UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
USA - NASDAQ:UFCS - US9103401082 - Common Stock
30.71 USD
-0.39 (-1.25%)
30.71 USD
0 (0%)
Overall UFCS gets a fundamental rating of 5 out of 10. We evaluated UFCS against 147 industry peers in the Insurance industry. UFCS has a medium profitability rating, but doesn't score so well on its financial health evaluation. An interesting combination arises when we look at growth and value: UFCS is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
UFCS had positive earnings in the past year.
In the past year UFCS had a positive cash flow from operations.
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 has a Return On Assets (2.51%) which is in line with its industry peers.
UFCS has a Return On Equity (10.86%) which is comparable to the rest of the industry.
UFCS has a Return On Invested Capital (2.87%) which is comparable to the rest of the industry.
| 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 46.26% of its industry peers.
In the last couple of years the Profit Margin of UFCS has grown nicely.
UFCS has a Operating Margin of 9.49%. This is comparable to the rest of the industry: UFCS outperforms 42.86% of its industry peers.
In the last couple of years the Operating Margin of UFCS has grown nicely.
| 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.
Compared to 5 years ago, UFCS has more shares outstanding
Compared to 1 year ago, UFCS has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UFCS is 0.40, which is an excellent value as it means it would take UFCS, only 0.40 years of fcf income to pay off all of its debts.
UFCS has a Debt to FCF ratio of 0.40. This is amongst the best in the industry. UFCS outperforms 84.35% 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 72.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC8.47%
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.
UFCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.74% yearly.
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.
UFCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.56% yearly.
EPS Next Y21.2%
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
Based on the Price/Earnings ratio of 8.39, the valuation of UFCS can be described as reasonable.
69.39% 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 27.77. UFCS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.71, the valuation of UFCS can be described as reasonable.
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 23.23, UFCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
UFCS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UFCS is cheaper than 76.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UFCS indicates a rather cheap valuation: UFCS is cheaper than 86.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.68 | ||
| EV/EBITDA | 5.22 |
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)0.4
PEG (5Y)0.26
EPS Next 2Y11.36%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 2.11%. Purely for dividend investing, there may be better candidates out there.
UFCS's Dividend Yield is comparable with the industry average which is at 3.31.
Compared to an average S&P500 Dividend Yield of 2.36, UFCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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
17.70% of the earnings are spent on dividend by UFCS. This is a low number and sustainable payout ratio.
DP17.7%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
30.71
-0.39 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.03%
Inst Owner Change0.35%
Ins Owners17.97%
Ins Owner Change2.4%
Market Cap782.80M
Revenue(TTM)1.32B
Net Income(TTM)91.84M
Analysts80
Price Target32.64 (6.28%)
Short Float %1.12%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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)0%
PT rev (3m)6.67%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-10.97%
EPS NY rev (1m)2.02%
EPS NY rev (3m)17.14%
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 | 8.39 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.59 | ||
| P/FCF | 2.68 | ||
| P/OCF | 2.59 | ||
| P/B | 0.93 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 5.22 |
EPS(TTM)3.66
EY11.92%
EPS(NY)3.16
Fwd EY10.3%
FCF(TTM)11.44
FCFY37.25%
OCF(TTM)11.84
OCFY38.56%
SpS51.89
BVpS33.18
TBVpS33.04
PEG (NY)0.4
PEG (5Y)0.26
Graham Number52.27
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
ROICexgc growth 3Y-7.23%
ROICexgc 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
WACC8.47%
ROIC/WACC0.34
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 Y21.2%
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%