UNUM GROUP (UNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNM - US91529Y1064 - Common Stock
80.29 USD
-0.08 (-0.1%)
80.29 USD
0 (0%)
UNM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 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.
1. Profitability
1.1 Basic Checks
In the past year UNM was profitable.
In the past year UNM had a positive cash flow from operations.
UNM had positive earnings in each of the past 5 years.
Each year in the past 5 years UNM had a positive operating cash flow.
1.2 Ratios
UNM has a Return On Assets (1.43%) which is comparable to the rest of the industry.
UNM has a Return On Equity of 8.37%. This is in the lower half of the industry: UNM underperforms 60.81% of its industry peers.
The Return On Invested Capital of UNM (1.70%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for UNM is significantly below the industry average of 15.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 8.37% | ||
| ROIC | 1.7% |
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
The Profit Margin of UNM (6.99%) is comparable to the rest of the industry.
UNM's Profit Margin has improved in the last couple of years.
The Operating Margin of UNM (10.48%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of UNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.48% | ||
| PM (TTM) | 6.99% | ||
| 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
UNM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, UNM has less shares outstanding
UNM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, UNM has a worse debt to assets ratio.
2.2 Solvency
UNM has a debt to FCF ratio of 5.44. This is a neutral value as UNM would need 5.44 years to pay back of all of its debts.
UNM has a Debt to FCF ratio of 5.44. This is in the lower half of the industry: UNM underperforms 63.51% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that UNM is not too dependend on debt financing.
The Debt to Equity ratio of UNM (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.22
WACC7.84%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
UNM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.37%.
UNM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.18% yearly.
The Revenue has been growing slightly by 2.13% in the past year.
The Revenue has been growing slightly by 1.40% on average over the past years.
EPS 1Y (TTM)0.37%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-1.88%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%5.02%
3.2 Future
The Earnings Per Share is expected to grow by 6.87% on average over the next years.
UNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y-0.27%
EPS Next 2Y4.77%
EPS Next 3Y6.89%
EPS Next 5Y6.87%
Revenue Next Year1.89%
Revenue Next 2Y2.52%
Revenue Next 3Y3.18%
Revenue Next 5Y3.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 9.76, the valuation of UNM can be described as reasonable.
66.22% of the companies in the same industry are more expensive than UNM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of UNM to the average of the S&P500 Index (27.19), we can say UNM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.67, the valuation of UNM can be described as reasonable.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than the industry average as 67.57% of the companies are valued more expensively.
UNM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, UNM is valued a bit more expensive than 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.5 | ||
| EV/EBITDA | 11.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y4.77%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.29%, UNM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.42, UNM pays a bit more dividend than its industry peers.
UNM's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
On average, the dividend of UNM grows each year by 7.77%, which is quite nice.
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
33.52% of the earnings are spent on dividend by UNM. This is a low number and sustainable payout ratio.
UNM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.52%
EPS Next 2Y4.77%
EPS Next 3Y6.89%
80.29
-0.08 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.64%
Inst Owner Change-0.16%
Ins Owners0.86%
Ins Owner Change-2.36%
Market Cap13.43B
Revenue(TTM)13.07B
Net Income(TTM)913.10M
Analysts78.82
Price Target95.73 (19.23%)
Short Float %1.62%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP33.52%
Div Incr Years16
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.43%
Min EPS beat(2)-7.26%
Max EPS beat(2)-3.6%
EPS beat(4)0
Avg EPS beat(4)-6.15%
Min EPS beat(4)-7.7%
Max EPS beat(4)-3.6%
EPS beat(8)3
Avg EPS beat(8)-2.09%
EPS beat(12)6
Avg EPS beat(12)0.11%
EPS beat(16)10
Avg EPS beat(16)8.56%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)0.7%
Revenue beat(4)1
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-8.42%
Max Revenue beat(4)0.7%
Revenue beat(8)1
Avg Revenue beat(8)-1.99%
Revenue beat(12)1
Avg Revenue beat(12)-1.65%
Revenue beat(16)2
Avg Revenue beat(16)-1.52%
PT rev (1m)0.31%
PT rev (3m)1.09%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-5.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.67 | ||
| P/S | 1.03 | ||
| P/FCF | 19.5 | ||
| P/OCF | 16.47 | ||
| P/B | 1.23 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 11.33 |
EPS(TTM)8.23
EY10.25%
EPS(NY)9.26
Fwd EY11.54%
FCF(TTM)4.12
FCFY5.13%
OCF(TTM)4.87
OCFY6.07%
SpS78.1
BVpS65.19
TBVpS63.08
PEG (NY)N/A
PEG (5Y)1.06
Graham Number109.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 8.37% | ||
| ROCE | 2.16% | ||
| ROIC | 1.7% | ||
| ROICexc | 1.71% | ||
| ROICexgc | 2.25% | ||
| OM | 10.48% | ||
| PM (TTM) | 6.99% | ||
| GM | N/A | ||
| FCFM | 5.27% |
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
ROICexgc growth 3Y21.47%
ROICexgc 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 5.44 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 107.2% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.84% | ||
| Profit Quality | 75.47% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.84%
ROIC/WACC0.22
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)0.37%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-1.88%
EPS Next Y-0.27%
EPS Next 2Y4.77%
EPS Next 3Y6.89%
EPS Next 5Y6.87%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%5.02%
Revenue Next Year1.89%
Revenue Next 2Y2.52%
Revenue Next 3Y3.18%
Revenue Next 5Y3.77%
EBIT growth 1Y-43.7%
EBIT growth 3Y17.11%
EBIT growth 5Y8.74%
EBIT Next Year-0.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-37.11%
FCF growth 3Y2.8%
FCF growth 5Y-2.7%
OCF growth 1Y-32.94%
OCF growth 3Y2.93%
OCF growth 5Y-2.77%
UNUM GROUP / UNM FAQ
Can you provide the ChartMill fundamental rating for UNUM GROUP?
ChartMill assigns a fundamental rating of 4 / 10 to UNM.
What is the valuation status of UNUM GROUP (UNM) stock?
ChartMill assigns a valuation rating of 4 / 10 to UNUM GROUP (UNM). This can be considered as Fairly Valued.
How profitable is UNUM GROUP (UNM) stock?
UNUM GROUP (UNM) has a profitability rating of 4 / 10.
What is the valuation of UNUM GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for UNUM GROUP (UNM) is 9.76 and the Price/Book (PB) ratio is 1.23.
How sustainable is the dividend of UNUM GROUP (UNM) stock?
The dividend rating of UNUM GROUP (UNM) is 7 / 10 and the dividend payout ratio is 33.52%.