ASSURANT INC (AIZ) Stock Fundamental Analysis
NYSE:AIZ - New York Stock Exchange, Inc. - US04621X1081 - Common Stock - Currency: USD
Overall AIZ gets a fundamental rating of 5 out of 10. We evaluated AIZ against 143 industry peers in the Insurance industry. There are concerns on the financial health of AIZ while its profitability can be described as average. 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.
AIZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.17%, AIZ perfoms like the industry average, outperforming 49.65% of the companies in the same industry.
AIZ's Return On Equity of 14.89% is fine compared to the rest of the industry. AIZ outperforms 60.14% of its industry peers.
The Return On Invested Capital of AIZ (2.98%) is better than 60.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIZ is below the industry average of 4.49%.
The 3 year average ROIC (2.34%) for AIZ is below the current ROIC(2.98%), indicating increased profibility in the last year.
| 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.
AIZ's Profit Margin has improved in the last couple of years.
AIZ has a Operating Margin of 8.92%. This is comparable to the rest of the industry: AIZ outperforms 41.96% of its industry peers.
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.
AIZ has less shares outstanding than it did 1 year ago.
AIZ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AIZ has been reduced compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 1.87, AIZ is in line with its industry, outperforming 49.65% of the companies in the same industry.
AIZ has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
AIZ has a Debt to Equity ratio of 0.41. This is in the lower half of the industry: AIZ underperforms 60.14% of its industry peers.
Even though the debt/equity ratio score it not favorable for AIZ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC8.07%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.35%.
The Earnings Per Share has been growing by 14.42% on average over the past years. This is quite good.
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
AIZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.47% yearly.
The Revenue is expected to grow by 4.25% on average over the next years.
EPS Next Y-3.39%
EPS Next 2Y8.36%
EPS Next 3Y7.47%
EPS Next 5YN/A
Revenue Next Year5.76%
Revenue Next 2Y4.76%
Revenue Next 3Y4.25%
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
A Price/Earnings ratio of 11.46 indicates a reasonable valuation of AIZ.
AIZ's Price/Earnings is on the same level as the industry average.
AIZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.78.
AIZ is valuated reasonably with a Price/Forward Earnings ratio of 11.86.
AIZ's Price/Forward Earnings is on the same level as the industry average.
AIZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
AIZ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIZ is cheaper than 62.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIZ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.73 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
The decent profitability rating of AIZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y8.36%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
AIZ has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 3.21, AIZ has a dividend in line with its industry peers.
AIZ's Dividend Yield is slightly below the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
The dividend of AIZ has a limited annual growth rate of 1.71%.
AIZ has paid a dividend for at least 10 years, which is 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
AIZ pays out 20.51% of its income as dividend. This is a sustainable payout ratio.
AIZ's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.51%
EPS Next 2Y8.36%
EPS Next 3Y7.47%
190.83
-2.36 (-1.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change0.66%
Ins Owners0.47%
Ins Owner Change2.3%
Market Cap9.71B
Analysts76.67
Price Target231.95 (21.55%)
Short Float %2.07%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)-2.24%
PT rev (3m)-2.49%
EPS NQ rev (1m)-3.17%
EPS NQ rev (3m)-42.17%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-11.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 11.86 | ||
| P/S | 0.82 | ||
| P/FCF | 8.73 | ||
| P/OCF | 7.28 | ||
| P/B | 1.9 | ||
| P/tB | 4.97 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)16.65
EY8.73%
EPS(NY)16.08
Fwd EY8.43%
FCF(TTM)21.85
FCFY11.45%
OCF(TTM)26.2
OCFY13.73%
SpS233.49
BVpS100.39
TBVpS38.43
PEG (NY)N/A
PEG (5Y)0.79
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
WACC8.07%
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 Y-3.39%
EPS Next 2Y8.36%
EPS Next 3Y7.47%
EPS Next 5YN/A
Revenue 1Y (TTM)6.65%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%4.08%
Revenue Next Year5.76%
Revenue Next 2Y4.76%
Revenue Next 3Y4.25%
Revenue Next 5YN/A
EBIT growth 1Y13.9%
EBIT growth 3Y5.43%
EBIT growth 5Y8.24%
EBIT Next Year22.3%
EBIT Next 3Y10.05%
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%