SAFETY INSURANCE GROUP INC (SAFT) Stock Fundamental Analysis
NASDAQ:SAFT - Nasdaq - US78648T1007 - Common Stock - Currency: USD
Overall SAFT gets a fundamental rating of 6 out of 10. We evaluated SAFT against 144 industry peers in the Insurance industry. SAFT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SAFT has a decent growth rate and is not valued too expensively. SAFT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SAFT was profitable.
In the past year SAFT had a positive cash flow from operations.
Each year in the past 5 years SAFT has been profitable.
Each year in the past 5 years SAFT had a positive operating cash flow.
1.2 Ratios
SAFT has a better Return On Assets (3.15%) than 71.53% of its industry peers.
SAFT has a Return On Equity (8.49%) which is comparable to the rest of the industry.
The Return On Invested Capital of SAFT (2.89%) is better than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAFT is below the industry average of 4.07%.
The last Return On Invested Capital (2.89%) for SAFT is above the 3 year average (1.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 8.49% | ||
| ROIC | 2.89% |
ROA(3y)2.12%
ROA(5y)3.86%
ROE(3y)5.52%
ROE(5y)9.28%
ROIC(3y)1.68%
ROIC(5y)3.49%
1.3 Margins
Looking at the Profit Margin, with a value of 6.32%, SAFT is in line with its industry, outperforming 45.14% of the companies in the same industry.
In the last couple of years the Profit Margin of SAFT has declined.
Looking at the Operating Margin, with a value of 7.16%, SAFT is doing worse than 63.19% of the companies in the same industry.
In the last couple of years the Operating Margin of SAFT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 6.32% | ||
| GM | N/A |
OM growth 3Y-27.11%
OM growth 5Y-14.24%
PM growth 3Y-25.04%
PM growth 5Y-10.77%
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), SAFT is destroying value.
Compared to 1 year ago, SAFT has more shares outstanding
The number of shares outstanding for SAFT has been reduced compared to 5 years ago.
SAFT has a better debt/assets ratio than last year.
2.2 Solvency
SAFT has an Altman-Z score of 1.71. This is a bad value and indicates that SAFT is not financially healthy and even has some risk of bankruptcy.
SAFT has a Altman-Z score of 1.71. This is amongst the best in the industry. SAFT outperforms 89.58% of its industry peers.
The Debt to FCF ratio of SAFT is 0.20, which is an excellent value as it means it would take SAFT, only 0.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SAFT (0.20) is better than 89.58% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that SAFT is not too dependend on debt financing.
The Debt to Equity ratio of SAFT (0.04) is better than 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.31
WACC9.37%
2.3 Liquidity
A Current Ratio of 3.59 indicates that SAFT has no problem at all paying its short term obligations.
SAFT has a better Current ratio (3.59) than 95.14% of its industry peers.
SAFT has a Quick Ratio of 3.59. This indicates that SAFT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SAFT (3.59) is better than 95.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 3.59 |
3. Growth
3.1 Past
SAFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.10%, which is quite impressive.
Measured over the past years, SAFT shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.69% on average per year.
SAFT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.64%.
Measured over the past years, SAFT shows a small growth in Revenue. The Revenue has been growing by 4.66% on average per year.
EPS 1Y (TTM)54.1%
EPS 3Y-13.31%
EPS 5Y-2.69%
EPS Q2Q%8.82%
Revenue 1Y (TTM)17.64%
Revenue growth 3Y8.39%
Revenue growth 5Y4.66%
Sales Q2Q%15.92%
3.2 Future
Based on estimates for the next years, SAFT will show a very strong growth in Earnings Per Share. The EPS will grow by 24.86% on average per year.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y33.62%
EPS Next 2Y24.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
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.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.89, SAFT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SAFT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SAFT to the average of the S&P500 Index (27.15), we can say SAFT is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.12, which indicates a very decent valuation of SAFT.
The rest of the industry has a similar Price/Forward Earnings ratio as SAFT.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, SAFT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SAFT.
SAFT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.81 | ||
| EV/EBITDA | 12.54 |
4.3 Compensation for Growth
SAFT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SAFT's earnings are expected to grow with 24.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y24.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SAFT has a Yearly Dividend Yield of 4.59%, which is a nice return.
Compared to an average industry Dividend Yield of 3.51, SAFT pays a bit more dividend than its industry peers.
SAFT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
The dividend of SAFT has a limited annual growth rate of 0.95%.
SAFT has been paying a dividend for at least 10 years, so it has a reliable track record.
SAFT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.95%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
73.76% of the earnings are spent on dividend by SAFT. This is not a sustainable payout ratio.
SAFT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.76%
EPS Next 2Y24.86%
EPS Next 3YN/A
79.39
+0.55 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.03%
Inst Owner Change1.36%
Ins Owners2%
Ins Owner Change0.04%
Market Cap1.18B
Analysts43.33
Price TargetN/A
Short Float %0.84%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend3.6
Dividend Growth(5Y)0.95%
DP73.76%
Div Incr Years0
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.58%
Min EPS beat(2)-21.23%
Max EPS beat(2)16.08%
EPS beat(4)1
Avg EPS beat(4)-9.78%
Min EPS beat(4)-22.97%
Max EPS beat(4)16.08%
EPS beat(8)2
Avg EPS beat(8)-1.38%
EPS beat(12)3
Avg EPS beat(12)-11.2%
EPS beat(16)6
Avg EPS beat(16)-2.79%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 11.12 | ||
| P/S | 1.04 | ||
| P/FCF | 7.81 | ||
| P/OCF | 7.73 | ||
| P/B | 1.39 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)4.7
EY5.92%
EPS(NY)7.14
Fwd EY8.99%
FCF(TTM)10.17
FCFY12.8%
OCF(TTM)10.28
OCFY12.94%
SpS76.7
BVpS57.13
TBVpS55.48
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 8.49% | ||
| ROCE | 3.7% | ||
| ROIC | 2.89% | ||
| ROICexc | 2.98% | ||
| ROICexgc | 3.4% | ||
| OM | 7.16% | ||
| PM (TTM) | 6.32% | ||
| GM | N/A | ||
| FCFM | 13.25% |
ROA(3y)2.12%
ROA(5y)3.86%
ROE(3y)5.52%
ROE(5y)9.28%
ROIC(3y)1.68%
ROIC(5y)3.49%
ROICexc(3y)1.71%
ROICexc(5y)3.59%
ROICexgc(3y)1.92%
ROICexgc(5y)3.94%
ROCE(3y)2.16%
ROCE(5y)4.49%
ROICexcg growth 3Y-22.13%
ROICexcg growth 5Y-12.04%
ROICexc growth 3Y-23.26%
ROICexc growth 5Y-12.45%
OM growth 3Y-27.11%
OM growth 5Y-14.24%
PM growth 3Y-25.04%
PM growth 5Y-10.77%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 17.84% | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 168.36% | ||
| Profit Quality | 209.56% | ||
| Current Ratio | 3.59 | ||
| Quick Ratio | 3.59 | ||
| Altman-Z | 1.71 |
F-Score7
WACC9.37%
ROIC/WACC0.31
Cap/Depr(3y)34.53%
Cap/Depr(5y)70.89%
Cap/Sales(3y)0.29%
Cap/Sales(5y)0.6%
Profit Quality(3y)178.45%
Profit Quality(5y)141.71%
High Growth Momentum
Growth
EPS 1Y (TTM)54.1%
EPS 3Y-13.31%
EPS 5Y-2.69%
EPS Q2Q%8.82%
EPS Next Y33.62%
EPS Next 2Y24.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.64%
Revenue growth 3Y8.39%
Revenue growth 5Y4.66%
Sales Q2Q%15.92%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y93.46%
EBIT growth 3Y-21%
EBIT growth 5Y-10.24%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y237.87%
FCF growth 3Y-2.27%
FCF growth 5Y3.85%
OCF growth 1Y227.62%
OCF growth 3Y-3.09%
OCF growth 5Y2.73%