UNUM GROUP (UNM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:UNM • US91529Y1064
74.79 USD
-1.04 (-1.37%)
Last: Jan 30, 2026, 11:21 AM
Taking everything into account, UNM scores 4 out of 10 in our fundamental rating. UNM was compared to 148 industry peers in the Insurance industry. There are concerns on the financial health of UNM while its profitability can be described as average. UNM is not valued too expensively and it also shows a decent growth rate. Finally UNM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year UNM was profitable.
- UNM had a positive operating cash flow in the past year.
- 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
- UNM has a Return On Assets (1.43%) which is comparable to the rest of the industry.
- UNM has a Return On Equity of 8.37%. This is in the lower half of the industry: UNM underperforms 60.81% of its industry peers.
- With a Return On Invested Capital value of 1.70%, UNM perfoms like the industry average, outperforming 43.24% of the companies in the same 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 14.94%.
| 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 comparable to the rest of the industry.
- UNM's Profit Margin has improved in the last couple of years.
- The Operating Margin of UNM (10.48%) is comparable to the rest of the industry.
- UNM's Operating Margin has improved in the last couple of years.
| 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
- 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.
- 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 5.44. This is a neutral value as UNM would need 5.44 years to pay back of all of its debts.
- The Debt to FCF ratio of UNM (5.44) is worse than 63.51% of its industry peers.
- UNM has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of UNM (0.32) is comparable to the rest of the industry.
| 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 |
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.
- UNM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.13%.
- 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
- The Earnings Per Share is expected to grow by 6.87% on average over the next years.
- Based on estimates for the next years, UNM will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
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.
- 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 9.09, the valuation of UNM can be described as very reasonable.
- UNM's Price/Earnings ratio is a bit cheaper when compared to the industry. UNM is cheaper than 68.92% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, UNM is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.08 indicates a reasonable valuation of UNM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of UNM indicates a somewhat cheap valuation: UNM is cheaper than 67.57% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 8.08 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as UNM.
- UNM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. UNM is more expensive than 60.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.16 | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y4.71%
EPS Next 3Y6.87%
5. Dividend
5.1 Amount
- UNM has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
- UNM's Dividend Yield is a higher than the industry average which is at 2.41.
- UNM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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 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%
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 9.09 and the Price/Book (PB) ratio is 1.15.
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%.