NasdaqGM:NSEC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Imperfect balance sheet and overvalued.

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

Stable Share Price: NSEC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

NSEC

-2.5%

US Insurance

-2.4%

US Market


1 Year Return

-7.2%

NSEC

-14.2%

US Insurance

18.2%

US Market

Return vs Industry: NSEC exceeded the US Insurance industry which returned -13.5% over the past year.

Return vs Market: NSEC underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

NSECIndustryMarket
7 Day0%-2.5%-2.4%
30 Day0.008%0.2%4.2%
90 Day-22.0%-1.7%6.3%
1 Year-5.7%-7.2%-11.8%-14.2%20.9%18.2%
3 Year-5.2%-9.5%-1.6%-8.7%41.2%31.8%
5 Year-7.6%-13.8%36.6%19.4%84.8%63.9%

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 compared to its fair value and its price relative to the market?

0.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NSEC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NSEC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NSEC is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: NSEC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NSEC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NSEC is good value based on its PB Ratio (0.6x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

25.6%

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.


Next Steps

Past Performance

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

-38.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSEC is currently unprofitable.

Growing Profit Margin: NSEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NSEC is unprofitable, and losses have increased over the past 5 years at a rate of 38.7% per year.

Accelerating Growth: Unable to compare NSEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NSEC is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-3.3%).


Return on Equity

High ROE: NSEC has a negative Return on Equity (-6.97%), as it is currently unprofitable.


Next Steps

Financial Health

How is National Security Group's financial position?


Financial Position Analysis

Short Term Liabilities: NSEC's short term assets ($24.7M) do not cover its short term liabilities ($43.2M).

Long Term Liabilities: NSEC's short term assets ($24.7M) do not cover its long term liabilities ($61.1M).


Debt to Equity History and Analysis

Debt Level: NSEC's debt to equity ratio (30.1%) is considered satisfactory.

Reducing Debt: NSEC's debt to equity ratio has reduced from 45.1% to 30.1% over the past 5 years.

Debt Coverage: NSEC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if NSEC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NSEC's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: NSEC's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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.


Current Payout to Shareholders

Dividend Coverage: NSEC is paying a dividend but the company is unprofitable.


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?

17.8yrs

Average board tenure


CEO

Bill Brunson (62 yo)

20.75yrs

Tenure

US$330,292

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 ($USD330.29K) is below average for companies of similar size in the US market ($USD585.94K).

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


Board Members

NamePositionTenureCompensationOwnership
William Brunson
President20.75yrsUS$330.29k17.63%
$ 5.3m
Brian McLeod
VP of Finance & Operations4.42yrsUS$277.67k1.23%
$ 367.9k
Mickey Murdock
Independent Director44.42yrsUS$28.00k0.94%
$ 282.4k
Walter Wilkerson
Independent Chairman of the Board2.75yrsUS$28.50k0.45%
$ 133.7k
Jack Brunson
Director21.75yrsUS$237.81k2.88%
$ 864.9k
Fred Clark
Independent Director24.42yrsUS$25.00k3.92%
$ 1.2m
Frank O'Neil
Independent Director16.75yrsUS$26.00k0.76%
$ 229.0k
Donald Pittman
Independent Director18.75yrsUS$27.00k1.61%
$ 484.6k
Paul Wesch
Independent Director18.75yrsUS$25.00k0.41%
$ 124.0k
L. White
Independent Director4.42yrsUS$25.00k0.40%
$ 119.1k
Fleming Brooks
Independent Director16.75yrsUS$23.00k0.33%
$ 98.0k
Elizabeth Crawford
Independent Director3.42yrsUS$23.00k0.17%
$ 51.9k

17.8yrs

Average Tenure

64yo

Average Age

Experienced Board: NSEC's board of directors are seasoned and experienced ( 17.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NSEC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$30.023m
  • 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 Analysis2020/10/19 23:32
End of Day Share Price2020/10/09 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.