81.78 USD
+0.41 (+0.5%)
SIGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. SIGI has a medium profitability rating, but doesn't score so well on its financial health evaluation. SIGI has a decent growth rate and is not valued too expensively. 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.
- 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
- Looking at the Return On Assets, with a value of 2.65%, SIGI is in the better half of the industry, outperforming 60.81% of the companies in the same industry.
- SIGI's Return On Equity of 11.39% is in line compared to the rest of the industry. SIGI outperforms 53.38% of its industry peers.
- SIGI has a Return On Invested Capital (2.95%) which is in line with its industry peers.
- SIGI had an Average Return On Invested Capital over the past 3 years of 2.53%. This is significantly below the industry average of 14.94%.
- The last Return On Invested Capital (2.95%) for SIGI is above the 3 year average (2.53%), which is a sign of increasing profitability.
| 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
- SIGI has a Profit Margin (7.61%) which is in line with its industry peers.
- SIGI's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 10.50%, SIGI perfoms like the industry average, outperforming 42.57% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SIGI is destroying value.
- Compared to 1 year ago, SIGI has more shares outstanding
- Compared to 5 years ago, SIGI has more shares outstanding
- 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 0.78. This is a very positive value and a sign of high solvency as it would only need 0.78 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.78, SIGI is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
- SIGI has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- SIGI has a better Debt to Equity ratio (0.26) than 60.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.47%
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.
- The Earnings Per Share has been decreasing by -5.88% on average over the past years.
- 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 40.05% on average per year.
- Based on estimates for the next years, SIGI will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y110.97%
EPS Next 2Y57.98%
EPS Next 3Y40.05%
EPS Next 5YN/A
Revenue Next Year6.6%
Revenue Next 2Y5.51%
Revenue Next 3Y5.31%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- SIGI is valuated correctly with a Price/Earnings ratio of 12.70.
- The rest of the industry has a similar Price/Earnings ratio as SIGI.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SIGI is valued rather cheaply.
- SIGI is valuated reasonably with a Price/Forward Earnings ratio of 10.08.
- SIGI's Price/Forward Earnings ratio is in line with the industry average.
- SIGI is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
- SIGI's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, SIGI is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.29 | ||
| EV/EBITDA | 10.04 |
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 40.05% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y57.98%
EPS Next 3Y40.05%
5. Dividend
5.1 Amount
- SIGI has a Yearly Dividend Yield of 2.10%.
- Compared to an average industry Dividend Yield of 2.41, SIGI has a dividend in line with its industry peers.
- SIGI's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
- On average, the dividend of SIGI grows each year by 13.90%, which is quite nice.
- SIGI has been paying a dividend for at least 10 years, so it has 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
- SIGI pays out 25.02% 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.
DP25.02%
EPS Next 2Y57.98%
EPS Next 3Y40.05%
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.
What is the valuation status of SELECTIVE INSURANCE GROUP (SIGI) stock?
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.
Can you provide the financial health for SIGI stock?
The financial health rating of SELECTIVE INSURANCE GROUP (SIGI) is 3 / 10.
How sustainable is the dividend of SELECTIVE INSURANCE GROUP (SIGI) stock?
The dividend rating of SELECTIVE INSURANCE GROUP (SIGI) is 7 / 10 and the dividend payout ratio is 25.02%.