The National Security Group, Inc., an insurance holding company, provides insurance products and services in the United States.
Unattractive dividend payer 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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NSEC underperformed the US Insurance industry which returned 17.4% over the past year.
Return vs Market: NSEC underperformed the US Market which returned 19.4% over the past year.
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
3 weeks ago | Simply Wall StJust 3 Days Before The National Security Group, Inc. (NASDAQ:NSEC) Will Be Trading Ex-Dividend
3 weeks ago | Simply Wall StIs The National Security Group, Inc.'s (NASDAQ:NSEC) P/E Ratio Really That Good?
4 weeks ago | Simply Wall StUpdate: National Security Group (NASDAQ:NSEC) Stock Gained 22% In The Last Year
Is National Security Group undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NSEC ($13.16) is trading above our estimate of fair value ($3.51)
Significantly Below Fair Value: NSEC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NSEC is poor value based on its PE Ratio (27.1x) compared to the Insurance industry average (13.6x).
PE vs Market: NSEC is poor value based on its PE Ratio (27.1x) compared to the US market (18.3x).
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 (1.1x).
How is National Security Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- 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.
- Explore growth companies in the Insurance industry.
How has National Security Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NSEC has high quality earnings.
Growing Profit Margin: NSEC's current net profit margins (1.9%) are lower than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: NSEC's earnings have declined by -42.8% per year over the past 5 years.
Accelerating Growth: NSEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NSEC had negative earnings growth (-50.9%) over the past year, making it difficult to compare to the Insurance industry average (22.4%).
Return on Equity
High ROE: NSEC's Return on Equity (2.4%) is considered low.
Return on Assets
Return on Capital Employed
How is National Security Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: NSEC has a low level of unsold assets or inventory.
Debt Coverage by Assets: NSEC's debt is covered by short term assets (assets are 1.7x debt).
Financial Institutions Analysis
Asset Level: NSEC's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if NSEC has a sufficient allowance for bad loans.
Low Risk Liabilities: NSEC reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if NSEC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: NSEC has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if NSEC has an appropriate level of bad loans.
What is National Security Group's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NSEC's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: NSEC's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (3.7%).
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: With its reasonably low payout ratio (41.1%), NSEC's dividend payments are well 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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Bill Brunson (61yo)
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 ($USD333.50K) is below average for companies of similar size in the US market ($USD519.76K).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
|VP of Finance & Operations||3.8yrs||US$284.32k||1.21% $401.6k|
|Independent Director||43.8yrs||US$28.00k||0.94% $313.4k|
|Chairman of the Board||2.1yrs||US$28.50k||0.45% $148.4k|
|Independent Director||23.8yrs||US$25.00k||3.9% $1.3m|
|Independent Director||16.1yrs||US$26.00k||0.69% $230.9k|
|Independent Director||18.1yrs||US$27.00k||1.61% $537.8k|
|Independent Director||18.1yrs||US$25.00k||0.41% $137.6k|
|Independent Director||3.8yrs||US$25.00k||0.40% $132.1k|
Experienced Board: NSEC's board of directors are seasoned and experienced ( 18.1 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The National Security Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: The National Security Group, Inc.
- Ticker: NSEC
- Exchange: NasdaqGM
- Founded: 1947
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$33.315m
- Shares outstanding: 2.53m
- Website: https://www.nationalsecuritygroup.com
Number of Employees
- The National Security Group, Inc.
- 661 East Davis Street
- PO Box 703
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NSEC||NasdaqGM (Nasdaq Global Market)||Yes||Common Shares||US||USD||Dec 1972|
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 Life Insurance. The Property and Casualty 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 services 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. The Life Insurance segment offers ordinary life, accident and health, supplemental hospital, and cancer insurance products in Alabama, Florida, Georgia, Mississippi, South Carolina, Tennessee, and Texas. The company distributes its products through independent agents, home service agents, and brokers. The National Security Group, Inc. was founded in 1947 and is based in Elba, Alabama.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 00:09|
|End of Day Share Price||2020/02/18 00:00|
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.