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.

Risks

  • EMC Insurance Group is covered by less than 3 analysts.

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

-0.06%

NasdaqGS:EMCI

1.6%

US Insurance

0.8%

US Market


1 Year Return

46.7%

NasdaqGS:EMCI

9.9%

US Insurance

1.9%

US Market

EMCI outperformed the Insurance industry which returned 9.5% over the past year.

EMCI outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

EMCIIndustryMarket
7 Day-0.06%1.6%0.8%
30 Day-0.5%2.7%3.4%
90 Day-0.5%1.4%2.1%
1 Year51.1%46.7%12.6%9.9%4.2%1.9%
3 Year47.0%33.9%47.6%36.3%46.7%37.2%
5 Year120.9%89.6%71.8%51.2%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

23.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

EMC Insurance Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

EMC Insurance Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

EMC Insurance Group is overvalued based on earnings compared to the US Insurance industry average.

EMC Insurance Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

EMC Insurance Group is poor value based on expected growth next year.


Price Based on Value of Assets

EMC Insurance Group is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is EMC Insurance Group expected 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 Estimates


Future Annual Growth Analysis

EMC Insurance Group's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

EMC Insurance Group's earnings are expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).

EMC Insurance Group's revenue growth is positive but not above the United States of America market average.

EMC Insurance Group's earnings growth is positive but not above the United States of America market average.

EMC Insurance Group's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

EMC Insurance Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

EMC Insurance Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

EMC Insurance Group's 1-year earnings growth exceeds its 5-year average (48.3% vs -10%)

EMC Insurance Group's earnings growth has exceeded the US Insurance industry average in the past year (48.3% vs 3.1%).


Return on Equity

EMC Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

EMC Insurance Group used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

EMC Insurance Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is EMC Insurance Group's financial position?


Financial Position Analysis

EMC Insurance Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

EMC Insurance Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

EMC Insurance Group's level of debt (4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (5.1% vs 4% today).

Debt is well covered by operating cash flow (364.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 55.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.5x debt.


Next Steps

Dividend

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

2.70%

Expected Dividend Yield


Dividend Yield and Payments Analysis

EMC Insurance Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

EMC Insurance Group's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


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

Bruce's remuneration is about average for companies of similar size in United States of America.

Bruce's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.2yrs

Average Tenure

53yo

Average Age

The average tenure for the EMC Insurance Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.3yrs

Average Tenure

65yo

Average Age

The tenure for the EMC Insurance Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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$779.614m
  • 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 Analysis2019/09/17 23:34
End of Day Share Price2019/09/17 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.