UNITED FIRE GROUP INC (UFCS)
US9103401082 - Common Stock
Taking everything into account, UFCS scores 4 out of 10 in our fundamental rating. UFCS was compared to 141 industry peers in the Insurance industry. Both the profitability and financial health of UFCS have multiple concerns. UFCS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
UFCS had positive earnings in the past year.
In the past year UFCS had a positive cash flow from operations.
In multiple years UFCS reported negative net income over the last 5 years.
Of the past 5 years UFCS 4 years had a positive operating cash flow.
1.2 Ratios
UFCS has a Return On Assets (1.41%) which is in line with its industry peers.
UFCS has a Return On Equity of 6.38%. This is in the lower half of the industry: UFCS underperforms 65.00% of its industry peers.
The Return On Invested Capital of UFCS (1.59%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 6.38% | ||
| ROIC | 1.59% |
ROA(3y)0.75%
ROA(5y)-0.19%
ROE(3y)2.38%
ROE(5y)-0.98%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
UFCS's Profit Margin of 4.15% is on the low side compared to the rest of the industry. UFCS is outperformed by 62.86% of its industry peers.
UFCS has a Operating Margin of 5.57%. This is in the lower half of the industry: UFCS underperforms 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.57% | ||
| PM (TTM) | 4.15% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
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), UFCS is destroying value.
Compared to 1 year ago, UFCS has more shares outstanding
The number of shares outstanding for UFCS has been increased compared to 5 years ago.
Compared to 1 year ago, UFCS has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UFCS is 0.60, which is an excellent value as it means it would take UFCS, only 0.60 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.60, UFCS is doing good in the industry, outperforming 74.29% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that UFCS is not too dependend on debt financing.
The Debt to Equity ratio of UFCS (0.15) is better than 76.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC0.18
WACC8.91%
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 214.71% over the past year.
Looking at the last year, UFCS shows a quite strong growth in Revenue. The Revenue has grown by 10.94% in the last year.
Measured over the past years, UFCS shows a small growth in Revenue. The Revenue has been growing by 0.47% on average per year.
EPS 1Y (TTM)214.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%161.29%
Revenue 1Y (TTM)10.94%
Revenue growth 3Y0.83%
Revenue growth 5Y0.47%
Sales Q2Q%18.23%
3.2 Future
Based on estimates for the next years, UFCS will show a very strong growth in Earnings Per Share. The EPS will grow by 57.78% on average per year.
UFCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.85% yearly.
EPS Next Y261.29%
EPS Next 2Y95.56%
EPS Next 3Y57.78%
EPS Next 5YN/A
Revenue Next Year14.79%
Revenue Next 2Y13.04%
Revenue Next 3Y11.85%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.92, the valuation of UFCS can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as UFCS.
When comparing the Price/Earnings ratio of UFCS to the average of the S&P500 Index (27.54), we can say UFCS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.97, the valuation of UFCS can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as UFCS.
When comparing the Price/Forward Earnings ratio of UFCS to the average of the S&P500 Index (23.99), we can say UFCS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 12.97 |
4.2 Price Multiples
66.43% of the companies in the same industry are more expensive than UFCS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UFCS indicates a somewhat cheap valuation: UFCS is cheaper than 77.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.79 | ||
| EV/EBITDA | 8.39 |
4.3 Compensation for Growth
UFCS'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 UFCS's earnings are expected to grow with 57.78% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y95.56%
EPS Next 3Y57.78%
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 2.17%.
Compared to an average industry Dividend Yield of 4.35, UFCS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, UFCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of UFCS decreases each year by -31.40%.
UFCS has paid a dividend for at least 10 years, which is a reliable track record.
UFCS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-31.4%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
UFCS pays out 32.36% of its income as dividend. This is a sustainable payout ratio.
DP32.36%
EPS Next 2Y95.56%
EPS Next 3Y57.78%
UNITED FIRE GROUP INC
NASDAQ:UFCS (12/24/2024, 7:43:02 PM)
After market: 29.1 0 (0%)29.1
+0.43 (+1.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners63.28%
Inst Owner Change2.84%
Ins Owners18.12%
Ins Owner Change0.76%
Market Cap737.39M
Analysts45.71
Price Target26.52 (-8.87%)
Short Float %1.31%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Dividend Growth(5Y)-31.4%
DP32.36%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-665.95%
Min EPS beat(2)-1472.55%
Max EPS beat(2)140.64%
EPS beat(4)3
Avg EPS beat(4)-325.38%
Min EPS beat(4)-1472.55%
Max EPS beat(4)140.64%
EPS beat(8)4
Avg EPS beat(8)435.17%
EPS beat(12)7
Avg EPS beat(12)314.04%
EPS beat(16)10
Avg EPS beat(16)306.62%
Revenue beat(2)1
Avg Revenue beat(2)0.68%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)3.2%
Revenue beat(4)3
Avg Revenue beat(4)1.31%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)3.2%
Revenue beat(8)5
Avg Revenue beat(8)1.2%
Revenue beat(12)5
Avg Revenue beat(12)-1.87%
Revenue beat(16)7
Avg Revenue beat(16)-1.75%
PT rev (1m)36.84%
PT rev (3m)36.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)43.88%
EPS NY rev (1m)49.62%
EPS NY rev (3m)69.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)2.58%
Revenue NY rev (3m)2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 12.97 | ||
| P/S | 0.61 | ||
| P/FCF | 3.79 | ||
| P/OCF | 3.58 | ||
| P/B | 0.94 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 8.39 |
EPS(TTM)1.95
EY6.7%
EPS(NY)2.24
Fwd EY7.71%
FCF(TTM)7.67
FCFY26.36%
OCF(TTM)8.14
OCFY27.96%
SpS47.65
BVpS31.01
TBVpS30.85
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 6.38% | ||
| ROCE | 2.01% | ||
| ROIC | 1.59% | ||
| ROICexc | 1.69% | ||
| ROICexgc | 1.95% | ||
| OM | 5.57% | ||
| PM (TTM) | 4.15% | ||
| GM | N/A | ||
| FCFM | 16.1% |
ROA(3y)0.75%
ROA(5y)-0.19%
ROE(3y)2.38%
ROE(5y)-0.98%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 107.18% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 11.89 | ||
| Cash Conversion | 263.29% | ||
| Profit Quality | 387.79% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.91%
ROIC/WACC0.18
Cap/Depr(3y)114.33%
Cap/Depr(5y)182.87%
Cap/Sales(3y)0.84%
Cap/Sales(5y)1.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)214.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%161.29%
EPS Next Y261.29%
EPS Next 2Y95.56%
EPS Next 3Y57.78%
EPS Next 5YN/A
Revenue 1Y (TTM)10.94%
Revenue growth 3Y0.83%
Revenue growth 5Y0.47%
Sales Q2Q%18.23%
Revenue Next Year14.79%
Revenue Next 2Y13.04%
Revenue Next 3Y11.85%
Revenue Next 5YN/A
EBIT growth 1Y277.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y913.26%
FCF growth 3Y92.64%
FCF growth 5Y18.04%
OCF growth 1Y1239.15%
OCF growth 3Y60.68%
OCF growth 5Y10.7%