UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
USA - NASDAQ:UFCS - US9103401082 - Common Stock
31.79 USD
+0.14 (+0.44%)
UFCS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. There are concerns on the financial health of UFCS while its profitability can be described as average. An interesting combination arises when we look at growth and value: UFCS is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
UFCS had positive earnings in the past year.
UFCS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: UFCS reported negative net income in multiple years.
UFCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
UFCS's Return On Assets of 2.51% is fine compared to the rest of the industry. UFCS outperforms 60.27% of its industry peers.
The Return On Equity of UFCS (10.86%) is comparable to the rest of the industry.
The Return On Invested Capital of UFCS (2.87%) is better than 61.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 10.86% | ||
| ROIC | 2.87% |
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 has a Profit Margin (6.94%) which is in line with its industry peers.
UFCS's Profit Margin has improved in the last couple of years.
The Operating Margin of UFCS (9.49%) is comparable to the rest of the industry.
UFCS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.49% | ||
| PM (TTM) | 6.94% | ||
| 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.
UFCS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UFCS has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UFCS is 0.40, which is an excellent value as it means it would take UFCS, only 0.40 years of fcf income to pay off all of its debts.
UFCS's Debt to FCF ratio of 0.40 is amongst the best of the industry. UFCS outperforms 83.56% 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.
Looking at the Debt to Equity ratio, with a value of 0.14, UFCS is in the better half of the industry, outperforming 72.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.34
WACC8.53%
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 152.41% over the past year.
UFCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.74% yearly.
The Revenue has grown by 14.18% 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)152.41%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%1385.71%
Revenue 1Y (TTM)14.18%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.39%
3.2 Future
Based on estimates for the next years, UFCS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.87% on average per year.
The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
EPS Next Y18.8%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
EPS Next 5YN/A
Revenue Next Year10.6%
Revenue Next 2Y12.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 8.69 indicates a reasonable valuation of UFCS.
UFCS's Price/Earnings ratio is a bit cheaper when compared to the industry. UFCS is cheaper than 71.23% 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.
Based on the Price/Forward Earnings ratio of 10.05, the valuation of UFCS can be described as 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 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
79.45% of the companies in the same industry are more expensive than UFCS, based on the Enterprise Value to EBITDA ratio.
UFCS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UFCS is cheaper than 86.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.78 | ||
| EV/EBITDA | 5.32 |
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.
PEG (NY)0.46
PEG (5Y)0.27
EPS Next 2Y11.36%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.00%, UFCS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.43, UFCS has a dividend in line with its industry peers.
UFCS's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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
17.70% of the earnings are spent on dividend by UFCS. This is a low number and sustainable payout ratio.
DP17.7%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
NASDAQ:UFCS (9/15/2025, 3:29:05 PM)
31.79
+0.14 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.36%
Inst Owner Change0.53%
Ins Owners18.01%
Ins Owner Change1.26%
Market Cap810.33M
Analysts77.78
Price Target32.64 (2.67%)
Short Float %1.45%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend0.64
Dividend Growth(5Y)-13.28%
DP17.7%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.31%
Min EPS beat(2)7.23%
Max EPS beat(2)63.4%
EPS beat(4)4
Avg EPS beat(4)68.4%
Min EPS beat(4)7.23%
Max EPS beat(4)140.64%
EPS beat(8)7
Avg EPS beat(8)626.23%
EPS beat(12)8
Avg EPS beat(12)301.27%
EPS beat(16)10
Avg EPS beat(16)198.29%
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-2.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)3.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.46%
Revenue beat(12)5
Avg Revenue beat(12)0.15%
Revenue beat(16)5
Avg Revenue beat(16)-2.57%
PT rev (1m)6.67%
PT rev (3m)6.67%
EPS NQ rev (1m)-6.71%
EPS NQ rev (3m)-10.32%
EPS NY rev (1m)14.82%
EPS NY rev (3m)16.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 10.05 | ||
| P/S | 0.61 | ||
| P/FCF | 2.78 | ||
| P/OCF | 2.68 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)3.66
EY11.51%
EPS(NY)3.16
Fwd EY9.95%
FCF(TTM)11.44
FCFY35.99%
OCF(TTM)11.84
OCFY37.25%
SpS51.89
BVpS33.18
TBVpS33.04
PEG (NY)0.46
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.51% | ||
| ROE | 10.86% | ||
| ROCE | 3.56% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.04% | ||
| ROICexgc | 3.48% | ||
| OM | 9.49% | ||
| PM (TTM) | 6.94% | ||
| GM | N/A | ||
| FCFM | 22.05% |
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-Score9
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 101.86% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 12.78 | ||
| Cash Conversion | 222.65% | ||
| Profit Quality | 317.53% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.53%
ROIC/WACC0.34
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)152.41%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%1385.71%
EPS Next Y18.8%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
EPS Next 5YN/A
Revenue 1Y (TTM)14.18%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%11.39%
Revenue Next Year10.6%
Revenue Next 2Y12.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y155.96%
EBIT growth 3Y-5.53%
EBIT growth 5Y37.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y550.92%
FCF growth 3Y174.38%
FCF growth 5Y39.85%
OCF growth 1Y475%
OCF growth 3Y124.94%
OCF growth 5Y29.4%