UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
NASDAQ:UFCS - Nasdaq - US9103401082 - Common Stock - Currency: USD
UFCS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 144 industry peers in the Insurance industry. UFCS may be in some trouble as it scores bad on both profitability and health. 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.
In multiple years UFCS reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.41%, UFCS is in line with its industry, outperforming 42.25% of the companies in the same industry.
The Return On Equity of UFCS (6.38%) is worse than 64.79% of its industry peers.
The Return On Invested Capital of UFCS (1.62%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 6.38% | ||
| ROIC | 1.62% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
UFCS has a Profit Margin of 4.15%. This is comparable to the rest of the industry: UFCS outperforms 40.14% of its industry peers.
In the last couple of years the Profit Margin of UFCS has grown nicely.
UFCS has a worse Operating Margin (5.57%) than 65.49% of its industry peers.
In the last couple of years the Operating Margin of UFCS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.57% | ||
| PM (TTM) | 4.15% | ||
| 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.
UFCS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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 73.94% of the companies in the same industry.
UFCS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.15, UFCS is doing good in the industry, outperforming 76.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC0.18
WACC8.79%
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 307.32% over the past year.
Measured over the past years, UFCS shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.74% on average per year.
UFCS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.40%.
Measured over the past years, UFCS shows a small growth in Revenue. The Revenue has been growing by 0.85% on average per year.
EPS 1Y (TTM)307.32%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%92.31%
Revenue 1Y (TTM)14.4%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%16.15%
3.2 Future
The Earnings Per Share is expected to grow by 3.92% on average over the next years.
UFCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.49% yearly.
EPS Next Y0.4%
EPS Next 2Y3.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.39%
Revenue Next 2Y10.49%
Revenue Next 3YN/A
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 decreasing.
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
UFCS is valuated reasonably with a Price/Earnings ratio of 9.99.
Based on the Price/Earnings ratio, UFCS is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.62. UFCS is valued rather cheaply when compared to this.
UFCS is valuated reasonably with a Price/Forward Earnings ratio of 9.95.
Based on the Price/Forward Earnings ratio, UFCS is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
UFCS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.95 |
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 69.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, UFCS is valued a bit cheaper than the industry average as 76.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.33 | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)24.97
PEG (5Y)0.31
EPS Next 2Y3.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 2.44%.
UFCS's Dividend Yield is a higher than the industry average which is at 3.17.
UFCS's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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
32.36% of the earnings are spent on dividend by UFCS. This is a low number and sustainable payout ratio.
DP32.36%
EPS Next 2Y3.92%
EPS Next 3YN/A
25.47
-0.73 (-2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners65.66%
Inst Owner Change-89.43%
Ins Owners18.09%
Ins Owner Change0.38%
Market Cap646.43M
Analysts45.71
Price Target28.56 (12.13%)
Short Float %1.24%
Short Ratio1.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.64
Dividend Growth(5Y)-31.4%
DP32.36%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
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)7.69%
PT rev (3m)7.69%
EPS NQ rev (1m)7.09%
EPS NQ rev (3m)7.09%
EPS NY rev (1m)14.09%
EPS NY rev (3m)54.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)4.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.95 | ||
| P/S | 0.54 | ||
| P/FCF | 3.33 | ||
| P/OCF | 3.14 | ||
| P/B | 0.82 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)2.55
EY10.01%
EPS(NY)2.56
Fwd EY10.05%
FCF(TTM)7.66
FCFY30.07%
OCF(TTM)8.12
OCFY31.9%
SpS47.57
BVpS30.96
TBVpS30.8
PEG (NY)24.97
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 6.38% | ||
| ROCE | 2.01% | ||
| ROIC | 1.62% | ||
| ROICexc | 1.72% | ||
| ROICexgc | 1.99% | ||
| OM | 5.57% | ||
| PM (TTM) | 4.15% | ||
| GM | N/A | ||
| FCFM | 16.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 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-Score6
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-Score6
WACC8.79%
ROIC/WACC0.18
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)307.32%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%92.31%
EPS Next Y0.4%
EPS Next 2Y3.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.4%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%16.15%
Revenue Next Year11.39%
Revenue Next 2Y10.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y277.08%
EBIT growth 3Y-5.53%
EBIT growth 5Y37.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.83%
OCF growth 3YN/A
OCF growth 5YN/A