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. While UNM has a great profitability rating, there are quite some 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.
1. Profitability
1.1 Basic Checks
UNM had positive earnings in the past year.
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
With a decent Return On Assets value of 2.87%, UNM is doing good in the industry, outperforming 62.24% of the companies in the same industry.
UNM's Return On Equity of 16.23% is fine compared to the rest of the industry. UNM outperforms 70.63% of its industry peers.
The Return On Invested Capital of UNM (3.14%) is better than 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UNM is in line with the industry average of 4.47%.
The 3 year average ROIC (2.64%) for UNM is below the current ROIC(3.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 16.23% | ||
| ROIC | 3.14% |
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 13.81%, UNM is in the better half of the industry, outperforming 75.52% of the companies in the same industry.
In the last couple of years the Profit Margin of UNM has grown nicely.
With a decent Operating Margin value of 19.03%, UNM is doing good in the industry, outperforming 74.13% of the companies in the same industry.
In the last couple of years the Operating Margin of UNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.03% | ||
| PM (TTM) | 13.81% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UNM is destroying value.
UNM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UNM has less shares outstanding
Compared to 1 year ago, UNM has a worse debt to assets ratio.
2.2 Solvency
UNM has a debt to FCF ratio of 2.70. This is a good value and a sign of high solvency as UNM would need 2.70 years to pay back of all of its debts.
UNM has a Debt to FCF ratio of 2.70. This is comparable to the rest of the industry: UNM outperforms 42.66% of its industry peers.
UNM has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
UNM has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.7 | ||
| Altman-Z | N/A |
ROIC/WACC0.39
WACC7.95%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
UNM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.18%, which is quite good.
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.
UNM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.05%.
UNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.40% yearly.
EPS 1Y (TTM)10.18%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%13.41%
Revenue 1Y (TTM)4.05%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%2.91%
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.
UNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y7.93%
EPS Next 2Y8.62%
EPS Next 3Y8.94%
EPS Next 5Y9.47%
Revenue Next Year3.41%
Revenue Next 2Y3.57%
Revenue Next 3Y3.28%
Revenue Next 5Y4.41%
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.
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
Based on the Price/Earnings ratio of 9.30, the valuation of UNM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 70.63% of the companies listed in the same industry.
UNM is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.61, the valuation of UNM can be described as reasonable.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than the industry average as 66.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 67.83% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as UNM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 6.78 |
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)1.17
PEG (5Y)1.01
EPS Next 2Y8.62%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.12%.
Compared to an average industry Dividend Yield of 3.22, UNM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.47, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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 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 16.67% 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.
DP16.67%
EPS Next 2Y8.62%
EPS Next 3Y8.94%
78.47
-0.87 (-1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.07%
Inst Owner Change1.17%
Ins Owners0.94%
Ins Owner Change-3.97%
Market Cap13.83B
Analysts78.89
Price Target95.8 (22.08%)
Short Float %1.89%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP16.67%
Div Incr Years16
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.87%
Min EPS beat(2)-6.03%
Max EPS beat(2)0.3%
EPS beat(4)3
Avg EPS beat(4)1.74%
Min EPS beat(4)-6.03%
Max EPS beat(4)6.61%
EPS beat(8)6
Avg EPS beat(8)2.93%
EPS beat(12)9
Avg EPS beat(12)12.56%
EPS beat(16)12
Avg EPS beat(16)10.7%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)-2.28%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-1.36%
Revenue beat(12)1
Avg Revenue beat(12)-1.28%
Revenue beat(16)3
Avg Revenue beat(16)-0.88%
PT rev (1m)2.49%
PT rev (3m)20.41%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-0.67%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.61 | ||
| P/S | 1.07 | ||
| P/FCF | 9.97 | ||
| P/OCF | 9.14 | ||
| P/B | 1.26 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 6.78 |
EPS(TTM)8.44
EY10.76%
EPS(NY)9.11
Fwd EY11.61%
FCF(TTM)7.87
FCFY10.03%
OCF(TTM)8.59
OCFY10.94%
SpS73.13
BVpS62.2
TBVpS60.22
PEG (NY)1.17
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 16.23% | ||
| ROCE | 3.99% | ||
| ROIC | 3.14% | ||
| ROICexc | 3.15% | ||
| ROICexgc | 3.83% | ||
| OM | 19.03% | ||
| PM (TTM) | 13.81% | ||
| GM | N/A | ||
| FCFM | 10.77% |
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 Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.7 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 108.27% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 12.88 | ||
| Cash Conversion | 58.91% | ||
| Profit Quality | 77.99% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.95%
ROIC/WACC0.39
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)10.18%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%13.41%
EPS Next Y7.93%
EPS Next 2Y8.62%
EPS Next 3Y8.94%
EPS Next 5Y9.47%
Revenue 1Y (TTM)4.05%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%2.91%
Revenue Next Year3.41%
Revenue Next 2Y3.57%
Revenue Next 3Y3.28%
Revenue Next 5Y4.41%
EBIT growth 1Y33.65%
EBIT growth 3Y17.11%
EBIT growth 5Y8.74%
EBIT Next Year-0.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.92%
FCF growth 3Y2.8%
FCF growth 5Y-2.7%
OCF growth 1Y25.81%
OCF growth 3Y2.93%
OCF growth 5Y-2.77%