Zurich Insurance Group (SWX:ZURN) - Share price, News & Analysis

Q: What is the Fair Price of ZURN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ZURN (CHF428.4) is trading below our estimate of [[fair value]] (CHF1150.19)

ZURN fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	3/6
Financial Health	4/6
Dividends	6/6

ZURN Stock Overview

Zurich Insurance Group AG, together with its subsidiaries, provides insurance products and related services in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific.

Rewards

Trading at 62.8% below our estimate of its fair value

Earnings are forecast to grow 7.9% per year

Earnings have grown 11.2% per year over the past 5 years

Pays a high and reliable dividend of 5.14%

Risk Analysis

No risks detected for ZURN from our risk checks.

Zurich Insurance Group Competitors

Bâloise Holding

SWX:BALN

CHF6.9b

Helvetia Holding

SWX:HELN

CHF5.8b

Vaudoise Assurances Holding

SWX:VAHN

CHF1.2b

Swiss Re

SWX:SREN

CHF21.6b

Price History & Performance

Summary of all time highs, changes and price drops for Zurich Insurance Group
Historical stock prices
Current Share Price	CHF427.20
52 Week High	CHF461.70
52 Week Low	CHF374.60
Beta	0.64
1 Month Change	3.92%
3 Month Change	-1.16%
1 Year Change	5.33%
3 Year Change	22.97%
5 Year Change	46.25%
Change since IPO	-49.68%

Shareholder Returns

	ZURN	CH Insurance	CH Market
7D	-3.1%	-2.4%	-0.5%
1Y	5.3%	1.9%	-12.3%

Return vs Industry: ZURN exceeded the Swiss Insurance industry which returned 1.9% over the past year.

Return vs Market: ZURN exceeded the Swiss Market which returned -12.3% over the past year.

Price Volatility

Is ZURN's price volatile compared to industry and market?
ZURN volatility
ZURN Average Weekly Movement	3.0%
Insurance Industry Average Movement	3.2%
Market Average Movement	4.6%
10% most volatile stocks in CH Market	7.9%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: ZURN is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ZURN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1872	56,000	Mario Greco	https://www.zurich.com

Zurich Insurance Group AG, together with its subsidiaries, provides insurance products and related services in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific. The company operates through Property & Casualty Regions, Life Regions, Farmers, Group Functions and Operations, and Non-Core Businesses segments. It offers car, home, travel, general liability, life and critical illness, worker injury, and other insurance products; and saving and investment, and pension and retirement planning products.

Zurich Insurance Group Fundamentals Summary

How do Zurich Insurance Group's earnings and revenue compare to its market cap?
ZURN fundamental statistics
Market Cap	CHF63.35b
Earnings (TTM)	CHF5.00b
Revenue (TTM)	CHF45.79b

12.7x

P/E Ratio

1.4x

P/S Ratio

Is ZURN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZURN income statement (TTM)
Revenue	US$47.75b
Cost of Revenue	US$31.24b
Gross Profit	US$16.51b
Other Expenses	US$11.30b
Earnings	US$5.21b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 10, 2022

Earnings per share (EPS)	35.15
Gross Margin	34.58%
Net Profit Margin	10.92%
Debt/Equity Ratio	57.2%

How did ZURN perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

69%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ZURN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZURN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ZURN. This is calculated by dividing ZURN's market cap by their current preferred multiple.
What is ZURN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$66.07b

ZURN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	10x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does ZURN's PE Ratio compare to its peers?

ZURN PE Ratio vs Peers

The above table shows the PE ratio for ZURN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.6x
BALN Bâloise Holding	11.7x	4.4%	CHF6.9b
HELN Helvetia Holding	11.9x	6.6%	CHF5.8b
VAHN Vaudoise Assurances Holding	9.2x	n/a	CHF1.2b
SREN Swiss Re	41.1x	30.4%	CHF21.6b
ZURN Zurich Insurance Group	12.7x	7.9%	CHF63.5b

Price-To-Earnings vs Peers: ZURN is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (18.5x).

Price to Earnings Ratio vs Industry

How does ZURN's PE Ratio compare vs other companies in the European Insurance Industry?

Price-To-Earnings vs Industry: ZURN is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the Swiss Insurance industry average (12.3x)

Price to Earnings Ratio vs Fair Ratio

What is ZURN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZURN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.7x
Fair PE Ratio	19x

Price-To-Earnings vs Fair Ratio: ZURN is good value based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (19x).

Share Price vs Fair Value

What is the Fair Price of ZURN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZURN (CHF428.4) is trading below our estimate of fair value (CHF1150.19)

Significantly Below Fair Value: ZURN is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Zurich Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZURN's forecast earnings growth (7.9% per year) is above the savings rate (-0.2%).

Earnings vs Market: ZURN's earnings (7.9% per year) are forecast to grow slower than the Swiss market (8.8% per year).

High Growth Earnings: ZURN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZURN's revenue (3.2% per year) is forecast to grow slower than the Swiss market (4.4% per year).

High Growth Revenue: ZURN's revenue (3.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ZURN's Return on Equity is forecast to be low in 3 years time (17.8%).

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Past Performance

How has Zurich Insurance Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZURN has high quality earnings.

Growing Profit Margin: ZURN's current net profit margins (10.9%) are higher than last year (6.8%).

Past Earnings Growth Analysis

Earnings Trend: ZURN's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: ZURN's earnings growth over the past year (7.6%) is below its 5-year average (11.2% per year).

Earnings vs Industry: ZURN earnings growth over the past year (7.6%) underperformed the Insurance industry 14.2%.

Return on Equity

High ROE: ZURN's Return on Equity (18.9%) is considered low.

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Financial Health

How is Zurich Insurance Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZURN's short term assets ($96.8B) exceed its short term liabilities ($61.6B).

Long Term Liabilities: ZURN's short term assets ($96.8B) do not cover its long term liabilities ($295.8B).

Debt to Equity History and Analysis

Debt Level: ZURN's net debt to equity ratio (2%) is considered satisfactory.

Reducing Debt: ZURN's debt to equity ratio has increased from 39.2% to 57.2% over the past 5 years.

Debt Coverage: ZURN's debt is well covered by operating cash flow (28.7%).

Interest Coverage: ZURN's interest payments on its debt are well covered by EBIT (16.8x coverage).

Balance Sheet

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Dividend

What is Zurich Insurance Group current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

5.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ZURN's dividend (5.14%) is higher than the bottom 25% of dividend payers in the Swiss market (1.83%).

High Dividend: ZURN's dividend (5.14%) is in the top 25% of dividend payers in the Swiss market (3.97%)

Stability and Growth of Payments

Stable Dividend: ZURN's dividends per share have been stable in the past 10 years.

Growing Dividend: ZURN's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (68.8%), ZURN's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (81.2%), ZURN's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure

CEO

Mario Greco (63 yo)

6.42yrs

Tenure

US$10,092,035

Compensation

Mr. Mario Greco has been the Group Chief Executive Officer and Member of the Executive Committee at Zurich Insurance Group AG since March 07, 2016. Mr. Greco served as the Group Chief Executive Officer of...

CEO Compensation Analysis

Compensation vs Market: Mario's total compensation ($USD10.09M) is above average for companies of similar size in the Swiss market ($USD6.96M).

Compensation vs Earnings: Mario's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ZURN's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: ZURN's board of directors are considered experienced (6.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/19 00:00
End of Day Share Price	2022/08/19 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31