UNUM GROUP (UNM) Stock Fundamental Analysis
NYSE:UNM - New York Stock Exchange, Inc. - US91529Y1064 - Common Stock - Currency: USD
Taking everything into account, UNM scores 5 out of 10 in our fundamental rating. UNM was compared to 143 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 has a correct valuation and a medium growth rate. 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.
In the past 5 years UNM has always been profitable.
Each year in the past 5 years UNM had a positive operating cash flow.
1.2 Ratios
UNM has a Return On Assets (2.52%) which is in line with its industry peers.
With a decent Return On Equity value of 14.03%, UNM is doing good in the industry, outperforming 68.53% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.80%, UNM is in the better half of the industry, outperforming 60.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UNM is in line with the industry average of 4.08%.
The last Return On Invested Capital (2.80%) for UNM is above the 3 year average (2.64%), which is a sign of increasing profitability.
| 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
UNM's Profit Margin of 12.31% is fine compared to the rest of the industry. UNM outperforms 74.83% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
The Operating Margin of UNM (17.24%) is better than 75.52% of its industry peers.
In the last couple of years the Operating Margin of UNM has grown nicely.
| 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.
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 2.61, 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.
UNM has a Debt to FCF ratio of 2.61. This is comparable to the rest of the industry: UNM outperforms 44.76% 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.
Looking at the Debt to Equity ratio, with a value of 0.31, UNM is in line with its industry, outperforming 55.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.08%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
UNM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.69%.
The Earnings Per Share has been growing by 9.18% on average over the past years. This is quite good.
Looking at the last year, UNM shows a small growth in Revenue. The Revenue has grown by 1.82% in the last 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)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.
Based on estimates for the next years, UNM will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
EPS Next Y6.49%
EPS Next 2Y8.32%
EPS Next 3Y8.73%
EPS Next 5Y9.47%
Revenue Next Year2.66%
Revenue Next 2Y3.28%
Revenue Next 3Y2.93%
Revenue Next 5Y4.35%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
UNM is valuated reasonably with a Price/Earnings ratio of 9.66.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.04, UNM is valued rather cheaply.
A Price/Forward Earnings ratio of 8.16 indicates a reasonable valuation of UNM.
69.23% of the companies in the same industry are more expensive than UNM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 8.16 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than UNM, based on the Enterprise Value to EBITDA ratio.
UNM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
UNM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of UNM may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)1.05
EPS Next 2Y8.32%
EPS Next 3Y8.73%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.27%.
Compared to an average industry Dividend Yield of 3.39, 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 | 2.27% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y8.32%
EPS Next 3Y8.73%
80.76
+0.75 (+0.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.08%
Inst Owner Change-0.68%
Ins Owners0.87%
Ins Owner Change0.44%
Market Cap14.08B
Analysts78.89
Price Target98.69 (22.2%)
Short Float %1.32%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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)2.93%
PT rev (3m)3.38%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector 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 | 7.53 |
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)1.49
PEG (5Y)1.05
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
WACC8.08%
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)5.69%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-3.77%
EPS Next Y6.49%
EPS Next 2Y8.32%
EPS Next 3Y8.73%
EPS Next 5Y9.47%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%-3.43%
Revenue Next Year2.66%
Revenue Next 2Y3.28%
Revenue Next 3Y2.93%
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%