ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
USA - NASDAQ:ERIE - US29530P1021 - Common Stock
286.58 USD
-0.6 (-0.21%)
286.58 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ERIE. ERIE was compared to 146 industry peers in the Insurance industry. ERIE gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, ERIE is valued expensive at the moment. These ratings could make ERIE a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year ERIE was profitable.
In the past year ERIE had a positive cash flow from operations.
In the past 5 years ERIE has always been profitable.
ERIE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERIE's Return On Assets of 19.49% is amongst the best of the industry. ERIE outperforms 99.32% of its industry peers.
ERIE's Return On Equity of 28.06% is amongst the best of the industry. ERIE outperforms 93.84% of its industry peers.
The Return On Invested Capital of ERIE (23.76%) is better than 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 4.51%.
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
ERIE's Profit Margin of 16.04% is amongst the best of the industry. ERIE outperforms 81.51% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
ERIE has a better Operating Margin (17.99%) than 73.29% of its industry peers.
In the last couple of years the Operating Margin of ERIE has grown nicely.
ERIE has a Gross Margin of 17.99%. This is amongst the best in the industry. ERIE outperforms 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.
Compared to 1 year ago, ERIE has about the same amount of shares outstanding.
The number of shares outstanding for ERIE has been increased compared to 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 12.49 indicates that ERIE is not in any danger for bankruptcy at the moment.
ERIE's Altman-Z score of 12.49 is amongst the best of the industry. ERIE outperforms 99.32% 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 | 12.49 |
ROIC/WACC2.71
WACC8.78%
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.
With an excellent Current ratio value of 1.67, ERIE belongs to the best of the industry, outperforming 89.73% of the companies in the same industry.
ERIE has a Quick 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.
With an excellent Quick ratio value of 1.67, ERIE belongs to the best of the industry, outperforming 89.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.00% 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 9.53% 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)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.
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 Y10.71%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 23.11 indicates a rather expensive valuation of ERIE.
74.66% of the companies in the same industry are cheaper than ERIE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ERIE to the average of the S&P500 Index (25.89), we can say ERIE is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.39, the valuation of ERIE can be described as rather expensive.
ERIE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ERIE is more expensive than 71.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ERIE to the average of the S&P500 Index (34.59), we can say ERIE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 19.39 |
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 67.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.97 | ||
| 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.
The excellent profitability rating of ERIE may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)1.7
EPS Next 2Y13.47%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, ERIE has a reasonable but not impressive dividend return.
The stock price of ERIE dropped by -21.81% 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.
ERIE's Dividend Yield is comparable with the industry average which is at 3.47.
ERIE's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| 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 been paying a dividend for at least 10 years, so it has 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
ERIE pays out 38.59% of its income as dividend. This is a 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%
286.58
-0.6 (-0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners40.49%
Inst Owner Change0.31%
Ins Owners9.21%
Ins Owner Change0%
Market Cap14.99B
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)0.65%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)-5.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 19.39 | ||
| P/S | 3.71 | ||
| P/FCF | 25.97 | ||
| P/OCF | 21.15 | ||
| P/B | 6.49 | ||
| P/tB | 6.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.4
EY4.33%
EPS(NY)14.78
Fwd EY5.16%
FCF(TTM)11.03
FCFY3.85%
OCF(TTM)13.55
OCFY4.73%
SpS77.27
BVpS44.16
TBVpS44.16
PEG (NY)2.16
PEG (5Y)1.7
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 | 12.49 |
F-Score6
WACC8.78%
ROIC/WACC2.71
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 23.11 and the Price/Book (PB) ratio is 6.49.
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.