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SELECTIVE INSURANCE GROUP (SIGI) Stock Fundamental Analysis

NASDAQ:SIGI - Nasdaq - US8163001071 - Common Stock - Currency: USD

87.8  +1.55 (+1.8%)

After market: 87.8 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to SIGI. SIGI was compared to 145 industry peers in the Insurance industry. Both the profitability and financial health of SIGI have multiple concerns. SIGI has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

3

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.
SIGI Yearly Net Income VS EBIT VS OCF VS FCFSIGI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

With a Return On Assets value of 1.59%, SIGI perfoms like the industry average, outperforming 47.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.91%, SIGI is doing worse than 69.66% of the companies in the same industry.
The Return On Invested Capital of SIGI (1.86%) is comparable to the rest of the industry.
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 4.07%.
Industry RankSector Rank
ROA 1.59%
ROE 6.91%
ROIC 1.86%
ROA(3y)2.16%
ROA(5y)2.56%
ROE(3y)8.97%
ROE(5y)9.83%
ROIC(3y)2.53%
ROIC(5y)2.91%
SIGI Yearly ROA, ROE, ROICSIGI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

SIGI's Profit Margin of 4.52% is on the low side compared to the rest of the industry. SIGI is outperformed by 62.76% of its industry peers.
SIGI's Profit Margin has declined in the last couple of years.
SIGI has a Operating Margin of 6.57%. This is in the lower half of the industry: SIGI underperforms 67.59% of its industry peers.
In the last couple of years the Operating Margin of SIGI has declined.
Industry RankSector Rank
OM 6.57%
PM (TTM) 4.52%
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
SIGI Yearly Profit, Operating, Gross MarginsSIGI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SIGI is destroying value.
SIGI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SIGI has more shares outstanding
The debt/assets ratio for SIGI has been reduced compared to a year ago.
SIGI Yearly Shares OutstandingSIGI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
SIGI Yearly Total Debt VS Total AssetsSIGI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

SIGI has a debt to FCF ratio of 0.73. This is a very positive value and a sign of high solvency as it would only need 0.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.73, SIGI is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
SIGI has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
SIGI has a Debt to Equity ratio (0.28) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 0.73
Altman-Z N/A
ROIC/WACC0.21
WACC8.67%
SIGI Yearly LT Debt VS Equity VS FCFSIGI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
SIGI Yearly Current Assets VS Current LiabilitesSIGI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

4

3. Growth

3.1 Past

The earnings per share for SIGI have decreased strongly by -36.22% in the last 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.
The Revenue has grown by 13.41% in the past year. This is quite good.
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)-36.22%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%32.33%
Revenue 1Y (TTM)13.41%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%7.25%

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 27.83% on average per year.
Based on estimates for the next years, SIGI will show a decrease in Revenue. The Revenue will decrease by -7.36% on average per year.
EPS Next Y122.53%
EPS Next 2Y62.56%
EPS Next 3Y27.83%
EPS Next 5YN/A
Revenue Next Year8.2%
Revenue Next 2Y7.83%
Revenue Next 3Y-7.36%
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.
SIGI Yearly Revenue VS EstimatesSIGI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B 5B
SIGI Yearly EPS VS EstimatesSIGI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 23.86, the valuation of SIGI can be described as rather expensive.
Based on the Price/Earnings ratio, SIGI is valued a bit more expensive than the industry average as 69.66% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.52, SIGI is valued at the same level.
Based on the Price/Forward Earnings ratio of 10.22, the valuation of SIGI can be described as reasonable.
SIGI's Price/Forward Earnings is on the same level as the industry average.
SIGI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
Industry RankSector Rank
PE 23.86
Fwd PE 10.22
SIGI Price Earnings VS Forward Price EarningsSIGI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIGI indicates a slightly more expensive valuation: SIGI is more expensive than 60.00% of the companies listed in the same industry.
SIGI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SIGI is cheaper than 73.10% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.33
EV/EBITDA 16.97
SIGI Per share dataSIGI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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 27.83% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y62.56%
EPS Next 3Y27.83%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.76%, SIGI has a reasonable but not impressive dividend return.
SIGI's Dividend Yield is comparable with the industry average which is at 3.76.
Compared to the average S&P500 Dividend Yield of 2.35, SIGI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.76%

5.2 History

The dividend of SIGI is nicely growing with an annual growth rate of 13.90%!
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
SIGI Yearly Dividends per shareSIGI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1

5.3 Sustainability

42.46% 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 more than its dividend. This makes the dividend growth sustainable.
DP42.46%
EPS Next 2Y62.56%
EPS Next 3Y27.83%
SIGI Yearly Income VS Free CF VS DividendSIGI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
SIGI Dividend Payout.SIGI Dividend Payout, showing the Payout Ratio.SIGI Dividend Payout.PayoutRetained Earnings

SELECTIVE INSURANCE GROUP

NASDAQ:SIGI (7/14/2025, 8:04:39 PM)

After market: 87.8 0 (0%)

87.8

+1.55 (+1.8%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners86.25%
Inst Owner Change-0.05%
Ins Owners0.82%
Ins Owner Change3.89%
Market Cap5.34B
Analysts74.29
Price Target96.56 (9.98%)
Short Float %3.04%
Short Ratio4.83
Dividend
Industry RankSector Rank
Dividend Yield 1.76%
Yearly Dividend1.55
Dividend Growth(5Y)13.9%
DP42.46%
Div Incr Years11
Div Non Decr Years34
Ex-Date05-15 2025-05-15 (0.38)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.3%
Min EPS beat(2)-20.05%
Max EPS beat(2)-6.55%
EPS beat(4)0
Avg EPS beat(4)-53.98%
Min EPS beat(4)-172.62%
Max EPS beat(4)-6.55%
EPS beat(8)0
Avg EPS beat(8)-32.02%
EPS beat(12)0
Avg EPS beat(12)-24.47%
EPS beat(16)3
Avg EPS beat(16)-14.54%
Revenue beat(2)0
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-3.24%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)-0.15%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)6
Avg Revenue beat(12)0.51%
Revenue beat(16)9
Avg Revenue beat(16)1.68%
PT rev (1m)-0.35%
PT rev (3m)0.1%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-8.81%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-4.85%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.64%
Valuation
Industry RankSector Rank
PE 23.86
Fwd PE 10.22
P/S 1.07
P/FCF 4.33
P/OCF 4.2
P/B 1.64
P/tB 1.64
EV/EBITDA 16.97
EPS(TTM)3.68
EY4.19%
EPS(NY)8.59
Fwd EY9.78%
FCF(TTM)20.27
FCFY23.09%
OCF(TTM)20.89
OCFY23.8%
SpS81.98
BVpS53.62
TBVpS53.49
PEG (NY)0.19
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.59%
ROE 6.91%
ROCE 2.33%
ROIC 1.86%
ROICexc 1.86%
ROICexgc 2.09%
OM 6.57%
PM (TTM) 4.52%
GM N/A
FCFM 24.73%
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-Score4
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 0.73
Debt/EBITDA 2.49
Cap/Depr 107.97%
Cap/Sales 0.76%
Interest Coverage 11.45
Cash Conversion 350.66%
Profit Quality 547.11%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC8.67%
ROIC/WACC0.21
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)-36.22%
EPS 3Y-19.76%
EPS 5Y-5.88%
EPS Q2Q%32.33%
EPS Next Y122.53%
EPS Next 2Y62.56%
EPS Next 3Y27.83%
EPS Next 5YN/A
Revenue 1Y (TTM)13.41%
Revenue growth 3Y13.01%
Revenue growth 5Y11.27%
Sales Q2Q%7.25%
Revenue Next Year8.2%
Revenue Next 2Y7.83%
Revenue Next 3Y-7.36%
Revenue Next 5YN/A
EBIT growth 1Y-30.09%
EBIT growth 3Y-18%
EBIT growth 5Y-5.02%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y49.94%
FCF growth 3Y12.58%
FCF growth 5Y19.08%
OCF growth 1Y50.17%
OCF growth 3Y12.55%
OCF growth 5Y18.16%