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 145 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AIZ had positive earnings in the past year.
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's Return On Assets of 1.92% is in line compared to the rest of the industry. AIZ outperforms 51.03% of its industry peers.
AIZ has a Return On Equity of 12.81%. This is in the better half of the industry: AIZ outperforms 62.76% of its industry peers.
With a Return On Invested Capital value of 2.71%, AIZ perfoms like the industry average, outperforming 57.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AIZ is in line with the industry average of 4.07%.
The last Return On Invested Capital (2.71%) for AIZ is above the 3 year average (2.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 12.81% | ||
| ROIC | 2.71% |
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 (5.55%) is comparable to the rest of the industry.
AIZ's Profit Margin has improved in the last couple of years.
AIZ has a Operating Margin of 7.83%. This is comparable to the rest of the industry: AIZ outperforms 40.69% of its industry peers.
In the last couple of years the Operating Margin of AIZ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.83% | ||
| PM (TTM) | 5.55% | ||
| 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
AIZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AIZ has been reduced compared to 1 year ago.
The number of shares outstanding for AIZ has been reduced compared to 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 1.47. This is a very positive value and a sign of high solvency as it would only need 1.47 years to pay back of all of its debts.
AIZ has a Debt to FCF ratio (1.47) which is in line with its industry peers.
AIZ has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.40, AIZ is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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 | 0.4 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | N/A |
ROIC/WACC0.33
WACC8.16%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.00%.
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 6.18%.
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)-13%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%-29.08%
Revenue 1Y (TTM)6.18%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%6.44%
3.2 Future
Based on estimates for the next years, AIZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.12% on average per year.
The Revenue is expected to grow by 4.50% on average over the next years.
EPS Next Y-0.2%
EPS Next 2Y8.71%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year5.73%
Revenue Next 2Y5.12%
Revenue Next 3Y4.5%
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
With a Price/Earnings ratio of 12.15, AIZ is valued correctly.
AIZ's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.18, AIZ is valued rather cheaply.
A Price/Forward Earnings ratio of 9.42 indicates a reasonable valuation of AIZ.
AIZ's Price/Forward Earnings is on the same level as the industry average.
AIZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
62.76% of the companies in the same industry are more expensive than AIZ, based on the Enterprise Value to EBITDA ratio.
AIZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AIZ is cheaper than 62.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.62 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
The decent profitability rating of AIZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y8.71%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
AIZ has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
AIZ's Dividend Yield is comparable with the industry average which is at 3.76.
AIZ's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.71%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
AIZ pays out 23.78% 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.
DP23.78%
EPS Next 2Y8.71%
EPS Next 3Y8.12%
185.34
-5.73 (-3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners98.9%
Inst Owner Change0.01%
Ins Owners0.59%
Ins Owner Change2.91%
Market Cap9.40B
Analysts78.33
Price Target237.66 (28.23%)
Short Float %1.55%
Short Ratio1.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend3.03
Dividend Growth(5Y)1.71%
DP23.78%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.39%
Min EPS beat(2)14.79%
Max EPS beat(2)21.99%
EPS beat(4)4
Avg EPS beat(4)16.54%
Min EPS beat(4)11.59%
Max EPS beat(4)21.99%
EPS beat(8)8
Avg EPS beat(8)28.11%
EPS beat(12)10
Avg EPS beat(12)19.79%
EPS beat(16)13
Avg EPS beat(16)16.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-1.09%
Max Revenue beat(4)0.94%
Revenue beat(8)6
Avg Revenue beat(8)1.25%
Revenue beat(12)8
Avg Revenue beat(12)0.26%
Revenue beat(16)10
Avg Revenue beat(16)0.28%
PT rev (1m)0%
PT rev (3m)0.17%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-2.19%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 9.42 | ||
| P/S | 0.78 | ||
| P/FCF | 6.62 | ||
| P/OCF | 5.72 | ||
| P/B | 1.8 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)15.26
EY8.23%
EPS(NY)19.68
Fwd EY10.62%
FCF(TTM)27.98
FCFY15.1%
OCF(TTM)32.4
OCFY17.48%
SpS238.15
BVpS103.24
TBVpS40.65
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 12.81% | ||
| ROCE | 3.35% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.88% | ||
| ROICexgc | 5.13% | ||
| OM | 7.83% | ||
| PM (TTM) | 5.55% | ||
| GM | N/A | ||
| FCFM | 11.75% |
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 | 0.4 | ||
| Debt/FCF | 1.47 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 97.52% | ||
| Cap/Sales | 1.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.82% | ||
| Profit Quality | 211.62% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.16%
ROIC/WACC0.33
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)-13%
EPS 3Y18.92%
EPS 5Y14.42%
EPS Q2Q%-29.08%
EPS Next Y-0.2%
EPS Next 2Y8.71%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue 1Y (TTM)6.18%
Revenue growth 3Y5.25%
Revenue growth 5Y4.52%
Sales Q2Q%6.44%
Revenue Next Year5.73%
Revenue Next 2Y5.12%
Revenue Next 3Y4.5%
Revenue Next 5YN/A
EBIT growth 1Y-12.59%
EBIT growth 3Y5.43%
EBIT growth 5Y8.24%
EBIT Next Year16.38%
EBIT Next 3Y12.28%
EBIT Next 5YN/A
FCF growth 1Y21.88%
FCF growth 3Y23.2%
FCF growth 5Y-3.13%
OCF growth 1Y20.99%
OCF growth 3Y19.46%
OCF growth 5Y-1.17%