NasdaqGS:EMCI

Stock Analysis Report

Executive Summary

EMC Insurance Group Inc., an insurance holding company, provides property and casualty insurance, and reinsurance products in the United States.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

EMCI

0.5%

US Insurance

1.3%

US Market


1 Year Return

47.0%

EMCI

15.0%

US Insurance

5.9%

US Market

Return vs Industry: EMCI exceeded the US Insurance industry which returned 15% over the past year.

Return vs Market: EMCI exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

EMCIIndustryMarket
7 Day0.2%0.5%1.3%
30 Day-0.8%-1.5%-1.9%
90 Day-0.03%-3.3%-1.8%
1 Year51.4%47.0%17.8%15.0%8.3%5.9%
3 Year41.3%28.7%42.1%31.2%45.6%36.2%
5 Year116.9%86.1%74.2%53.4%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is EMC Insurance Group undervalued compared to its fair value and its price relative to the market?

24.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: EMCI ($36.01) is trading above our estimate of fair value ($18.83)

Significantly Undervalued: EMCI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EMCI is poor value based on its PE Ratio (24x) compared to the Insurance industry average (15.6x).

PE vs Market: EMCI is poor value based on its PE Ratio (24x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: EMCI is poor value based on its PEG Ratio (62.2x)


Price to Book Ratio

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


Next Steps

Future Growth

How is EMC Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.4%

Forecasted annual earnings growth


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as EMC Insurance Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-10.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EMCI's earnings have declined by -10% per year over the past 5 years.

Accelerating Growth: EMCI's earnings growth over the past year (48.3%) exceeds its 5-year average (-10% per year).

Earnings vs Industry: EMCI earnings growth over the past year (48.3%) exceeded the Insurance industry 3.1%.


Return on Equity

High ROE: EMCI's Return on Equity (5.1%) is considered low.


Return on Assets

ROA vs Industry: EMCI's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is EMC Insurance 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: EMCI has a low level of unsold assets or inventory.

Debt Coverage by Assets: EMCI's debt is covered by short term assets (assets are 4.474200x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.56%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EMCI's dividend (2.56%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: EMCI's dividend (2.56%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.7%), EMCI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EMCI's dividends in 3 years are forecast to be covered by earnings (57.4% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Bruce Kelley (65yo)

27.7yrs

Tenure

US$2,195,027

Compensation

Mr. Bruce G. Kelley, J.D., CPCU, CLU, has been the President and Chief Executive Officer of EMC Insurance Group Inc. and Employers Mutual Casualty Company since 1992. Mr. Kelley has been Treasurer of EMC I ...


CEO Compensation Analysis

Compensation vs. Market: Bruce's total compensation ($USD2.20M) is about average for companies of similar size in the US market ($USD2.76M).

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


Management Age and Tenure

5.2yrs

Average Tenure

53yo

Average Age

Experienced Management: EMCI's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

65yo

Average Age

Experienced Board: EMCI's board of directors are considered experienced (9.3 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

BuyUS$11,255,65328 Jan 19
Gregory Shepard
EntityIndividual
Shares349,900
Max PriceUS$32.17

Ownership Breakdown


Management Team

  • Bruce Kelley (65yo)

    President

    • Tenure: 27.7yrs
    • Compensation: US$2.20m
  • Mark Reese (61yo)

    Senior VP & CFO

    • Tenure: 22.7yrs
    • Compensation: US$668.20k
  • Robert Link (61yo)

    Senior VP

    • Tenure: 1.7yrs
  • Mick Lovell (56yo)

    Executive Vice President of Operations

    • Tenure: 1.7yrs
    • Compensation: US$1.30m
  • Scott Jean (47yo)

    Executive Vice President of Finance & Strategy

    • Tenure: 10.7yrs
    • Compensation: US$1.19m
  • Bradley Fredericks (45yo)

    Senior VP & Chief Investment Officer

    • Tenure: 5.7yrs
  • Larry Phillips (65yo)

    Senior VP & Chief Field Officer

    • Tenure: 4.7yrs
    • Compensation: US$1.08m
  • Todd Strother (50yo)

    Senior VP

    • Tenure: 3.7yrs
  • Steve Walsh (37yo)

    Assistant VP & Director of Investor Relations

    • Tenure: 7.7yrs
  • Sanjeev Singh (49yo)

    Senior VP & Chief Information Officer

    • Tenure: 0.9yrs

Board Members

  • Bruce Kelley (65yo)

    President

    • Tenure: 27.7yrs
    • Compensation: US$2.20m
  • Stephen Crane (73yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$179.53k
  • Peter Christie (72yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$133.05k
  • Gretchen Tegeler (63yo)

    Director

    • Tenure: 12.1yrs
    • Compensation: US$155.88k
  • Jonathan Fletcher (45yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: US$136.13k

Company Information

EMC Insurance Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EMC Insurance Group Inc.
  • Ticker: EMCI
  • Exchange: NasdaqGS
  • Founded: 1974
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$780.481m
  • Shares outstanding: 21.67m
  • Website: https://investors.emcins.com

Location

  • EMC Insurance Group Inc.
  • 717 Mulberry Street
  • Des Moines
  • Iowa
  • 50309
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMCINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1982

Biography

EMC Insurance Group Inc., an insurance holding company, provides property and casualty insurance, and reinsurance products in the United States. It operates through two segments, Property and Casualty Insu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:12
End of Day Share Price2019/09/19 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.