DB:ALS

Stock Analysis Report

Executive Summary

The Allstate Corporation, through its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada.

Rewards

Trading at 53.1% below its fair value

Pays a high and reliable dividend of 1.75%

Risk Analysis

Earnings are forecast to decline by an average of -11.5% per year for the next 3 years

Profit margins (5.8%) are lower than last year (9.4%)



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Allstate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

ALS

1.4%

DE Insurance

0.5%

DE Market


1 Year Return

39.7%

ALS

27.4%

DE Insurance

15.5%

DE Market

Return vs Industry: ALS exceeded the German Insurance industry which returned 29.2% over the past year.

Return vs Market: ALS exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

ALSIndustryMarket
7 Day2.5%1.4%0.5%
30 Day4.7%0.5%1.4%
90 Day8.9%3.0%5.3%
1 Year42.5%39.7%32.9%27.4%19.2%15.5%
3 Year58.0%49.3%62.4%42.8%15.7%5.5%
5 Year84.7%68.0%94.6%55.8%27.3%10.1%

Price Volatility Vs. Market

How volatile is Allstate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Allstate undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALS (€102.38) is trading below our estimate of fair value (€218.45)

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


Price To Earnings Ratio

PE vs Industry: ALS is poor value based on its PE Ratio (15.4x) compared to the Insurance industry average (11.9x).

PE vs Market: ALS is good value based on its PE Ratio (15.4x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: ALS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ALS is overvalued based on its PB Ratio (1.6x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

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

-12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALS's earnings are forecast to decline over the next 3 years (-11.5% per year).

Earnings vs Market: ALS's earnings are forecast to decline over the next 3 years (-11.5% per year).

High Growth Earnings: ALS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALS's revenue (1.8% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: ALS's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALS's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has Allstate performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALS has high quality earnings.

Growing Profit Margin: ALS's current net profit margins (5.8%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: ALS's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: ALS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALS had negative earnings growth (-35.1%) over the past year, making it difficult to compare to the Insurance industry average (7.8%).


Return on Equity

High ROE: ALS's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Allstate's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ALS has a low level of unsold assets or inventory.

Debt Coverage by Assets: ALS's debt is covered by short term assets (assets are 3.4x debt).


Financial Institutions Analysis

Asset Level: ALS's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ALS has a sufficient allowance for bad loans.

Low Risk Liabilities: ALS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ALS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ALS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ALS has an appropriate level of bad loans.


Next Steps

Dividend

What is Allstate's current dividend yield, its reliability and sustainability?

1.70%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: ALS's dividend (1.75%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: ALS's dividend (1.75%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.4%), ALS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALS's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).


Next Steps

Management

What is the CEO of Allstate's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Tom Wilson (61yo)

13yrs

Tenure

US$18,687,246

Compensation

Mr. Thomas Joseph Wilson, II, also known as Tom, has been the Chairman of The Allstate Corporation since May, 2008, as its Chief Executive Officer since January 1, 2007 and President since February 23, 201 ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD18.69M) is above average for companies of similar size in the German market ($USD4.52M).

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


Management Age and Tenure

3.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ALS's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: ALS's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell€704,18925 Sep 19
Susan Lees
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares7,150
Max Price€98.49
Sell€82,21308 Aug 19
Jesse Merten
EntityIndividual
Shares900
Max Price€91.35
Sell€916,90506 Aug 19
Mary Jane Fortin
EntityIndividual
Shares9,773
Max Price€93.82
Sell€718,60127 Jun 19
Susan Lees
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares8,000
Max Price€89.83
Sell€201,68025 Jun 19
Judith Sprieser
EntityIndividual
Role
Lead Director
Lead Director
Shares2,225
Max Price€90.64

Ownership Breakdown

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


Management Team

  • Samuel Pilch (72yo)

    Senior Group VP & Controller of Allstate Insurance Company

    • Tenure: 24yrs
    • Compensation: US$1.85m
  • Tom Wilson (61yo)

    Chairman

    • Tenure: 13yrs
    • Compensation: US$18.69m
  • Steve Shebik (62yo)

    Vice Chairman

    • Tenure: 2yrs
    • Compensation: US$7.16m
  • Julie Parsons

    Executive Vice President of Allstate Personal Lines Product at Allstate Insurance Company

    • John Pintozzi (53yo)

      Senior VP

      • Tenure: 0.3yrs
    • John Dugenske (52yo)

      President of Investments & Financial Products - Allstate Investments

      • Compensation: US$6.76m
    • Susie Lees (61yo)

      Executive VP

      • Tenure: 7.6yrs
    • Mario Rizzo (52yo)

      Executive VP & CFO

      • Tenure: 2yrs
      • Compensation: US$4.33m
    • John Griek

      Director

      • Tenure: 4yrs
    • Elizabeth Brady (54yo)

      Executive VP and Chief Marketing

      • Tenure: 1.4yrs

    Board Members

    • Tom Wilson (61yo)

      Chairman

      • Tenure: 13yrs
      • Compensation: US$18.69m
    • Mike Eskew (69yo)

      Independent Director

      • Tenure: 5.5yrs
      • Compensation: US$296.06k
    • Bobby Mehta (61yo)

      Independent Director

      • Tenure: 5.9yrs
      • Compensation: US$305.06k
    • Judy Sprieser (66yo)

      Lead Director

      • Tenure: 4.7yrs
      • Compensation: US$330.06k
    • Gregg Sherrill (66yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$280.06k
    • Perry Traquina (62yo)

      Independent Director

      • Tenure: 3.6yrs
      • Compensation: US$280.06k
    • Andrea Redmond (63yo)

      Independent Director

      • Tenure: 10yrs
      • Compensation: US$300.06k
    • Kermit Crawford (60yo)

      Independent Director

      • Tenure: 7yrs
      • Compensation: US$302.46k
    • Margaret Keane (60yo)

      Independent Director

      • Tenure: 2yrs
      • Compensation: US$344.66k
    • Jacques Perold (60yo)

      Independent Director

      • Tenure: 4.1yrs
      • Compensation: US$280.06k

    Company Information

    The Allstate Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: The Allstate Corporation
    • Ticker: ALS
    • Exchange: DB
    • Founded: 1931
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: US$38.113b
    • Listing Market Cap: US$34.375b
    • Shares outstanding: 323.96m
    • Website: https://www.allstate.com

    Number of Employees


    Location

    • The Allstate Corporation
    • 2775 Sanders Road
    • Northbrook
    • Illinois
    • 60062
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ALLNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1993
    ALSDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1993
    ALSXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1993
    0HCZLSE (London Stock Exchange)YesCommon StockGBUSDJun 1993
    ALL.PRBNYSE (New York Stock Exchange)SUB DEB 53USUSDJan 2013
    ALL.PRGNYSE (New York Stock Exchange)DEP 1/1000 PFD GUSUSDMar 2018
    ALL.PRHNYSE (New York Stock Exchange)DP SHS PFD HUSUSDAug 2019
    ALL.PRINYSE (New York Stock Exchange)4.75 DP PFD IUSUSDNov 2019

    Biography

    The Allstate Corporation, through its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The company operates through Allstate Protection, Service Businesses, Allstate Life, and Allstate Benefits segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance; other personal lines products, such as renter, condominium, landlord, boat, umbrella, and manufactured home insurance; and commercial lines products under the Allstate, Esurance, and Encompass brand names. The Service Businesses segment provides consumer electronics and appliance protection plans covering TVs, smartphones, and computers; device and mobile data collection services, analytics and customer risk assessment solutions, and telematics services; roadside assistance services, such as towing, jump-start, lockout, fuel delivery, and tire change services; and vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel protection, and paintless dent repair protection services under the SquareTrade, Arity, Allstate Roadside Services, and Allstate Dealer Services brands. The Allstate Life Segment offers term, whole, interest-sensitive, and variable life insurance products, as well as non-proprietary retirement product solutions offered by third-party providers. Its Allstate Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products. The company sells its products through agencies, as well as directly through contact centers and Internet; and financial specialists, brokers, relationships with wholesale partners, and affinity groups. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 20:38
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.