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UNUM GROUP (UNM) Stock Fundamental Analysis

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

80.76  +0.75 (+0.94%)

After market: 80.76 0 (0%)

Fundamental Rating

5

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.


Dividend Valuation Growth Profitability Health

6

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.
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 (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 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'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 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.
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.
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 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 RankSector Rank
Debt/Equity 0.31
Debt/FCF 2.61
Altman-Z N/A
ROIC/WACC0.35
WACC8.08%
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%.
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.
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

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 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

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 RankSector Rank
P/FCF 9.81
EV/EBITDA 7.53
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.
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%

7

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 RankSector 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
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.
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%
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 (7/25/2025, 8:04:00 PM)

After market: 80.76 0 (0%)

80.76

+0.75 (+0.94%)

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 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 RankSector Rank
Dividend Yield 2.27%
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP19.14%
Div Incr Years16
Div Non Decr Years20
Ex-Date07-25 2025-07-25 (0.46)
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 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 7.53
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 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
WACC8.08%
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%