UNUM GROUP (UNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNM - US91529Y1064 - Common Stock
74.29 USD
+0.95 (+1.3%)
74.29 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. UNM has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNM is not valued too expensively and it also shows a decent 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.
In the past 5 years UNM has always been profitable.
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 in line with its industry peers.
With a Return On Equity value of 8.37%, UNM is not doing good in the industry: 62.59% of the companies in the same industry are doing better.
The Return On Invested Capital of UNM (1.70%) 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 14.89%.
| 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's Profit Margin of 6.99% is in line compared to the rest of the industry. UNM outperforms 42.18% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.48%, UNM is in line with its industry, outperforming 40.14% 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.
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.
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.
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.
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 of 0.32. This is comparable to the rest of the industry: UNM outperforms 49.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | N/A |
ROIC/WACC0.22
WACC7.75%
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.
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.
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
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
Based on the Price/Earnings ratio of 9.03, the valuation of UNM can be described as reasonable.
UNM's Price/Earnings ratio is a bit cheaper when compared to the industry. UNM is cheaper than 65.99% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, UNM is valued rather cheaply.
A Price/Forward Earnings ratio of 8.02 indicates a reasonable valuation of UNM.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than the industry average as 70.07% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.69. UNM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 8.02 |
4.2 Price Multiples
UNM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, UNM is valued a bit more expensive than 62.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.04 | ||
| EV/EBITDA | 10.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y4.77%
EPS Next 3Y6.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, UNM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.48, UNM has a dividend in line with its industry peers.
UNM's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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 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 2Y4.77%
EPS Next 3Y6.89%
74.29
+0.95 (+1.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.57%
Inst Owner Change-3.4%
Ins Owners0.86%
Ins Owner Change-2.32%
Market Cap12.43B
Revenue(TTM)13.07B
Net Income(TTM)913.10M
Analysts78.89
Price Target95.44 (28.47%)
Short Float %1.41%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)-2.02%
EPS NQ rev (3m)-5.16%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 8.02 | ||
| P/S | 0.95 | ||
| P/FCF | 18.04 | ||
| P/OCF | 15.24 | ||
| P/B | 1.14 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 10.66 |
EPS(TTM)8.23
EY11.08%
EPS(NY)9.26
Fwd EY12.47%
FCF(TTM)4.12
FCFY5.54%
OCF(TTM)4.87
OCFY6.56%
SpS78.1
BVpS65.19
TBVpS63.08
PEG (NY)N/A
PEG (5Y)0.98
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
WACC7.75%
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.