78.56 USD
-0.86 (-1.08%)
78.56 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SIGI. SIGI was compared to 148 industry peers in the Insurance industry. While SIGI is still in line with the averages on profitability rating, there are concerns on its financial health. SIGI has a correct valuation and a medium growth rate. SIGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SIGI had positive earnings in the past year.
In the past year SIGI had a positive cash flow from operations.
Each year in the past 5 years SIGI has been profitable.
SIGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIGI's Return On Assets of 2.65% is in line compared to the rest of the industry. SIGI outperforms 58.50% of its industry peers.
SIGI has a Return On Equity (11.39%) which is in line with its industry peers.
SIGI's Return On Invested Capital of 2.95% is in line compared to the rest of the industry. SIGI outperforms 57.82% of its industry peers.
SIGI had an Average Return On Invested Capital over the past 3 years of 2.53%. This is below the industry average of 4.56%.
The 3 year average ROIC (2.53%) for SIGI is below the current ROIC(2.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 11.39% | ||
| ROIC | 2.95% |
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
With a Profit Margin value of 7.61%, SIGI perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
In the last couple of years the Profit Margin of SIGI has declined.
SIGI has a Operating Margin of 10.50%. This is comparable to the rest of the industry: SIGI outperforms 42.86% of its industry peers.
In the last couple of years the Operating Margin of SIGI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.5% | ||
| PM (TTM) | 7.61% | ||
| 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.
SIGI has more shares outstanding than it did 1 year ago.
SIGI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SIGI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SIGI is 0.78, which is an excellent value as it means it would take SIGI, only 0.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SIGI (0.78) is better than 74.83% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that SIGI is not too dependend on debt financing.
SIGI's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. SIGI outperforms 60.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC0.36
WACC8.26%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.39% over the past year.
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.
Looking at the last year, SIGI shows a quite strong growth in Revenue. The Revenue has grown by 10.78% in the last year.
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)80.39%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%25%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%17.49%
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 39.89% on average per year.
Based on estimates for the next years, SIGI will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
EPS Next Y119.71%
EPS Next 2Y57.96%
EPS Next 3Y39.89%
EPS Next 5YN/A
Revenue Next Year7.15%
Revenue Next 2Y5.71%
Revenue Next 3Y5.34%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SIGI is valuated correctly with a Price/Earnings ratio of 12.20.
The rest of the industry has a similar Price/Earnings ratio as SIGI.
Compared to an average S&P500 Price/Earnings ratio of 26.31, SIGI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.69, the valuation of SIGI can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SIGI.
SIGI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIGI is on the same level as its industry peers.
75.51% of the companies in the same industry are more expensive than SIGI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.15 | ||
| EV/EBITDA | 9.89 |
4.3 Compensation for Growth
SIGI's 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 39.89% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y57.96%
EPS Next 3Y39.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, SIGI has a reasonable but not impressive dividend return.
SIGI's Dividend Yield is comparable with the industry average which is at 3.33.
SIGI's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of SIGI is nicely growing with an annual growth rate of 13.90%!
SIGI has paid a dividend for at least 10 years, which is a reliable track record.
SIGI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.9%
Div Incr Years11
Div Non Decr Years34
5.3 Sustainability
25.02% 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.
DP25.02%
EPS Next 2Y57.96%
EPS Next 3Y39.89%
78.56
-0.86 (-1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change-0.02%
Ins Owners0.82%
Ins Owner Change0.53%
Market Cap4.75B
Revenue(TTM)5.22B
Net Income(TTM)397.51M
Analysts53.33
Price Target83.13 (5.82%)
Short Float %2.39%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend1.55
Dividend Growth(5Y)13.9%
DP25.02%
Div Incr Years11
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.5%
Min EPS beat(2)-14.75%
Max EPS beat(2)-10.25%
EPS beat(4)0
Avg EPS beat(4)-12.9%
Min EPS beat(4)-20.05%
Max EPS beat(4)-6.55%
EPS beat(8)0
Avg EPS beat(8)-34.08%
EPS beat(12)0
Avg EPS beat(12)-24.55%
EPS beat(16)1
Avg EPS beat(16)-19.77%
Revenue beat(2)1
Avg Revenue beat(2)1.59%
Min Revenue beat(2)-4.76%
Max Revenue beat(2)7.94%
Revenue beat(4)1
Avg Revenue beat(4)-0.34%
Min Revenue beat(4)-4.76%
Max Revenue beat(4)7.94%
Revenue beat(8)3
Avg Revenue beat(8)-0.29%
Revenue beat(12)7
Avg Revenue beat(12)1.26%
Revenue beat(16)8
Avg Revenue beat(16)1.08%
PT rev (1m)-8.08%
PT rev (3m)-8.08%
EPS NQ rev (1m)-2.35%
EPS NQ rev (3m)-3.76%
EPS NY rev (1m)-2.98%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)-3.09%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.91 | ||
| P/FCF | 4.15 | ||
| P/OCF | 4.02 | ||
| P/B | 1.37 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)6.44
EY8.2%
EPS(NY)8.11
Fwd EY10.32%
FCF(TTM)18.94
FCFY24.11%
OCF(TTM)19.54
OCFY24.87%
SpS85.86
BVpS57.35
TBVpS57.22
PEG (NY)0.1
PEG (5Y)N/A
Graham Number91.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 11.39% | ||
| ROCE | 3.69% | ||
| ROIC | 2.95% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 3.3% | ||
| OM | 10.5% | ||
| PM (TTM) | 7.61% | ||
| GM | N/A | ||
| FCFM | 22.06% |
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%
ROICexgc growth 3Y-24.16%
ROICexgc 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-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | 1.56 | ||
| Cap/Depr | 115.85% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 38.35 | ||
| Cash Conversion | 205.11% | ||
| Profit Quality | 289.98% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.26%
ROIC/WACC0.36
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)80.39%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%25%
EPS Next Y119.71%
EPS Next 2Y57.96%
EPS Next 3Y39.89%
EPS Next 5YN/A
Revenue 1Y (TTM)10.78%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%17.49%
Revenue Next Year7.15%
Revenue Next 2Y5.71%
Revenue Next 3Y5.34%
Revenue Next 5YN/A
EBIT growth 1Y70.89%
EBIT growth 3Y-18%
EBIT growth 5Y-5.02%
EBIT Next Year86.17%
EBIT Next 3Y30.95%
EBIT Next 5YN/A
FCF growth 1Y40.52%
FCF growth 3Y12.58%
FCF growth 5Y19.08%
OCF growth 1Y41.66%
OCF growth 3Y12.55%
OCF growth 5Y18.16%
SELECTIVE INSURANCE GROUP / SIGI FAQ
What is the ChartMill fundamental rating of SELECTIVE INSURANCE GROUP (SIGI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SIGI.
Can you provide the valuation status for SELECTIVE INSURANCE GROUP?
ChartMill assigns a valuation rating of 6 / 10 to SELECTIVE INSURANCE GROUP (SIGI). This can be considered as Fairly Valued.
How profitable is SELECTIVE INSURANCE GROUP (SIGI) stock?
SELECTIVE INSURANCE GROUP (SIGI) has a profitability rating of 4 / 10.
What is the financial health of SELECTIVE INSURANCE GROUP (SIGI) stock?
The financial health rating of SELECTIVE INSURANCE GROUP (SIGI) is 3 / 10.
Can you provide the dividend sustainability for SIGI stock?
The dividend rating of SELECTIVE INSURANCE GROUP (SIGI) is 7 / 10 and the dividend payout ratio is 25.02%.