SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis
USA - NASDAQ:SIGI - US8163001071 - Common Stock
78.3 USD
+0.88 (+1.14%)
78.3 USD
0 (0%)
Overall SIGI gets a fundamental rating of 5 out of 10. We evaluated SIGI against 146 industry peers in the Insurance industry. SIGI has a medium profitability rating, but doesn't score so well on its financial health evaluation. SIGI is not valued too expensively and it also shows a decent growth rate. SIGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SIGI had positive earnings in the past year.
SIGI had a positive operating cash flow in the past year.
In the past 5 years SIGI has always been profitable.
In the past 5 years SIGI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.59%, SIGI is doing good in the industry, outperforming 62.33% of the companies in the same industry.
SIGI has a Return On Equity (11.11%) which is comparable to the rest of the industry.
The Return On Invested Capital of SIGI (2.89%) is better than 63.01% of its industry peers.
SIGI had an Average Return On Invested Capital over the past 3 years of 2.53%. This is in line with the industry average of 4.47%.
The last Return On Invested Capital (2.89%) for SIGI is above the 3 year average (2.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 11.11% | ||
| ROIC | 2.89% |
ROA(3y)2.16%
ROA(5y)2.56%
ROE(3y)8.97%
ROE(5y)9.83%
ROIC(3y)2.53%
ROIC(5y)2.91%
1.3 Margins
SIGI has a Profit Margin (7.33%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SIGI has declined.
SIGI has a Operating Margin of 10.15%. This is comparable to the rest of the industry: SIGI outperforms 45.21% of its industry peers.
SIGI's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 7.33% | ||
| GM | N/A |
OM growth 3Y-27.44%
OM growth 5Y-14.64%
PM growth 3Y-29.7%
PM growth 5Y-15.65%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
SIGI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SIGI has been increased compared to 1 year ago.
The number of shares outstanding for SIGI has been increased compared to 5 years ago.
SIGI has a better debt/assets ratio than last year.
2.2 Solvency
SIGI has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
SIGI has a better Debt to FCF ratio (0.80) than 73.97% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that SIGI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, SIGI is in line with its industry, outperforming 58.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.3%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
SIGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.49%, which is quite impressive.
Measured over the past years, SIGI shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.88% on average per year.
SIGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.21%.
SIGI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.27% yearly.
EPS 1Y (TTM)65.49%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%219.09%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%5.1%
3.2 Future
Based on estimates for the next years, SIGI will show a very strong growth in Earnings Per Share. The EPS will grow by 34.97% on average per year.
The Revenue is expected to grow by 6.69% on average over the next years.
EPS Next Y114.52%
EPS Next 2Y60.08%
EPS Next 3Y34.97%
EPS Next 5YN/A
Revenue Next Year8.06%
Revenue Next 2Y7.5%
Revenue Next 3Y6.69%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SIGI is valuated correctly with a Price/Earnings ratio of 12.86.
The rest of the industry has a similar Price/Earnings ratio as SIGI.
When comparing the Price/Earnings ratio of SIGI to the average of the S&P500 Index (27.41), we can say SIGI is valued rather cheaply.
SIGI is valuated reasonably with a Price/Forward Earnings ratio of 9.40.
60.27% of the companies in the same industry are more expensive than SIGI, based on the Price/Forward Earnings ratio.
SIGI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
SIGI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SIGI is valued a bit cheaper than 76.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.2 | ||
| EV/EBITDA | 10.2 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SIGI's earnings are expected to grow with 34.97% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y60.08%
EPS Next 3Y34.97%
5. Dividend
5.1 Amount
SIGI has a Yearly Dividend Yield of 1.91%.
Compared to an average industry Dividend Yield of 3.43, SIGI has a dividend in line with its industry peers.
SIGI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of SIGI grows each year by 13.90%, which is quite nice.
SIGI has paid a dividend for at least 10 years, which is a reliable track record.
SIGI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.9%
Div Incr Years11
Div Non Decr Years34
5.3 Sustainability
26.11% of the earnings are spent on dividend by SIGI. This is a low number and sustainable payout ratio.
The dividend of SIGI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26.11%
EPS Next 2Y60.08%
EPS Next 3Y34.97%
78.3
+0.88 (+1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.59%
Inst Owner Change1.58%
Ins Owners0.83%
Ins Owner Change1.58%
Market Cap4.76B
Analysts72.86
Price Target90.44 (15.5%)
Short Float %2.36%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.55
Dividend Growth(5Y)13.9%
DP26.11%
Div Incr Years11
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.65%
Min EPS beat(2)-14.75%
Max EPS beat(2)-6.55%
EPS beat(4)0
Avg EPS beat(4)-14.52%
Min EPS beat(4)-20.05%
Max EPS beat(4)-6.55%
EPS beat(8)0
Avg EPS beat(8)-33.62%
EPS beat(12)0
Avg EPS beat(12)-25.12%
EPS beat(16)2
Avg EPS beat(16)-18.25%
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-4.76%
Max Revenue beat(2)-3.24%
Revenue beat(4)0
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-4.76%
Max Revenue beat(4)-1.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.9%
Revenue beat(12)6
Avg Revenue beat(12)0.53%
Revenue beat(16)8
Avg Revenue beat(16)1.13%
PT rev (1m)1.53%
PT rev (3m)-6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.53%
EPS NY rev (1m)-3.6%
EPS NY rev (3m)-3.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 9.4 | ||
| P/S | 0.93 | ||
| P/FCF | 4.2 | ||
| P/OCF | 4.07 | ||
| P/B | 1.41 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)6.09
EY7.78%
EPS(NY)8.33
Fwd EY10.64%
FCF(TTM)18.63
FCFY23.79%
OCF(TTM)19.24
OCFY24.57%
SpS83.96
BVpS55.37
TBVpS55.24
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 11.11% | ||
| ROCE | 3.61% | ||
| ROIC | 2.89% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 3.22% | ||
| OM | 10.15% | ||
| PM (TTM) | 7.33% | ||
| GM | N/A | ||
| FCFM | 22.18% |
ROA(3y)2.16%
ROA(5y)2.56%
ROE(3y)8.97%
ROE(5y)9.83%
ROIC(3y)2.53%
ROIC(5y)2.91%
ROICexc(3y)2.53%
ROICexc(5y)2.91%
ROICexgc(3y)2.82%
ROICexgc(5y)3.24%
ROCE(3y)3.16%
ROCE(5y)3.64%
ROICexcg growth 3Y-24.16%
ROICexcg growth 5Y-12.63%
ROICexc growth 3Y-24.74%
ROICexc growth 5Y-12.9%
OM growth 3Y-27.44%
OM growth 5Y-14.64%
PM growth 3Y-29.7%
PM growth 5Y-15.65%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 117.46% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 18.13 | ||
| Cash Conversion | 212.75% | ||
| Profit Quality | 302.67% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.3%
ROIC/WACC0.35
Cap/Depr(3y)75.11%
Cap/Depr(5y)60.57%
Cap/Sales(3y)0.63%
Cap/Sales(5y)0.66%
Profit Quality(3y)369.06%
Profit Quality(5y)302.6%
High Growth Momentum
Growth
EPS 1Y (TTM)65.49%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%219.09%
EPS Next Y114.52%
EPS Next 2Y60.08%
EPS Next 3Y34.97%
EPS Next 5YN/A
Revenue 1Y (TTM)12.21%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%5.1%
Revenue Next Year8.06%
Revenue Next 2Y7.5%
Revenue Next 3Y6.69%
Revenue Next 5YN/A
EBIT growth 1Y62.67%
EBIT growth 3Y-18%
EBIT growth 5Y-5.02%
EBIT Next Year86.17%
EBIT Next 3Y30.95%
EBIT Next 5YN/A
FCF growth 1Y36.37%
FCF growth 3Y12.58%
FCF growth 5Y19.08%
OCF growth 1Y37.3%
OCF growth 3Y12.55%
OCF growth 5Y18.16%