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 Analysis

Proven track record and slightly 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.


Market Performance


7 Day Return

-6.1%

NSEC

-7.0%

US Insurance

-2.8%

US Market


1 Year Return

19.6%

NSEC

-26.3%

US Insurance

-15.9%

US Market

Return vs Industry: NSEC exceeded the US Insurance industry which returned -26.3% over the past year.

Return vs Market: NSEC exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

NSECIndustryMarket
7 Day-6.1%-7.0%-2.8%
30 Dayn/a-27.7%-18.8%
90 Day-7.5%-34.1%-24.0%
1 Year21.7%19.6%-24.5%-26.3%-14.2%-15.9%
3 Year-12.9%-16.8%-12.8%-19.6%9.9%2.8%
5 Year-7.7%-13.7%9.3%-4.0%27.2%13.3%

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?

8.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NSEC ($13.97) is trading above our estimate of fair value ($3.37)

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 (8.7x) compared to the Insurance industry average (8.1x).

PE vs Market: NSEC is good value based on its PE Ratio (8.7x) compared to the US market (12.2x).


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 (0.7x) compared to the US Insurance industry average (0.8x).


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?

1.6%

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?

-36.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSEC has high quality earnings.

Growing Profit Margin: NSEC's current net profit margins (6%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: NSEC's earnings have declined by -36.8% per year over the past 5 years.

Accelerating Growth: NSEC's earnings growth over the past year (422.1%) exceeds its 5-year average (-36.8% per year).

Earnings vs Industry: NSEC earnings growth over the past year (422.1%) exceeded the Insurance industry 43.7%.


Return on Equity

High ROE: NSEC's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

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


Balance Sheet

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 1.8x 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.


Next Steps

Dividend

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

1.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NSEC's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: NSEC's dividend (1.72%) is low compared to the top 25% of dividend payers in the US market (5.82%).


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 low payout ratio (13.1%), NSEC's dividend payments are thoroughly 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?

18.3yrs

Average board tenure


CEO

Bill Brunson (61yo)

20.25s

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

Compensation vs Market: Bill's total compensation ($USD333.50K) is below average for companies of similar size in the US market ($USD626.05K).

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


Board Members

NamePositionTenureCompensationOwnership
William Brunson
President20.25yrsUS$333.50k17.61% $6.2m
Brian McLeod
VP of Finance & Operations3.92yrsUS$284.32k1.21% $426.3k
Mickey Murdock
Independent Director43.92yrsUS$28.00k0.94% $332.7k
Walter Wilkerson
Chairman of the Board2.25yrsUS$28.50k0.45% $157.5k
Jack Brunson
Director21.25yrsUS$238.91k4.67% $1.6m
Fred Clark
Independent Director23.92yrsUS$25.00k3.9% $1.4m
Frank O'Neil
Independent Director16.25yrsUS$26.00k0.69% $245.2k
Donald Pittman
Independent Director18.25yrsUS$27.00k1.61% $570.9k
Paul Wesch
Independent Director18.25yrsUS$25.00k0.41% $146.1k
L. White
Independent Director3.92yrsUS$25.00k0.40% $140.2k

18.3yrs

Average Tenure

63yo

Average Age

Experienced Board: NSEC's board of directors are seasoned and experienced ( 18.3 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.


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$35.356m
  • 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 02:08
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.