ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
NASDAQ:ERIE - Nasdaq - US29530P1021 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ERIE. ERIE was compared to 144 industry peers in the Insurance industry. ERIE gets an excellent profitability rating and is at the same time showing great financial health properties. 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
ERIE had positive earnings in the past year.
ERIE had a positive operating cash flow in the past year.
Each year in the past 5 years ERIE has been profitable.
ERIE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERIE has a better Return On Assets (20.69%) than 100.00% of its industry peers.
ERIE has a better Return On Equity (29.71%) than 96.53% of its industry peers.
With an excellent Return On Invested Capital value of 25.35%, ERIE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ERIE had an Average Return On Invested Capital over the past 3 years of 22.70%. This is significantly above the industry average of 4.07%.
The last Return On Invested Capital (25.35%) for ERIE is above the 3 year average (22.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.69% | ||
| ROE | 29.71% | ||
| ROIC | 25.35% |
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 15.73%, ERIE belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
In the last couple of years the Profit Margin of ERIE has grown nicely.
With a decent Operating Margin value of 17.65%, ERIE is doing good in the industry, outperforming 76.39% of the companies in the same industry.
ERIE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 17.65%, ERIE belongs to the best of the industry, outperforming 87.50% 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 | 17.65% | ||
| PM (TTM) | 15.73% | ||
| GM | 17.65% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERIE is creating value.
Compared to 1 year ago, ERIE has about the same amount of shares outstanding.
Compared to 5 years ago, ERIE has more shares outstanding
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 15.82 indicates that ERIE is not in any danger for bankruptcy at the moment.
ERIE's Altman-Z score of 15.82 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 | 15.82 |
ROIC/WACC2.67
WACC9.48%
2.3 Liquidity
ERIE has a Current Ratio of 1.38. This is a normal value and indicates that ERIE is financially healthy and should not expect problems in meeting its short term obligations.
ERIE has a Current ratio of 1.38. This is amongst the best in the industry. ERIE outperforms 86.81% of its industry peers.
ERIE has a Quick Ratio of 1.38. This is a normal value and indicates that ERIE is financially healthy and should not expect problems in meeting its short term obligations.
ERIE's Quick ratio of 1.38 is amongst the best of the industry. ERIE outperforms 86.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
ERIE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.89%, which is quite impressive.
Measured over the past years, ERIE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.63% on average per year.
The Revenue has grown by 14.91% 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)26.89%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%11.34%
Revenue 1Y (TTM)14.91%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%12.34%
3.2 Future
ERIE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.59% yearly.
Based on estimates for the next years, ERIE will show a quite strong growth in Revenue. The Revenue will grow by 8.65% on average per year.
EPS Next Y11.15%
EPS Next 2Y10.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.48%
Revenue Next 2Y8.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.53, the valuation of ERIE can be described as expensive.
76.39% of the companies in the same industry are cheaper than ERIE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. ERIE is around the same levels.
ERIE is valuated rather expensively with a Price/Forward Earnings ratio of 24.71.
76.39% of the companies in the same industry are cheaper than ERIE, based on the Price/Forward Earnings ratio.
ERIE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 24.71 |
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 75.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.56 | ||
| 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)2.65
PEG (5Y)2.17
EPS Next 2Y10.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 3.51, ERIE has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, ERIE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
On average, the dividend of ERIE grows each year by 7.09%, which is quite nice.
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.
The dividend of ERIE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.35%
EPS Next 2Y10.59%
EPS Next 3YN/A
346.94
+3.85 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners43.98%
Inst Owner Change12.39%
Ins Owners9.21%
Ins Owner Change0%
Market Cap18.14B
Analysts82.5
Price TargetN/A
Short Float %6.16%
Short Ratio10.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend4.54
Dividend Growth(5Y)7.09%
DP39.35%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.34%
Min EPS beat(2)-16.06%
Max EPS beat(2)3.37%
EPS beat(4)2
Avg EPS beat(4)1.45%
Min EPS beat(4)-16.06%
Max EPS beat(4)19.17%
EPS beat(8)6
Avg EPS beat(8)5.74%
EPS beat(12)7
Avg EPS beat(12)3.1%
EPS beat(16)9
Avg EPS beat(16)1.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-1.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)3.97%
Revenue beat(8)5
Avg Revenue beat(8)1.34%
Revenue beat(12)9
Avg Revenue beat(12)1.56%
Revenue beat(16)10
Avg Revenue beat(16)1.07%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.53 | ||
| Fwd PE | 24.71 | ||
| P/S | 4.65 | ||
| P/FCF | 35.56 | ||
| P/OCF | 28.25 | ||
| P/B | 8.78 | ||
| P/tB | 8.78 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.75
EY3.39%
EPS(NY)14.04
Fwd EY4.05%
FCF(TTM)9.76
FCFY2.81%
OCF(TTM)12.28
OCFY3.54%
SpS74.66
BVpS39.54
TBVpS39.54
PEG (NY)2.65
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.69% | ||
| ROE | 29.71% | ||
| ROCE | 31.96% | ||
| ROIC | 25.35% | ||
| ROICexc | 29.26% | ||
| ROICexgc | 29.26% | ||
| OM | 17.65% | ||
| PM (TTM) | 15.73% | ||
| GM | 17.65% | ||
| FCFM | 13.07% |
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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 83.05% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 15.82 |
F-Score7
WACC9.48%
ROIC/WACC2.67
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)26.89%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%11.34%
EPS Next Y11.15%
EPS Next 2Y10.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.91%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%12.34%
Revenue Next Year9.48%
Revenue Next 2Y8.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y25.6%
EBIT growth 3Y28.6%
EBIT growth 5Y13.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.51%
FCF growth 3Y24.18%
FCF growth 5Y13.13%
OCF growth 1Y64.41%
OCF growth 3Y14.91%
OCF growth 5Y10.89%