EVEREST GROUP LTD (EG) Stock Fundamental Analysis
NYSE:EG - New York Stock Exchange, Inc. - BMG3223R1088 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to EG. EG was compared to 144 industry peers in the Insurance industry. There are concerns on the financial health of EG while its profitability can be described as average. EG is not valued too expensively and it also shows a decent growth rate. EG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EG was profitable.
EG had a positive operating cash flow in the past year.
In the past 5 years EG has always been profitable.
Each year in the past 5 years EG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EG (2.41%) is comparable to the rest of the industry.
EG has a Return On Equity (9.79%) which is comparable to the rest of the industry.
EG's Return On Invested Capital of 2.31% is in line compared to the rest of the industry. EG outperforms 51.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EG is in line with the industry average of 4.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 9.79% | ||
| ROIC | 2.31% |
ROA(3y)2.97%
ROA(5y)2.81%
ROE(3y)11.87%
ROE(5y)10.85%
ROIC(3y)2.76%
ROIC(5y)2.88%
1.3 Margins
EG has a Profit Margin of 7.86%. This is comparable to the rest of the industry: EG outperforms 52.45% of its industry peers.
In the last couple of years the Profit Margin of EG has declined.
With a Operating Margin value of 9.50%, EG perfoms like the industry average, outperforming 44.76% of the companies in the same industry.
EG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 7.86% | ||
| GM | N/A |
OM growth 3Y-11.27%
OM growth 5Y-7.38%
PM growth 3Y-11.84%
PM growth 5Y-8.26%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for EG has been reduced compared to 1 year ago.
EG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EG has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of EG is 0.72, which is an excellent value as it means it would take EG, only 0.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.72, EG is in the better half of the industry, outperforming 73.43% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that EG is not too dependend on debt financing.
EG's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. EG outperforms 67.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for EG have decreased strongly by -44.03% in the last year.
Measured over the past 5 years, EG shows a small growth in Earnings Per Share. The EPS has been growing by 6.61% on average per year.
EG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.46%.
EG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.93% yearly.
EPS 1Y (TTM)-44.03%
EPS 3Y0.57%
EPS 5Y6.61%
EPS Q2Q%-254.93%
Revenue 1Y (TTM)18.46%
Revenue growth 3Y13.35%
Revenue growth 5Y15.93%
Sales Q2Q%7.33%
3.2 Future
The Earnings Per Share is expected to grow by 37.45% on average over the next years. This is a very strong growth
EG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.93% yearly.
EPS Next Y70.92%
EPS Next 2Y48%
EPS Next 3Y37.45%
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y4.66%
Revenue Next 3Y7.93%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.37, the valuation of EG can be described as correct.
EG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, EG is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.24, the valuation of EG can be described as very cheap.
Based on the Price/Forward Earnings ratio, EG is valued a bit cheaper than 77.62% of the companies in the same industry.
EG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
78.32% of the companies in the same industry are more expensive than EG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.15 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
EG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EG's earnings are expected to grow with 37.45% in the coming years.
PEG (NY)0.17
PEG (5Y)1.87
EPS Next 2Y48%
EPS Next 3Y37.45%
5. Dividend
5.1 Amount
EG has a Yearly Dividend Yield of 2.20%.
EG's Dividend Yield is a higher than the industry average which is at 3.17.
EG's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
On average, the dividend of EG grows each year by 6.23%, which is quite nice.
EG has been paying a dividend for at least 10 years, so it has a reliable track record.
EG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.23%
Div Incr Years3
Div Non Decr Years23
5.3 Sustainability
EG pays out 24.59% of its income as dividend. This is a sustainable payout ratio.
EG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.59%
EPS Next 2Y48%
EPS Next 3Y37.45%
363.76
+0.22 (+0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.92%
Inst Owner ChangeN/A
Ins Owners1.38%
Ins Owner Change3.51%
Market Cap15.62B
Analysts77.27
Price Target410.42 (12.83%)
Short Float %2.16%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend7.73
Dividend Growth(5Y)6.23%
DP24.59%
Div Incr Years3
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.34%
Min EPS beat(2)-14.48%
Max EPS beat(2)19.15%
EPS beat(4)1
Avg EPS beat(4)0.56%
Min EPS beat(4)-14.48%
Max EPS beat(4)19.15%
EPS beat(8)3
Avg EPS beat(8)3.13%
EPS beat(12)7
Avg EPS beat(12)6.5%
EPS beat(16)9
Avg EPS beat(16)9.68%
Revenue beat(2)0
Avg Revenue beat(2)-4.8%
Min Revenue beat(2)-6.71%
Max Revenue beat(2)-2.89%
Revenue beat(4)1
Avg Revenue beat(4)-4.52%
Min Revenue beat(4)-10.84%
Max Revenue beat(4)2.38%
Revenue beat(8)1
Avg Revenue beat(8)-5.22%
Revenue beat(12)4
Avg Revenue beat(12)-2.99%
Revenue beat(16)8
Avg Revenue beat(16)1.43%
PT rev (1m)-4.83%
PT rev (3m)-6.37%
EPS NQ rev (1m)-24.03%
EPS NQ rev (3m)-55.01%
EPS NY rev (1m)-21.36%
EPS NY rev (3m)-26.07%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.9 | ||
| P/FCF | 3.15 | ||
| P/OCF | 3.15 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | N/A |
EPS(TTM)29.4
EY8.08%
EPS(NY)50.25
Fwd EY13.81%
FCF(TTM)115.47
FCFY31.74%
OCF(TTM)115.47
OCFY31.74%
SpS402.54
BVpS323.2
TBVpS323.2
PEG (NY)0.17
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 9.79% | ||
| ROCE | 2.92% | ||
| ROIC | 2.31% | ||
| ROICexc | 2.37% | ||
| ROICexgc | 2.71% | ||
| OM | 9.5% | ||
| PM (TTM) | 7.86% | ||
| GM | N/A | ||
| FCFM | 28.68% |
ROA(3y)2.97%
ROA(5y)2.81%
ROE(3y)11.87%
ROE(5y)10.85%
ROIC(3y)2.76%
ROIC(5y)2.88%
ROICexc(3y)2.85%
ROICexc(5y)2.97%
ROICexgc(3y)3.23%
ROICexgc(5y)3.37%
ROCE(3y)3.49%
ROCE(5y)3.65%
ROICexcg growth 3Y-11.77%
ROICexcg growth 5Y-7.25%
ROICexc growth 3Y-12%
ROICexc growth 5Y-7.2%
OM growth 3Y-11.27%
OM growth 5Y-7.38%
PM growth 3Y-11.84%
PM growth 5Y-8.26%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 11.17 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 365.02% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)391.86%
Profit Quality(5y)404.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-44.03%
EPS 3Y0.57%
EPS 5Y6.61%
EPS Q2Q%-254.93%
EPS Next Y70.92%
EPS Next 2Y48%
EPS Next 3Y37.45%
EPS Next 5YN/A
Revenue 1Y (TTM)18.46%
Revenue growth 3Y13.35%
Revenue growth 5Y15.93%
Sales Q2Q%7.33%
Revenue Next Year5.06%
Revenue Next 2Y4.66%
Revenue Next 3Y7.93%
Revenue Next 5YN/A
EBIT growth 1Y-28.3%
EBIT growth 3Y0.57%
EBIT growth 5Y7.37%
EBIT Next Year11.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.85%
FCF growth 3Y8.95%
FCF growth 5Y21.76%
OCF growth 1Y8.85%
OCF growth 3Y8.95%
OCF growth 5Y21.76%