UNUM GROUP (UNM) Stock Fundamental Analysis
NYSE:UNM - New York Stock Exchange, Inc. - US91529Y1064 - Common Stock - Currency: USD
UNM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. UNM has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNM has a correct valuation and a medium growth rate. UNM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year UNM was profitable.
UNM had a positive operating cash flow in the past year.
In the past 5 years UNM has always been profitable.
UNM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNM's Return On Assets of 2.52% is in line compared to the rest of the industry. UNM outperforms 57.93% of its industry peers.
Looking at the Return On Equity, with a value of 14.03%, UNM is in the better half of the industry, outperforming 69.66% of the companies in the same industry.
The Return On Invested Capital of UNM (2.80%) is better than 60.69% of its industry peers.
UNM had an Average Return On Invested Capital over the past 3 years of 2.64%. This is in line with the industry average of 4.07%.
The 3 year average ROIC (2.64%) for UNM is below the current ROIC(2.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 14.03% | ||
| ROIC | 2.8% |
ROA(3y)2.4%
ROA(5y)1.94%
ROE(3y)15.21%
ROE(5y)12.31%
ROIC(3y)2.64%
ROIC(5y)N/A
1.3 Margins
UNM has a better Profit Margin (12.31%) than 73.79% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
The Operating Margin of UNM (17.24%) is better than 73.79% of its industry peers.
In the last couple of years the Operating Margin of UNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.24% | ||
| PM (TTM) | 12.31% | ||
| GM | N/A |
OM growth 3Y14.4%
OM growth 5Y7.24%
PM growth 3Y19.13%
PM growth 5Y8.58%
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), UNM is destroying value.
Compared to 1 year ago, UNM has less shares outstanding
Compared to 5 years ago, UNM has less shares outstanding
Compared to 1 year ago, UNM has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UNM is 2.61, which is a good value as it means it would take UNM, 2.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UNM (2.61) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.31 indicates that UNM is not too dependend on debt financing.
UNM has a Debt to Equity ratio of 0.31. This is comparable to the rest of the industry: UNM outperforms 55.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.01%
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 been growing slightly by 5.69% over the past year.
The Earnings Per Share has been growing by 9.18% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.82% in the past year.
Measured over the past years, UNM shows a small growth in Revenue. The Revenue has been growing by 1.40% on average per year.
EPS 1Y (TTM)5.69%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-3.77%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%-3.43%
3.2 Future
Based on estimates for the next years, UNM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.47% on average per year.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y6.65%
EPS Next 2Y8.3%
EPS Next 3Y8.76%
EPS Next 5Y9.47%
Revenue Next Year2.71%
Revenue Next 2Y3.29%
Revenue Next 3Y3.12%
Revenue Next 5Y4.35%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 9.57, the valuation of UNM can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 67.59% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UNM to the average of the S&P500 Index (27.30), we can say UNM is valued rather cheaply.
UNM is valuated reasonably with a Price/Forward Earnings ratio of 8.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 66.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. UNM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
UNM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNM is cheaper than 64.83% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as UNM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.72 | ||
| EV/EBITDA | 7.56 |
4.3 Compensation for Growth
UNM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of UNM may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)1.04
EPS Next 2Y8.3%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, UNM has a reasonable but not impressive dividend return.
UNM's Dividend Yield is comparable with the industry average which is at 3.64.
Compared to an average S&P500 Dividend Yield of 2.37, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of UNM is nicely growing with an annual growth rate of 7.77%!
UNM has paid a dividend for at least 10 years, which is a reliable track record.
UNM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.77%
Div Incr Years16
Div Non Decr Years20
5.3 Sustainability
19.14% of the earnings are spent on dividend by UNM. This is a low number and sustainable payout ratio.
UNM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP19.14%
EPS Next 2Y8.3%
EPS Next 3Y8.76%
80.04
-0.43 (-0.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.08%
Inst Owner Change-0.01%
Ins Owners0.87%
Ins Owner Change0.44%
Market Cap13.96B
Analysts78.89
Price Target96.14 (20.11%)
Short Float %1.83%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP19.14%
Div Incr Years16
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.87%
Min EPS beat(2)-7.7%
Max EPS beat(2)-6.03%
EPS beat(4)2
Avg EPS beat(4)-1.84%
Min EPS beat(4)-7.7%
Max EPS beat(4)6.07%
EPS beat(8)5
Avg EPS beat(8)0.51%
EPS beat(12)8
Avg EPS beat(12)6.09%
EPS beat(16)11
Avg EPS beat(16)9.91%
Revenue beat(2)0
Avg Revenue beat(2)-5.44%
Min Revenue beat(2)-8.42%
Max Revenue beat(2)-2.45%
Revenue beat(4)0
Avg Revenue beat(4)-3.54%
Min Revenue beat(4)-8.42%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-2.22%
Revenue beat(12)1
Avg Revenue beat(12)-1.79%
Revenue beat(16)2
Avg Revenue beat(16)-1.55%
PT rev (1m)0.71%
PT rev (3m)0.71%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 8.09 | ||
| P/S | 1.09 | ||
| P/FCF | 9.72 | ||
| P/OCF | 8.9 | ||
| P/B | 1.24 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)8.36
EY10.44%
EPS(NY)9.9
Fwd EY12.37%
FCF(TTM)8.23
FCFY10.28%
OCF(TTM)9
OCFY11.24%
SpS73.29
BVpS64.32
TBVpS62.3
PEG (NY)1.44
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 14.03% | ||
| ROCE | 3.56% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.81% | ||
| ROICexgc | 3.4% | ||
| OM | 17.24% | ||
| PM (TTM) | 12.31% | ||
| GM | N/A | ||
| FCFM | 11.23% |
ROA(3y)2.4%
ROA(5y)1.94%
ROE(3y)15.21%
ROE(5y)12.31%
ROIC(3y)2.64%
ROIC(5y)N/A
ROICexc(3y)2.65%
ROICexc(5y)N/A
ROICexgc(3y)3.26%
ROICexgc(5y)N/A
ROCE(3y)3.36%
ROCE(5y)N/A
ROICexcg growth 3Y21.47%
ROICexcg growth 5Y12.4%
ROICexc growth 3Y22.34%
ROICexc growth 5Y10.45%
OM growth 3Y14.4%
OM growth 5Y7.24%
PM growth 3Y19.13%
PM growth 5Y8.58%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.61 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 114.83% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.64% | ||
| Profit Quality | 91.25% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.01%
ROIC/WACC0.35
Cap/Depr(3y)108.22%
Cap/Depr(5y)104.31%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.95%
Profit Quality(3y)84.91%
Profit Quality(5y)89.05%
High Growth Momentum
Growth
EPS 1Y (TTM)5.69%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-3.77%
EPS Next Y6.65%
EPS Next 2Y8.3%
EPS Next 3Y8.76%
EPS Next 5Y9.47%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%-3.43%
Revenue Next Year2.71%
Revenue Next 2Y3.29%
Revenue Next 3Y3.12%
Revenue Next 5Y4.35%
EBIT growth 1Y17.13%
EBIT growth 3Y17.11%
EBIT growth 5Y8.74%
EBIT Next Year-0.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y26.57%
FCF growth 3Y2.8%
FCF growth 5Y-2.7%
OCF growth 1Y26.14%
OCF growth 3Y2.93%
OCF growth 5Y-2.77%