UNUM GROUP (UNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNM - US91529Y1064 - Common Stock
75.66 USD
-0.63 (-0.83%)
75.66 USD
0 (0%)
UNM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. 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.
Each year in the past 5 years UNM has been profitable.
In the past 5 years UNM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of UNM (1.43%) 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 61.90% of its industry peers.
UNM has a Return On Invested Capital (1.70%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for UNM is in line with the industry average of 4.37%.
| 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 comparable to the rest of the industry.
UNM's Profit Margin has improved in the last couple of years.
UNM's Operating Margin of 10.48% is in line compared to the rest of the industry. UNM outperforms 43.54% of its industry peers.
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
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.
The number of shares outstanding for UNM has been reduced compared to 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.
With a Debt to FCF ratio value of 5.44, UNM is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
UNM has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
UNM has a Debt to Equity ratio (0.32) which 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
WACC7.72%
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%.
The Earnings Per Share has been growing by 9.18% on average over the past years. This is quite good.
UNM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.13%.
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
UNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.99% yearly.
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
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 9.19.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
UNM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 8.02, the valuation of UNM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UNM to the average of the S&P500 Index (34.46), we can say UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.02 |
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 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.7 | ||
| EV/EBITDA | 11.03 |
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)6.98
PEG (5Y)1
EPS Next 2Y5.72%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.41%.
UNM's Dividend Yield is rather good when compared to the industry average which is at 3.51. UNM pays more dividend than 90.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of UNM is nicely growing with an annual growth rate of 7.77%!
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
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%
75.66
-0.63 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change-3.01%
Ins Owners0.89%
Ins Owner Change-1.65%
Market Cap12.89B
Revenue(TTM)13.07B
Net Income(TTM)913.10M
Analysts78.89
Price Target95.59 (26.34%)
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)0.5%
PT rev (3m)-0.21%
EPS NQ rev (1m)-2.72%
EPS NQ rev (3m)-3.72%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-4.86%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.02 | ||
| P/S | 0.99 | ||
| P/FCF | 18.7 | ||
| P/OCF | 15.8 | ||
| P/B | 1.18 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)8.23
EY10.88%
EPS(NY)9.43
Fwd EY12.47%
FCF(TTM)4.05
FCFY5.35%
OCF(TTM)4.79
OCFY6.33%
SpS76.73
BVpS64.05
TBVpS61.97
PEG (NY)6.98
PEG (5Y)1
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
WACC7.72%
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.