UNUM GROUP (UNM) Stock Fundamental Analysis
NYSE:UNM - US91529Y1064 - Common Stock
69.86 USD
+0.54 (+0.78%)
69.86 USD
0 (0%)
UNM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. There are concerns on the financial health of UNM while its profitability can be described as average. UNM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year UNM was profitable.
UNM had a positive operating cash flow in the past year.
In the past 5 years UNM has always been profitable.
UNM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNM has a Return On Assets of 2.42%. This is comparable to the rest of the industry: UNM outperforms 55.48% of its industry peers.
UNM's Return On Equity of 13.42% is fine compared to the rest of the industry. UNM outperforms 65.75% of its industry peers.
The Return On Invested Capital of UNM (2.68%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for UNM is in line with the industry average of 4.11%.
The last Return On Invested Capital (2.68%) for UNM is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 13.42% | ||
| ROIC | 2.68% |
ROA(3y)2.4%
ROA(5y)1.94%
ROE(3y)15.21%
ROE(5y)12.31%
ROIC(3y)2.64%
ROIC(5y)N/A
1.3 Margins
UNM's Profit Margin of 11.77% is fine compared to the rest of the industry. UNM outperforms 70.55% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 16.48%, UNM is doing good in the industry, outperforming 70.55% of the companies in the same industry.
In the last couple of years the Operating Margin of UNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.48% | ||
| PM (TTM) | 11.77% | ||
| GM | N/A |
OM growth 3Y14.4%
OM growth 5Y7.24%
PM growth 3Y19.13%
PM growth 5Y8.58%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
UNM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UNM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UNM has less shares outstanding
UNM has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of UNM is 2.59, which is a good value as it means it would take UNM, 2.59 years of fcf income to pay off all of its debts.
UNM has a Debt to FCF ratio of 2.59. This is comparable to the rest of the industry: UNM outperforms 48.63% of its industry peers.
UNM has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.31, UNM perfoms like the industry average, outperforming 52.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC7.78%
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 been growing slightly by 3.25% over the past year.
The Earnings Per Share has been growing by 9.18% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.86% in the past year.
UNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.40% yearly.
EPS 1Y (TTM)3.25%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%3.96%
3.2 Future
The Earnings Per Share is expected to grow by 6.50% on average over the next years.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y1.73%
EPS Next 2Y5.84%
EPS Next 3Y7.41%
EPS Next 5Y6.5%
Revenue Next Year2.4%
Revenue Next 2Y2.73%
Revenue Next 3Y2.94%
Revenue Next 5Y3.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 8.45, which indicates a very decent valuation of UNM.
UNM's Price/Earnings ratio is a bit cheaper when compared to the industry. UNM is cheaper than 71.92% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, UNM is valued rather cheaply.
The Price/Forward Earnings ratio is 7.39, which indicates a rather cheap valuation of UNM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 72.60% of the companies listed in the same industry.
UNM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 7.39 |
4.2 Price Multiples
70.55% of the companies in the same industry are more expensive than UNM, based on the Enterprise Value to EBITDA ratio.
60.27% of the companies in the same industry are more expensive than UNM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
UNM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.89
PEG (5Y)0.92
EPS Next 2Y5.84%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.29, UNM pays a bit more dividend than its industry peers.
UNM's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
On average, the dividend of UNM grows each year by 7.77%, which is quite nice.
UNM has paid a dividend for at least 10 years, which is a reliable track record.
UNM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.77%
Div Incr Years16
Div Non Decr Years20
5.3 Sustainability
UNM pays out 20.11% of its income as dividend. This is a sustainable payout ratio.
UNM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.11%
EPS Next 2Y5.84%
EPS Next 3Y7.41%
69.86
+0.54 (+0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change-71.73%
Ins Owners0.89%
Ins Owner Change0.47%
Market Cap11.90B
Analysts78.89
Price Target94.86 (35.79%)
Short Float %1.63%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP20.11%
Div Incr Years16
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.48%
Min EPS beat(2)-7.7%
Max EPS beat(2)-7.26%
EPS beat(4)1
Avg EPS beat(4)-5.17%
Min EPS beat(4)-7.7%
Max EPS beat(4)0.3%
EPS beat(8)4
Avg EPS beat(8)-1.63%
EPS beat(12)7
Avg EPS beat(12)0.93%
EPS beat(16)10
Avg EPS beat(16)8.01%
Revenue beat(2)0
Avg Revenue beat(2)-4.4%
Min Revenue beat(2)-8.42%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.38%
Min Revenue beat(4)-8.42%
Max Revenue beat(4)-0.37%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)0
Avg Revenue beat(12)-1.87%
Revenue beat(16)1
Avg Revenue beat(16)-1.58%
PT rev (1m)-3.88%
PT rev (3m)-0.62%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)-6.63%
EPS NY rev (1m)-4.47%
EPS NY rev (3m)-4.71%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 7.39 | ||
| P/S | 0.92 | ||
| P/FCF | 8.24 | ||
| P/OCF | 7.54 | ||
| P/B | 1.05 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 6.44 |
EPS(TTM)8.27
EY11.84%
EPS(NY)9.45
Fwd EY13.53%
FCF(TTM)8.48
FCFY12.14%
OCF(TTM)9.26
OCFY13.26%
SpS75.78
BVpS66.47
TBVpS64.39
PEG (NY)4.89
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 13.42% | ||
| ROCE | 3.41% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.74% | ||
| ROICexgc | 3.31% | ||
| OM | 16.48% | ||
| PM (TTM) | 11.77% | ||
| GM | N/A | ||
| FCFM | 11.19% |
ROA(3y)2.4%
ROA(5y)1.94%
ROE(3y)15.21%
ROE(5y)12.31%
ROIC(3y)2.64%
ROIC(5y)N/A
ROICexc(3y)2.65%
ROICexc(5y)N/A
ROICexgc(3y)3.26%
ROICexgc(5y)N/A
ROCE(3y)3.36%
ROCE(5y)N/A
ROICexcg growth 3Y21.47%
ROICexcg growth 5Y12.4%
ROICexc growth 3Y22.34%
ROICexc growth 5Y10.45%
OM growth 3Y14.4%
OM growth 5Y7.24%
PM growth 3Y19.13%
PM growth 5Y8.58%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 114.02% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.31% | ||
| Profit Quality | 95.06% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC7.78%
ROIC/WACC0.35
Cap/Depr(3y)108.22%
Cap/Depr(5y)104.31%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.95%
Profit Quality(3y)84.91%
Profit Quality(5y)89.05%
High Growth Momentum
Growth
EPS 1Y (TTM)3.25%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-4.17%
EPS Next Y1.73%
EPS Next 2Y5.84%
EPS Next 3Y7.41%
EPS Next 5Y6.5%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%3.96%
Revenue Next Year2.4%
Revenue Next 2Y2.73%
Revenue Next 3Y2.94%
Revenue Next 5Y3.58%
EBIT growth 1Y13.18%
EBIT growth 3Y17.11%
EBIT growth 5Y8.74%
EBIT Next Year-0.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.72%
FCF growth 3Y2.8%
FCF growth 5Y-2.7%
OCF growth 1Y43.62%
OCF growth 3Y2.93%
OCF growth 5Y-2.77%