UNUM GROUP (UNM) Stock Fundamental Analysis
USA - NYSE:UNM - US91529Y1064 - Common Stock
74.315 USD
-0.59 (-0.78%)
Taking everything into account, UNM scores 5 out of 10 in our fundamental rating. UNM was compared to 146 industry peers in the Insurance industry. While UNM is still in line with the averages on profitability rating, there are concerns on its financial health. UNM has a correct valuation and a medium growth rate.
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
With a Return On Assets value of 2.42%, UNM perfoms like the industry average, outperforming 55.48% of the companies in the same industry.
UNM's Return On Equity of 13.42% is fine compared to the rest of the industry. UNM outperforms 65.75% of its industry peers.
UNM has a Return On Invested Capital (2.68%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for UNM is in line with the industry average of 4.47%.
The last Return On Invested Capital (2.68%) for UNM is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 13.42% | ||
| ROIC | 2.68% |
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 (11.77%) is better than 70.55% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
UNM has a Operating Margin of 16.48%. This is in the better half of the industry: UNM outperforms 70.55% of its industry peers.
In the last couple of years the Operating Margin of UNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.48% | ||
| PM (TTM) | 11.77% | ||
| 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.
The number of shares outstanding for UNM has been reduced compared to 1 year ago.
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
The Debt to FCF ratio of UNM is 2.59, which is a good value as it means it would take UNM, 2.59 years of fcf income to pay off all of its debts.
UNM has a Debt to FCF ratio (2.59) which is in line with its industry peers.
UNM has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.31, UNM perfoms like the industry average, outperforming 52.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC7.71%
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 3.25% over the past year.
The Earnings Per Share has been growing by 9.18% on average over the past years. This is quite good.
Looking at the last year, UNM shows a small growth in Revenue. The Revenue has grown by 1.86% 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)3.25%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%3.96%
3.2 Future
The Earnings Per Share is expected to grow by 6.50% on average over the next years.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y1.73%
EPS Next 2Y5.84%
EPS Next 3Y7.41%
EPS Next 5Y6.5%
Revenue Next Year2.46%
Revenue Next 2Y2.89%
Revenue Next 3Y2.94%
Revenue Next 5Y3.58%
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 8.99, which indicates a very decent valuation of UNM.
UNM's Price/Earnings ratio is a bit cheaper when compared to the industry. UNM is cheaper than 69.18% of the companies in the same industry.
UNM is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.86, the valuation of UNM can be described as very cheap.
UNM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UNM is cheaper than 69.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UNM to the average of the S&P500 Index (22.77), we can say UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
65.07% of the companies in the same industry are more expensive than UNM, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as UNM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.76 | ||
| EV/EBITDA | 6.82 |
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.
The decent profitability rating of UNM may justify a higher PE ratio.
PEG (NY)5.2
PEG (5Y)0.98
EPS Next 2Y5.84%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.44%, UNM has a reasonable but not impressive dividend return.
UNM's Dividend Yield is a higher than the industry average which is at 3.43.
Compared to an average S&P500 Dividend Yield of 2.38, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
The dividend of UNM is nicely growing with an annual growth rate of 7.77%!
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
UNM pays out 20.11% 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.
DP20.11%
EPS Next 2Y5.84%
EPS Next 3Y7.41%
NYSE:UNM (9/16/2025, 3:50:02 PM)
74.315
-0.59 (-0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change-2.68%
Ins Owners0.89%
Ins Owner Change1.09%
Market Cap12.66B
Analysts78.89
Price Target94.86 (27.65%)
Short Float %1.83%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend1.59
Dividend Growth(5Y)7.77%
DP20.11%
Div Incr Years16
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.48%
Min EPS beat(2)-7.7%
Max EPS beat(2)-7.26%
EPS beat(4)1
Avg EPS beat(4)-5.17%
Min EPS beat(4)-7.7%
Max EPS beat(4)0.3%
EPS beat(8)4
Avg EPS beat(8)-1.63%
EPS beat(12)7
Avg EPS beat(12)0.93%
EPS beat(16)10
Avg EPS beat(16)8.01%
Revenue beat(2)0
Avg Revenue beat(2)-4.4%
Min Revenue beat(2)-8.42%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.38%
Min Revenue beat(4)-8.42%
Max Revenue beat(4)-0.37%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)0
Avg Revenue beat(12)-1.87%
Revenue beat(16)1
Avg Revenue beat(16)-1.58%
PT rev (1m)-0.53%
PT rev (3m)-1.06%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-4.98%
EPS NY rev (1m)-4.47%
EPS NY rev (3m)-4.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.98 | ||
| P/FCF | 8.76 | ||
| P/OCF | 8.02 | ||
| P/B | 1.12 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 6.82 |
EPS(TTM)8.27
EY11.13%
EPS(NY)9.45
Fwd EY12.72%
FCF(TTM)8.48
FCFY11.41%
OCF(TTM)9.26
OCFY12.46%
SpS75.78
BVpS66.47
TBVpS64.39
PEG (NY)5.2
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 13.42% | ||
| ROCE | 3.41% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.74% | ||
| ROICexgc | 3.31% | ||
| OM | 16.48% | ||
| PM (TTM) | 11.77% | ||
| GM | N/A | ||
| FCFM | 11.19% |
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
ROICexcg growth 3Y21.47%
ROICexcg 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-Score9
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 114.02% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.31% | ||
| Profit Quality | 95.06% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC7.71%
ROIC/WACC0.35
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)3.25%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-4.17%
EPS Next Y1.73%
EPS Next 2Y5.84%
EPS Next 3Y7.41%
EPS Next 5Y6.5%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%3.96%
Revenue Next Year2.46%
Revenue Next 2Y2.89%
Revenue Next 3Y2.94%
Revenue Next 5Y3.58%
EBIT growth 1Y13.18%
EBIT growth 3Y17.11%
EBIT growth 5Y8.74%
EBIT Next Year-0.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.72%
FCF growth 3Y2.8%
FCF growth 5Y-2.7%
OCF growth 1Y43.62%
OCF growth 3Y2.93%
OCF growth 5Y-2.77%