KEMPER CORP (KMPR) Stock Fundamental Analysis
NYSE:KMPR - New York Stock Exchange, Inc. - US4884011002 - Common Stock - Currency: USD
KMPR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. KMPR may be in some trouble as it scores bad on both profitability and health. KMPR is not valued too expensively and it also shows a decent growth rate. KMPR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMPR had positive earnings in the past year.
In the past year KMPR had a positive cash flow from operations.
In multiple years KMPR reported negative net income over the last 5 years.
In multiple years KMPR reported negative operating cash flow during the last 5 years.
1.2 Ratios
KMPR has a Return On Assets (2.52%) which is comparable to the rest of the industry.
The Return On Equity of KMPR (11.40%) is comparable to the rest of the industry.
KMPR has a Return On Invested Capital of 3.18%. This is in the better half of the industry: KMPR outperforms 65.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 11.4% | ||
| ROIC | 3.18% |
ROA(3y)-0.59%
ROA(5y)0.05%
ROE(3y)-3.4%
ROE(5y)-0.86%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.84%, KMPR is in line with its industry, outperforming 48.95% of the companies in the same industry.
In the last couple of years the Profit Margin of KMPR has declined.
The Operating Margin of KMPR (9.77%) is comparable to the rest of the industry.
KMPR's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.77% | ||
| PM (TTM) | 6.84% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y-4.87%
PM growth 3YN/A
PM growth 5Y-8.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMPR is destroying value.
The number of shares outstanding for KMPR has been reduced compared to 1 year ago.
KMPR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KMPR has a worse debt to assets ratio.
2.2 Solvency
KMPR has an Altman-Z score of 0.75. This is a bad value and indicates that KMPR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KMPR (0.75) is better than 78.32% of its industry peers.
KMPR has a debt to FCF ratio of 4.22. This is a neutral value as KMPR would need 4.22 years to pay back of all of its debts.
KMPR's Debt to FCF ratio of 4.22 is on the low side compared to the rest of the industry. KMPR is outperformed by 65.73% of its industry peers.
KMPR has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
KMPR has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.22 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.43
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.16 indicates that KMPR may have some problems paying its short term obligations.
KMPR has a better Current ratio (0.16) than 67.83% of its industry peers.
KMPR has a Quick Ratio of 0.16. This is a bad value and indicates that KMPR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.16, KMPR is doing good in the industry, outperforming 67.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
KMPR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 726.60%, which is quite impressive.
Measured over the past years, KMPR shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.21% on average per year.
The Revenue has decreased by -5.94% in the past year.
KMPR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.11% yearly.
EPS 1Y (TTM)726.6%
EPS 3YN/A
EPS 5Y-1.21%
EPS Q2Q%128.21%
Revenue 1Y (TTM)-5.94%
Revenue growth 3Y-6.52%
Revenue growth 5Y-1.11%
Sales Q2Q%24.98%
3.2 Future
KMPR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.78% yearly.
The Revenue is expected to grow by 14.56% on average over the next years. This is quite good.
EPS Next Y6.2%
EPS Next 2Y7.76%
EPS Next 3Y6.78%
EPS Next 5YN/A
Revenue Next Year17.41%
Revenue Next 2Y14.56%
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
KMPR is valuated reasonably with a Price/Earnings ratio of 9.63.
68.53% of the companies in the same industry are more expensive than KMPR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KMPR to the average of the S&P500 Index (28.29), we can say KMPR is valued rather cheaply.
KMPR is valuated reasonably with a Price/Forward Earnings ratio of 9.07.
KMPR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KMPR is cheaper than 65.73% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KMPR to the average of the S&P500 Index (21.08), we can say KMPR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.63 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
KMPR's Enterprise Value to EBITDA ratio is in line with the industry average.
KMPR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
KMPR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y7.76%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, KMPR has a reasonable but not impressive dividend return.
KMPR's Dividend Yield is a higher than the industry average which is at 3.28.
KMPR's Dividend Yield is comparable with the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of KMPR has a limited annual growth rate of 4.04%.
KMPR has been paying a dividend for at least 10 years, so it has a reliable track record.
KMPR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.04%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
25.20% of the earnings are spent on dividend by KMPR. This is a low number and sustainable payout ratio.
KMPR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP25.2%
EPS Next 2Y7.76%
EPS Next 3Y6.78%
56.71
-0.8 (-1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.12%
Inst Owner Change0.88%
Ins Owners4.73%
Ins Owner Change0.58%
Market Cap3.63B
Analysts80
Price Target86.09 (51.81%)
Short Float %2.12%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend1.25
Dividend Growth(5Y)4.04%
DP25.2%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.06%
Min EPS beat(2)18.44%
Max EPS beat(2)29.68%
EPS beat(4)3
Avg EPS beat(4)14.28%
Min EPS beat(4)-4.17%
Max EPS beat(4)29.68%
EPS beat(8)6
Avg EPS beat(8)10.62%
EPS beat(12)10
Avg EPS beat(12)11.95%
EPS beat(16)10
Avg EPS beat(16)-131.45%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)2.05%
Revenue beat(4)3
Avg Revenue beat(4)1.49%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)3.64%
Revenue beat(8)3
Avg Revenue beat(8)-5.36%
Revenue beat(12)7
Avg Revenue beat(12)-2.32%
Revenue beat(16)11
Avg Revenue beat(16)-0.05%
PT rev (1m)0%
PT rev (3m)5.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.68%
EPS NY rev (1m)0%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.72%
Revenue NY rev (1m)2.98%
Revenue NY rev (3m)4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.63 | ||
| Fwd PE | 9.07 | ||
| P/S | 0.78 | ||
| P/FCF | 11.01 | ||
| P/OCF | 9.48 | ||
| P/B | 1.3 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)5.89
EY10.39%
EPS(NY)6.26
Fwd EY11.03%
FCF(TTM)5.15
FCFY9.08%
OCF(TTM)5.98
OCFY10.55%
SpS72.59
BVpS43.56
TBVpS24.02
PEG (NY)1.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 11.4% | ||
| ROCE | 3.96% | ||
| ROIC | 3.18% | ||
| ROICexc | 3.2% | ||
| ROICexgc | 3.74% | ||
| OM | 9.77% | ||
| PM (TTM) | 6.84% | ||
| GM | N/A | ||
| FCFM | 7.09% |
ROA(3y)-0.59%
ROA(5y)0.05%
ROE(3y)-3.4%
ROE(5y)-0.86%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-4.68%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.79%
OM growth 3YN/A
OM growth 5Y-4.87%
PM growth 3YN/A
PM growth 5Y-8.69%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.22 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 99.07% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 8.33 | ||
| Cash Conversion | 75.43% | ||
| Profit Quality | 103.74% | ||
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 0.75 |
F-Score8
WACC7.37%
ROIC/WACC0.43
Cap/Depr(3y)78.11%
Cap/Depr(5y)77.87%
Cap/Sales(3y)0.93%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)726.6%
EPS 3YN/A
EPS 5Y-1.21%
EPS Q2Q%128.21%
EPS Next Y6.2%
EPS Next 2Y7.76%
EPS Next 3Y6.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.94%
Revenue growth 3Y-6.52%
Revenue growth 5Y-1.11%
Sales Q2Q%24.98%
Revenue Next Year17.41%
Revenue Next 2Y14.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y565.54%
EBIT growth 3YN/A
EBIT growth 5Y-5.93%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y275.37%
FCF growth 3Y4.02%
FCF growth 5Y-6.04%
OCF growth 1Y385.32%
OCF growth 3Y2.97%
OCF growth 5Y-6.45%