ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
NASDAQ:ERIE - Nasdaq - US29530P1021 - Common Stock - Currency: USD
Overall ERIE gets a fundamental rating of 7 out of 10. We evaluated ERIE against 143 industry peers in the Insurance industry. ERIE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ERIE is valued quite expensive, but it does show an excellent growth. This makes ERIE very considerable 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.
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 19.52%. This is amongst the best in the industry. ERIE outperforms 98.58% of its industry peers.
With an excellent Return On Equity value of 28.71%, ERIE belongs to the best of the industry, outperforming 91.49% 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 99.29% of its industry peers.
ERIE had an Average Return On Invested Capital over the past 3 years of 19.35%. This is significantly above the industry average of 4.59%.
The 3 year average ROIC (19.35%) for ERIE is below the current ROIC(24.54%), indicating increased profibility in the last year.
| 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
ERIE has a Profit Margin of 15.16%. This is in the better half of the industry: ERIE outperforms 77.31% 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 70.92% of its industry peers.
In the last couple of years the Operating Margin of ERIE has grown nicely.
The Gross Margin of ERIE (17.25%) is better than 87.23% of its industry peers.
ERIE's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERIE is creating value.
The number of shares outstanding for ERIE has been increased compared to 1 year ago.
ERIE has more shares outstanding than it did 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
An Altman-Z score of 16.91 indicates that ERIE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ERIE (16.91) is better than 99.29% 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 | 16.91 |
ROIC/WACC2.71
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.36 indicates that ERIE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.36, ERIE belongs to the top of the industry, outperforming 87.23% 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.
Looking at the Quick ratio, with a value of 1.36, ERIE belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
| 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.
Looking at the last year, ERIE shows a quite strong growth in Revenue. The Revenue has grown by 17.03% in the last year.
Measured over the past years, ERIE shows a small growth in Revenue. The Revenue has been growing by 6.53% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.87 indicates a quite expensive valuation of ERIE.
Based on the Price/Earnings ratio, ERIE is valued expensively inside the industry as 80.14% of the companies are valued cheaper.
ERIE is valuated rather expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
ERIE is valuated quite expensively with a Price/Forward Earnings ratio of 28.06.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERIE indicates a slightly more expensive valuation: ERIE is more expensive than 75.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ERIE is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 28.06 |
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 71.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.89 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ERIE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ERIE has an outstanding profitability rating, which may justify a higher PE ratio.
ERIE's earnings are expected to grow with 15.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)3.93
EPS Next 2Y26.58%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.41%.
ERIE's Dividend Yield is comparable with the industry average which is at 3.09.
ERIE's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
On average, the dividend of ERIE grows each year by 7.15%, which is quite nice.
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%
383.46
-3.94 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners38%
Inst Owner Change-1.63%
Ins Owners9.26%
Ins Owner Change0%
Market Cap20.05B
Analysts82.5
Price TargetN/A
Short Float %4.57%
Short Ratio7.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend4.25
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)-4.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 28.06 | ||
| P/S | 5.44 | ||
| P/FCF | 42.89 | ||
| P/OCF | 35.41 | ||
| P/B | 10.29 | ||
| P/tB | 10.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.69
EY2.79%
EPS(NY)13.67
Fwd EY3.56%
FCF(TTM)8.94
FCFY2.33%
OCF(TTM)10.83
OCFY2.82%
SpS70.54
BVpS37.25
TBVpS37.25
PEG (NY)1.01
PEG (5Y)3.93
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 | 16.91 |
F-Score7
WACC9.06%
ROIC/WACC2.71
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%