EVEREST GROUP LTD (EG)
BMG3223R1088 - Common Stock
We assign a fundamental rating of 6 out of 10 to EG. EG was compared to 141 industry peers in the Insurance industry. While EG has a great profitability rating, there are quite some concerns on its financial health. EG has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
EG had positive earnings in the past year.
EG had a positive operating cash flow in the past year.
Each year in the past 5 years EG has been profitable.
EG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EG (5.53%) is better than 87.86% of its industry peers.
EG's Return On Equity of 20.49% is amongst the best of the industry. EG outperforms 85.00% of its industry peers.
EG has a better Return On Invested Capital (4.26%) than 77.86% of its industry peers.
EG had an Average Return On Invested Capital over the past 3 years of 3.11%. This is in line with the industry average of 4.00%.
The last Return On Invested Capital (4.26%) for EG is above the 3 year average (3.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 20.49% | ||
| ROIC | 4.26% |
ROA(3y)3.36%
ROA(5y)3.06%
ROE(3y)13.08%
ROE(5y)11.08%
ROIC(3y)3.11%
ROIC(5y)3.09%
1.3 Margins
The Profit Margin of EG (18.13%) is better than 82.86% of its industry peers.
EG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.62%, EG is in the better half of the industry, outperforming 73.57% of the companies in the same industry.
In the last couple of years the Operating Margin of EG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.62% | ||
| PM (TTM) | 18.13% | ||
| GM | N/A |
OM growth 3Y9.95%
OM growth 5YN/A
PM growth 3Y47.71%
PM growth 5Y70.21%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
EG has more shares outstanding than it did 1 year ago.
EG has more shares outstanding than it did 5 years ago.
EG has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of EG is 0.70, which is an excellent value as it means it would take EG, only 0.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EG (0.70) is better than 75.71% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that EG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, EG is in the better half of the industry, outperforming 69.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.7 | ||
| 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
EG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.92%, which is quite impressive.
EG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 63.33% yearly.
The Revenue has grown by 19.74% in the past year. This is quite good.
The Revenue has been growing by 14.63% on average over the past years. This is quite good.
EPS 1Y (TTM)76.92%
EPS 3Y92.19%
EPS 5Y63.33%
EPS Q2Q%10.78%
Revenue 1Y (TTM)19.74%
Revenue growth 3Y14.97%
Revenue growth 5Y14.63%
Sales Q2Q%13.6%
3.2 Future
The Earnings Per Share is expected to grow by 14.78% on average over the next years. This is quite good.
Based on estimates for the next years, EG will show a quite strong growth in Revenue. The Revenue will grow by 11.34% on average per year.
EPS Next Y20.19%
EPS Next 2Y16%
EPS Next 3Y14.78%
EPS Next 5YN/A
Revenue Next Year18.98%
Revenue Next 2Y14.11%
Revenue Next 3Y11.34%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
EG is valuated cheaply with a Price/Earnings ratio of 6.48.
74.29% of the companies in the same industry are more expensive than EG, based on the Price/Earnings ratio.
EG is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.42 indicates a rather cheap valuation of EG.
EG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EG is cheaper than 79.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EG to the average of the S&P500 Index (21.22), we can say EG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 5.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EG indicates a rather cheap valuation: EG is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.45 | ||
| 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.
EG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EG's earnings are expected to grow with 14.78% in the coming years.
PEG (NY)0.32
PEG (5Y)0.1
EPS Next 2Y16%
EPS Next 3Y14.78%
5. Dividend
5.1 Amount
EG has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.41, EG has a dividend in line with its industry peers.
EG's Dividend Yield is comparable with the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of EG has a limited annual growth rate of 5.80%.
EG has paid a dividend for at least 10 years, which is 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)5.8%
Div Incr Years2
Div Non Decr Years22
5.3 Sustainability
10.84% of the earnings are spent on dividend by EG. This is a low number and sustainable payout ratio.
EG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.84%
EPS Next 2Y16%
EPS Next 3Y14.78%
EVEREST GROUP LTD
NYSE:EG (9/6/2024, 8:09:54 PM)
After market: 383.39 0 (0%)383.39
-6.11 (-1.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 5.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.32
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 20.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.62% | ||
| PM (TTM) | 18.13% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)76.92%
EPS 3Y92.19%
EPS 5Y
EPS Q2Q%
EPS Next Y20.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.74%
Revenue growth 3Y14.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y