UNUM GROUP (UNM) Stock Fundamental Analysis
NYSE:UNM - New York Stock Exchange, Inc. - US91529Y1064 - Common Stock - Currency: USD
UNM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 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. 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.
UNM had positive earnings in each of the past 5 years.
Of the past 5 years UNM 4 years had a positive operating cash flow.
1.2 Ratios
UNM has a Return On Assets (2.75%) which is comparable to the rest of the industry.
UNM's Return On Equity of 16.08% is fine compared to the rest of the industry. UNM outperforms 67.38% of its industry peers.
With a decent Return On Invested Capital value of 2.99%, UNM is doing good in the industry, outperforming 63.12% 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 in line with the industry average of 4.59%.
The last Return On Invested Capital (2.99%) for UNM is above the 3 year average (2.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 16.08% | ||
| ROIC | 2.99% |
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 13.76% is fine compared to the rest of the industry. UNM outperforms 73.76% of its industry peers.
UNM's Profit Margin has improved in the last couple of years.
The Operating Margin of UNM (19.01%) is better than 74.47% of its industry peers.
In the last couple of years the Operating Margin of UNM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.01% | ||
| PM (TTM) | 13.76% | ||
| 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.
Compared to 1 year ago, UNM has less shares outstanding
UNM has less shares outstanding than it did 5 years ago.
UNM has a worse debt/assets ratio than last year.
2.2 Solvency
UNM has a debt to FCF ratio of 2.82. This is a good value and a sign of high solvency as UNM would need 2.82 years to pay back of all of its debts.
With a Debt to FCF ratio value of 2.82, UNM perfoms like the industry average, outperforming 45.39% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that UNM is not too dependend on debt financing.
UNM has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: UNM outperforms 46.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | N/A |
ROIC/WACC0.37
WACC8.07%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
UNM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.18%, which is quite good.
The Earnings Per Share has been growing by 9.18% on average over the past years. This is quite good.
UNM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.05%.
The Revenue has been growing slightly by 1.40% on average over the past years.
EPS 1Y (TTM)10.18%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%13.41%
Revenue 1Y (TTM)4.05%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%2.91%
3.2 Future
UNM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.21% yearly.
Based on estimates for the next years, UNM will show a small growth in Revenue. The Revenue will grow by 4.26% on average per year.
EPS Next Y9.65%
EPS Next 2Y9.14%
EPS Next 3Y9.21%
EPS Next 5YN/A
Revenue Next Year4.39%
Revenue Next 2Y4.57%
Revenue Next 3Y4.26%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 8.77, the valuation of UNM can be described as reasonable.
Based on the Price/Earnings ratio, UNM is valued a bit cheaper than the industry average as 70.92% of the companies are valued more expensively.
UNM is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.00, the valuation of UNM can be described as reasonable.
Based on the Price/Forward Earnings ratio, UNM is valued a bit cheaper than the industry average as 75.18% of the companies are valued more expensively.
UNM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNM is valued a bit cheaper than 75.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UNM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.74 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
UNM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UNM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)0.96
EPS Next 2Y9.14%
EPS Next 3Y9.21%
5. Dividend
5.1 Amount
UNM has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.09, UNM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, UNM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of UNM is nicely growing with an annual growth rate of 7.55%!
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)7.55%
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.
UNM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.51%
EPS Next 2Y9.14%
EPS Next 3Y9.21%
74.06
-0.73 (-0.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners90.07%
Inst Owner Change-1.58%
Ins Owners0.94%
Ins Owner Change-5.28%
Market Cap13.23B
Analysts76.67
Price Target88.09 (18.94%)
Short Float %1.38%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend1.42
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)6.76%
PT rev (3m)23.67%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0.97%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 8 | ||
| P/S | 1.03 | ||
| P/FCF | 10.74 | ||
| P/OCF | 9.65 | ||
| P/B | 1.21 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)8.44
EY11.4%
EPS(NY)9.25
Fwd EY12.5%
FCF(TTM)6.9
FCFY9.31%
OCF(TTM)7.68
OCFY10.36%
SpS71.65
BVpS61.32
TBVpS59.35
PEG (NY)0.91
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 16.08% | ||
| ROCE | 3.8% | ||
| ROIC | 2.99% | ||
| ROICexc | 3% | ||
| ROICexgc | 3.65% | ||
| OM | 19.01% | ||
| PM (TTM) | 13.76% | ||
| GM | N/A | ||
| FCFM | 9.62% |
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
ROICexcg growth 3Y21.55%
ROICexcg growth 5Y12.44%
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-Score8
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-Score8
WACC8.07%
ROIC/WACC0.37
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.18%
EPS 3Y24.82%
EPS 5Y9.18%
EPS Q2Q%13.41%
EPS Next Y9.65%
EPS Next 2Y9.14%
EPS Next 3Y9.21%
EPS Next 5YN/A
Revenue 1Y (TTM)4.05%
Revenue growth 3Y2.37%
Revenue growth 5Y1.4%
Sales Q2Q%2.91%
Revenue Next Year4.39%
Revenue Next 2Y4.57%
Revenue Next 3Y4.26%
Revenue Next 5YN/A
EBIT growth 1Y37.8%
EBIT growth 3Y17.11%
EBIT growth 5Y8.74%
EBIT Next Year-1.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.72%
OCF growth 3YN/A
OCF growth 5YN/A