UNUM GROUP (UNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNM - US91529Y1064 - Common Stock
78.84 USD
-0.21 (-0.27%)
78.84 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 has a correct valuation and a medium growth rate. Finally UNM also has an excellent dividend rating.
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.
UNM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNM has a Return On Assets (1.43%) which is comparable to the rest of the industry.
UNM has a worse Return On Equity (8.37%) than 61.49% of its industry peers.
UNM has a Return On Invested Capital of 1.70%. This is comparable to the rest of the industry: UNM outperforms 42.57% of its industry peers.
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
With a Profit Margin value of 6.99%, UNM perfoms like the industry average, outperforming 43.92% of the companies in the same industry.
In the last couple of years the Profit Margin of UNM has grown nicely.
Looking at the Operating Margin, with a value of 10.48%, UNM is in line with its industry, outperforming 40.54% of the companies in the same 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.
UNM has less shares outstanding than it did 1 year ago.
UNM has less shares outstanding than it did 5 years ago.
UNM has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of UNM is 5.44, which is a neutral value as it means it would take UNM, 5.44 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.44, UNM is doing worse than 63.51% of the companies in the same industry.
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 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
WACC7.8%
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 0.37% over the past year.
UNM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.18% yearly.
Looking at the last year, UNM shows a small growth in Revenue. The Revenue has grown by 2.13% in the last year.
UNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.40% yearly.
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 3.63% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
UNM is valuated reasonably with a Price/Earnings ratio of 9.58.
Compared to the rest of the industry, the Price/Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 66.89% of the companies listed in the same industry.
UNM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
UNM is valuated reasonably with a Price/Forward Earnings ratio of 8.51.
UNM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNM is 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 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UNM.
Based on the Price/Free Cash Flow ratio, UNM is valued a bit more expensive than the industry average as 62.16% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 11.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y4.77%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, UNM has a reasonable but not impressive dividend return.
UNM's Dividend Yield is a higher than the industry average which is at 2.30.
Compared to an average S&P500 Dividend Yield of 1.88, UNM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 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
UNM pays out 33.52% of its income as dividend. This is a 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%
78.84
-0.21 (-0.27%)
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 Cap13.19B
Revenue(TTM)13.07B
Net Income(TTM)913.10M
Analysts78.89
Price Target95.73 (21.42%)
Short Float %1.67%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 | 9.58 | ||
| Fwd PE | 8.51 | ||
| P/S | 1.01 | ||
| P/FCF | 19.14 | ||
| P/OCF | 16.17 | ||
| P/B | 1.21 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 11.19 |
EPS(TTM)8.23
EY10.44%
EPS(NY)9.26
Fwd EY11.75%
FCF(TTM)4.12
FCFY5.22%
OCF(TTM)4.87
OCFY6.18%
SpS78.1
BVpS65.19
TBVpS63.08
PEG (NY)N/A
PEG (5Y)1.04
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
WACC7.8%
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.