NasdaqGM:NSEC

Stock Analysis Report

Executive Summary

The National Security Group, Inc., an insurance holding company, provides insurance products and services in the United States.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.

Risks

  • National Security Group is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

NasdaqGM:NSEC

0.5%

US Insurance

0.9%

US Market


1 Year Return

-26.8%

NasdaqGM:NSEC

8.8%

US Insurance

0.3%

US Market

NSEC underperformed the Insurance industry which returned 8.3% over the past year.

NSEC underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

NSECIndustryMarket
7 Day0%0.5%0.9%
30 Day-1.2%-1.8%-1.9%
90 Day3.4%2.0%1.6%
1 Year-25.6%-26.8%11.5%8.8%2.6%0.3%
3 Year-40.3%-42.7%45.8%34.8%41.0%31.8%
5 Year4.4%-2.1%66.3%46.6%55.2%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is National Security Group undervalued based on future cash flows and its price relative to the stock market?

16.95x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

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

National Security Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for National Security Group, we can't assess if its growth is good value.


Price Based on Value of Assets

National Security Group is good value based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is National Security Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if National Security Group is high growth as no revenue estimate data is available.

National Security Group's earnings are expected to grow significantly at over 20% yearly.

Unable to compare National Security Group's revenue growth to the United States of America market average as no estimate data is available.

National Security Group's earnings growth is expected to exceed the United States of America market average.

National Security Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if National Security Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has National Security Group performed over the past 5 years?

-43.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

National Security Group's 1-year earnings growth exceeds its 5-year average (64.1% vs -43.2%)

National Security Group's earnings growth has exceeded the US Insurance industry average in the past year (64.1% vs 4.3%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is National Security Group's financial position?


Financial Position Analysis

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

National Security Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

National Security Group's level of debt (28.5%) 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 (61.2% vs 28.5% today).

Debt is not well covered by operating cash flow (15.2%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Dividend Yield and Payments Analysis

National Security Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

National Security Group's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

17.6yrs

Average board tenure


CEO

Bill Brunson (61yo)

19.6yrs

Tenure

US$333,504

Compensation

Mr. William Lister Brunson, Jr., also known as Bill, serves as a Director of National Security Group, Inc. since 1999 and as President and Chief Executive Officer of the National Security Group, Inc since  ...


CEO Compensation Analysis

Bill's remuneration is lower than average for companies of similar size in United States of America.

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


Board Age and Tenure

17.6yrs

Average Tenure

63.5yo

Average Age

The average tenure for the National Security Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by National Security Group individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$2,79120 Jun 19
Brian McLeod
EntityIndividual
Role
Member of the Board of Directors
VP of Finance & Operations
Shares232
Max PriceUS$12.18
BuyUS$69,31316 May 19
Meridian Investments, LLC
EntityCompany
Shares5,505
Max PriceUS$14.27
BuyUS$11,92510 Apr 19
Brian McLeod
EntityIndividual
Role
Member of the Board of Directors
VP of Finance & Operations
Shares1,000
Max PriceUS$11.93
BuyUS$1,76322 Mar 19
Brian McLeod
EntityIndividual
Role
Member of the Board of Directors
VP of Finance & Operations
Shares141
Max PriceUS$12.50
SellUS$19,85914 Dec 18
Meridian Investments, LLC
EntityCompany
Shares1,581
Max PriceUS$12.70
BuyUS$18,36029 Nov 18
Fred Clark
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,360
Max PriceUS$13.50
BuyUS$2,50221 Nov 18
Brian McLeod
EntityIndividual
Role
Member of the Board of Directors
VP of Finance & Operations
Shares200
Max PriceUS$12.51
BuyUS$99,56608 Nov 18
Meridian Investments, LLC
EntityCompany
Shares7,378
Max PriceUS$13.50
BuyUS$2,80030 Oct 18
Meridian Investments, LLC
EntityCompany
Shares200
Max PriceUS$14.00
BuyUS$40,60023 Oct 18
Meridian Investments, LLC
EntityCompany
Shares2,800
Max PriceUS$14.50
BuyUS$8,51216 Oct 18
Meridian Investments, LLC
EntityCompany
Shares587
Max PriceUS$14.50
BuyUS$36,06212 Oct 18
Meridian Investments, LLC
EntityCompany
Shares2,487
Max PriceUS$14.50
BuyUS$19,43003 Oct 18
Meridian Investments, LLC
EntityCompany
Shares1,340
Max PriceUS$14.50
BuyUS$50,71925 Sep 18
Meridian Investments, LLC
EntityCompany
Shares3,467
Max PriceUS$14.63
BuyUS$19,01221 Sep 18
Meridian Investments, LLC
EntityCompany
Shares1,316
Max PriceUS$14.50
BuyUS$1,15414 Sep 18
Meridian Investments, LLC
EntityCompany
Shares78
Max PriceUS$14.80
BuyUS$79505 Sep 18
Brian McLeod
EntityIndividual
Role
Member of the Board of Directors
VP of Finance & Operations
Shares50
Max PriceUS$15.89

Ownership Breakdown


Management Team

  • Bill Brunson (61yo)

    President

    • Tenure: 19.6yrs
    • Compensation: US$333.50k
  • Brian McLeod (50yo)

    VP of Finance & Operations

    • Tenure: 3.3yrs
    • Compensation: US$284.32k
  • Laura Jordan

    Secretary

    • Tenure: 0.0yrs
  • Betty Brunson

    Human Resources Director

    • Tenure: 0.0yrs

Board Members

  • Bill Brunson (61yo)

    President

    • Tenure: 19.6yrs
    • Compensation: US$333.50k
  • Mickey Murdock (77yo)

    Director

    • Tenure: 43.3yrs
    • Compensation: US$28.00k
  • Walter Wilkerson (71yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: US$28.50k
  • Jack Brunson (63yo)

    Director

    • Tenure: 20.6yrs
    • Compensation: US$238.91k
  • Fred Clark (59yo)

    Director

    • Tenure: 23.3yrs
    • Compensation: US$25.00k
  • Frank O'Neil (66yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$26.00k
  • Donald Pittman (59yo)

    Director

    • Tenure: 17.6yrs
    • Compensation: US$27.00k
  • Paul Wesch (64yo)

    Director

    • Tenure: 17.6yrs
    • Compensation: US$25.00k
  • Fleming Brooks (74yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$23.00k
  • Brian McLeod (50yo)

    VP of Finance & Operations

    • Tenure: 3.3yrs
    • Compensation: US$284.32k

Company Information

The National Security Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The National Security Group, Inc.
  • Ticker: NSEC
  • Exchange: NasdaqGM
  • Founded: 1947
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$28.972m
  • Shares outstanding: 2.53m
  • Website: https://www.nationalsecuritygroup.com

Number of Employees


Location

  • The National Security Group, Inc.
  • 661 East Davis Street
  • PO Box 703
  • Elba
  • Alabama
  • 36323
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSECNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDDec 1972

Biography

The National Security Group, Inc., an insurance holding company, provides insurance products and services in the United States. The company operates in two segments, Property and Casualty Insurance, and Li ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 23:40
End of Day Share Price2019/08/09 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.