MUN:UUM

Stock Analysis Report

Executive Summary

Unum Group, together with its subsidiaries, provides financial protection benefit solutions in the United States, the United Kingdom, and internationally.

Snowflake

Fundamentals

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

UUM

2.6%

DE Insurance

1.7%

DE Market


1 Year Return

n/a

UUM

23.6%

DE Insurance

7.2%

DE Market

Return vs Industry: Insufficient data to determine how UUM performed against the German Insurance industry.

Return vs Market: Insufficient data to determine how UUM performed against the German Market.


Shareholder returns

UUMIndustryMarket
7 Day0%2.6%1.7%
30 Day0%3.9%2.4%
90 Day-1.1%3.9%2.3%
1 Yearn/a29.0%23.6%10.6%7.2%
3 Yearn/a69.7%49.2%18.4%8.1%
5 Yearn/a119.2%75.5%42.3%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Unum Group 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: UUM (€29.31) is trading below our estimate of fair value (€104.39)

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


Price To Earnings Ratio

PE vs Industry: UUM is good value based on its PE Ratio (11.8x) compared to the Insurance industry average (13.4x).

PE vs Market: UUM is good value based on its PE Ratio (11.8x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: UUM is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: UUM is good value based on its PB Ratio (0.6x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Unum Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UUM's forecast earnings growth (7% per year) is above the savings rate (0.2%).

Earnings vs Market: UUM's earnings (7% per year) are forecast to grow slower than the German market (12.7% per year).

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

Revenue vs Market: UUM's revenue (2.6% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: UUM's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UUM's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Unum Group performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UUM's earnings have grown by 2.5% per year over the past 5 years.

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

Earnings vs Industry: UUM had negative earnings growth (-51.2%) over the past year, making it difficult to compare to the Insurance industry average (15.2%).


Return on Equity

High ROE: UUM's Return on Equity (5.6%) is considered low.


Return on Assets

ROA vs Industry: UUM has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: UUM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Unum Group'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: UUM has a low level of unsold assets or inventory.

Debt Coverage by Assets: UUM's debt is covered by short term assets (assets are 2.602720x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.94%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Unum Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.9%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: UUM's dividend (3.94%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: UUM's dividend (3.94%) is in the top 25% of dividend payers in the German market (3.83%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.6%), UUM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UUM's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Rick McKenney (50yo)

4.4yrs

Tenure

US$9,896,861

Compensation

Mr. Richard Paul McKenney, also known as Rick, has been the President of Unum Group since April 01, 2015 and has been its Chief Executive Officer since May 2015. Mr. McKenney served as Chief Financial Offi ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Rick's total compensation is reasonable compared to companies of similar size in the German market.

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


Management Age and Tenure

3.5yrs

Average Tenure

51.5yo

Average Age

Experienced Management: UUM's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

61yo

Average Age

Experienced Board: UUM's board of directors are considered experienced (4.6 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

SellUS$48,08930 May 19
Gloria Larson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,602
Max PriceUS$30.02

Ownership Breakdown


Management Team

  • Lisa Iglesias (53yo)

    Executive VP & General Counsel

    • Tenure: 4.8yrs
    • Compensation: US$1.79m
  • Rick McKenney (50yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$9.90m
  • Tom White

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Martha Leiper

    Executive VP & Chief Investment Officer

    • Tenure: 0yrs
  • Jack McGarry (61yo)

    Executive Officer

    • Tenure: 0.3yrs
    • Compensation: US$2.71m
  • Puneet Bhasin (56yo)

    Executive VP and Chief Information & Digital Officer

    • Tenure: 1.6yrs
  • Mike Simonds (45yo)

    Executive VP

    • Tenure: 6.3yrs
    • Compensation: US$2.53m
  • Tim Arnold (56yo)

    Executive VP

    • Tenure: 7.2yrs
    • Compensation: US$1.83m
  • Daniel Waxenberg (45yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 2.7yrs
  • Steve Zabel (50yo)

    Executive VP & CFO

    • Tenure: 0.3yrs

Board Members

  • Kevin Kabat (62yo)

    Non-Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: US$460.00k
  • Ron O’Hanley (62yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$269.99k
  • Gloria Larson (68yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$285.00k
  • Tim Keaney (57yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$279.99k
  • Theo Bunting (60yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$275.00k
  • Rick McKenney (50yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$9.90m
  • Fran Shammo (58yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$260.00k
  • Susan DeVore (60yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$287.43k
  • Cynthia Egan (64yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$290.00k
  • Joe Echevarria (62yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$259.99k

Company Information

Unum Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Unum Group
  • Ticker: UUM
  • Exchange: MUN
  • Founded: 1848
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$6.027b
  • Listing Market Cap: US$5.410b
  • Shares outstanding: 208.63m
  • Website: https://www.unum.com

Number of Employees


Location

  • Unum Group
  • 1 Fountain Square
  • Chattanooga
  • Tennessee
  • 37402
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNMNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1999
UUMDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1999
UUMMUN (Boerse Muenchen)YesCommon StockDEEURJul 1999
0LJNLSE (London Stock Exchange)YesCommon StockGBUSDJul 1999

Biography

Unum Group, together with its subsidiaries, provides financial protection benefit solutions in the United States, the United Kingdom, and internationally. It operates through Unum US, Unum International, C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:25
End of Day Share Price2019/07/26 00:00
Earnings2019/06/30
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.