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 140 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 valued quite expensively, but it does show have an excellent growth rating. 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.
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
ERIE has a better Return On Assets (19.52%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 28.71%, ERIE belongs to the best of the industry, outperforming 92.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.54%, ERIE belongs to the top 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 19.35%. This is significantly above the industry average of 4.27%.
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 better Profit Margin (15.16%) than 79.86% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
ERIE's Operating Margin of 17.25% is fine compared to the rest of the industry. ERIE outperforms 70.50% 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 89.21% of its industry peers.
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.
Compared to 1 year ago, ERIE has more shares outstanding
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
An Altman-Z score of 18.01 indicates that ERIE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 18.01, ERIE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 | 18.01 |
ROIC/WACC2.71
WACC9.05%
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 87.77% of the companies in the same industry.
ERIE has a Quick 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 Quick ratio value of 1.36, ERIE belongs to the best of the industry, outperforming 87.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
ERIE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.56%, which is quite impressive.
ERIE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.13% yearly.
ERIE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.03%.
ERIE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
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
The Earnings Per Share is expected to grow by 15.84% on average over the next years. This is quite good.
Based on estimates for the next years, ERIE will show a quite strong growth in Revenue. The Revenue will grow by 14.32% on average per year.
EPS Next Y35.48%
EPS Next 2Y26.58%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue Next Year17.31%
Revenue Next 2Y14.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 39.76, the valuation of ERIE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ERIE indicates a slightly more expensive valuation: ERIE is more expensive than 77.70% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ERIE to the average of the S&P500 Index (28.96), we can say ERIE is valued slightly more expensively.
A Price/Forward Earnings ratio of 31.10 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 75.54% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ERIE to the average of the S&P500 Index (23.82), we can say ERIE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.76 | ||
| Fwd PE | 31.1 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERIE is valued a bit more expensive than 76.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.55 | ||
| 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)1.12
PEG (5Y)4.35
EPS Next 2Y26.58%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
ERIE's Dividend Yield is comparable with the industry average which is at 4.25.
Compared to an average S&P500 Dividend Yield of 2.23, ERIE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
The dividend of ERIE is nicely growing with an annual growth rate of 7.15%!
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)7.15%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ERIE pays out 41.76% of its income as dividend. 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 (11/21/2024, 8:25:03 PM)
After market: 425.03 0 (0%)425.03
+5.58 (+1.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.76 | ||
| Fwd PE | 31.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.12
PEG (5Y)4.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.52% | ||
| ROE | 28.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.25% | ||
| PM (TTM) | 15.16% | ||
| GM | 17.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)39.56%
EPS 3Y14.99%
EPS 5Y
EPS Q2Q%
EPS Next Y35.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.03%
Revenue growth 3Y8.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y