ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
USA - NASDAQ:ERIE - US29530P1021 - Common Stock
320.73 USD
-1.08 (-0.34%)
320.73 USD
0 (0%)
Taking everything into account, ERIE scores 7 out of 10 in our fundamental rating. ERIE was compared to 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 quite expensive at the moment. It does show a decent growth rate. This makes ERIE very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ERIE had positive earnings in the past year.
ERIE had a positive operating cash flow in the past year.
In the past 5 years ERIE has always been profitable.
In the past 5 years ERIE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ERIE (19.98%) is better than 100.00% of its industry peers.
ERIE has a better Return On Equity (28.61%) than 95.21% of its industry peers.
ERIE has a better Return On Invested Capital (24.43%) than 99.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERIE is significantly above the industry average of 4.47%.
The last Return On Invested Capital (24.43%) for ERIE is above the 3 year average (22.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 28.61% | ||
| ROIC | 24.43% |
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
ERIE has a Profit Margin of 15.73%. This is amongst the best in the industry. ERIE outperforms 84.93% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
ERIE's Operating Margin of 17.57% is fine compared to the rest of the industry. ERIE outperforms 72.60% of its industry peers.
In the last couple of years the Operating Margin of ERIE has grown nicely.
ERIE has a Gross Margin of 17.57%. This is amongst the best in the industry. ERIE outperforms 87.67% of its industry peers.
ERIE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.57% | ||
| PM (TTM) | 15.73% | ||
| GM | 17.57% |
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.
ERIE has more shares outstanding than it did 5 years ago.
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 14.36 indicates that ERIE is not in any danger for bankruptcy at the moment.
ERIE has a better Altman-Z score (14.36) than 99.32% of its industry peers.
There is no outstanding debt for ERIE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.36 |
ROIC/WACC2.81
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ERIE should not have too much problems paying its short term obligations.
The Current ratio of ERIE (1.47) is better than 86.99% of its industry peers.
A Quick Ratio of 1.47 indicates that ERIE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.47, ERIE belongs to the top of the industry, outperforming 86.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.95% over the past year.
ERIE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.63% yearly.
The Revenue has grown by 12.00% in the past year. This is quite good.
Measured over the past years, ERIE shows a quite strong growth in Revenue. The Revenue has been growing by 8.91% on average per year.
EPS 1Y (TTM)17.95%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%6.71%
Revenue 1Y (TTM)12%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%7.03%
3.2 Future
ERIE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.51% yearly.
ERIE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.44% yearly.
EPS Next Y10.44%
EPS Next 2Y10.51%
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 26.82, ERIE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ERIE is valued a bit more expensive than 76.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERIE to the average of the S&P500 Index (27.27), we can say ERIE is valued inline with the index average.
A Price/Forward Earnings ratio of 22.88 indicates a rather expensive valuation of ERIE.
74.66% of the companies in the same industry are cheaper than ERIE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, ERIE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 22.88 |
4.2 Price Multiples
67.12% of the companies in the same industry are cheaper than ERIE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.73 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ERIE does not grow enough to justify the current Price/Earnings ratio.
ERIE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.57
PEG (5Y)1.97
EPS Next 2Y10.51%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, ERIE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.43, ERIE has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, ERIE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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
39.35% 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.
DP39.35%
EPS Next 2Y10.51%
EPS Next 3Y6.51%
320.73
-1.08 (-0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners44.04%
Inst Owner Change19.41%
Ins Owners9.21%
Ins Owner Change0%
Market Cap16.77B
Analysts82.5
Price TargetN/A
Short Float %7.32%
Short Ratio13.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend4.54
Dividend Growth(5Y)7.09%
DP39.35%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.91%
Min EPS beat(2)-16.06%
Max EPS beat(2)-5.77%
EPS beat(4)1
Avg EPS beat(4)-4.78%
Min EPS beat(4)-16.06%
Max EPS beat(4)3.37%
EPS beat(8)5
Avg EPS beat(8)3.04%
EPS beat(12)7
Avg EPS beat(12)2.94%
EPS beat(16)8
Avg EPS beat(16)0.8%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-6.43%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-6.43%
Max Revenue beat(4)-0.51%
Revenue beat(8)4
Avg Revenue beat(8)0.23%
Revenue beat(12)8
Avg Revenue beat(12)0.97%
Revenue beat(16)10
Avg Revenue beat(16)0.68%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.82 | ||
| Fwd PE | 22.88 | ||
| P/S | 4.22 | ||
| P/FCF | 29.73 | ||
| P/OCF | 24.36 | ||
| P/B | 7.68 | ||
| P/tB | 7.68 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.96
EY3.73%
EPS(NY)14.02
Fwd EY4.37%
FCF(TTM)10.79
FCFY3.36%
OCF(TTM)13.16
OCFY4.1%
SpS75.99
BVpS41.78
TBVpS41.78
PEG (NY)2.57
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 28.61% | ||
| ROCE | 30.8% | ||
| ROIC | 24.43% | ||
| ROICexc | 29.53% | ||
| ROICexgc | 29.53% | ||
| OM | 17.57% | ||
| PM (TTM) | 15.73% | ||
| GM | 17.57% | ||
| FCFM | 14.2% |
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%
ROICexcg growth 3Y18.69%
ROICexcg 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-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 90.25% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 14.36 |
F-Score7
WACC8.69%
ROIC/WACC2.81
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)17.95%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%6.71%
EPS Next Y10.44%
EPS Next 2Y10.51%
EPS Next 3Y6.51%
EPS Next 5YN/A
Revenue 1Y (TTM)12%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%7.03%
Revenue Next Year8.76%
Revenue Next 2Y8.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.44%
EBIT growth 3Y28.6%
EBIT growth 5Y13.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y58.57%
FCF growth 3Y24.18%
FCF growth 5Y13.13%
OCF growth 1Y56.47%
OCF growth 3Y14.91%
OCF growth 5Y10.89%