National Security Group (NasdaqGM:NSEC) - Share price, News & Analysis

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

NSEC fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	2/6

NSEC Stock Overview

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

Rewards

Became profitable this year

Risk Analysis

Earnings have declined by 32.5% per year over past 5 years

Does not have a meaningful market cap ($41M)

National Security Group Competitors

ICC Holdings

NasdaqCM:ICCH

US$50.5m

ACMAT

OTCPK:ACMT.A

US$44.8m

Conifer Holdings

NasdaqGM:CNFR

US$26.5m

Trean Insurance Group

NasdaqGS:TIG

US$256.5m

Price History & Performance

Summary of all time highs, changes and price drops for National Security Group
Historical stock prices
Current Share Price	US$16.36
52 Week High	US$16.48
52 Week Low	US$8.91
Beta	-0.38
1 Month Change	0.80%
3 Month Change	1.81%
1 Year Change	40.24%
3 Year Change	39.23%
5 Year Change	14.81%
Change since IPO	93.10%

Shareholder Returns

	NSEC	US Insurance	US Market
7D	0.1%	5.9%	3.6%
1Y	40.2%	3.6%	-9.6%

Return vs Industry: NSEC exceeded the US Insurance industry which returned 1.4% over the past year.

Return vs Market: NSEC exceeded the US Market which returned -20.8% over the past year.

Price Volatility

Is NSEC's price volatile compared to industry and market?
NSEC volatility
NSEC Average Weekly Movement	1.0%
Insurance Industry Average Movement	4.9%
Market Average Movement	7.7%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: NSEC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: NSEC's weekly volatility has decreased from 14% to 1% over the past year.

About the Company

Founded	Employees	CEO	Website
1947	72	Bill Brunson	https://www.nationalsecuritygroup.com

The National Security Group, Inc., an insurance holding company, provides insurance products and services in the United States. It operates in two segments, Property and Casualty (P&C) Insurance, and Life Insurance. The P&C Insurance segment primarily underwrites home insurance coverage with primary lines of business consisting of dwelling fire and extended coverage, mobile homeowners, and other liability insurance in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee, and West Virginia, as well as operates on a surplus lines basis in the state of Louisiana.

National Security Group Fundamentals Summary

How do National Security Group's earnings and revenue compare to its market cap?
NSEC fundamental statistics
Market Cap	US$41.43m
Earnings (TTM)	US$823.00k
Revenue (TTM)	US$66.13m

50.3x

P/E Ratio

0.6x

P/S Ratio

Is NSEC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NSEC income statement (TTM)
Revenue	US$66.13m
Cost of Revenue	US$52.30m
Gross Profit	US$13.83m
Other Expenses	US$13.01m
Earnings	US$823.00k

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.32
Gross Margin	20.91%
Net Profit Margin	1.24%
Debt/Equity Ratio	32.7%

How did NSEC perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

74%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is NSEC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NSEC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NSEC. This is calculated by dividing NSEC's market cap by their current preferred multiple.
What is NSEC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$41.43m

NSEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	20.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does NSEC's PE Ratio compare to its peers?

NSEC PE Ratio vs Peers

The above table shows the PE ratio for NSEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	100.9x
ICCH ICC Holdings	n/a	n/a	US$50.5m
ACMT.A ACMAT	n/a	n/a	US$44.8m
CNFR Conifer Holdings	n/a	98.5%	US$26.5m
TIG Trean Insurance Group	10x	3.4%	US$256.5m
NSEC National Security Group	50.3x	n/a	US$41.4m

Price-To-Earnings vs Peers: NSEC is good value based on its Price-To-Earnings Ratio (50.3x) compared to the peer average (100.9x).

Price to Earnings Ratio vs Industry

How does NSEC's PE Ratio compare vs other companies in the US Insurance Industry?

Price-To-Earnings vs Industry: NSEC is expensive based on its Price-To-Earnings Ratio (50.3x) compared to the US Insurance industry average (11.7x)

Price to Earnings Ratio vs Fair Ratio

What is NSEC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NSEC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	50.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NSEC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of NSEC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate NSEC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NSEC's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.3%

Forecasted Insurance industry annual growth in earnings

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 National Security 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.

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Take a look at our analysis of NSEC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-32.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NSEC has high quality earnings.

Growing Profit Margin: NSEC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: NSEC's earnings have declined by 32.5% per year over the past 5 years.

Accelerating Growth: NSEC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NSEC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (-2.6%).

Return on Equity

High ROE: NSEC's Return on Equity (2%) is considered low.

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Financial Health

How is National Security Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NSEC's short term assets ($31.6M) do not cover its short term liabilities ($46.0M).

Long Term Liabilities: NSEC's short term assets ($31.6M) do not cover its long term liabilities ($63.0M).

Debt to Equity History and Analysis

Debt Level: NSEC's net debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: NSEC's debt to equity ratio has reduced from 36.6% to 32.7% over the past 5 years.

Debt Coverage: NSEC's debt is well covered by operating cash flow (25.3%).

Interest Coverage: NSEC's interest payments on its debt are not well covered by EBIT (2.8x coverage).

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.47%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NSEC's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: NSEC's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (4.3%).

Stability and Growth of Payments

Stable Dividend: NSEC's dividend payments have been volatile in the past 10 years.

Growing Dividend: NSEC's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (73.8%), NSEC's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.6%), NSEC's dividend payments are well covered by cash flows.

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Management

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

19.4yrs

Average board tenure

CEO

Bill Brunson (63 yo)

22.42yrs

Tenure

US$325,538

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

Compensation vs Market: Bill's total compensation ($USD325.54K) is below average for companies of similar size in the US market ($USD760.83K).

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

Board Members

Experienced Board: NSEC's board of directors are seasoned and experienced ( 19.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31