LSE:0LJN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: 0LJN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

252.6%

0LJN

-12.6%

GB Insurance

-2.2%

GB Market


1 Year Return

10.6%

0LJN

-38.7%

GB Insurance

-25.9%

GB Market

Return vs Industry: 0LJN exceeded the UK Insurance industry which returned -38.7% over the past year.

Return vs Market: 0LJN exceeded the UK Market which returned -25.9% over the past year.


Shareholder returns

0LJNIndustryMarket
7 Day252.6%-12.6%-2.2%
30 Day51.5%-28.0%-21.7%
90 Dayn/a-35.9%-29.6%
1 Year14.8%10.6%-31.8%-38.7%-22.2%-25.9%
3 Yearn/a-26.9%-39.7%-16.1%-26.6%
5 Yearn/a-21.2%-41.1%-4.6%-26.2%

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: 0LJN ($38.79) is trading below our estimate of fair value ($287.12)

Significantly Below Fair Value: 0LJN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0LJN is good value based on its PE Ratio (2.6x) compared to the Insurance industry average (11.9x).

PE vs Market: 0LJN is good value based on its PE Ratio (2.6x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: 0LJN is poor value based on its PEG Ratio (40.4x)


Price to Book Ratio

PB vs Industry: 0LJN is good value based on its PB Ratio (0.3x) compared to the GB Insurance industry average (1.2x).


Next Steps

Future Growth

How is Unum Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

0.06%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0LJN's forecast earnings growth (0.06% per year) is below the savings rate (0.5%).

Earnings vs Market: 0LJN's earnings (0.06% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: 0LJN's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0LJN's revenue (2.3% per year) is forecast to grow slower than the UK market (2.6% per year).

High Growth Revenue: 0LJN's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0LJN's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Unum Group performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0LJN has high quality earnings.

Growing Profit Margin: 0LJN's current net profit margins (9.2%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: 0LJN's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: 0LJN's earnings growth over the past year (110.2%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: 0LJN earnings growth over the past year (110.2%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: 0LJN's Return on Equity (11%) is considered low.


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: 0LJN has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0LJN's debt is covered by short term assets (assets are 2.5x debt).


Financial Institutions Analysis

Asset Level: 0LJN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0LJN has a sufficient allowance for bad loans.

Low Risk Liabilities: 0LJN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0LJN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0LJN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0LJN has an appropriate level of bad loans.


Next Steps

Dividend

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

8.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0LJN's dividend (8.47%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: 0LJN's dividend (8.47%) is in the top 25% of dividend payers in the UK market (7.42%)


Stability and Growth of Payments

Stable Dividend: 0LJN's dividends per share have been stable in the past 10 years.

Growing Dividend: 0LJN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.3%), 0LJN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0LJN's dividends in 3 years are forecast to be well covered by earnings (21.7% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Rick McKenney (50yo)

4.92s

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 is responsible for evaluating  ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD9.90M) is above average for companies of similar size in the UK market ($USD2.55M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard McKenney
President4.92yrsUS$9.90m0.23% $6.2m
Michael Simonds
Executive VP & COO0.17yrUS$2.53m0.044% $1.2m
Lisa Iglesias
Executive VP & General Counsel5.25yrsUS$1.79m0.025% $690.8k
Timothy Arnold
Executive VP of Voluntary Benefits & President of Colonial Life7.67yrsUS$1.83m0.017% $456.9k
Steven Zabel
Executive VP & CFO0.75yrno data0.0055% $150.0k
Martha Leiper
Executive VP & Chief Investment Officer0.50yrno datano data
Cherie Pashley
Senior VP & Chief Accounting Officer0.17yrno data0.0016% $44.5k
Puneet Bhasin
Executive VP and Chief Information & Digital Officer2.08yrsno data0.0042% $115.3k
Thomas A. White
Senior Vice President of Investor Relationsno datano datano data
Jim Sabourin
Senior Vice President of Corporate Communications5.42yrsno datano data

2.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 0LJN's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard McKenney
President4.92yrsUS$9.90m0.23% $6.2m
Kevin Kabat
Non-Executive Chairman2.92yrsUS$460.00k0.019% $522.2k
Ronald O'Hanley
Independent Director5.17yrsUS$269.99k0.0055% $150.3k
Gloria Larson
Independent Director15.42yrsUS$285.00k0.041% $1.1m
Timothy Keaney
Independent Director7.67yrsUS$279.99k0.014% $392.7k
Theodore Bunting
Independent Director6.42yrsUS$275.00k0.000010% $273.3
Francis Shammo
Independent Director4.75yrsUS$260.00k0.0037% $101.9k
Susan DeVore
Independent Director2.17yrsUS$287.43k0.00037% $10.1k
Cynthia Egan
Independent Director5.75yrsUS$290.00k0.0063% $173.0k
Joseph Echevarria
Independent Director4yrsUS$259.99kno data

5.1yrs

Average Tenure

61yo

Average Age

Experienced Board: 0LJN's board of directors are considered experienced (5.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Unum Group
  • Ticker: 0LJN
  • Exchange: LSE
  • Founded: 1848
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$2.733b
  • Shares outstanding: 203.02m
  • 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
UUMBRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 1999

Biography

Unum Group, together with its subsidiaries, provides financial protection benefit solutions in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segments. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other products. The company sells its products primarily to employers for the benefit of employees. Unum Group sells its products through field sales personnel, independent brokers, and consultants, as well as independent contractor agency sales force. The company was founded in 1848 and is based in Chattanooga, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 02:23
End of Day Share Price2020/04/03 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.