ERIE INDEMNITY COMPANY-CL A (ERIE)
US29530P1021 - Common Stock
ERIE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 141 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 valued quite expensively, but it does show have an excellent growth rating. With these ratings, ERIE could be worth investigating further for growth and 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.
Each year in the past 5 years ERIE has been profitable.
In the past 5 years ERIE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.52%, ERIE belongs to the top of the industry, outperforming 99.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.71%, ERIE belongs to the top of the industry, outperforming 90.71% of the companies in the same industry.
ERIE has a Return On Invested Capital of 24.54%. This is amongst the best in the industry. ERIE outperforms 100.00% 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 4.38%.
The last Return On Invested Capital (24.54%) for ERIE is above the 3 year average (19.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.52% | ||
| ROE | 28.71% | ||
| ROIC | 24.54% |
ROA(3y)14.89%
ROA(5y)14.85%
ROE(3y)23.22%
ROE(5y)24.46%
ROIC(3y)19.35%
ROIC(5y)19.18%
1.3 Margins
The Profit Margin of ERIE (15.16%) is better than 76.43% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
ERIE has a Operating Margin of 17.25%. This is in the better half of the industry: ERIE outperforms 71.43% of its industry peers.
ERIE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.25%, ERIE belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
In the last couple of years the Gross Margin of ERIE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.25% | ||
| PM (TTM) | 15.16% | ||
| GM | 17.25% |
OM growth 3Y6.08%
OM growth 5Y1.94%
PM growth 3Y5.67%
PM growth 5Y2.44%
GM growth 3Y6.08%
GM growth 5Y1.95%
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 more shares outstanding than it did 1 year ago.
The number of shares outstanding for ERIE has been increased compared to 5 years ago.
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.
2.2 Solvency
ERIE has an Altman-Z score of 17.91. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
ERIE's Altman-Z score of 17.91 is amongst the best of the industry. ERIE outperforms 100.00% 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 | 17.91 |
ROIC/WACC2.66
WACC9.21%
2.3 Liquidity
ERIE has a Current Ratio of 1.36. 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 1.36, ERIE belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that ERIE should not have too much problems paying its short term obligations.
ERIE has a better Quick ratio (1.36) than 88.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.56% over the past year.
Measured over the past years, ERIE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.13% on average per year.
ERIE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.03%.
The Revenue has been growing slightly by 6.53% on average over the past years.
EPS 1Y (TTM)39.56%
EPS 3Y14.99%
EPS 5Y9.13%
EPS Q2Q%21.91%
Revenue 1Y (TTM)17.03%
Revenue growth 3Y8.82%
Revenue growth 5Y6.53%
Sales Q2Q%16.41%
3.2 Future
Based on estimates for the next years, ERIE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
Based on estimates for the next years, ERIE will show a quite strong growth in Revenue. The Revenue will grow by 14.61% on average per year.
EPS Next Y35.42%
EPS Next 2Y26.58%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue Next Year17.76%
Revenue Next 2Y14.61%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ERIE is valuated quite expensively with a Price/Earnings ratio of 38.96.
Based on the Price/Earnings ratio, ERIE is valued expensively inside the industry as 80.71% of the companies are valued cheaper.
ERIE's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 30.47 indicates a quite expensive valuation of ERIE.
Based on the Price/Forward Earnings ratio, ERIE is valued a bit more expensive than the industry average as 77.14% of the companies are valued more cheaply.
ERIE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.96 | ||
| Fwd PE | 30.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERIE indicates a slightly more expensive valuation: ERIE is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.59 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ERIE may justify a higher PE ratio.
A more expensive valuation may be justified as ERIE's earnings are expected to grow with 15.84% in the coming years.
PEG (NY)1.1
PEG (5Y)4.27
EPS Next 2Y26.58%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.34%.
In the last 3 months the price of ERIE has falen by -20.06%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ERIE's Dividend Yield is comparable with the industry average which is at 4.33.
With a Dividend Yield of 1.34, ERIE pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of ERIE is nicely growing with an annual growth rate of 7.15%!
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)7.15%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
41.76% of the earnings are spent on dividend by ERIE. This is a bit on the high side, but may be sustainable.
The dividend of ERIE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.76%
EPS Next 2Y26.58%
EPS Next 3Y15.84%
ERIE INDEMNITY COMPANY-CL A
NASDAQ:ERIE (12/20/2024, 8:07:26 PM)
After market: 416.48 0 (0%)416.48
+8.1 (+1.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners36.84%
Inst Owner Change5.18%
Ins Owners9.26%
Ins Owner Change-0.01%
Market Cap21.78B
Analysts82.5
Price TargetN/A
Short Float %3.71%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)7.15%
DP41.76%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.25%
Min EPS beat(2)-0.66%
Max EPS beat(2)19.17%
EPS beat(4)3
Avg EPS beat(4)5.76%
Min EPS beat(4)-0.66%
Max EPS beat(4)19.17%
EPS beat(8)6
Avg EPS beat(8)7.68%
EPS beat(12)6
Avg EPS beat(12)2.24%
EPS beat(16)8
Avg EPS beat(16)1.45%
Revenue beat(2)1
Avg Revenue beat(2)1.73%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)3.97%
Revenue beat(4)3
Avg Revenue beat(4)2.64%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)3.97%
Revenue beat(8)7
Avg Revenue beat(8)2.59%
Revenue beat(12)10
Avg Revenue beat(12)1.86%
Revenue beat(16)10
Avg Revenue beat(16)1.18%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.96 | ||
| Fwd PE | 30.47 | ||
| P/S | 5.9 | ||
| P/FCF | 46.59 | ||
| P/OCF | 38.46 | ||
| P/B | 11.18 | ||
| P/tB | 11.18 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.69
EY2.57%
EPS(NY)13.67
Fwd EY3.28%
FCF(TTM)8.94
FCFY2.15%
OCF(TTM)10.83
OCFY2.6%
SpS70.54
BVpS37.25
TBVpS37.25
PEG (NY)1.1
PEG (5Y)4.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.52% | ||
| ROE | 28.71% | ||
| ROCE | 30.93% | ||
| ROIC | 24.54% | ||
| ROICexc | 27.88% | ||
| ROICexgc | 27.88% | ||
| OM | 17.25% | ||
| PM (TTM) | 15.16% | ||
| GM | 17.25% | ||
| FCFM | 12.67% |
ROA(3y)14.89%
ROA(5y)14.85%
ROE(3y)23.22%
ROE(5y)24.46%
ROIC(3y)19.35%
ROIC(5y)19.18%
ROICexc(3y)22%
ROICexc(5y)22.67%
ROICexgc(3y)22%
ROICexgc(5y)22.67%
ROCE(3y)24.39%
ROCE(5y)24.18%
ROICexcg growth 3Y9.16%
ROICexcg growth 5Y-11.31%
ROICexc growth 3Y9.16%
ROICexc growth 5Y-11.31%
OM growth 3Y6.08%
OM growth 5Y1.94%
PM growth 3Y5.67%
PM growth 5Y2.44%
GM growth 3Y6.08%
GM growth 5Y1.95%
F-Score7
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 83.59% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 17.91 |
F-Score7
WACC9.21%
ROIC/WACC2.66
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)3.62%
Cap/Sales(5y)3.43%
Profit Quality(3y)83.36%
Profit Quality(5y)86.17%
High Growth Momentum
Growth
EPS 1Y (TTM)39.56%
EPS 3Y14.99%
EPS 5Y9.13%
EPS Q2Q%21.91%
EPS Next Y35.42%
EPS Next 2Y26.58%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue 1Y (TTM)17.03%
Revenue growth 3Y8.82%
Revenue growth 5Y6.53%
Sales Q2Q%16.41%
Revenue Next Year17.76%
Revenue Next 2Y14.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y34.06%
EBIT growth 3Y15.44%
EBIT growth 5Y8.6%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y117.11%
FCF growth 3Y0.17%
FCF growth 5Y6.84%
OCF growth 1Y50.22%
OCF growth 3Y3.62%
OCF growth 5Y7.66%