UNUM GROUP (UNM)
US91529Y1064 - Common Stock
Taking everything into account, UNM scores 5 out of 10 in our fundamental rating. UNM was compared to 140 industry peers in the Insurance industry. UNM has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally UNM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UNM had positive earnings in the past year.
UNM had a positive operating cash flow in the past year.
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's Return On Assets of 2.03% is in line compared to the rest of the industry. UNM outperforms 57.55% of its industry peers.
Looking at the Return On Equity, with a value of 13.30%, UNM is in the better half of the industry, outperforming 63.31% of the companies in the same industry.
UNM has a Return On Invested Capital (2.31%) which is in line with its industry peers.
UNM had an Average Return On Invested Capital over the past 3 years of 2.19%. This is in line with the industry average of 4.09%.
The last Return On Invested Capital (2.31%) for UNM is above the 3 year average (2.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 13.3% | ||
| ROIC | 2.31% |
ROA(3y)1.91%
ROA(5y)1.7%
ROE(3y)12.67%
ROE(5y)11.27%
ROIC(3y)2.19%
ROIC(5y)N/A
1.3 Margins
UNM has a better Profit Margin (10.37%) than 66.91% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
UNM's Operating Margin of 14.81% is fine compared to the rest of the industry. UNM outperforms 68.35% of its industry peers.
In the last couple of years the Operating Margin of UNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.81% | ||
| PM (TTM) | 10.37% | ||
| GM | N/A |
OM growth 3Y17.96%
OM growth 5Y16.18%
PM growth 3Y19.82%
PM growth 5Y18.15%
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), UNM is destroying value.
Compared to 1 year ago, UNM has less shares outstanding
The number of shares outstanding for UNM has been reduced compared to 5 years ago.
The debt/assets ratio for UNM has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of UNM is 3.21, which is a good value as it means it would take UNM, 3.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.21, UNM is in line with its industry, outperforming 43.88% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that UNM is not too dependend on debt financing.
UNM has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | N/A |
ROIC/WACC0.29
WACC7.93%
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 23.35% over the past year.
UNM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.01% yearly.
The Revenue has been growing slightly by 3.29% in the past year.
UNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
EPS 1Y (TTM)23.35%
EPS 3Y15.74%
EPS 5Y8.01%
EPS growth Q2Q25.17%
Revenue 1Y (TTM)3.29%
Revenue growth 3Y-2.01%
Revenue growth 5Y1.29%
Revenue growth Q2Q4.64%
3.2 Future
Based on estimates for the next years, UNM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.60% on average per year.
Based on estimates for the next years, UNM will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
EPS Next Y7.55%
EPS Next 2Y7.94%
EPS Next 3Y8.6%
EPS Next 5YN/A
Revenue Next Year4.48%
Revenue Next 2Y4.12%
Revenue Next 3Y3.87%
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 stable.
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
With a Price/Earnings ratio of 6.63, the valuation of UNM can be described as very cheap.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than the industry average as 71.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.80. UNM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.16, the valuation of UNM can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 76.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 6.16 |
4.2 Price Multiples
73.38% of the companies in the same industry are more expensive than UNM, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as UNM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UNM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.88
PEG (5Y)0.83
EPS Next 2Y7.94%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.31, UNM pays a bit more dividend than its industry peers.
UNM's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
The dividend of UNM is nicely growing with an annual growth rate of 7.55%!
UNM has been paying a dividend for at least 10 years, so it has 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)7.55%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
UNM pays out 21.58% of its income as dividend. This is a sustainable payout ratio.
UNM's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.58%
EPS Next 2Y7.94%
EPS Next 3Y8.6%
UNUM GROUP
NYSE:UNM (4/18/2024, 7:25:37 PM)
After market: 50.79 0 (0%)50.79
+0.63 (+1.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.63 | ||
| Fwd PE | 6.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.88
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 13.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.81% | ||
| PM (TTM) | 10.37% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)23.35%
EPS 3Y15.74%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.29%
Revenue growth 3Y-2.01%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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