by 4.50% on average over the next years.
The Revenue is expected to grow by 10.81% on average over the next years. This is quite good.
EPS Next Y1.2%
EPS Next 2Y4.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.78%
Revenue Next 2Y10.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 10.38, which indicates a very decent valuation of UFCS.
67.13% of the companies in the same industry are more expensive than UFCS, based on the Price/Earnings ratio.
UFCS is valuated cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.03, the valuation of UFCS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UFCS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of UFCS to the average of the S&P500 Index (20.44), we can say UFCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UFCS indicates a somewhat cheap valuation: UFCS is cheaper than 68.53% of the companies listed in the same industry.
88.11% 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 | 2.16 | ||
| EV/EBITDA | 6.55 |
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)8.65
PEG (5Y)0.32
EPS Next 2Y4.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 2.35%.
Compared to an average industry Dividend Yield of 3.26, UFCS pays a bit more dividend than its industry peers.
UFCS's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 Years2
Div Non Decr Years3
5.3 Sustainability
UFCS pays out 26.17% of its income as dividend. This is a sustainable payout ratio.
DP26.17%
EPS Next 2Y4.5%
EPS Next 3YN/A
27.93
+0.07 (+0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners65.66%
Inst Owner Change-1.18%
Ins Owners18.09%
Ins Owner Change4.14%
Market Cap709.14M
Analysts77.78
Price Target30.6 (9.56%)
Short Float %1.06%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend0.64
Dividend Growth(5Y)-13.28%
DP26.17%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.48%
Min EPS beat(2)62.32%
Max EPS beat(2)140.64%
EPS beat(4)3
Avg EPS beat(4)-313.5%
Min EPS beat(4)-1472.55%
Max EPS beat(4)140.64%
EPS beat(8)5
Avg EPS beat(8)451.48%
EPS beat(12)7
Avg EPS beat(12)294.16%
EPS beat(16)10
Avg EPS beat(16)310.36%
Revenue beat(2)1
Avg Revenue beat(2)1.52%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)3.2%
Revenue beat(4)2
Avg Revenue beat(4)1%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)3.2%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)5
Avg Revenue beat(12)-1.41%
Revenue beat(16)6
Avg Revenue beat(16)-2.49%
PT rev (1m)0%
PT rev (3m)15.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.95%
EPS NY rev (1m)0%
EPS NY rev (3m)15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 10.03 | ||
| P/S | 0.57 | ||
| P/FCF | 2.16 | ||
| P/OCF | 2.08 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)2.69
EY9.63%
EPS(NY)2.78
Fwd EY9.97%
FCF(TTM)12.94
FCFY46.31%
OCF(TTM)13.4
OCFY47.99%
SpS49.36
BVpS30.78
TBVpS30.63
PEG (NY)8.65
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 7.93% | ||
| ROCE | 2.54% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.18% | ||
| ROICexgc | 2.52% | ||
| OM | 6.73% | ||
| PM (TTM) | 4.94% | ||
| GM | N/A | ||
| FCFM | 26.21% |
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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.36 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 108.86% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 11.76 | ||
| Cash Conversion | 357.39% | ||
| Profit Quality | 530.1% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.79%
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 Y1.2%
EPS Next 2Y4.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.41%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.87%
Revenue Next Year11.78%
Revenue Next 2Y10.81%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y331.64%
EBIT growth 3Y-5.53%
EBIT growth 5Y37.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y104.19%
FCF growth 3Y174.38%
FCF growth 5Y39.85%
OCF growth 1Y98.16%
OCF growth 3Y124.94%
OCF growth 5Y29.4%