UNUM GROUP (UNM)
US91529Y1064 - Common Stock
Overall UNM gets a fundamental rating of 5 out of 10. We evaluated UNM against 144 industry peers in the Insurance industry. UNM has a medium profitability rating, but doesn't score so well on its financial health evaluation. UNM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. UNM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UNM had positive earnings in the past year.
UNM had a positive operating cash flow in the past year.
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
UNM has a Return On Assets (2.75%) which is in line with its industry peers.
UNM's Return On Equity of 16.08% is fine compared to the rest of the industry. UNM outperforms 66.90% of its industry peers.
With a decent Return On Invested Capital value of 3.02%, UNM is doing good in the industry, outperforming 63.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UNM is below the industry average of 4.61%.
The 3 year average ROIC (2.19%) for UNM is below the current ROIC(3.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 16.08% | ||
| ROIC | 3.02% |
ROA(3y)1.91%
ROA(5y)1.7%
ROE(3y)12.67%
ROE(5y)11.27%
ROIC(3y)2.19%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of UNM (13.76%) is better than 73.24% of its industry peers.
In the last couple of years the Profit Margin of UNM has grown nicely.
UNM has a Operating Margin of 19.01%. This is in the better half of the industry: UNM outperforms 74.65% of its industry peers.
UNM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.01% | ||
| PM (TTM) | 13.76% | ||
| GM | N/A |
OM growth 3Y17.96%
OM growth 5Y16.18%
PM growth 3Y19.82%
PM growth 5Y18.15%
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.
UNM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for UNM has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of UNM is 2.82, which is a good value as it means it would take UNM, 2.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.82, UNM is in line with its industry, outperforming 45.77% of the companies in the same industry.
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 47.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | N/A |
ROIC/WACC0.36
WACC8.34%
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 grown by an nice 12.33% 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 8.01% on average per year.
The Revenue has been growing slightly by 4.49% in the past year.
Measured over the past years, UNM shows a small growth in Revenue. The Revenue has been growing by 1.29% on average per year.
EPS 1Y (TTM)12.33%
EPS 3Y15.74%
EPS 5Y8.01%
EPS Q2Q%9.79%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y-2.01%
Revenue growth 5Y1.29%
Sales Q2Q%4.03%
3.2 Future
The Earnings Per Share is expected to grow by 8.76% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y12.8%
EPS Next 2Y9.38%
EPS Next 3Y9.4%
EPS Next 5Y8.76%
Revenue Next Year4.47%
Revenue Next 2Y4.37%
Revenue Next 3Y4.33%
Revenue Next 5Y4.31%
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 stable.
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
With a Price/Earnings ratio of 8.76, the valuation of UNM can be described as very reasonable.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UNM to the average of the S&P500 Index (26.91), we can say UNM is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.83, the valuation of UNM can be described as very cheap.
71.83% of the companies in the same industry are more expensive than UNM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.26. UNM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
71.13% of the companies in the same industry are more expensive than UNM, based on the Enterprise Value to EBITDA ratio.
UNM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.65 | ||
| EV/EBITDA | 6.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of UNM may justify a higher PE ratio.
PEG (NY)0.68
PEG (5Y)1.09
EPS Next 2Y9.38%
EPS Next 3Y9.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, UNM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.13, UNM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of UNM is nicely growing with an annual growth rate of 7.55%!
UNM has been paying a dividend for at least 10 years, so it has a reliable track record.
UNM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.55%
Div Incr Years16
Div Non Decr Years20
5.3 Sustainability
16.51% of the earnings are spent on dividend by UNM. This is a low number and sustainable payout ratio.
The dividend of UNM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP16.51%
EPS Next 2Y9.38%
EPS Next 3Y9.4%
UNUM GROUP
NYSE:UNM (1/10/2025, 8:04:00 PM)
After market: 71.8 0 (0%)71.8
-1.15 (-1.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.5%
Inst Owner Change-0.53%
Ins Owners0.97%
Ins Owner Change-5.65%
Market Cap13.11B
Analysts77.65
Price Target79.56 (10.81%)
Short Float %1.42%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Dividend Growth(5Y)7.55%
DP16.51%
Div Incr Years16
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.19%
Min EPS beat(2)0.3%
Max EPS beat(2)6.07%
EPS beat(4)3
Avg EPS beat(4)1.98%
Min EPS beat(4)-5.07%
Max EPS beat(4)6.61%
EPS beat(8)6
Avg EPS beat(8)3.24%
EPS beat(12)10
Avg EPS beat(12)13.46%
EPS beat(16)12
Avg EPS beat(16)10.78%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-1.15%
Revenue beat(12)1
Avg Revenue beat(12)-1.15%
Revenue beat(16)4
Avg Revenue beat(16)1.9%
PT rev (1m)2.02%
PT rev (3m)22.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 7.83 | ||
| P/S | 1.02 | ||
| P/FCF | 10.65 | ||
| P/OCF | 9.56 | ||
| P/B | 1.2 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 6.44 |
EPS(TTM)8.2
EY11.42%
EPS(NY)9.16
Fwd EY12.76%
FCF(TTM)6.74
FCFY9.39%
OCF(TTM)7.51
OCFY10.46%
SpS70.07
BVpS59.97
TBVpS58.04
PEG (NY)0.68
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 16.08% | ||
| ROCE | 3.8% | ||
| ROIC | 3.02% | ||
| ROICexc | 3.02% | ||
| ROICexgc | 3.68% | ||
| OM | 19.01% | ||
| PM (TTM) | 13.76% | ||
| GM | N/A | ||
| FCFM | 9.62% |
ROA(3y)1.91%
ROA(5y)1.7%
ROE(3y)12.67%
ROE(5y)11.27%
ROIC(3y)2.19%
ROIC(5y)N/A
ROICexc(3y)2.19%
ROICexc(5y)N/A
ROICexgc(3y)2.72%
ROICexgc(5y)N/A
ROCE(3y)2.76%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y19.4%
ROICexc growth 3YN/A
ROICexc growth 5Y17.19%
OM growth 3Y17.96%
OM growth 5Y16.18%
PM growth 3Y19.82%
PM growth 5Y18.15%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.82 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 118.34% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.76% | ||
| Profit Quality | 69.93% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.34%
ROIC/WACC0.36
Cap/Depr(3y)102.82%
Cap/Depr(5y)110.07%
Cap/Sales(3y)0.95%
Cap/Sales(5y)1%
Profit Quality(3y)102.31%
Profit Quality(5y)102.38%
High Growth Momentum
Growth
EPS 1Y (TTM)12.33%
EPS 3Y15.74%
EPS 5Y8.01%
EPS Q2Q%9.79%
EPS Next Y12.8%
EPS Next 2Y9.38%
EPS Next 3Y9.4%
EPS Next 5Y8.76%
Revenue 1Y (TTM)4.49%
Revenue growth 3Y-2.01%
Revenue growth 5Y1.29%
Sales Q2Q%4.03%
Revenue Next Year4.47%
Revenue Next 2Y4.37%
Revenue Next 3Y4.33%
Revenue Next 5Y4.31%
EBIT growth 1Y37.8%
EBIT growth 3Y15.59%
EBIT growth 5Y17.68%
EBIT Next Year-0.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.67%
FCF growth 3Y30.7%
FCF growth 5Y-5.17%
OCF growth 1Y-11.09%
OCF growth 3Y26.27%
OCF growth 5Y-4.78%