UNM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
UNM had a positive operating cash flow in the past year.
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

The Return On Assets of UNM (1.43%) is comparable to the rest of the industry.
UNM has a worse Return On Equity (8.37%) than 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.
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

Looking at the Profit Margin, with a value of 6.99%, UNM is in line with its industry, outperforming 44.59% of the companies in the same industry.
UNM's Profit Margin has improved in the last couple of years.
UNM's Operating Margin of 10.48% is in line compared to the rest of the industry. UNM outperforms 41.22% of its industry peers.
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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UNM is destroying value.
UNM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, UNM has less shares outstanding
Compared to 1 year ago, UNM has a worse debt to assets ratio.

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.
Looking at the Debt to FCF ratio, with a value of 5.44, UNM is doing worse than 63.51% 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 50.00% of its industry peers.

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

ROIC/WACC0.22

WACC7.85%

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

UNM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.37%.
The Earnings Per Share has been growing by 9.18% on average over the past years. This is quite good.
Looking at the last year, UNM shows a small growth in Revenue. The Revenue has grown by 2.13% in the last 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.
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

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.
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

A Price/Earnings ratio of 9.23 indicates a reasonable valuation of UNM.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than the industry average as 68.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UNM to the average of the S&P500 Index (28.39), we can say UNM is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.21, the valuation of UNM can be described as very reasonable.
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.
UNM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.

		Industry Rank	Sector Rank
PE	9.23
Fwd PE	8.21

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UNM is on the same level as its industry peers.
60.14% of the companies in the same industry are cheaper than UNM, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	18.45
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.
Compared to an average industry Dividend Yield of 2.41, UNM pays a bit more dividend than its industry peers.
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 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.
The dividend of UNM is growing, but the earnings are growing slower. 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 9.23 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%.