UNUM GROUP (UNM) Stock Fundamental Analysis
USA - NYSE:UNM - US91529Y1064 - Common Stock
78.15 USD
+1.37 (+1.78%)
78.15 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to UNM. UNM was compared to 146 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.
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
With a Return On Assets value of 2.42%, UNM perfoms like the industry average, outperforming 53.42% of the companies in the same industry.
UNM has a Return On Equity of 13.42%. This is in the better half of the industry: UNM outperforms 62.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.68%, UNM is in line with its industry, outperforming 54.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UNM is in line with the industry average of 4.55%.
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
UNM has a better Profit Margin (11.77%) than 69.18% of its industry peers.
In the last couple of years the Profit Margin of UNM has grown nicely.
UNM's Operating Margin of 16.48% is fine compared to the rest of the industry. UNM outperforms 71.23% of its industry peers.
UNM's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UNM is destroying value.
Compared to 1 year ago, UNM has less shares outstanding
The number of shares outstanding for UNM has been reduced compared to 5 years ago.
UNM has a worse debt/assets ratio than last year.
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.
The Debt to FCF ratio of UNM (2.59) is comparable to the rest of the industry.
UNM has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
UNM has a Debt to Equity ratio (0.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC7.78%
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%.
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 4.05% in the past year.
The Revenue has been growing slightly by 1.40% on average over the past years.
EPS 1Y (TTM)0.37%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%-1.88%
Revenue 1Y (TTM)4.05%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%5.02%
3.2 Future
Based on estimates for the next years, UNM will show a small growth in Earnings Per Share. The EPS will grow by 6.99% on average per year.
UNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
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
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 9.50, 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 62.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of UNM to the average of the S&P500 Index (26.06), we can say UNM is valued rather cheaply.
UNM is valuated reasonably with a Price/Forward Earnings ratio of 8.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 69.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
66.44% of the companies in the same industry are more expensive than UNM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.22 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
UNM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.21
PEG (5Y)1.03
EPS Next 2Y5.72%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.39, UNM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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
20.11% 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.
DP20.11%
EPS Next 2Y5.72%
EPS Next 3Y7.66%
78.15
+1.37 (+1.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change-0.25%
Ins Owners0.89%
Ins Owner Change0.73%
Market Cap13.31B
Revenue(TTM)12.89B
Net Income(TTM)1.52B
Analysts78.89
Price Target95.17 (21.78%)
Short Float %1.4%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)0.5%
PT rev (3m)-0.21%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-4.86%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.29 | ||
| P/S | 1.03 | ||
| P/FCF | 9.22 | ||
| P/OCF | 8.44 | ||
| P/B | 1.18 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 7.07 |
EPS(TTM)8.23
EY10.53%
EPS(NY)9.43
Fwd EY12.07%
FCF(TTM)8.48
FCFY10.85%
OCF(TTM)9.26
OCFY11.85%
SpS75.78
BVpS66.47
TBVpS64.39
PEG (NY)7.21
PEG (5Y)1.03
Graham Number110.94
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
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-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
WACC7.78%
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)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)4.05%
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 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%
UNUM GROUP / UNM FAQ
What is the fundamental rating for UNM stock?
ChartMill assigns a fundamental rating of 5 / 10 to UNM.
Can you provide the valuation status for UNUM GROUP?
ChartMill assigns a valuation rating of 5 / 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 6 / 10.
Can you provide the financial health for UNM stock?
The financial health rating of UNUM GROUP (UNM) is 3 / 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.