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UNUM GROUP (UNM) Stock Fundamental Analysis

NYSE:UNM - New York Stock Exchange, Inc. - US91529Y1064 - Common Stock - Currency: USD

80.76  +0.3 (+0.37%)

After market: 80.76 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to UNM. UNM was compared to 144 industry peers in the Insurance industry. While UNM is still in line with the averages on profitability rating, there are concerns on its financial health. UNM is not valued too expensively and it also shows a decent growth rate. UNM also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

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.
In the past 5 years UNM always reported a positive cash flow from operatings.
UNM Yearly Net Income VS EBIT VS OCF VS FCFUNM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

UNM has a Return On Assets of 2.52%. This is comparable to the rest of the industry: UNM outperforms 56.94% of its industry peers.
UNM has a better Return On Equity (14.03%) than 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.80%, UNM is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
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 RankSector 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
UNM Yearly ROA, ROE, ROICUNM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

The Profit Margin of UNM (12.31%) is better than 72.92% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
UNM's Operating Margin of 17.24% is fine compared to the rest of the industry. UNM outperforms 73.61% of its industry peers.
UNM's Operating Margin has improved in the last couple of years.
Industry RankSector 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
UNM Yearly Profit, Operating, Gross MarginsUNM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

3

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
Compared to 5 years ago, UNM has less shares outstanding
Compared to 1 year ago, UNM has a worse debt to assets ratio.
UNM Yearly Shares OutstandingUNM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
UNM Yearly Total Debt VS Total AssetsUNM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

UNM has a debt to FCF ratio of 2.61. This is a good value and a sign of high solvency as UNM would need 2.61 years to pay back of all of its debts.
UNM has a Debt to FCF ratio (2.61) which is in line with its industry peers.
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 comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF 2.61
Altman-Z N/A
ROIC/WACC0.3
WACC9.23%
UNM Yearly LT Debt VS Equity VS FCFUNM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
UNM Yearly Current Assets VS Current LiabilitesUNM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2021 2022 2023 2024 200M 400M 600M

5

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.
Looking at the last year, UNM shows a small growth in Revenue. The Revenue has grown by 1.82% in the last year.
The Revenue has been growing slightly by 1.40% on average over the past years.
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

The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
UNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.35% yearly.
EPS Next Y6.65%
EPS Next 2Y8.3%
EPS Next 3Y8.76%
EPS Next 5Y9.47%
Revenue Next Year2.71%
Revenue Next 2Y3.29%
Revenue Next 3Y3.12%
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.
UNM Yearly Revenue VS EstimatesUNM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
UNM Yearly EPS VS EstimatesUNM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.66, the valuation of UNM can be described as reasonable.
70.83% of the companies in the same industry are more expensive than UNM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.15, UNM is valued rather cheaply.
The Price/Forward Earnings ratio is 8.16, which indicates a very decent valuation of UNM.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than 67.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, UNM is valued rather cheaply.
Industry RankSector Rank
PE 9.66
Fwd PE 8.16
UNM Price Earnings VS Forward Price EarningsUNM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UNM is valued a bit cheaper than 65.28% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNM is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 9.81
EV/EBITDA 7.58
UNM Per share dataUNM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

UNM's 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)1.45
PEG (5Y)1.05
EPS Next 2Y8.3%
EPS Next 3Y8.76%

7

5. Dividend

5.1 Amount

UNM has a Yearly Dividend Yield of 2.11%.
UNM's Dividend Yield is comparable with the industry average which is at 3.51.
UNM's Dividend Yield is comparable with the S&P500 average which is at 2.42.
Industry RankSector Rank
Dividend Yield 2.11%

5.2 History

The dividend of UNM is nicely growing with an annual growth rate of 7.77%!
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)7.77%
Div Incr Years16
Div Non Decr Years20
UNM Yearly Dividends per shareUNM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

19.14% of the earnings are spent on dividend by UNM. This is a low number and sustainable payout ratio.
The dividend of UNM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.14%
EPS Next 2Y8.3%
EPS Next 3Y8.76%
UNM Yearly Income VS Free CF VS DividendUNM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
UNM Dividend Payout.UNM Dividend Payout, showing the Payout Ratio.UNM Dividend Payout.PayoutRetained Earnings

UNUM GROUP

NYSE:UNM (6/30/2025, 8:04:00 PM)

After market: 80.76 0 (0%)

80.76

+0.3 (+0.37%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-29 2025-04-29/amc
Earnings (Next)07-29 2025-07-29/amc
Inst Owners92.08%
Inst Owner Change2.04%
Ins Owners0.87%
Ins Owner Change0.44%
Market Cap14.08B
Analysts78.89
Price Target96.14 (19.04%)
Short Float %1.83%
Short Ratio2.64
Dividend
Industry RankSector Rank
Dividend Yield 2.11%
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP19.14%
Div Incr Years16
Div Non Decr Years20
Ex-Date04-25 2025-04-25 (0.42)
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)0.71%
PT rev (3m)0.71%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.86%
Valuation
Industry RankSector Rank
PE 9.66
Fwd PE 8.16
P/S 1.1
P/FCF 9.81
P/OCF 8.98
P/B 1.26
P/tB 1.3
EV/EBITDA 7.58
EPS(TTM)8.36
EY10.35%
EPS(NY)9.9
Fwd EY12.26%
FCF(TTM)8.23
FCFY10.19%
OCF(TTM)9
OCFY11.14%
SpS73.29
BVpS64.32
TBVpS62.3
PEG (NY)1.45
PEG (5Y)1.05
Profitability
Industry RankSector 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 RankSector 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
WACC9.23%
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 Y6.65%
EPS Next 2Y8.3%
EPS Next 3Y8.76%
EPS Next 5Y9.47%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%-3.43%
Revenue Next Year2.71%
Revenue Next 2Y3.29%
Revenue Next 3Y3.12%
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%