DB:UI2

Stock Analysis Report

Executive Summary

Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States.

Rewards

Trading at 48.6% below its fair value

Revenue is forecast to grow 5.67% per year

Earnings grew by 182.5% over the past year

Pays a high and reliable dividend of 1.5%

Risk Analysis

Earnings are forecast to decline by an average of -10.9% per year for the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: UI2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

UI2

1.9%

DE Insurance

2.0%

DE Market


1 Year Return

4.0%

UI2

30.2%

DE Insurance

15.1%

DE Market

Return vs Industry: UI2 underperformed the German Insurance industry which returned 29.6% over the past year.

Return vs Market: UI2 underperformed the German Market which returned 15% over the past year.


Shareholder returns

UI2IndustryMarket
7 Day0.7%1.9%2.0%
30 Day2.8%5.7%1.0%
90 Day10.6%8.5%3.8%
1 Year5.4%4.0%35.9%30.2%18.6%15.1%
3 Yearn/a69.1%48.7%16.8%6.6%
5 Yearn/a103.9%63.3%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UI2 (€73) is trading below our estimate of fair value (€142.07)

Significantly Below Fair Value: UI2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UI2 is good value based on its PE Ratio (9.9x) compared to the Insurance industry average (12.7x).

PE vs Market: UI2 is good value based on its PE Ratio (9.9x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: UI2's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: UI2 is overvalued based on its PB Ratio (1.3x) compared to the DE Insurance industry average (1.2x).


Next Steps

Future Growth

How is Kemper forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UI2's earnings are forecast to decline over the next 3 years (-10.9% per year).

Earnings vs Market: UI2's earnings are forecast to decline over the next 3 years (-10.9% per year).

High Growth Earnings: UI2's earnings are forecast to decline over the next 3 years.

Revenue vs Market: UI2's revenue (5.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: UI2's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UI2's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Kemper performed over the past 5 years?

42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UI2 has high quality earnings.

Growing Profit Margin: UI2's current net profit margins (10.5%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: UI2's earnings have grown significantly by 42.9% per year over the past 5 years.

Accelerating Growth: UI2's earnings growth over the past year (182.5%) exceeds its 5-year average (42.9% per year).

Earnings vs Industry: UI2 earnings growth over the past year (182.5%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: UI2's Return on Equity (13.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kemper'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: UI2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: UI2's debt is covered by short term assets (assets are 2.6x debt).


Financial Institutions Analysis

Asset Level: UI2's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if UI2 has a sufficient allowance for bad loans.

Low Risk Liabilities: UI2 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if UI2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: UI2 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if UI2 has an appropriate level of bad loans.


Next Steps

Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.3%markettop25%3.6%industryaverage3.5%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: UI2's dividend (1.5%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: UI2's dividend (1.5%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: UI2's dividends per share have been stable in the past 10 years.

Growing Dividend: UI2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), UI2's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UI2's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Joe Lacher (50yo)

4.3yrs

Tenure

US$6,905,879

Compensation

Mr. Joseph Patrick Lacher, Jr., also known as Joe, has been the President, Chief Executive Officer and Director of Kemper Corporation since November 11, 2015. From November 2009 to July 2011, Mr. Lacher wa ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD6.91M) is above average for companies of similar size in the German market ($USD3.37M).

Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Lacher
President4.3yrsUS$6.91m0.11% $5.3m
James McKinney
Senior VP & CFO3.3yrsUS$2.23m0.043% $2.1m
John Boschelli
Senior VP & Chief Investment Officer10.8yrsUS$1.80m0.032% $1.6m
Duane Sanders
Senior VP and President of Property & Casualty Division0yrsUS$4.52m0.012% $610.4k
Mark Green
Executive VP of Business Development & Reinsurance and President of Life & Health Division0yrsUS$1.74m0.042% $2.1m
Charles Brooks
Senior Vice President of Operations & Systems2.9yrsUS$1.36m0.019% $947.8k
Richard Roeske
VP & Chief Accounting Officer20.5yrsUS$1.11m0.094% $4.6m
Christine Patrick
Vice President of Investor Relations0yrsno datano data
Carl Evans
Senior VP4.8yrsno data0.063% $3.1m
Barbara Ciesemier
Assistant Vice President of Corporate Communications2.1yrsno datano data

4.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: UI2's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Lacher
President4.3yrsUS$6.91m0.11% $5.3m
David Storch
Independent Director9.8yrsUS$196.21k0.015% $737.8k
George Cochran
Independent Director5yrsUS$219.25k0.0048% $236.6k
Robert Joyce
Non-Executive Chairman4.3yrsUS$305.71k0.0037% $184.4k
Christopher Sarofim
Director6.8yrsUS$192.21kno data
Kathleen Cronin
Independent Director5yrsUS$209.17kno data
Susan Whiting
Independent Director2.5yrsUS$193.68k0.0015% $73.8k
Lacy Johnson
Independent Director3.5yrsUS$188.45kno data
Teresa Canida
Independent Director1.6yrsUS$43.52k0.016% $804.7k

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: UI2's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Kemper Corporation
  • Ticker: UI2
  • Exchange: DB
  • Founded: 1990
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$5.329b
  • Listing Market Cap: US$4.918b
  • Shares outstanding: 66.67m
  • Website: https://www.kemper.com

Number of Employees


Location

  • Kemper Corporation
  • 200 East Randolph Street
  • Suite 3300
  • Chicago
  • Illinois
  • 60601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMPRNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1990
UI2DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1990
KMPR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD0.10BRBRLMay 2019

Biography

Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States. It operates through three segments: Preferred Property & Casualty Insurance, Specialty Property & Casualty Insurance, and Life and Health Insurance. The company provides automobile, homeowners, renters, fire, umbrella, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses. The company distributes its products through independent agents and brokers. The company also offers life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; Medicare supplement insurance; and limited health insurance coverages, such as fixed indemnity, specified disease, and accident-only plans to individuals in rural areas. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was founded in 1990 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:52
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.