ASSURANT INC (AIZ) Stock Fundamental Analysis
USA - NYSE:AIZ - US04621X1081 - Common Stock
209.11 USD
+1.41 (+0.68%)
209.11 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AIZ. AIZ was compared to 145 industry peers in the Insurance industry. AIZ has a medium profitability rating, but doesn't score so well on its financial health evaluation. AIZ has a correct valuation and a medium growth rate. AIZ also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AIZ was profitable.
In the past year AIZ had a positive cash flow from operations.
In the past 5 years AIZ has always been profitable.
AIZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.02%, AIZ is in line with its industry, outperforming 51.03% of the companies in the same industry.
With a decent Return On Equity value of 13.04%, AIZ is doing good in the industry, outperforming 63.45% of the companies in the same industry.
AIZ has a Return On Invested Capital of 2.79%. This is comparable to the rest of the industry: AIZ outperforms 57.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIZ is below the industry average of 4.40%.
The last Return On Invested Capital (2.79%) for AIZ is above the 3 year average (2.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 13.04% | ||
| ROIC | 2.79% |
ROA(3y)1.64%
ROA(5y)1.97%
ROE(3y)11.6%
ROE(5y)13.34%
ROIC(3y)2.34%
ROIC(5y)2.2%
1.3 Margins
The Profit Margin of AIZ (5.83%) is worse than 61.38% of its industry peers.
AIZ's Profit Margin has improved in the last couple of years.
AIZ has a Operating Margin of 8.10%. This is in the lower half of the industry: AIZ underperforms 66.21% of its industry peers.
In the last couple of years the Operating Margin of AIZ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 5.83% | ||
| GM | N/A |
OM growth 3Y0.17%
OM growth 5Y3.56%
PM growth 3Y-21.67%
PM growth 5Y10.86%
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), AIZ is destroying value.
AIZ has less shares outstanding than it did 1 year ago.
AIZ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AIZ has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of AIZ is 2.15, which is a good value as it means it would take AIZ, 2.15 years of fcf income to pay off all of its debts.
AIZ's Debt to FCF ratio of 2.15 is in line compared to the rest of the industry. AIZ outperforms 52.41% of its industry peers.
AIZ has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
AIZ's Debt to Equity ratio of 0.38 is on the low side compared to the rest of the industry. AIZ is outperformed by 62.07% of its industry peers.
Although AIZ does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC7.87%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.18%.
Measured over the past years, AIZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.42% on average per year.
AIZ shows a small growth in Revenue. In the last year, the Revenue has grown by 6.46%.
Measured over the past years, AIZ shows a small growth in Revenue. The Revenue has been growing by 4.52% on average per year.
EPS 1Y (TTM)-8.18%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%25%
Revenue 1Y (TTM)6.46%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%7.98%
3.2 Future
The Earnings Per Share is expected to grow by 10.20% on average over the next years. This is quite good.
AIZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.33% yearly.
EPS Next Y5.59%
EPS Next 2Y10.79%
EPS Next 3Y10.2%
EPS Next 5YN/A
Revenue Next Year6.68%
Revenue Next 2Y5.74%
Revenue Next 3Y5.33%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.84 indicates a correct valuation of AIZ.
The rest of the industry has a similar Price/Earnings ratio as AIZ.
When comparing the Price/Earnings ratio of AIZ to the average of the S&P500 Index (27.40), we can say AIZ is valued rather cheaply.
AIZ is valuated reasonably with a Price/Forward Earnings ratio of 10.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIZ is on the same level as its industry peers.
AIZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AIZ.
AIZ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.89 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AIZ does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.3
PEG (5Y)0.89
EPS Next 2Y10.79%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.55%, AIZ is a good candidate for dividend investing.
AIZ's Dividend Yield is rather good when compared to the industry average which is at 3.54. AIZ pays more dividend than 91.72% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AIZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
5.2 History
The dividend of AIZ has a limited annual growth rate of 1.71%.
AIZ has been paying a dividend for at least 10 years, so it has a reliable track record.
AIZ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.71%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
AIZ pays out 22.62% of its income as dividend. This is a sustainable payout ratio.
The dividend of AIZ is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.62%
EPS Next 2Y10.79%
EPS Next 3Y10.2%
209.11
+1.41 (+0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.78%
Inst Owner Change0.84%
Ins Owners0.55%
Ins Owner Change-0.85%
Market Cap10.55B
Analysts80
Price Target245.82 (17.56%)
Short Float %1.8%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
Yearly Dividend3.03
Dividend Growth(5Y)1.71%
DP22.62%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.06%
Min EPS beat(2)12.14%
Max EPS beat(2)21.99%
EPS beat(4)4
Avg EPS beat(4)16.68%
Min EPS beat(4)12.14%
Max EPS beat(4)21.99%
EPS beat(8)8
Avg EPS beat(8)23.4%
EPS beat(12)11
Avg EPS beat(12)21.43%
EPS beat(16)13
Avg EPS beat(16)16.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.14%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-1.09%
Max Revenue beat(4)0.94%
Revenue beat(8)6
Avg Revenue beat(8)0.98%
Revenue beat(12)9
Avg Revenue beat(12)0.72%
Revenue beat(16)10
Avg Revenue beat(16)-0.02%
PT rev (1m)0%
PT rev (3m)3.43%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 10.23 | ||
| P/S | 0.86 | ||
| P/FCF | 10.89 | ||
| P/OCF | 8.81 | ||
| P/B | 1.92 | ||
| P/tB | 4.51 | ||
| EV/EBITDA | 8.97 |
EPS(TTM)16.28
EY7.79%
EPS(NY)20.44
Fwd EY9.77%
FCF(TTM)19.2
FCFY9.18%
OCF(TTM)23.73
OCFY11.35%
SpS243.91
BVpS108.97
TBVpS46.33
PEG (NY)2.3
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 13.04% | ||
| ROCE | 3.46% | ||
| ROIC | 2.79% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 5.12% | ||
| OM | 8.1% | ||
| PM (TTM) | 5.83% | ||
| GM | N/A | ||
| FCFM | 7.87% |
ROA(3y)1.64%
ROA(5y)1.97%
ROE(3y)11.6%
ROE(5y)13.34%
ROIC(3y)2.34%
ROIC(5y)2.2%
ROICexc(3y)2.49%
ROICexc(5y)2.35%
ROICexgc(3y)4.34%
ROICexgc(5y)4.11%
ROCE(3y)2.9%
ROCE(5y)2.73%
ROICexcg growth 3Y6.82%
ROICexcg growth 5Y13.88%
ROICexc growth 3Y4.87%
ROICexc growth 5Y15.01%
OM growth 3Y0.17%
OM growth 5Y3.56%
PM growth 3Y-21.67%
PM growth 5Y10.86%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 95.93% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.89% | ||
| Profit Quality | 135.12% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.87%
ROIC/WACC0.35
Cap/Depr(3y)101.5%
Cap/Depr(5y)99.54%
Cap/Sales(3y)1.84%
Cap/Sales(5y)1.72%
Profit Quality(3y)146.68%
Profit Quality(5y)154.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.18%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%25%
EPS Next Y5.59%
EPS Next 2Y10.79%
EPS Next 3Y10.2%
EPS Next 5YN/A
Revenue 1Y (TTM)6.46%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%7.98%
Revenue Next Year6.68%
Revenue Next 2Y5.74%
Revenue Next 3Y5.33%
Revenue Next 5YN/A
EBIT growth 1Y-10.14%
EBIT growth 3Y5.43%
EBIT growth 5Y8.24%
EBIT Next Year20.03%
EBIT Next 3Y13.01%
EBIT Next 5YN/A
FCF growth 1Y-17.42%
FCF growth 3Y23.2%
FCF growth 5Y-3.13%
OCF growth 1Y-12.61%
OCF growth 3Y19.46%
OCF growth 5Y-1.17%