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. 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 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.
In the past year ERIE had a positive cash flow from operations.
ERIE had positive earnings in each of the past 5 years.
ERIE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERIE has a better Return On Assets (20.78%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 30.21%, ERIE belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.72%, ERIE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ERIE is significantly above the industry average of 4.47%.
The last Return On Invested Capital (25.72%) for ERIE is above the 3 year average (22.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.78% | ||
| ROE | 30.21% | ||
| ROIC | 25.72% |
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 has a better Profit Margin (15.82%) than 79.72% of its industry peers.
In the last couple of years the Profit Margin of ERIE has grown nicely.
With a decent Operating Margin value of 17.82%, ERIE is doing good in the industry, outperforming 72.03% of the companies in the same industry.
ERIE's Operating Margin has improved in the last couple of years.
ERIE has a Gross Margin of 17.82%. This is amongst the best in the industry. ERIE outperforms 87.41% of its industry peers.
ERIE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.82% | ||
| PM (TTM) | 15.82% | ||
| GM | 17.82% |
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
ERIE has an Altman-Z score of 18.07. This indicates that ERIE is financially healthy and has little risk of bankruptcy at the moment.
ERIE's Altman-Z score of 18.07 is amongst the best of the industry. ERIE outperforms 100.00% 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 | 18.07 |
ROIC/WACC2.86
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.43 indicates that ERIE should not have too much problems paying its short term obligations.
ERIE has a Current ratio of 1.43. This is amongst the best in the industry. ERIE outperforms 86.01% of its industry peers.
ERIE has a Quick Ratio of 1.43. This is a normal value and indicates that ERIE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ERIE (1.43) is better than 86.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.58% over the past year.
The Earnings Per Share has been growing by 13.63% on average over the past years. This is quite good.
Looking at the last year, ERIE shows a quite strong growth in Revenue. The Revenue has grown by 16.10% in the last year.
The Revenue has been growing by 8.91% on average over the past years. This is quite good.
EPS 1Y (TTM)34.58%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%37.26%
Revenue 1Y (TTM)16.1%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%13.02%
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 14.96% on average per year.
The Revenue is expected to grow by 10.67% on average over the next years. This is quite good.
EPS Next Y21.46%
EPS Next 2Y14.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.73%
Revenue Next 2Y10.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
The Price/Earnings ratio is 35.80, which means the current valuation is very expensive for ERIE.
Based on the Price/Earnings ratio, ERIE is valued a bit more expensive than the industry average as 77.62% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.29. ERIE is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.47, which means the current valuation is very expensive for ERIE.
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 75.52% of the companies listed in the same industry.
ERIE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.8 | ||
| Fwd PE | 29.47 |
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 71.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.18 | ||
| 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.
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 14.96% in the coming years.
PEG (NY)1.67
PEG (5Y)2.63
EPS Next 2Y14.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.32%.
ERIE's Dividend Yield is comparable with the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.57, ERIE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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
39.56% of the earnings are spent on dividend by ERIE. This is a low number and sustainable payout ratio.
ERIE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.56%
EPS Next 2Y14.96%
EPS Next 3YN/A
410.95
-0.93 (-0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners38%
Inst Owner Change0%
Ins Owners9.26%
Ins Owner Change0%
Market Cap21.49B
Analysts82.5
Price TargetN/A
Short Float %5.41%
Short Ratio8.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend4.54
Dividend Growth(5Y)7.09%
DP39.56%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.35%
Min EPS beat(2)-0.66%
Max EPS beat(2)3.37%
EPS beat(4)3
Avg EPS beat(4)5.94%
Min EPS beat(4)-0.66%
Max EPS beat(4)19.17%
EPS beat(8)7
Avg EPS beat(8)8.91%
EPS beat(12)7
Avg EPS beat(12)3.62%
EPS beat(16)9
Avg EPS beat(16)1.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-2.07%
Max Revenue beat(2)-0.51%
Revenue beat(4)2
Avg Revenue beat(4)1.18%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)3.97%
Revenue beat(8)6
Avg Revenue beat(8)2.13%
Revenue beat(12)10
Avg Revenue beat(12)1.8%
Revenue beat(16)10
Avg Revenue beat(16)1.08%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-5.64%
EPS NY rev (1m)2.01%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.8 | ||
| Fwd PE | 29.47 | ||
| P/S | 5.66 | ||
| P/FCF | 44.18 | ||
| P/OCF | 35.16 | ||
| P/B | 10.81 | ||
| P/tB | 10.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)11.48
EY2.79%
EPS(NY)13.94
Fwd EY3.39%
FCF(TTM)9.3
FCFY2.26%
OCF(TTM)11.69
OCFY2.84%
SpS72.58
BVpS38
TBVpS38
PEG (NY)1.67
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.78% | ||
| ROE | 30.21% | ||
| ROCE | 32.43% | ||
| ROIC | 25.72% | ||
| ROICexc | 30.37% | ||
| ROICexgc | 30.37% | ||
| OM | 17.82% | ||
| PM (TTM) | 15.82% | ||
| GM | 17.82% | ||
| FCFM | 12.82% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 81.02% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 18.07 |
F-Score7
WACC8.98%
ROIC/WACC2.86
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)34.58%
EPS 3Y26.36%
EPS 5Y13.63%
EPS Q2Q%37.26%
EPS Next Y21.46%
EPS Next 2Y14.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.1%
Revenue growth 3Y12.95%
Revenue growth 5Y8.91%
Sales Q2Q%13.02%
Revenue Next Year11.73%
Revenue Next 2Y10.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y30.02%
EBIT growth 3Y28.6%
EBIT growth 5Y13.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y68.56%
FCF growth 3Y24.18%
FCF growth 5Y13.13%
OCF growth 1Y60.35%
OCF growth 3Y14.91%
OCF growth 5Y10.89%