ERIE INDEMNITY COMPANY-CL A (ERIE) Stock Fundamental Analysis
NASDAQ:ERIE - Nasdaq - US29530P1021 - Common Stock
We assign a fundamental rating of 7 out of 10 to ERIE. ERIE was compared to 143 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 shows excellent growth, but is valued quite expensive already. These ratings could make ERIE a good candidate for growth and 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.
In the past 5 years ERIE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ERIE (19.52%) is better than 98.58% of its industry peers.
ERIE's Return On Equity of 28.71% is amongst the best of the industry. ERIE outperforms 90.78% of its industry peers.
With an excellent Return On Invested Capital value of 24.54%, ERIE belongs to the best of the industry, outperforming 99.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERIE is significantly above the industry average of 4.61%.
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
The Profit Margin of ERIE (15.16%) is better than 77.31% of its industry peers.
ERIE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.25%, ERIE is doing good in the industry, outperforming 70.92% of the companies in the same industry.
In the last couple of years the Operating Margin of ERIE has grown nicely.
The Gross Margin of ERIE (17.25%) is better than 87.94% 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
ERIE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ERIE has more shares outstanding than it did 1 year ago.
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 16.69 indicates that ERIE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 16.69, ERIE belongs to the top of the industry, outperforming 99.29% of the companies in the same industry.
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 | 16.69 |
ROIC/WACC2.65
WACC9.25%
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.
ERIE's Current ratio of 1.36 is amongst the best of the industry. ERIE outperforms 87.23% of its industry peers.
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.
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.
ERIE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.13% yearly.
Looking at the last year, ERIE shows a quite strong growth in Revenue. The Revenue has grown by 17.03% in the last year.
The Revenue has been growing slightly by 6.53% on average over the past years.
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 14.61% 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 35.65 indicates a quite expensive valuation of ERIE.
ERIE's Price/Earnings ratio is a bit more expensive when compared to the industry. ERIE is more expensive than 79.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of ERIE to the average of the S&P500 Index (28.29), we can say ERIE is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.88, the valuation of ERIE can be described as expensive.
Based on the Price/Forward Earnings ratio, ERIE is valued a bit more expensive than the industry average as 75.89% of the companies are valued more cheaply.
ERIE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.65 | ||
| Fwd PE | 27.88 |
4.2 Price Multiples
71.63% of the companies in the same industry are cheaper than ERIE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.63 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as ERIE's earnings are expected to grow with 15.84% in the coming years.
PEG (NY)1.01
PEG (5Y)3.9
EPS Next 2Y26.58%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
ERIE has a Yearly Dividend Yield of 1.35%.
ERIE's Dividend Yield is comparable with the industry average which is at 2.99.
Compared to an average S&P500 Dividend Yield of 2.28, ERIE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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
ERIE pays out 41.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
ERIE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.76%
EPS Next 2Y26.58%
EPS Next 3Y15.84%
ERIE INDEMNITY COMPANY-CL A
NASDAQ:ERIE (1/21/2025, 8:00:02 PM)
After market: 381.07 0 (0%)381.07
-24.5 (-6.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners36.84%
Inst Owner Change-1.79%
Ins Owners9.26%
Ins Owner Change0%
Market Cap19.93B
Analysts82.5
Price TargetN/A
Short Float %4.24%
Short Ratio7.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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)9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.65 | ||
| Fwd PE | 27.88 | ||
| P/S | 5.4 | ||
| P/FCF | 42.63 | ||
| P/OCF | 35.19 | ||
| P/B | 10.23 | ||
| P/tB | 10.23 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.69
EY2.81%
EPS(NY)13.67
Fwd EY3.59%
FCF(TTM)8.94
FCFY2.35%
OCF(TTM)10.83
OCFY2.84%
SpS70.54
BVpS37.25
TBVpS37.25
PEG (NY)1.01
PEG (5Y)3.9
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 | 16.69 |
F-Score7
WACC9.25%
ROIC/WACC2.65
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%