KEMPER CORP (KMPR) Stock Fundamental Analysis
NYSE:KMPR - New York Stock Exchange, Inc. - US4884011002 - Common Stock - Currency: USD
Overall KMPR gets a fundamental rating of 4 out of 10. We evaluated KMPR against 144 industry peers in the Insurance industry. Both the profitability and financial health of KMPR have multiple concerns. KMPR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KMPR had positive earnings in the past year.
KMPR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KMPR reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: KMPR reported negative operating cash flow in multiple years.
1.2 Ratios
KMPR has a Return On Assets of 2.52%. This is comparable to the rest of the industry: KMPR outperforms 54.93% of its industry peers.
The Return On Equity of KMPR (11.40%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 3.18%, KMPR is doing good in the industry, outperforming 66.90% of the companies in the same industry.
| 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
KMPR has a Profit Margin of 6.84%. This is comparable to the rest of the industry: KMPR outperforms 50.70% of its industry peers.
KMPR's Profit Margin has declined in the last couple of years.
KMPR has a Operating Margin (9.77%) which is in line with its industry peers.
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.
KMPR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KMPR has less shares outstanding
Compared to 1 year ago, KMPR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that KMPR is in the distress zone and has some risk of bankruptcy.
KMPR has a Altman-Z score of 0.78. This is in the better half of the industry: KMPR outperforms 77.46% 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 66.20% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that KMPR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, KMPR perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.22 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.42
WACC7.57%
2.3 Liquidity
A Current Ratio of 0.16 indicates that KMPR may have some problems paying its short term obligations.
With a decent Current ratio value of 0.16, KMPR is doing good in the industry, outperforming 68.31% of the companies in the same industry.
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.
KMPR's Quick ratio of 0.16 is fine compared to the rest of the industry. KMPR outperforms 68.31% of its industry peers.
| 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.
KMPR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.21% yearly.
The Revenue has decreased by -5.94% in the past year.
The Revenue has been decreasing by -1.11% on average over the past years.
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.
Based on estimates for the next years, KMPR will show a quite strong growth in Revenue. The Revenue will grow by 12.99% on average per year.
EPS Next Y6.2%
EPS Next 2Y7.76%
EPS Next 3Y6.78%
EPS Next 5YN/A
Revenue Next Year14%
Revenue Next 2Y12.99%
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.
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
Based on the Price/Earnings ratio of 10.90, the valuation of KMPR can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KMPR is on the same level as its industry peers.
KMPR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 10.27, which indicates a very decent valuation of KMPR.
KMPR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, KMPR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMPR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMPR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.45 | ||
| EV/EBITDA | 10.7 |
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)1.76
PEG (5Y)N/A
EPS Next 2Y7.76%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, KMPR has a reasonable but not impressive dividend return.
KMPR's Dividend Yield is comparable with the industry average which is at 3.10.
KMPR's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of KMPR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.2%
EPS Next 2Y7.76%
EPS Next 3Y6.78%
64.23
-1.05 (-1.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.12%
Inst Owner Change-95.76%
Ins Owners4.73%
Ins Owner Change0.62%
Market Cap4.10B
Analysts80
Price Target86.09 (34.03%)
Short Float %1.85%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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)5.5%
PT rev (3m)5.5%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)16.5%
EPS NY rev (1m)0.56%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)-3.72%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)1.65%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.27 | ||
| P/S | 0.88 | ||
| P/FCF | 12.45 | ||
| P/OCF | 10.72 | ||
| P/B | 1.47 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)5.89
EY9.17%
EPS(NY)6.26
Fwd EY9.74%
FCF(TTM)5.16
FCFY8.03%
OCF(TTM)5.99
OCFY9.33%
SpS72.72
BVpS43.64
TBVpS24.06
PEG (NY)1.76
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 | 0.78 |
F-Score8
WACC7.57%
ROIC/WACC0.42
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 Year14%
Revenue Next 2Y12.99%
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%