UNUM GROUP (UNM)
US91529Y1064 - Common Stock
We assign a fundamental rating of 5 out of 10 to UNM. UNM was compared to 140 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 decent growth rate and is not valued too expensively. UNM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UNM had positive earnings in the past year.
In the past year UNM had a positive cash flow from operations.
Each year in the past 5 years UNM has been profitable.
Each year in the past 5 years UNM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.75%, UNM is doing good in the industry, outperforming 61.87% of the companies in the same industry.
UNM has a better Return On Equity (16.08%) than 69.78% of its industry peers.
UNM has a better Return On Invested Capital (3.02%) than 64.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UNM is below the industry average of 4.27%.
The last Return On Invested Capital (3.02%) for UNM is above the 3 year average (2.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 16.08% | ||
| ROIC | 3.02% |
ROA(3y)1.91%
ROA(5y)1.7%
ROE(3y)12.67%
ROE(5y)11.27%
ROIC(3y)2.19%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 13.76%, UNM is doing good in the industry, outperforming 74.82% of the companies in the same industry.
UNM's Profit Margin has improved in the last couple of years.
UNM has a Operating Margin of 19.01%. This is in the better half of the industry: UNM outperforms 74.82% of its industry peers.
UNM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.01% | ||
| PM (TTM) | 13.76% | ||
| GM | N/A |
OM growth 3Y17.96%
OM growth 5Y16.18%
PM growth 3Y19.82%
PM growth 5Y18.15%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
UNM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UNM has less shares outstanding than it did 1 year ago.
UNM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, UNM has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UNM is 2.82, which is a good value as it means it would take UNM, 2.82 years of fcf income to pay off all of its debts.
UNM's Debt to FCF ratio of 2.82 is in line compared to the rest of the industry. UNM outperforms 42.45% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that UNM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, UNM perfoms like the industry average, outperforming 56.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC8.11%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
UNM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.33%, which is quite good.
Measured over the past years, UNM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.01% on average per year.
The Revenue has been growing slightly by 4.49% in the past year.
UNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
EPS 1Y (TTM)12.33%
EPS 3Y15.74%
EPS 5Y8.01%
EPS Q2Q%9.79%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y-2.01%
Revenue growth 5Y1.29%
Sales Q2Q%4.03%
3.2 Future
UNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.56% yearly.
Based on estimates for the next years, UNM will show a small growth in Revenue. The Revenue will grow by 4.58% on average per year.
EPS Next Y12.71%
EPS Next 2Y9.16%
EPS Next 3Y9.26%
EPS Next 5Y7.56%
Revenue Next Year4.43%
Revenue Next 2Y4.33%
Revenue Next 3Y4.29%
Revenue Next 5Y4.58%
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.
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
Based on the Price/Earnings ratio of 9.25, the valuation of UNM can be described as reasonable.
69.78% of the companies in the same industry are more expensive than UNM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.20. UNM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.31, the valuation of UNM can be described as very reasonable.
UNM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNM is cheaper than 73.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
UNM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNM is cheaper than 73.38% of the companies in the same industry.
UNM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.25 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
UNM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UNM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.73
PEG (5Y)1.15
EPS Next 2Y9.16%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.33%. Purely for dividend investing, there may be better candidates out there.
UNM's Dividend Yield is a higher than the industry average which is at 4.25.
Compared to an average S&P500 Dividend Yield of 2.23, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of UNM is nicely growing with an annual growth rate of 7.55%!
UNM has been paying a dividend for at least 10 years, so it has a reliable track record.
UNM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.55%
Div Incr Years15
Div Non Decr Years19
5.3 Sustainability
16.51% of the earnings are spent on dividend by UNM. This is a low number and sustainable payout ratio.
The dividend of UNM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP16.51%
EPS Next 2Y9.16%
EPS Next 3Y9.26%
UNUM GROUP
NYSE:UNM (11/22/2024, 5:34:22 PM)
After market: 75.84 0 (0%)75.84
+0.41 (+0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 8.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.73
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 16.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.01% | ||
| PM (TTM) | 13.76% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.33%
EPS 3Y15.74%
EPS 5Y
EPS Q2Q%
EPS Next Y12.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.49%
Revenue growth 3Y-2.01%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y