UNUM GROUP (UNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNM - US91529Y1064 - Common Stock
76.55 USD
+0.89 (+1.18%)
76.55 USD
0 (0%)
Taking everything into account, UNM scores 4 out of 10 in our fundamental rating. UNM was compared to 147 industry peers in the Insurance industry. There are concerns on the financial health of UNM while its profitability can be described as average. 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.
In the past 5 years UNM has always been profitable.
In the past 5 years UNM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.43%, UNM is in line with its industry, outperforming 40.82% of the companies in the same industry.
UNM's Return On Equity of 8.37% is on the low side compared to the rest of the industry. UNM is outperformed by 63.27% of its industry peers.
With a Return On Invested Capital value of 1.70%, UNM perfoms like the industry average, outperforming 44.22% of the companies in the same industry.
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 4.52%.
| 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
UNM has a Profit Margin (6.99%) which is in line with its industry peers.
In the last couple of years the Profit Margin of UNM has grown nicely.
UNM has a Operating Margin (10.48%) which 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
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
UNM has a worse debt/assets ratio than last year.
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.
With a Debt to FCF ratio value of 5.44, UNM is not doing good in the industry: 63.95% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.32 indicates that UNM is not too dependend on debt financing.
UNM's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. UNM outperforms 48.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.22
WACC7.71%
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%.
Measured over the past years, UNM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.18% on average per year.
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 6.99% on average over the next years.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y1.32%
EPS Next 2Y5.72%
EPS Next 3Y7.66%
EPS Next 5Y6.99%
Revenue Next Year2.28%
Revenue Next 2Y2.66%
Revenue Next 3Y2.72%
Revenue Next 5Y3.59%
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
The Price/Earnings ratio is 9.30, which indicates a very decent valuation of UNM.
63.95% of the companies in the same industry are more expensive than UNM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.98, UNM is valued rather cheaply.
A Price/Forward Earnings ratio of 8.12 indicates a reasonable valuation of UNM.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
UNM is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.12 |
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.
UNM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. UNM is more expensive than 62.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.92 | ||
| EV/EBITDA | 11.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)7.06
PEG (5Y)1.01
EPS Next 2Y5.72%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, UNM has a reasonable but not impressive dividend return.
UNM's Dividend Yield is comparable with the industry average which is at 3.46.
Compared to an average S&P500 Dividend Yield of 2.41, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of UNM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.52%
EPS Next 2Y5.72%
EPS Next 3Y7.66%
76.55
+0.89 (+1.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change-3.41%
Ins Owners0.89%
Ins Owner Change-2.32%
Market Cap13.04B
Revenue(TTM)13.07B
Net Income(TTM)913.10M
Analysts78.89
Price Target95.59 (24.87%)
Short Float %1.33%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP33.52%
Div Incr Years16
Div Non Decr Years20
Ex-Date
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)0.94%
PT rev (3m)0.77%
EPS NQ rev (1m)-4.13%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)-1.51%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.12 | ||
| P/S | 1 | ||
| P/FCF | 18.92 | ||
| P/OCF | 15.98 | ||
| P/B | 1.2 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 11.06 |
EPS(TTM)8.23
EY10.75%
EPS(NY)9.43
Fwd EY12.32%
FCF(TTM)4.05
FCFY5.29%
OCF(TTM)4.79
OCFY6.26%
SpS76.73
BVpS64.05
TBVpS61.97
PEG (NY)7.06
PEG (5Y)1.01
Graham Number108.91
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
WACC7.71%
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 Y1.32%
EPS Next 2Y5.72%
EPS Next 3Y7.66%
EPS Next 5Y6.99%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%5.02%
Revenue Next Year2.28%
Revenue Next 2Y2.66%
Revenue Next 3Y2.72%
Revenue Next 5Y3.59%
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
What is the fundamental rating for UNM stock?
ChartMill assigns a fundamental rating of 4 / 10 to UNM.
Can you provide the valuation status for UNUM GROUP?
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.
Can you provide the financial health for UNM stock?
The financial health rating of UNUM GROUP (UNM) is 2 / 10.
What is the earnings growth outlook for UNUM GROUP?
The Earnings per Share (EPS) of UNUM GROUP (UNM) is expected to grow by 1.32% in the next year.