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UNUM GROUP (UNM) Stock Fundamental Analysis

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

80.3  -1.71 (-2.09%)

After market: 80.3 0 (0%)

Fundamental Rating

5

UNM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate. Finally 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

The Return On Assets of UNM (2.52%) is comparable to the rest of the industry.
UNM has a Return On Equity of 14.03%. This is in the better half of the industry: UNM outperforms 65.73% of its industry peers.
UNM has a Return On Invested Capital (2.80%) which is in line with 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 4.27%.
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

UNM has a Profit Margin of 12.31%. This is in the better half of the industry: UNM outperforms 73.43% of its industry peers.
In the last couple of years the Profit Margin of UNM has grown nicely.
UNM has a better Operating Margin (17.24%) than 72.03% of its industry peers.
In the last couple of years the Operating Margin of UNM has grown nicely.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UNM is destroying value.
UNM has less shares outstanding than it did 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.
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

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's Debt to FCF ratio of 2.61 is in line compared to the rest of the industry. UNM outperforms 42.66% 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.
UNM has a Debt to Equity ratio (0.31) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.31
Debt/FCF 2.61
Altman-Z N/A
ROIC/WACC0.34
WACC8.12%
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

UNM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.69%.
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.
Looking at the last year, UNM shows a small growth in Revenue. The Revenue has grown by 1.82% in the last year.
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.
UNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.41% yearly.
EPS Next Y6.76%
EPS Next 2Y8.31%
EPS Next 3Y8.91%
EPS Next 5Y9.47%
Revenue Next Year2.79%
Revenue Next 2Y3.37%
Revenue Next 3Y3.71%
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.
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

The Price/Earnings ratio is 9.61, which indicates a very decent valuation of UNM.
Compared to the rest of the industry, the Price/Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 69.23% of the companies listed in the same industry.
UNM is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
UNM is valuated reasonably with a Price/Forward Earnings ratio of 8.11.
67.13% 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 21.94, UNM is valued rather cheaply.
Industry RankSector Rank
PE 9.61
Fwd PE 8.11
UNM Price Earnings VS Forward Price EarningsUNM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UNM is valued a bit cheaper than 62.94% of the companies in the same industry.
UNM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 9.84
EV/EBITDA 7.73
UNM Per share dataUNM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)1.42
PEG (5Y)1.05
EPS Next 2Y8.31%
EPS Next 3Y8.91%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.08%, UNM has a reasonable but not impressive dividend return.
UNM's Dividend Yield is comparable with the industry average which is at 3.17.
Compared to an average S&P500 Dividend Yield of 2.36, UNM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.08%

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

UNM pays out 19.14% of its income as dividend. This is a sustainable payout ratio.
The dividend of UNM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.14%
EPS Next 2Y8.31%
EPS Next 3Y8.91%
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 (5/21/2025, 8:04:00 PM)

After market: 80.3 0 (0%)

80.3

-1.71 (-2.09%)

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 Owners90.07%
Inst Owner Change2.1%
Ins Owners0.94%
Ins Owner Change-2.82%
Market Cap14.12B
Analysts78.89
Price Target95.46 (18.88%)
Short Float %1.88%
Short Ratio1.85
Dividend
Industry RankSector Rank
Dividend Yield 2.08%
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%
PT rev (3m)12.38%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-2.64%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-1.54%
Valuation
Industry RankSector Rank
PE 9.61
Fwd PE 8.11
P/S 1.1
P/FCF 9.84
P/OCF 9
P/B 1.26
P/tB 1.3
EV/EBITDA 7.73
EPS(TTM)8.36
EY10.41%
EPS(NY)9.9
Fwd EY12.33%
FCF(TTM)8.16
FCFY10.17%
OCF(TTM)8.92
OCFY11.11%
SpS72.69
BVpS63.79
TBVpS61.79
PEG (NY)1.42
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
WACC8.12%
ROIC/WACC0.34
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 Year2.79%
Revenue Next 2Y3.37%
Revenue Next 3Y3.71%
Revenue Next 5Y4.41%
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%