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.

Rewards

Earnings grew by 48.3% over the past year

Pays a high and reliable dividend of 2.56%

Risk Analysis

No risks detected for EMCI from our risk checks.


Snowflake Analysis

Established dividend payer with proven track record.


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

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


Market Performance


7 Day Return

0.2%

EMCI

-6.1%

US Insurance

-4.1%

US Market


1 Year Return

47.0%

EMCI

-24.7%

US Insurance

-14.9%

US Market

Return vs Industry: EMCI exceeded the US Insurance industry which returned 20.4% over the past year.

Return vs Market: EMCI exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

EMCIIndustryMarket
7 Day0.2%-6.1%-4.1%
30 Day-0.8%-28.0%-19.1%
90 Day-0.03%-32.9%-23.4%
1 Year51.4%47.0%-22.9%-24.7%-13.2%-14.9%
3 Year41.3%28.7%-11.2%-18.1%10.7%3.5%
5 Year116.9%86.1%11.1%-2.4%28.5%14.5%

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

Below Fair Value: EMCI ($36.01) is trading above our estimate of fair value ($18.83)

Significantly Below Fair Value: 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 (16.4x).

PE vs Market: EMCI is poor value based on its PE Ratio (24x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMCI's forecast earnings growth (0.4% per year) is below the savings rate (2.7%).

Earnings vs Market: EMCI's earnings (0.4% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: EMCI's revenue (3.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: EMCI's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EMCI's Return on Equity is forecast to be low in 3 years time (5.9%).


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

Quality Earnings: EMCI has high quality earnings.

Growing Profit Margin: EMCI's current net profit margins (4.5%) are higher than last year (3.3%).


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 -11.3%.


Return on Equity

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


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 4.5x 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

Notable Dividend: EMCI's dividend (2.56%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: EMCI's dividend (2.56%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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

5.2yrs

Average management tenure


CEO

Bruce Kelley (65yo)

27.67s

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 ($USD2.20M) is about average for companies of similar size in the US market ($USD2.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Kelley
President27.67yrsUS$2.20m1.27% $9.9m
Mark Reese
Senior VP & CFO22.67yrsUS$668.20k0.099% $773.8k
Michael Lovell
Executive Vice President of Operations1.67yrsUS$1.30m0.041% $320.1k
Scott Jean
Executive Vice President of Finance & Strategy10.67yrsUS$1.19m0.095% $742.8k
Larry Phillips
Senior VP & Chief Field Officer4.67yrsUS$1.08m0.025% $195.6k
Bradley Fredericks
Senior VP & Chief Investment Officer5.67yrsno data0.023% $182.8k
Sanjeev Singh
Senior VP & Chief Information Officer0.92yrno datano data
Robert Link
Senior VP1.67yrsno data0.045% $352.5k
Steven Walsh
Assistant VP & Director of Investor Relations7.67yrsno datano data
Todd Strother
Senior VP3.67yrsno data0.0040% $31.3k

5.2yrs

Average Tenure

53yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Bruce Kelley
President27.67yrsUS$2.20m1.27% $9.9m
Stephen Crane
Chairman of the Board6.33yrsUS$179.53k0.070% $547.4k
Peter Christie
Director1.83yrsUS$133.05k0.012% $92.8k
Gretchen Tegeler
Director12.08yrsUS$155.88k0.084% $659.0k
Jonathan Fletcher
Director9.33yrsUS$136.13k0.062% $484.4k

9.3yrs

Average Tenure

65yo

Average Age

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


Ownership Breakdown

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


Top Shareholders

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 Insurance, and Reinsurance. The Property and Casualty Insurance segment underwrites commercial and personal lines of insurance products. Its commercial lines of insurance products comprise automobile, property, workers’ compensation, and liability, as well as other policies that provide protection with respect to burglary and theft loss, aircraft, marine, and other types of losses; and personal lines of insurance products include automobile, homeowners, and umbrella policies. The Reinsurance segment provides reinsurance for other insurers and reinsurers. EMC Insurance Group Inc. offers its products to small and medium-sized businesses, institutions, and individuals through independent insurance agents. The company was founded in 1974 and is based in Des Moines, Iowa. EMC Insurance Group Inc. is a subsidiary of Employers Mutual Casualty Company. 


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.