ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
USA - NASDAQ:ERIE - US29530P1021 - Common Stock
284.84 USD
+3.26 (+1.16%)
284.84 USD
0 (0%)
Overall ERIE gets a fundamental rating of 7 out of 10. We evaluated ERIE against 146 industry peers in the Insurance industry. Both the health and profitability get an excellent rating, making ERIE a very profitable company, without any liquidiy or solvency issues. ERIE is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, ERIE could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ERIE was profitable.
ERIE had a positive operating cash flow in the past year.
ERIE had positive earnings in each of the past 5 years.
Each year in the past 5 years ERIE had a positive operating cash flow.
1.2 Ratios
ERIE has a Return On Assets of 19.49%. This is amongst the best in the industry. ERIE outperforms 99.32% of its industry peers.
Looking at the Return On Equity, with a value of 28.06%, ERIE belongs to the top of the industry, outperforming 95.21% of the companies in the same industry.
ERIE's Return On Invested Capital of 23.76% is amongst the best of the industry. ERIE outperforms 99.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERIE is significantly above the industry average of 4.53%.
The last Return On Invested Capital (23.76%) for ERIE is above the 3 year average (22.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.49% | ||
| ROE | 28.06% | ||
| ROIC | 23.76% |
ROA(3y)17.39%
ROA(5y)15.86%
ROE(3y)25.89%
ROE(5y)24.91%
ROIC(3y)22.7%
ROIC(5y)20.35%
1.3 Margins
Looking at the Profit Margin, with a value of 16.04%, ERIE belongs to the top of the industry, outperforming 84.25% of the companies in the same industry.
In the last couple of years the Profit Margin of ERIE has grown nicely.
ERIE has a better Operating Margin (17.99%) than 73.97% of its industry peers.
In the last couple of years the Operating Margin of ERIE has grown nicely.
The Gross Margin of ERIE (17.99%) is better than 87.67% of its industry peers.
In the last couple of years the Gross Margin of ERIE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.99% | ||
| PM (TTM) | 16.04% | ||
| GM | 17.99% |
OM growth 3Y13.86%
OM growth 5Y4.33%
PM growth 3Y11.83%
PM growth 5Y4.34%
GM growth 3Y13.86%
GM growth 5Y4.33%
2. Health
2.1 Basic Checks
ERIE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ERIE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ERIE has more shares outstanding
ERIE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 12.31 indicates that ERIE is not in any danger for bankruptcy at the moment.
ERIE has a Altman-Z score of 12.31. This is amongst the best in the industry. ERIE outperforms 98.63% of its industry peers.
ERIE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.31 |
ROIC/WACC2.72
WACC8.75%
2.3 Liquidity
ERIE has a Current Ratio of 1.67. This is a normal value and indicates that ERIE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ERIE (1.67) is better than 89.73% of its industry peers.
A Quick Ratio of 1.67 indicates that ERIE should not have too much problems paying its short term obligations.
ERIE has a Quick ratio of 1.67. This is amongst the best in the industry. ERIE outperforms 89.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
ERIE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.00%, which is quite good.
The Earnings Per Share has been growing by 13.63% on average over the past years. This is quite good.
ERIE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.53%.
The Revenue has been growing by 8.91% on average over the past years. This is quite good.
EPS 1Y (TTM)16%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%14.38%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%6.69%
3.2 Future
The Earnings Per Share is expected to grow by 6.51% on average over the next years.
Based on estimates for the next years, ERIE will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
EPS Next Y10.71%
EPS Next 2Y13.47%
EPS Next 3Y6.51%
EPS Next 5YN/A
Revenue Next Year8.76%
Revenue Next 2Y8.44%
Revenue Next 3YN/A
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.97, ERIE is valued on the expensive side.
Based on the Price/Earnings ratio, ERIE is valued a bit more expensive than 73.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERIE to the average of the S&P500 Index (25.83), we can say ERIE is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.27, ERIE is valued on the expensive side.
ERIE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ERIE is more expensive than 71.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ERIE to the average of the S&P500 Index (32.68), we can say ERIE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 19.27 |
4.2 Price Multiples
ERIE's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ERIE is more expensive than 63.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.81 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ERIE may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)1.69
EPS Next 2Y13.47%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.94%.
The stock price of ERIE dropped by -20.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.33, ERIE has a dividend in line with its industry peers.
ERIE's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of ERIE is nicely growing with an annual growth rate of 7.09%!
ERIE has paid a dividend for at least 10 years, which is a reliable track record.
ERIE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
38.59% of the earnings are spent on dividend by ERIE. This is a low number and sustainable payout ratio.
ERIE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.59%
EPS Next 2Y13.47%
EPS Next 3Y6.51%
284.84
+3.26 (+1.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners40.49%
Inst Owner Change-0.07%
Ins Owners9.21%
Ins Owner Change0%
Market Cap14.89B
Revenue(TTM)4.04B
Net Income(TTM)647.98M
Analysts85.71
Price TargetN/A
Short Float %8.1%
Short Ratio16.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend4.54
Dividend Growth(5Y)7.09%
DP38.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.97%
Min EPS beat(2)-5.77%
Max EPS beat(2)1.82%
EPS beat(4)2
Avg EPS beat(4)-4.16%
Min EPS beat(4)-16.06%
Max EPS beat(4)3.37%
EPS beat(8)5
Avg EPS beat(8)0.8%
EPS beat(12)8
Avg EPS beat(12)3.73%
EPS beat(16)8
Avg EPS beat(16)0.64%
Revenue beat(2)0
Avg Revenue beat(2)-4.99%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-3.55%
Revenue beat(4)0
Avg Revenue beat(4)-3.43%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)-1.65%
Revenue beat(8)3
Avg Revenue beat(8)-0.39%
Revenue beat(12)7
Avg Revenue beat(12)0.59%
Revenue beat(16)10
Avg Revenue beat(16)0.54%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 19.27 | ||
| P/S | 3.69 | ||
| P/FCF | 25.81 | ||
| P/OCF | 21.02 | ||
| P/B | 6.45 | ||
| P/tB | 6.45 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.4
EY4.35%
EPS(NY)14.78
Fwd EY5.19%
FCF(TTM)11.03
FCFY3.87%
OCF(TTM)13.55
OCFY4.76%
SpS77.27
BVpS44.16
TBVpS44.16
PEG (NY)2.15
PEG (5Y)1.69
Graham Number110.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.49% | ||
| ROE | 28.06% | ||
| ROCE | 29.95% | ||
| ROIC | 23.76% | ||
| ROICexc | 31.64% | ||
| ROICexgc | 31.64% | ||
| OM | 17.99% | ||
| PM (TTM) | 16.04% | ||
| GM | 17.99% | ||
| FCFM | 14.28% |
ROA(3y)17.39%
ROA(5y)15.86%
ROE(3y)25.89%
ROE(5y)24.91%
ROIC(3y)22.7%
ROIC(5y)20.35%
ROICexc(3y)26.07%
ROICexc(5y)23.37%
ROICexgc(3y)26.07%
ROICexgc(5y)23.37%
ROCE(3y)28.61%
ROCE(5y)25.66%
ROICexgc growth 3Y18.69%
ROICexgc growth 5Y2.5%
ROICexc growth 3Y18.69%
ROICexc growth 5Y2.5%
OM growth 3Y13.86%
OM growth 5Y4.33%
PM growth 3Y11.83%
PM growth 5Y4.34%
GM growth 3Y13.86%
GM growth 5Y4.33%
F-Score6
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 89.04% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 12.31 |
F-Score6
WACC8.75%
ROIC/WACC2.72
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)2.83%
Cap/Sales(5y)3.27%
Profit Quality(3y)81.95%
Profit Quality(5y)85.8%
High Growth Momentum
Growth
EPS 1Y (TTM)16%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%14.38%
EPS Next Y10.71%
EPS Next 2Y13.47%
EPS Next 3Y6.51%
EPS Next 5YN/A
Revenue 1Y (TTM)9.53%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%6.69%
Revenue Next Year8.76%
Revenue Next 2Y8.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y14.23%
EBIT growth 3Y28.6%
EBIT growth 5Y13.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y111.74%
FCF growth 3Y24.18%
FCF growth 5Y13.13%
OCF growth 1Y96.33%
OCF growth 3Y14.91%
OCF growth 5Y10.89%
ERIE INDEMNITY COMPANY-CL A / ERIE FAQ
What is the ChartMill fundamental rating of ERIE INDEMNITY COMPANY-CL A (ERIE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ERIE.
What is the valuation status for ERIE stock?
ChartMill assigns a valuation rating of 2 / 10 to ERIE INDEMNITY COMPANY-CL A (ERIE). This can be considered as Overvalued.
What is the profitability of ERIE stock?
ERIE INDEMNITY COMPANY-CL A (ERIE) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ERIE INDEMNITY COMPANY-CL A (ERIE) stock?
The Price/Earnings (PE) ratio for ERIE INDEMNITY COMPANY-CL A (ERIE) is 22.97 and the Price/Book (PB) ratio is 6.45.
What is the earnings growth outlook for ERIE INDEMNITY COMPANY-CL A?
The Earnings per Share (EPS) of ERIE INDEMNITY COMPANY-CL A (ERIE) is expected to grow by 10.71% in the next year.