SELECTIVE INSURANCE GROUP (SIGI)
US8163001071 - Common Stock
Overall SIGI gets a fundamental rating of 4 out of 10. We evaluated SIGI against 141 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 is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years SIGI always reported a positive cash flow from operatings.
1.2 Ratios
SIGI has a Return On Assets (1.69%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.17%, SIGI is doing worse than 62.14% of the companies in the same industry.
SIGI has a Return On Invested Capital of 1.92%. This is comparable to the rest of the industry: SIGI outperforms 50.71% of its industry peers.
SIGI had an Average Return On Invested Capital over the past 3 years of 3.31%. This is in line with the industry average of 4.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 7.17% | ||
| ROIC | 1.92% |
ROA(3y)2.93%
ROA(5y)2.88%
ROE(3y)11.27%
ROE(5y)11.04%
ROIC(3y)3.31%
ROIC(5y)3.26%
1.3 Margins
Looking at the Profit Margin, with a value of 4.82%, SIGI is doing worse than 62.14% of the companies in the same industry.
SIGI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.80%, SIGI is doing worse than 62.14% of the companies in the same industry.
In the last couple of years the Operating Margin of SIGI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.8% | ||
| PM (TTM) | 4.82% | ||
| GM | N/A |
OM growth 3Y-1.54%
OM growth 5Y3.81%
PM growth 3Y0.08%
PM growth 5Y4.04%
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
Compared to 1 year ago, SIGI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SIGI is 0.52, which is an excellent value as it means it would take SIGI, only 0.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SIGI (0.52) is better than 80.71% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that SIGI is not too dependend on debt financing.
SIGI's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. SIGI outperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.22
WACC8.82%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
SIGI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.89%.
SIGI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.95% yearly.
SIGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.02%.
Measured over the past years, SIGI shows a quite strong growth in Revenue. The Revenue has been growing by 10.30% on average per year.
EPS 1Y (TTM)-33.89%
EPS 3Y12.41%
EPS 5Y9.95%
EPS Q2Q%-7.28%
Revenue 1Y (TTM)16.02%
Revenue growth 3Y12.97%
Revenue growth 5Y10.3%
Sales Q2Q%9.38%
3.2 Future
Based on estimates for the next years, SIGI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.01% on average per year.
Based on estimates for the next years, SIGI will show a quite strong growth in Revenue. The Revenue will grow by 9.37% on average per year.
EPS Next Y-36.95%
EPS Next 2Y16.2%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue Next Year12.72%
Revenue Next 2Y10.4%
Revenue Next 3Y9.37%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
SIGI is valuated quite expensively with a Price/Earnings ratio of 26.15.
Based on the Price/Earnings ratio, SIGI is valued a bit more expensive than the industry average as 73.57% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.73. SIGI is around the same levels.
With a Price/Forward Earnings ratio of 11.76, the valuation of SIGI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIGI is on the same level as its industry peers.
SIGI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SIGI.
Based on the Price/Free Cash Flow ratio, SIGI is valued a bit cheaper than the industry average as 66.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.83 | ||
| EV/EBITDA | 17.47 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SIGI's earnings are expected to grow with 15.01% in the coming years.
PEG (NY)N/A
PEG (5Y)2.63
EPS Next 2Y16.2%
EPS Next 3Y15.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, SIGI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.33, SIGI has a dividend in line with its industry peers.
SIGI's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
On average, the dividend of SIGI grows each year by 13.85%, 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)13.85%
Div Incr Years11
Div Non Decr Years34
5.3 Sustainability
40.63% of the earnings are spent on dividend by SIGI. This is a bit on the high side, but may be sustainable.
SIGI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.63%
EPS Next 2Y16.2%
EPS Next 3Y15.01%
SELECTIVE INSURANCE GROUP
NASDAQ:SIGI (12/20/2024, 8:00:02 PM)
After market: 93.34 0 (0%)93.34
-0.26 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.73%
Inst Owner Change-0.33%
Ins Owners0.75%
Ins Owner Change-0.4%
Market Cap5.67B
Analysts75.71
Price Target104.21 (11.65%)
Short Float %2.43%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Dividend Growth(5Y)13.85%
DP40.63%
Div Incr Years11
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-94.67%
Min EPS beat(2)-172.62%
Max EPS beat(2)-16.71%
EPS beat(4)0
Avg EPS beat(4)-55.26%
Min EPS beat(4)-172.62%
Max EPS beat(4)-1.94%
EPS beat(8)0
Avg EPS beat(8)-30.38%
EPS beat(12)1
Avg EPS beat(12)-22.06%
EPS beat(16)5
Avg EPS beat(16)-5.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.76%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-0.15%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)1.45%
Revenue beat(8)6
Avg Revenue beat(8)2.05%
Revenue beat(12)7
Avg Revenue beat(12)1.56%
Revenue beat(16)11
Avg Revenue beat(16)3.58%
PT rev (1m)5.17%
PT rev (3m)7.38%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-7.75%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-6.73%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-7.3%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 11.76 | ||
| P/S | 1.2 | ||
| P/FCF | 5.83 | ||
| P/OCF | 5.65 | ||
| P/B | 1.79 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 17.47 |
EPS(TTM)3.57
EY3.82%
EPS(NY)7.94
Fwd EY8.51%
FCF(TTM)16.01
FCFY17.15%
OCF(TTM)16.52
OCFY17.7%
SpS77.59
BVpS52.11
TBVpS51.98
PEG (NY)N/A
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 7.17% | ||
| ROCE | 2.4% | ||
| ROIC | 1.92% | ||
| ROICexc | 1.92% | ||
| ROICexgc | 2.18% | ||
| OM | 6.8% | ||
| PM (TTM) | 4.82% | ||
| GM | N/A | ||
| FCFM | 20.63% |
ROA(3y)2.93%
ROA(5y)2.88%
ROE(3y)11.27%
ROE(5y)11.04%
ROIC(3y)3.31%
ROIC(5y)3.26%
ROICexc(3y)3.31%
ROICexc(5y)3.26%
ROICexgc(3y)3.67%
ROICexgc(5y)3.62%
ROCE(3y)4.13%
ROCE(5y)4.07%
ROICexcg growth 3Y3.91%
ROICexcg growth 5Y5.51%
ROICexc growth 3Y4.03%
ROICexc growth 5Y5.8%
OM growth 3Y-1.54%
OM growth 5Y3.81%
PM growth 3Y0.08%
PM growth 5Y4.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.52 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 92.03% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 11.27 | ||
| Cash Conversion | 283.09% | ||
| Profit Quality | 428.46% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.82%
ROIC/WACC0.22
Cap/Depr(3y)59.03%
Cap/Depr(5y)54.09%
Cap/Sales(3y)0.64%
Cap/Sales(5y)0.75%
Profit Quality(3y)252.22%
Profit Quality(5y)227.38%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.89%
EPS 3Y12.41%
EPS 5Y9.95%
EPS Q2Q%-7.28%
EPS Next Y-36.95%
EPS Next 2Y16.2%
EPS Next 3Y15.01%
EPS Next 5YN/A
Revenue 1Y (TTM)16.02%
Revenue growth 3Y12.97%
Revenue growth 5Y10.3%
Sales Q2Q%9.38%
Revenue Next Year12.72%
Revenue Next 2Y10.4%
Revenue Next 3Y9.37%
Revenue Next 5YN/A
EBIT growth 1Y-25.32%
EBIT growth 3Y11.22%
EBIT growth 5Y14.5%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y42.15%
FCF growth 3Y11.45%
FCF growth 5Y10.91%
OCF growth 1Y40.76%
OCF growth 3Y11.06%
OCF growth 5Y10.78%