ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
USA - NASDAQ:ERIE - US29530P1021 - Common Stock
318.4 USD
-2.74 (-0.85%)
318.4 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ERIE. ERIE was compared to 145 industry peers in the Insurance industry. ERIE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ERIE is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make ERIE suitable for quality investing!
1. Profitability
1.1 Basic Checks
ERIE had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 19.98%, ERIE belongs to the top of the industry, outperforming 99.31% of the companies in the same industry.
ERIE has a better Return On Equity (28.61%) than 95.17% of its industry peers.
The Return On Invested Capital of ERIE (24.43%) is better than 99.31% 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 4.40%.
The 3 year average ROIC (22.70%) for ERIE is below the current ROIC(24.43%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 15.73%, ERIE belongs to the top of the industry, outperforming 84.83% of the companies in the same industry.
ERIE's Profit Margin has improved in the last couple of years.
ERIE has a better Operating Margin (17.57%) than 73.10% of its industry peers.
In the last couple of years the Operating Margin of ERIE has grown nicely.
With an excellent Gross Margin value of 17.57%, ERIE belongs to the best of the industry, outperforming 87.59% 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 | 17.57% | ||
| 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
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 remains at a similar level 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
ERIE has an Altman-Z score of 14.25. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
ERIE's Altman-Z score of 14.25 is amongst the best of the industry. ERIE outperforms 98.62% 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 | 14.25 |
ROIC/WACC2.82
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ERIE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.47, ERIE belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
ERIE has a Quick Ratio of 1.47. 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 better Quick ratio (1.47) than 86.21% of its industry peers.
| 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.
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 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
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
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.
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
The Price/Earnings ratio is 26.62, which means the current valuation is very expensive for ERIE.
Based on the Price/Earnings ratio, ERIE is valued a bit more expensive than 76.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, ERIE is valued at the same level.
The Price/Forward Earnings ratio is 21.54, which indicates a rather expensive current valuation of ERIE.
73.10% 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 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 21.54 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERIE is valued a bit more expensive than 66.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.52 | ||
| 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)2.49
PEG (5Y)1.95
EPS Next 2Y13.47%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, ERIE has a reasonable but not impressive dividend return.
ERIE's Dividend Yield is comparable with the industry average which is at 3.54.
Compared to the average S&P500 Dividend Yield of 2.40, ERIE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
ERIE pays out 39.35% of its income as dividend. This is a sustainable payout ratio.
The dividend of ERIE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.35%
EPS Next 2Y13.47%
EPS Next 3Y6.51%
318.4
-2.74 (-0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners40.49%
Inst Owner Change0%
Ins Owners9.21%
Ins Owner Change0%
Market Cap16.65B
Analysts85.71
Price TargetN/A
Short Float %7.37%
Short Ratio13.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)-0.44%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 21.54 | ||
| P/S | 4.19 | ||
| P/FCF | 29.52 | ||
| P/OCF | 24.19 | ||
| P/B | 7.62 | ||
| P/tB | 7.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.96
EY3.76%
EPS(NY)14.78
Fwd EY4.64%
FCF(TTM)10.79
FCFY3.39%
OCF(TTM)13.16
OCFY4.13%
SpS75.99
BVpS41.78
TBVpS41.78
PEG (NY)2.49
PEG (5Y)1.95
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 | 14.25 |
F-Score7
WACC8.67%
ROIC/WACC2.82
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 Y10.71%
EPS Next 2Y13.47%
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%