UNUM GROUP (UNM) Stock Fundamental Analysis
NYSE:UNM - New York Stock Exchange, Inc. - US91529Y1064 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to UNM. UNM was compared to 143 industry peers in the Insurance industry. UNM has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNM has a decent growth rate and is not valued too expensively. Finally UNM also has an excellent dividend rating.
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.
Each year in the past 5 years UNM has been profitable.
In the past 5 years UNM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.52%, UNM is in line with its industry, outperforming 57.34% of the companies in the same industry.
The Return On Equity of UNM (14.03%) is better than 69.23% of its industry peers.
UNM's Return On Invested Capital of 2.80% is fine compared to the rest of the industry. UNM outperforms 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNM is in line with the industry average of 4.07%.
The 3 year average ROIC (2.64%) for UNM is below the current ROIC(2.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 14.03% | ||
| ROIC | 2.8% |
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
Looking at the Profit Margin, with a value of 12.31%, UNM is in the better half of the industry, outperforming 73.43% of the companies in the same industry.
UNM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.24%, UNM is doing good in the industry, outperforming 74.13% of the companies in the same industry.
UNM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.24% | ||
| PM (TTM) | 12.31% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UNM is destroying value.
The number of shares outstanding for UNM has been reduced compared to 1 year ago.
The number of shares outstanding for UNM has been reduced compared to 5 years ago.
UNM has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of UNM is 2.61, which is a good value as it means it would take UNM, 2.61 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 2.61, UNM perfoms like the industry average, outperforming 41.26% of the companies in the same industry.
UNM has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
UNM has a Debt to Equity ratio (0.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC9.31%
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 5.69% 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 9.18% yearly.
UNM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.82%.
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)5.69%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-3.77%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%-3.43%
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 9.47% on average per year.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y6.76%
EPS Next 2Y8.31%
EPS Next 3Y8.91%
EPS Next 5Y9.47%
Revenue Next Year2.77%
Revenue Next 2Y3.37%
Revenue Next 3Y3.05%
Revenue Next 5Y4.35%
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.
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
UNM is valuated reasonably with a Price/Earnings ratio of 9.38.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than the industry average as 70.63% of the companies are valued more expensively.
UNM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 7.92, which indicates a rather cheap valuation of UNM.
67.13% of the companies in the same industry are more expensive than UNM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UNM to the average of the S&P500 Index (22.19), we can say UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNM is valued a bit cheaper than 64.34% of the companies in the same industry.
UNM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
UNM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)1.02
EPS Next 2Y8.31%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, UNM has a reasonable but not impressive dividend return.
UNM's Dividend Yield is comparable with the industry average which is at 3.46.
UNM's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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 19.14% of its income as dividend. This is a sustainable payout ratio.
UNM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.14%
EPS Next 2Y8.31%
EPS Next 3Y8.91%
78.43
+0.58 (+0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.08%
Inst Owner Change2.04%
Ins Owners0.87%
Ins Owner Change0.44%
Market Cap13.68B
Analysts78.89
Price Target95.88 (22.25%)
Short Float %1.95%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP19.14%
Div Incr Years16
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.87%
Min EPS beat(2)-7.7%
Max EPS beat(2)-6.03%
EPS beat(4)2
Avg EPS beat(4)-1.84%
Min EPS beat(4)-7.7%
Max EPS beat(4)6.07%
EPS beat(8)5
Avg EPS beat(8)0.51%
EPS beat(12)8
Avg EPS beat(12)6.09%
EPS beat(16)11
Avg EPS beat(16)9.91%
Revenue beat(2)0
Avg Revenue beat(2)-5.44%
Min Revenue beat(2)-8.42%
Max Revenue beat(2)-2.45%
Revenue beat(4)0
Avg Revenue beat(4)-3.54%
Min Revenue beat(4)-8.42%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-2.22%
Revenue beat(12)1
Avg Revenue beat(12)-1.79%
Revenue beat(16)2
Avg Revenue beat(16)-1.55%
PT rev (1m)0.45%
PT rev (3m)2.58%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.75%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 7.92 | ||
| P/S | 1.07 | ||
| P/FCF | 9.53 | ||
| P/OCF | 8.72 | ||
| P/B | 1.22 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)8.36
EY10.66%
EPS(NY)9.9
Fwd EY12.62%
FCF(TTM)8.23
FCFY10.5%
OCF(TTM)9
OCFY11.47%
SpS73.29
BVpS64.32
TBVpS62.3
PEG (NY)1.39
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 14.03% | ||
| ROCE | 3.56% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.81% | ||
| ROICexgc | 3.4% | ||
| OM | 17.24% | ||
| PM (TTM) | 12.31% | ||
| GM | N/A | ||
| FCFM | 11.23% |
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-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.61 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 114.83% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.64% | ||
| Profit Quality | 91.25% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC9.31%
ROIC/WACC0.3
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)5.69%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-3.77%
EPS Next Y6.76%
EPS Next 2Y8.31%
EPS Next 3Y8.91%
EPS Next 5Y9.47%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%-3.43%
Revenue Next Year2.77%
Revenue Next 2Y3.37%
Revenue Next 3Y3.05%
Revenue Next 5Y4.35%
EBIT growth 1Y17.13%
EBIT growth 3Y17.11%
EBIT growth 5Y8.74%
EBIT Next Year-0.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y26.57%
FCF growth 3Y2.8%
FCF growth 5Y-2.7%
OCF growth 1Y26.14%
OCF growth 3Y2.93%
OCF growth 5Y-2.77%