SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis
USA - NASDAQ:SIGI - US8163001071 - Common Stock
75.38 USD
+1.36 (+1.84%)
75.38 USD
0 (0%)
SIGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SIGI. SIGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SIGI was profitable.
SIGI had a positive operating cash flow in the past year.
SIGI had positive earnings in each of the past 5 years.
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 60.27% of the companies in the same industry.
SIGI has a Return On Equity of 11.11%. This is comparable to the rest of the industry: SIGI outperforms 53.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.89%, SIGI is in the better half of the industry, outperforming 60.96% of the companies in the same industry.
SIGI had an Average Return On Invested Capital over the past 3 years of 2.53%. This is below the industry average of 4.53%.
The 3 year average ROIC (2.53%) for SIGI is below the current ROIC(2.89%), indicating increased profibility in the last year.
| 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of SIGI has declined.
The Operating Margin of SIGI (10.15%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SIGI has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SIGI is destroying value.
Compared to 1 year ago, SIGI has more shares outstanding
The number of shares outstanding for SIGI has been increased compared to 5 years ago.
The debt/assets ratio for SIGI has been reduced compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 0.80, SIGI is in the better half of the industry, outperforming 74.66% of the companies in the same industry.
SIGI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
SIGI's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. SIGI outperforms 58.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.35%
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 80.39%, 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.
Looking at the last year, SIGI shows a quite strong growth in Revenue. The Revenue has grown by 10.78% in the last year.
Measured over the past years, SIGI shows a quite strong growth in Revenue. The Revenue has been growing by 11.27% on average per year.
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
SIGI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.95% yearly.
Based on estimates for the next years, SIGI will show a small growth in Revenue. The Revenue will grow by 6.83% on average per year.
EPS Next Y126.46%
EPS Next 2Y60.81%
EPS Next 3Y36.95%
EPS Next 5YN/A
Revenue Next Year7.68%
Revenue Next 2Y7.39%
Revenue Next 3Y6.83%
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
A Price/Earnings ratio of 11.70 indicates a reasonable valuation of SIGI.
SIGI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.03. SIGI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.97, the valuation of SIGI can be described as very reasonable.
SIGI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SIGI is cheaper than 62.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. SIGI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 8.97 |
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.
SIGI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SIGI is cheaper than 75.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.05 | ||
| EV/EBITDA | 9.83 |
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.
SIGI's earnings are expected to grow with 36.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y60.81%
EPS Next 3Y36.95%
5. Dividend
5.1 Amount
SIGI has a Yearly Dividend Yield of 2.26%.
SIGI's Dividend Yield is comparable with the industry average which is at 3.27.
Compared to an average S&P500 Dividend Yield of 2.38, SIGI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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 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
SIGI pays out 26.11% of its income as dividend. This is a sustainable payout ratio.
SIGI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.11%
EPS Next 2Y60.81%
EPS Next 3Y36.95%
75.38
+1.36 (+1.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change-0.86%
Ins Owners0.82%
Ins Owner Change0.53%
Market Cap4.59B
Revenue(TTM)5.22B
Net Income(TTM)374.45M
Analysts73.85
Price Target88.06 (16.82%)
Short Float %3%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-2.63%
PT rev (3m)-8.8%
EPS NQ rev (1m)17.65%
EPS NQ rev (3m)14.97%
EPS NY rev (1m)3.58%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 8.97 | ||
| P/S | 0.9 | ||
| P/FCF | 4.05 | ||
| P/OCF | 3.92 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 9.83 |
EPS(TTM)6.44
EY8.54%
EPS(NY)8.4
Fwd EY11.15%
FCF(TTM)18.63
FCFY24.71%
OCF(TTM)19.24
OCFY25.52%
SpS83.96
BVpS55.37
TBVpS55.24
PEG (NY)0.09
PEG (5Y)N/A
Graham Number89.57
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%
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-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
WACC8.35%
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)80.39%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%25%
EPS Next Y126.46%
EPS Next 2Y60.81%
EPS Next 3Y36.95%
EPS Next 5YN/A
Revenue 1Y (TTM)10.78%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%17.49%
Revenue Next Year7.68%
Revenue Next 2Y7.39%
Revenue Next 3Y6.83%
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%
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 7 / 10 to SELECTIVE INSURANCE GROUP (SIGI). This can be considered as Undervalued.
How profitable is SELECTIVE INSURANCE GROUP (SIGI) stock?
SELECTIVE INSURANCE GROUP (SIGI) has a profitability rating of 5 / 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 26.11%.