UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
NASDAQ:UFCS - Nasdaq - US9103401082 - Common Stock - Currency: USD
Taking everything into account, UFCS scores 4 out of 10 in our fundamental rating. UFCS was compared to 145 industry peers in the Insurance industry. UFCS has a bad profitability rating. Also its financial health evaluation is rather negative. UFCS is not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 1.88%, UFCS is in line with its industry, outperforming 50.34% of the companies in the same industry.
The Return On Equity of UFCS (8.09%) is comparable to the rest of the industry.
UFCS has a Return On Invested Capital (2.17%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.09% | ||
| ROIC | 2.17% |
ROA(3y)0.45%
ROA(5y)0.07%
ROE(3y)1.97%
ROE(5y)0.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
UFCS's Profit Margin of 5.13% is in line compared to the rest of the industry. UFCS outperforms 40.69% of its industry peers.
In the last couple of years the Profit Margin of UFCS has grown nicely.
Looking at the Operating Margin, with a value of 7.10%, UFCS is doing worse than 63.45% of the companies in the same industry.
In the last couple of years the Operating Margin of UFCS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.1% | ||
| PM (TTM) | 5.13% | ||
| GM | N/A |
OM growth 3Y-10.49%
OM growth 5Y36.75%
PM growth 3Y-13.2%
PM growth 5Y32.03%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
UFCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for UFCS has been increased compared to 1 year ago.
Compared to 5 years ago, UFCS has more shares outstanding
Compared to 1 year ago, UFCS has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UFCS is 0.36, which is an excellent value as it means it would take UFCS, only 0.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UFCS (0.36) is better than 86.90% of its industry peers.
UFCS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
UFCS's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. UFCS outperforms 75.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.36 | ||
| Altman-Z | N/A |
ROIC/WACC0.25
WACC8.77%
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 458.67% over the past year.
The Earnings Per Share has been growing by 32.74% on average over the past years. This is a very strong growth
The Revenue has grown by 14.59% in the past year. This is quite good.
UFCS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
EPS 1Y (TTM)458.67%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%25%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.86%
3.2 Future
The Earnings Per Share is expected to grow by 4.56% on average over the next years.
Based on estimates for the next years, UFCS will show a quite strong growth in Revenue. The Revenue will grow by 10.10% on average per year.
EPS Next Y3.47%
EPS Next 2Y4.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.58%
Revenue Next 2Y10.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.08, which indicates a very decent valuation of UFCS.
UFCS's Price/Earnings ratio is a bit cheaper when compared to the industry. UFCS is cheaper than 64.83% of the companies in the same industry.
UFCS is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.73, the valuation of UFCS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UFCS is on the same level as its industry peers.
UFCS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UFCS indicates a somewhat cheap valuation: UFCS is cheaper than 73.79% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UFCS is valued cheaper than 88.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.1 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UFCS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.91
PEG (5Y)0.31
EPS Next 2Y4.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 2.27%.
Compared to an average industry Dividend Yield of 3.64, UFCS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, UFCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
5.2 History
The dividend of UFCS decreases each year by -13.28%.
UFCS has been paying a dividend for at least 10 years, so it has a reliable track record.
UFCS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.28%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
24.53% of the earnings are spent on dividend by UFCS. This is a low number and sustainable payout ratio.
DP24.53%
EPS Next 2Y4.56%
EPS Next 3YN/A
27.12
-0.39 (-1.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.45%
Inst Owner Change0%
Ins Owners18.01%
Ins Owner Change7.49%
Market Cap690.20M
Analysts77.78
Price Target30.6 (12.83%)
Short Float %1.01%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend0.64
Dividend Growth(5Y)-13.28%
DP24.53%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.77%
Min EPS beat(2)7.23%
Max EPS beat(2)62.32%
EPS beat(4)3
Avg EPS beat(4)-315.59%
Min EPS beat(4)-1472.55%
Max EPS beat(4)140.64%
EPS beat(8)6
Avg EPS beat(8)463.15%
EPS beat(12)7
Avg EPS beat(12)292.11%
EPS beat(16)10
Avg EPS beat(16)307.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)3.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.36%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)5
Avg Revenue beat(16)-3.27%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.42%
EPS NY rev (1m)1.17%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 9.73 | ||
| P/S | 0.54 | ||
| P/FCF | 2.1 | ||
| P/OCF | 2.03 | ||
| P/B | 0.84 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 6.2 |
EPS(TTM)2.69
EY9.92%
EPS(NY)2.79
Fwd EY10.28%
FCF(TTM)12.89
FCFY47.53%
OCF(TTM)13.35
OCFY49.23%
SpS50.63
BVpS32.13
TBVpS31.98
PEG (NY)2.91
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 8.09% | ||
| ROCE | 2.7% | ||
| ROIC | 2.17% | ||
| ROICexc | 2.29% | ||
| ROICexgc | 2.63% | ||
| OM | 7.1% | ||
| PM (TTM) | 5.13% | ||
| GM | N/A | ||
| FCFM | 25.46% |
ROA(3y)0.45%
ROA(5y)0.07%
ROE(3y)1.97%
ROE(5y)0.28%
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 3Y-7.23%
ROICexcg growth 5Y36.77%
ROICexc growth 3Y-9.08%
ROICexc growth 5Y34.39%
OM growth 3Y-10.49%
OM growth 5Y36.75%
PM growth 3Y-13.2%
PM growth 5Y32.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.36 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 109.64% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 10.46 | ||
| Cash Conversion | 332.38% | ||
| Profit Quality | 495.89% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC8.77%
ROIC/WACC0.25
Cap/Depr(3y)79.91%
Cap/Depr(5y)146.79%
Cap/Sales(3y)0.72%
Cap/Sales(5y)1.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)458.67%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%25%
EPS Next Y3.47%
EPS Next 2Y4.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.59%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.86%
Revenue Next Year9.58%
Revenue Next 2Y10.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y556.25%
EBIT growth 3Y-5.53%
EBIT growth 5Y37.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2856.76%
FCF growth 3Y174.38%
FCF growth 5Y39.85%
OCF growth 1Y3603.27%
OCF growth 3Y124.94%
OCF growth 5Y29.4%