UNUM GROUP (UNM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UNM - US91529Y1064 - Common Stock
75.86 USD
-0.53 (-0.69%)
75.86 USD
0 (0%)
UNM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium growth rate. Finally UNM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- UNM had positive earnings in the past year.
- UNM had a positive operating cash flow in the past year.
- Each year in the past 5 years UNM has been profitable.
- Each year in the past 5 years UNM had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.43%, UNM is in line with its industry, outperforming 43.24% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 8.37%, UNM is doing worse than 60.81% of the companies in the same industry.
- UNM has a Return On Invested Capital (1.70%) which is in line with its industry peers.
- 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 comparable to the rest of the industry.
- 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.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UNM is destroying value.
- Compared to 1 year ago, UNM has less shares outstanding
- The number of shares outstanding for UNM has been reduced compared to 5 years ago.
- 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.
- 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.
- UNM's Debt to Equity ratio of 0.32 is in line compared 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
WACC7.83%
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%.
- The Earnings Per Share has been growing by 9.18% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 2.13% in the past year.
- Measured over the past years, UNM shows a small growth in Revenue. The Revenue has been growing by 1.40% on average per year.
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.
- UNM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
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.
- 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
- A Price/Earnings ratio of 9.22 indicates a reasonable valuation of UNM.
- 66.89% of the companies in the same industry are more expensive than UNM, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of UNM to the average of the S&P500 Index (28.87), we can say UNM is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.20 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 25.96, UNM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
- UNM's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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 | 18.42 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y4.71%
EPS Next 3Y6.87%
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.
- 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 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
- UNM pays out 33.52% of its income as dividend. This is a 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 9.22 and the Price/Book (PB) ratio is 1.16.
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%.