ERIE

Erie IndemnityNasdaqGS:ERIE Stock Report

Market Cap

US$8.5b

7D

2.0%

1Y

-9.5%

Updated

22 Sep, 2021

Data

Company Financials +
ERIE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends4/6

ERIE Overview

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States.

Erie Indemnity Competitors

Cincinnati Financial

NasdaqGS:CINF

US$18.4b

Selective Insurance Group

NasdaqGS:SIGI

US$4.6b

State Auto Financial

NasdaqGS:STFC

US$2.3b

Heritage Insurance Holdings

NYSE:HRTG

US$195.4m

Price History & Performance

Summary of all time highs, changes and price drops for Erie Indemnity
Historical stock prices
Current Share PriceUS$184.06
52 Week HighUS$168.87
52 Week LowUS$266.77
Beta0.39
1 Month Change6.49%
3 Month Change-4.26%
1 Year Change-9.47%
3 Year Change45.50%
5 Year Change80.72%
Change since IPO1,038.51%

Recent News & Updates

Shareholder Returns

ERIEUS InsuranceUS Market
7D2.0%-2.0%-1.7%
1Y-9.5%40.9%36.2%

Return vs Industry: ERIE underperformed the US Insurance industry which returned 36.3% over the past year.

Return vs Market: ERIE underperformed the US Market which returned 31.5% over the past year.

Price Volatility

Is ERIE's price volatile compared to industry and market?
ERIE volatility
ERIE Beta0.39
Industry Beta0.97
Market Beta1

Stable Share Price: ERIE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ERIE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19255,865Tim NeCastrohttps://www.erieinsurance.com

Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. The company provides sales, underwriting, policy issuance, and renewal services for the policyholders on behalf of the Erie Insurance Exchange. Its sales related services include agent compensation, and sales and advertising support services; and underwriting services comprise underwriting and policy processing; and other services consist of customer services and administrative support services, as well as information technology services.

Erie Indemnity Fundamentals Summary

How do Erie Indemnity's earnings and revenue compare to its market cap?
ERIE fundamental statistics
Market CapUS$8.50b
Earnings (TTM)US$304.60m
Revenue (TTM)US$2.57b

27.9x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERIE income statement (TTM)
RevenueUS$2.57b
Cost of RevenueUS$2.25b
Gross ProfitUS$322.44m
ExpensesUS$17.84m
EarningsUS$304.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.83
Gross Margin12.53%
Net Profit Margin11.84%
Debt/Equity Ratio7.6%

How did ERIE perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

70%

Payout Ratio

Does ERIE pay a reliable dividends?

See ERIE dividend history and benchmarks
When do you need to buy ERIE by to receive an upcoming dividend?
Erie Indemnity dividend dates
Ex Dividend DateOct 04 2021
Dividend Pay DateOct 20 2021
Days until Ex dividend10 days
Days until Dividend pay date26 days

Does ERIE pay a reliable dividends?

See ERIE dividend history and benchmarks

Valuation

Is Erie Indemnity undervalued compared to its fair value and its price relative to the market?

27.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ERIE ($184.06) is trading above our estimate of fair value ($133.11)

Significantly Below Fair Value: ERIE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ERIE is poor value based on its PE Ratio (27.9x) compared to the US Insurance industry average (9.4x).

PE vs Market: ERIE is poor value based on its PE Ratio (27.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: ERIE is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: ERIE is overvalued based on its PB Ratio (6.8x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Erie Indemnity forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERIE's forecast earnings growth (5.2% per year) is above the savings rate (2%).

Earnings vs Market: ERIE's earnings (5.2% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: ERIE's revenue (4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ERIE's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ERIE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Erie Indemnity performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERIE has high quality earnings.

Growing Profit Margin: ERIE's current net profit margins (11.8%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: ERIE's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: ERIE's earnings growth over the past year (3.2%) is below its 5-year average (10.7% per year).

Earnings vs Industry: ERIE earnings growth over the past year (3.2%) underperformed the Insurance industry 76%.


Return on Equity

High ROE: ERIE's Return on Equity (24.5%) is considered high.


Financial Health

How is Erie Indemnity's financial position?


Financial Position Analysis

Short Term Liabilities: ERIE's short term assets ($746.8M) exceed its short term liabilities ($591.9M).

Long Term Liabilities: ERIE's short term assets ($746.8M) exceed its long term liabilities ($326.7M).


Debt to Equity History and Analysis

Debt Level: ERIE's debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ERIE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ERIE's debt is well covered by operating cash flow (361.6%).

Interest Coverage: ERIE earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Erie Indemnity current dividend yield, its reliability and sustainability?

2.25%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 23 2021Ex Dividend DateOct 04 2021Dividend Pay DateOct 20 202116 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ERIE's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: ERIE's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.9%), ERIE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Tim NeCastro (61 yo)

5.08yrs

Tenure

US$5,263,661

Compensation

Mr. Timothy Gerard NeCastro, also known as Tim, CPA, CIC, is President of Erie Indemnity Company since January 1, 2017 and its Chief Executive Officer since August 2016. Mr. NeCastro is President and Chief...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD5.26M) is about average for companies of similar size in the US market ($USD6.52M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ERIE's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: ERIE's board of directors are considered experienced (8.7 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

Erie Indemnity Company's employee growth, exchange listings and data sources


Key Information

  • Name: Erie Indemnity Company
  • Ticker: ERIE
  • Exchange: NasdaqGS
  • Founded: 1925
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$8.502b
  • Shares outstanding: 46.19m
  • Website: https://www.erieinsurance.com

Number of Employees


Location

  • Erie Indemnity Company
  • 100 Erie Insurance Place
  • Erie
  • Pennsylvania
  • 16530-0001
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 22:34
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.