34.35 USD
-0.88 (-2.5%)
34.35 USD
0 (0%)
Overall UFCS gets a fundamental rating of 5 out of 10. We evaluated UFCS against 148 industry peers in the Insurance industry. While UFCS is still in line with the averages on profitability rating, there are concerns on its financial health. 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
- In the past year UFCS was profitable.
- 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
- The Return On Assets of UFCS (2.96%) is better than 63.76% of its industry peers.
- Looking at the Return On Equity, with a value of 12.38%, UFCS is in line with its industry, outperforming 56.38% of the companies in the same industry.
- UFCS has a Return On Invested Capital of 3.33%. This is in the better half of the industry: UFCS outperforms 62.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 12.38% | ||
| ROIC | 3.33% |
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 8.22% is in line compared to the rest of the industry. UFCS outperforms 51.68% of its industry peers.
- In the last couple of years the Profit Margin of UFCS has grown nicely.
- UFCS has a Operating Margin (11.07%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of UFCS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.07% | ||
| PM (TTM) | 8.22% | ||
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UFCS is destroying value.
- Compared to 1 year ago, UFCS has more shares outstanding
- UFCS has more shares outstanding than it did 5 years ago.
- UFCS has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of UFCS is 0.49, which is an excellent value as it means it would take UFCS, only 0.49 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.49, UFCS belongs to the top of the industry, outperforming 80.54% of the companies in the same industry.
- A Debt/Equity ratio of 0.16 indicates that UFCS is not too dependend on debt financing.
- The Debt to Equity ratio of UFCS (0.16) is better than 72.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | N/A |
ROIC/WACC0.38
WACC8.71%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- UFCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 123.08%, which is quite impressive.
- The Earnings Per Share has been growing by 32.74% on average over the past years. This is a very strong growth
- Looking at the last year, UFCS shows a quite strong growth in Revenue. The Revenue has grown by 12.12% in the last year.
- 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)123.08%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%85.19%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%9.62%
3.2 Future
- UFCS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.44% yearly.
- UFCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.08% yearly.
EPS Next Y57.4%
EPS Next 2Y20.42%
EPS Next 3Y13.44%
EPS Next 5YN/A
Revenue Next Year8.41%
Revenue Next 2Y5.84%
Revenue Next 3Y10.08%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- UFCS is valuated cheaply with a Price/Earnings ratio of 7.90.
- Compared to the rest of the industry, the Price/Earnings ratio of UFCS indicates a somewhat cheap valuation: UFCS is cheaper than 73.83% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. UFCS is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.29, the valuation of UFCS can be described as reasonable.
- 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 (25.98), we can say UFCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.9 | ||
| Fwd PE | 9.29 |
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 77.85% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, UFCS is valued cheaply inside the industry as 83.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.95 | ||
| EV/EBITDA | 4.92 |
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 13.44% in the coming years.
PEG (NY)0.14
PEG (5Y)0.24
EPS Next 2Y20.42%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.82%, UFCS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.41, UFCS has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, UFCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
- The dividend of UFCS decreases each year by -13.28%.
- 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)-13.28%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- UFCS pays out 14.63% of its income as dividend. This is a sustainable payout ratio.
DP14.63%
EPS Next 2Y20.42%
EPS Next 3Y13.44%
UNITED FIRE GROUP INC / UFCS FAQ
What is the fundamental rating for UFCS stock?
ChartMill assigns a fundamental rating of 5 / 10 to UFCS.
Can you provide the valuation status for UNITED FIRE GROUP INC?
ChartMill assigns a valuation rating of 7 / 10 to UNITED FIRE GROUP INC (UFCS). This can be considered as Undervalued.
What is the profitability of UFCS stock?
UNITED FIRE GROUP INC (UFCS) has a profitability rating of 4 / 10.
What is the valuation of UNITED FIRE GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for UNITED FIRE GROUP INC (UFCS) is 7.9 and the Price/Book (PB) ratio is 0.98.
What is the expected EPS growth for UNITED FIRE GROUP INC (UFCS) stock?
The Earnings per Share (EPS) of UNITED FIRE GROUP INC (UFCS) is expected to grow by 57.4% in the next year.