UNUM GROUP (UNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNM - US91529Y1064 - Common Stock
79.05 USD
-0.34 (-0.43%)
79.05 USD
0 (0%)
UNM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. There are concerns on the financial health of UNM while its profitability can be described as average. UNM is not valued too expensively and it also shows a decent growth rate. Finally 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 Return On Assets value of 1.43%, UNM perfoms like the industry average, outperforming 42.57% of the companies in the same industry.
With a Return On Equity value of 8.37%, UNM is not doing good in the industry: 61.49% of the companies in the same industry are doing better.
UNM has a Return On Invested Capital (1.70%) which is comparable to the rest of the industry.
UNM had an Average Return On Invested Capital over the past 3 years of 2.64%. This is significantly below the industry average of 14.88%.
| 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.
UNM has a Operating Margin (10.48%) which is comparable to the rest of the industry.
UNM's Operating Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UNM is destroying value.
The number of shares outstanding for UNM has been reduced compared to 1 year ago.
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.
The Debt to FCF ratio of UNM (5.44) is worse than 63.51% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that UNM is not too dependend on debt financing.
UNM has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: UNM outperforms 49.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.22
WACC7.81%
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.
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)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
UNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.87% yearly.
The Revenue is expected to grow by 3.63% on average over the next years.
EPS Next Y-0.27%
EPS Next 2Y4.77%
EPS Next 3Y6.89%
EPS Next 5Y6.87%
Revenue Next Year1.92%
Revenue Next 2Y2.49%
Revenue Next 3Y3.16%
Revenue Next 5Y3.63%
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
A Price/Earnings ratio of 9.61 indicates a reasonable valuation of UNM.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than the industry average as 66.89% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. UNM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.53 indicates a reasonable valuation of UNM.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than 68.24% of the companies in the same industry.
UNM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.53 |
4.2 Price Multiples
UNM's Enterprise Value to EBITDA ratio is in line with the industry average.
UNM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. UNM is more expensive than 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.2 | ||
| EV/EBITDA | 11.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y4.77%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.32%.
UNM's Dividend Yield is a higher than the industry average which is at 2.30.
UNM's Dividend Yield is a higher than the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
On average, the dividend of UNM grows each year by 7.77%, which is quite nice.
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)7.77%
Div Incr Years16
Div Non Decr Years20
5.3 Sustainability
UNM pays out 33.52% of its income as dividend. This is a 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 2Y4.77%
EPS Next 3Y6.89%
79.05
-0.34 (-0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.57%
Inst Owner Change-3.41%
Ins Owners0.86%
Ins Owner Change-2.36%
Market Cap13.23B
Revenue(TTM)13.07B
Net Income(TTM)913.10M
Analysts78.89
Price TargetN/A
Short Float %1.67%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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)0.28%
PT rev (3m)0.61%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-5.12%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.53 | ||
| P/S | 1.01 | ||
| P/FCF | 19.2 | ||
| P/OCF | 16.22 | ||
| P/B | 1.21 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 11.19 |
EPS(TTM)8.23
EY10.41%
EPS(NY)9.26
Fwd EY11.72%
FCF(TTM)4.12
FCFY5.21%
OCF(TTM)4.87
OCFY6.17%
SpS78.1
BVpS65.19
TBVpS63.08
PEG (NY)N/A
PEG (5Y)1.05
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
WACC7.81%
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 Year1.92%
Revenue Next 2Y2.49%
Revenue Next 3Y3.16%
Revenue Next 5Y3.63%
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 decline by -0.27% in the next year.