ASSURANT INC (AIZ) Stock Fundamental Analysis
NYSE:AIZ - New York Stock Exchange, Inc. - US04621X1081 - Common Stock - Currency: USD
AIZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. While AIZ is still in line with the averages on profitability rating, there are concerns on its financial health. AIZ has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years AIZ has been profitable.
Each year in the past 5 years AIZ had a positive operating cash flow.
1.2 Ratios
AIZ has a Return On Assets (2.17%) which is comparable to the rest of the industry.
The Return On Equity of AIZ (14.89%) is better than 60.84% of its industry peers.
With a decent Return On Invested Capital value of 2.98%, AIZ is doing good in the industry, outperforming 61.54% of the companies in the same industry.
AIZ had an Average Return On Invested Capital over the past 3 years of 2.34%. This is below the industry average of 4.52%.
The last Return On Invested Capital (2.98%) for AIZ is above the 3 year average (2.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.89% | ||
| ROIC | 2.98% |
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
AIZ has a Profit Margin (6.40%) which is in line with its industry peers.
In the last couple of years the Profit Margin of AIZ has grown nicely.
Looking at the Operating Margin, with a value of 8.92%, AIZ is doing worse than 60.14% of the companies in the same industry.
AIZ's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.92% | ||
| PM (TTM) | 6.4% | ||
| 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.
Compared to 1 year ago, AIZ has less shares outstanding
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
AIZ has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
AIZ has a Debt to FCF ratio (1.87) which is in line with its industry peers.
A Debt/Equity ratio of 0.41 indicates that AIZ is not too dependend on debt financing.
AIZ's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. AIZ is outperformed by 60.14% 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 | 0.41 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC8.15%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.35% over the past year.
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 6.65%.
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)7.35%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%4.59%
Revenue 1Y (TTM)6.65%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%4.08%
3.2 Future
The Earnings Per Share is expected to grow by 9.33% 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 4.26% yearly.
EPS Next Y0.15%
EPS Next 2Y9.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y4.95%
Revenue Next 3Y4.26%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.29, the valuation of AIZ can be described as correct.
AIZ's Price/Earnings ratio is in line with the industry average.
AIZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 12.27 indicates a correct valuation of AIZ.
AIZ's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AIZ to the average of the S&P500 Index (22.10), we can say AIZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
AIZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIZ is cheaper than 61.54% of the companies in the same industry.
AIZ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 8.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)81.51
PEG (5Y)0.85
EPS Next 2Y9.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, AIZ has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.10, AIZ has a dividend in line with its industry peers.
AIZ's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.71%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
20.51% of the earnings are spent on dividend by AIZ. This is a low number and sustainable payout ratio.
AIZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.51%
EPS Next 2Y9.33%
EPS Next 3YN/A
204.58
+3.31 (+1.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change-1.69%
Ins Owners0.47%
Ins Owner Change-0.3%
Market Cap10.39B
Analysts76.67
Price Target237.25 (15.97%)
Short Float %1.82%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend3.03
Dividend Growth(5Y)1.71%
DP20.51%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.3%
Min EPS beat(2)14.79%
Max EPS beat(2)17.8%
EPS beat(4)4
Avg EPS beat(4)16.59%
Min EPS beat(4)11.59%
Max EPS beat(4)22.16%
EPS beat(8)8
Avg EPS beat(8)27.55%
EPS beat(12)10
Avg EPS beat(12)20.41%
EPS beat(16)13
Avg EPS beat(16)18.51%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)0.94%
Revenue beat(4)3
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)0.94%
Revenue beat(8)7
Avg Revenue beat(8)1.56%
Revenue beat(12)8
Avg Revenue beat(12)-0.17%
Revenue beat(16)10
Avg Revenue beat(16)0.19%
PT rev (1m)2.02%
PT rev (3m)1.68%
EPS NQ rev (1m)-38.81%
EPS NQ rev (3m)-39.43%
EPS NY rev (1m)-7.74%
EPS NY rev (3m)-8.26%
Revenue NQ rev (1m)1.73%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 12.27 | ||
| P/S | 0.87 | ||
| P/FCF | 9.35 | ||
| P/OCF | 7.8 | ||
| P/B | 2.03 | ||
| P/tB | 5.31 | ||
| EV/EBITDA | 8.31 |
EPS(TTM)16.65
EY8.14%
EPS(NY)16.68
Fwd EY8.15%
FCF(TTM)21.88
FCFY10.7%
OCF(TTM)26.24
OCFY12.83%
SpS233.86
BVpS100.55
TBVpS38.49
PEG (NY)81.51
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 14.89% | ||
| ROCE | 3.69% | ||
| ROIC | 2.98% | ||
| ROICexc | 3.18% | ||
| ROICexgc | 5.67% | ||
| OM | 8.92% | ||
| PM (TTM) | 6.4% | ||
| GM | N/A | ||
| FCFM | 9.36% |
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-Score9
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 99.02% | ||
| Cap/Sales | 1.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.88% | ||
| Profit Quality | 146.2% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.15%
ROIC/WACC0.37
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)7.35%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%4.59%
EPS Next Y0.15%
EPS Next 2Y9.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.65%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%4.08%
Revenue Next Year5.96%
Revenue Next 2Y4.95%
Revenue Next 3Y4.26%
Revenue Next 5YN/A
EBIT growth 1Y13.9%
EBIT growth 3Y5.43%
EBIT growth 5Y8.24%
EBIT Next Year28.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y18.79%
FCF growth 3Y23.2%
FCF growth 5Y-3.13%
OCF growth 1Y17.1%
OCF growth 3Y19.46%
OCF growth 5Y-1.17%