UNUM GROUP (UNM) Stock Fundamental Analysis
USA - NYSE:UNM - US91529Y1064 - Common Stock
74.78 USD
-1.15 (-1.51%)
Taking everything into account, UNM scores 5 out of 10 in our fundamental rating. UNM was compared to 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year UNM was profitable.
In the past year UNM had a positive cash flow from operations.
UNM had positive earnings in each of the past 5 years.
Each year in the past 5 years UNM had a positive operating cash flow.
1.2 Ratios
UNM has a Return On Assets of 2.42%. This is comparable to the rest of the industry: UNM outperforms 54.48% of its industry peers.
UNM has a better Return On Equity (13.42%) than 65.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.68%, UNM is in line with its industry, outperforming 54.48% of the companies in the same industry.
UNM had an Average Return On Invested Capital over the past 3 years of 2.64%. This is in line with the industry average of 4.40%.
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 has a Profit Margin of 11.77%. This is in the better half of the industry: UNM outperforms 71.03% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
UNM has a Operating Margin of 16.48%. This is in the better half of the industry: UNM outperforms 71.03% of its industry peers.
UNM's Operating Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, UNM has less shares outstanding
UNM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, UNM has a worse debt to assets ratio.
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.
With a Debt to FCF ratio value of 2.59, UNM perfoms like the industry average, outperforming 49.66% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that UNM is not too dependend on debt financing.
UNM has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC7.69%
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.
Measured over the past years, UNM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.18% on average per year.
Looking at the last year, UNM shows a small growth in Revenue. The Revenue has grown by 1.86% in the last year.
Measured over the past years, UNM shows a small growth in Revenue. The Revenue has been growing by 1.40% on average per year.
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
Based on estimates for the next years, UNM will show a small growth in Earnings Per Share. The EPS will grow by 6.50% on average per year.
UNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
EPS Next Y1.72%
EPS Next 2Y5.84%
EPS Next 3Y7.56%
EPS Next 5Y6.5%
Revenue Next Year2.2%
Revenue Next 2Y2.59%
Revenue Next 3Y2.67%
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
Based on the Price/Earnings ratio of 9.04, the valuation of UNM can be described as reasonable.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than 66.90% of the companies in the same industry.
UNM is valuated cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.91 indicates a rather cheap valuation of UNM.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than the industry average as 70.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.04, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNM is valued a bit cheaper than the industry average as 66.21% of the companies are valued more expensively.
UNM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNM does not grow enough to justify the current Price/Earnings ratio.
UNM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.26
PEG (5Y)0.98
EPS Next 2Y5.84%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.40%. Purely for dividend investing, there may be better candidates out there.
UNM's Dividend Yield is a higher than the industry average which is at 3.54.
UNM's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of UNM is nicely growing with an annual growth rate of 7.77%!
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
20.11% of the earnings are spent on dividend by UNM. This is a low number and 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 3Y7.56%
NYSE:UNM (10/16/2025, 11:14:08 AM)
74.78
-1.15 (-1.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change-0.14%
Ins Owners0.89%
Ins Owner Change1.09%
Market Cap12.74B
Analysts78.89
Price Target94.7 (26.64%)
Short Float %1.74%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)-0.17%
PT rev (3m)-1.49%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-5.22%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-4.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.99 | ||
| P/FCF | 8.82 | ||
| P/OCF | 8.07 | ||
| P/B | 1.13 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)8.27
EY11.06%
EPS(NY)9.45
Fwd EY12.64%
FCF(TTM)8.48
FCFY11.34%
OCF(TTM)9.26
OCFY12.39%
SpS75.78
BVpS66.47
TBVpS64.39
PEG (NY)5.26
PEG (5Y)0.98
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
WACC7.69%
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 Y1.72%
EPS Next 2Y5.84%
EPS Next 3Y7.56%
EPS Next 5Y6.5%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%3.96%
Revenue Next Year2.2%
Revenue Next 2Y2.59%
Revenue Next 3Y2.67%
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%