UNUM GROUP (UNM) Stock Fundamental Analysis
USA - NYSE:UNM - US91529Y1064 - Common Stock
76.545 USD
-0.03 (-0.05%)
Taking everything into account, UNM scores 5 out of 10 in our fundamental rating. UNM was compared to 147 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
UNM had positive earnings in the past year.
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 54.42% of the companies in the same industry.
UNM has a better Return On Equity (13.42%) than 65.31% of its industry peers.
UNM has a Return On Invested Capital (2.68%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UNM is in line with the industry average of 4.46%.
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's Profit Margin of 11.77% is fine compared to the rest of the industry. UNM outperforms 70.07% of its industry peers.
In the last couple of years the Profit Margin of UNM has grown nicely.
UNM has a better Operating Margin (16.48%) than 71.43% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UNM 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.
The debt/assets ratio for UNM is higher compared to a year ago.
2.2 Solvency
UNM has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as UNM would need 2.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.59, UNM is in line with its industry, outperforming 50.34% of the companies in the same industry.
UNM has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of UNM (0.31) 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
WACC7.68%
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.
UNM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.18% yearly.
Looking at the last year, UNM shows a small growth in Revenue. The Revenue has grown by 1.86% in the last year.
The Revenue has been growing slightly by 1.40% on average over the past years.
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
UNM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.50% yearly.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y1.72%
EPS Next 2Y5.84%
EPS Next 3Y7.56%
EPS Next 5Y6.5%
Revenue Next Year2.2%
Revenue Next 2Y2.59%
Revenue Next 3Y2.67%
Revenue Next 5Y3.58%
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 9.26.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than 66.67% of the companies in the same industry.
UNM is valuated cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.10 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNM is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
UNM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.03 | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of UNM may justify a higher PE ratio.
PEG (NY)5.39
PEG (5Y)1.01
EPS Next 2Y5.84%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.31, UNM pays a bit more dividend than its industry peers.
UNM's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
On average, the dividend of UNM grows each year by 7.77%, which is quite nice.
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)7.77%
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 2Y5.84%
EPS Next 3Y7.56%
NYSE:UNM (10/22/2025, 11:51:08 AM)
76.545
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners92.01%
Inst Owner Change0.01%
Ins Owners0.89%
Ins Owner Change1.09%
Market Cap13.04B
Revenue(TTM)12.91B
Net Income(TTM)1.52B
Analysts78.89
Price Target94.7 (23.72%)
Short Float %1.74%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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)-0.17%
PT rev (3m)-4.04%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-5.98%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-4.48%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 8.1 | ||
| P/S | 1.01 | ||
| P/FCF | 9.03 | ||
| P/OCF | 8.26 | ||
| P/B | 1.15 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 6.95 |
EPS(TTM)8.27
EY10.8%
EPS(NY)9.45
Fwd EY12.35%
FCF(TTM)8.48
FCFY11.08%
OCF(TTM)9.26
OCFY12.1%
SpS75.78
BVpS66.47
TBVpS64.39
PEG (NY)5.39
PEG (5Y)1.01
Graham Number111.21
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
WACC7.68%
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 Y1.72%
EPS Next 2Y5.84%
EPS Next 3Y7.56%
EPS Next 5Y6.5%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%3.96%
Revenue Next Year2.2%
Revenue Next 2Y2.59%
Revenue Next 3Y2.67%
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%