UNITED FIRE GROUP INC (UFCS) Stock Fundamental Analysis
USA - NASDAQ:UFCS - US9103401082 - Common Stock
36.99 USD
+0.39 (+1.07%)
36.99 USD
0 (0%)
UFCS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. UFCS has a medium profitability rating, but doesn't score so well on its financial health evaluation. UFCS is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year UFCS was profitable.
UFCS had a positive operating cash flow in the past year.
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 62.59% of its industry peers.
UFCS's Return On Equity of 12.38% is in line compared to the rest of the industry. UFCS outperforms 58.50% of its industry peers.
UFCS has a better Return On Invested Capital (3.33%) than 63.27% 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 has a Profit Margin (8.22%) which is in line with its industry peers.
UFCS's Profit Margin has improved in the last couple of years.
UFCS has a Operating Margin (11.07%) which 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UFCS is destroying value.
The number of shares outstanding for UFCS has been increased compared to 1 year ago.
The number of shares outstanding for UFCS has been increased compared to 5 years ago.
UFCS has a worse debt/assets ratio than last year.
2.2 Solvency
UFCS has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
The Debt to FCF ratio of UFCS (0.49) is better than 79.59% of its industry peers.
UFCS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
UFCS has a Debt to Equity ratio of 0.16. This is in the better half of the industry: UFCS outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | N/A |
ROIC/WACC0.39
WACC8.62%
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.
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.
Looking at the last year, UFCS shows a quite strong growth in Revenue. The Revenue has grown by 12.12% in the last year.
UFCS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
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
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.
Based on estimates for the next years, UFCS will show a quite strong growth in Revenue. The Revenue will grow by 12.56% on average per year.
EPS Next Y21.2%
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 8.50 indicates a reasonable valuation of UFCS.
Based on the Price/Earnings ratio, UFCS is valued a bit cheaper than 68.03% of the companies in the same industry.
UFCS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
The Price/Forward Earnings ratio is 11.70, which indicates a very decent valuation of UFCS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UFCS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, UFCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 11.7 |
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 78.23% of the companies listed in the same industry.
UFCS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UFCS is cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.17 | ||
| EV/EBITDA | 5.28 |
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)0.4
PEG (5Y)0.26
EPS Next 2Y11.36%
EPS Next 3Y11.87%
5. Dividend
5.1 Amount
UFCS has a Yearly Dividend Yield of 1.75%.
Compared to an average industry Dividend Yield of 3.52, UFCS has a dividend in line with its industry peers.
UFCS's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
14.63% of the earnings are spent on dividend by UFCS. This is a low number and sustainable payout ratio.
DP14.63%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
36.99
+0.39 (+1.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.03%
Inst Owner Change1.9%
Ins Owners17.97%
Ins Owner Change2.82%
Market Cap942.88M
Revenue(TTM)1.35B
Net Income(TTM)111.28M
Analysts80
Price Target32.64 (-11.76%)
Short Float %0.99%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend0.64
Dividend Growth(5Y)-13.28%
DP14.63%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)88.26%
Min EPS beat(2)63.4%
Max EPS beat(2)113.13%
EPS beat(4)4
Avg EPS beat(4)61.52%
Min EPS beat(4)7.23%
Max EPS beat(4)113.13%
EPS beat(8)7
Avg EPS beat(8)-131.93%
EPS beat(12)8
Avg EPS beat(12)310.62%
EPS beat(16)11
Avg EPS beat(16)250.91%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-2.08%
Revenue beat(4)0
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.39%
Revenue beat(12)5
Avg Revenue beat(12)0.1%
Revenue beat(16)5
Avg Revenue beat(16)-1.93%
PT rev (1m)0%
PT rev (3m)6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)97.5%
EPS NY rev (1m)0%
EPS NY rev (3m)17.14%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 11.7 | ||
| P/S | 0.7 | ||
| P/FCF | 3.17 | ||
| P/OCF | 3.08 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 5.28 |
EPS(TTM)4.35
EY11.76%
EPS(NY)3.16
Fwd EY8.55%
FCF(TTM)11.67
FCFY31.56%
OCF(TTM)12.02
OCFY32.48%
SpS53.11
BVpS35.26
TBVpS35.13
PEG (NY)0.4
PEG (5Y)0.26
Graham Number58.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 12.38% | ||
| ROCE | 4.14% | ||
| ROIC | 3.33% | ||
| ROICexc | 3.56% | ||
| ROICexgc | 4.05% | ||
| OM | 11.07% | ||
| PM (TTM) | 8.22% | ||
| GM | N/A | ||
| FCFM | 21.98% |
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
ROICexgc growth 3Y-7.23%
ROICexgc 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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.49 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 83.94% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 14.33 | ||
| Cash Conversion | 191.12% | ||
| Profit Quality | 267.38% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.62%
ROIC/WACC0.39
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)123.08%
EPS 3Y14.47%
EPS 5Y32.74%
EPS Q2Q%85.19%
EPS Next Y21.2%
EPS Next 2Y11.36%
EPS Next 3Y11.87%
EPS Next 5YN/A
Revenue 1Y (TTM)12.12%
Revenue growth 3Y5.54%
Revenue growth 5Y0.85%
Sales Q2Q%9.62%
Revenue Next Year10.6%
Revenue Next 2Y12.56%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y122.69%
EBIT growth 3Y-5.53%
EBIT growth 5Y37.91%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y74.4%
FCF growth 3Y174.38%
FCF growth 5Y39.85%
OCF growth 1Y72.06%
OCF growth 3Y124.94%
OCF growth 5Y29.4%
UNITED FIRE GROUP INC / UFCS FAQ
What is the fundamental rating for UFCS stock?
ChartMill assigns a fundamental rating of 5 / 10 to UFCS.
What is the valuation status of UNITED FIRE GROUP INC (UFCS) stock?
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.
Can you provide the expected EPS growth for UFCS stock?
The Earnings per Share (EPS) of UNITED FIRE GROUP INC (UFCS) is expected to grow by 21.2% in the next year.
Can you provide the dividend sustainability for UFCS stock?
The dividend rating of UNITED FIRE GROUP INC (UFCS) is 4 / 10 and the dividend payout ratio is 14.63%.