We assign a fundamental rating of 4 out of 10 to UNM. UNM was compared to 148 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. UNM also has an excellent dividend rating.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 comparable to the rest of the industry.
With a Return On Equity value of 8.37%, UNM is not doing good in the industry: 60.81% 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.
Measured over the past 3 years, the Average Return On Invested Capital for UNM is significantly below the industry average of 14.94%.

		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 has a Profit Margin (6.99%) which is in line with its industry peers.
In the last couple of years the Profit Margin of UNM has grown nicely.
UNM has a Operating Margin (10.48%) which is comparable to the rest of the 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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 5 years ago, UNM has less shares outstanding
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: 63.51% 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 (0.32) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.32
Debt/FCF	5.44
Altman-Z	N/A

ROIC/WACC0.22

WACC7.86%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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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.
UNM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.40% yearly.

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

Based on estimates for the next years, UNM will show a small growth in Earnings Per Share. The EPS will grow by 6.87% on average per year.
The Revenue is expected to grow by 3.77% on average over the next years.

EPS Next Y-0.48%

EPS Next 2Y4.71%

EPS Next 3Y6.87%

EPS Next 5Y6.87%

Revenue Next Year1.89%

Revenue Next 2Y2.54%

Revenue Next 3Y3.19%

Revenue Next 5Y3.77%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.27, the valuation of UNM can be described as very reasonable.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than 66.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.39, UNM is valued rather cheaply.
The Price/Forward Earnings ratio is 8.24, which indicates a very decent valuation of UNM.
66.89% of the companies in the same industry are more expensive than UNM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, UNM is valued rather cheaply.

		Industry Rank	Sector Rank
PE	9.27
Fwd PE	8.24

4.2 Price Multiples

UNM's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNM indicates a slightly more expensive valuation: UNM is more expensive than 61.49% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	18.53
EV/EBITDA	10.88

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)1.01

EPS Next 2Y4.71%

EPS Next 3Y6.87%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.39%, UNM has a reasonable but not impressive dividend return.
UNM's Dividend Yield is a higher than the industry average which is at 2.41.
Compared to an average S&P500 Dividend Yield of 1.82, UNM pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	2.39%

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.
UNM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP33.52%

EPS Next 2Y4.71%

EPS Next 3Y6.87%

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UNUM GROUP / UNM FAQ

Can you provide the ChartMill fundamental rating for UNUM GROUP?

ChartMill assigns a fundamental rating of 4 / 10 to UNM.

What is the valuation status of UNUM GROUP (UNM) stock?

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.

What is the valuation of UNUM GROUP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for UNUM GROUP (UNM) is 9.27 and the Price/Book (PB) ratio is 1.17.

How sustainable is the dividend of UNUM GROUP (UNM) stock?

The dividend rating of UNUM GROUP (UNM) is 7 / 10 and the dividend payout ratio is 33.52%.