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SAFT

Safety Insurance GroupNasdaqGS:SAFT Stock Report

Last Price

US$80.69

Market Cap

US$1.2b

7D

-4.3%

1Y

4.3%

Updated

22 Jan, 2022

Data

Company Financials
SAFT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends5/6

SAFT Stock Overview

Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States.

Safety Insurance Group Competitors

Chubb

NYSE:CB

US$82.7b

Cincinnati Financial

NasdaqGS:CINF

US$18.4b

First American Financial

NYSE:FAF

US$8.1b

Selective Insurance Group

NasdaqGS:SIGI

US$4.6b

Price History & Performance

Summary of all time highs, changes and price drops for Safety Insurance Group
Historical stock prices
Current Share PriceUS$80.69
52 Week HighUS$87.98
52 Week LowUS$72.75
Beta0.31
1 Month Change-1.70%
3 Month Change-0.54%
1 Year Change4.28%
3 Year Change-2.54%
5 Year Change10.53%
Change since IPO525.50%

Recent News & Updates

Dec 28
Should You Be Adding Safety Insurance Group (NASDAQ:SAFT) To Your Watchlist Today?

Should You Be Adding Safety Insurance Group (NASDAQ:SAFT) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Nov 07
Safety Insurance Group (NASDAQ:SAFT) Is Due To Pay A Dividend Of US$0.90

Safety Insurance Group (NASDAQ:SAFT) Is Due To Pay A Dividend Of US$0.90

The board of Safety Insurance Group, Inc. ( NASDAQ:SAFT ) has announced that it will pay a dividend on the 15th of...

Shareholder Returns

SAFTUS InsuranceUS Market
7D-4.3%-4.0%-6.1%
1Y4.3%19.4%4.2%

Return vs Industry: SAFT underperformed the US Insurance industry which returned 19.4% over the past year.

Return vs Market: SAFT matched the US Market which returned 4.2% over the past year.

Price Volatility

Is SAFT's price volatile compared to industry and market?
SAFT volatility
SAFT Average Weekly Movement2.8%
Insurance Industry Average Movement4.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

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

Volatility Over Time: SAFT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1979586George Murphyhttps://www.safetyinsurance.com

Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States. The company’s private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured’s car occupants, and physical damage coverage for an insured’s own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy.

Safety Insurance Group Fundamentals Summary

How do Safety Insurance Group's earnings and revenue compare to its market cap?
SAFT fundamental statistics
Market CapUS$1.21b
Earnings (TTM)US$152.22m
Revenue (TTM)US$893.53m

7.9x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAFT income statement (TTM)
RevenueUS$893.53m
Cost of RevenueUS$701.26m
Gross ProfitUS$192.26m
ExpensesUS$40.04m
EarningsUS$152.22m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.16
Gross Margin21.52%
Net Profit Margin17.04%
Debt/Equity Ratio3.2%

How did SAFT perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is Safety Insurance Group undervalued compared to its fair value and its price relative to the market?

46.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAFT ($80.69) is trading below our estimate of fair value ($149.56)

Significantly Below Fair Value: SAFT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAFT is good value based on its PE Ratio (7.9x) compared to the US Insurance industry average (10.9x).

PE vs Market: SAFT is good value based on its PE Ratio (7.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SAFT is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.1x).


Future Growth

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

3.4%

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 Safety Insurance 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.


Past Performance

How has Safety Insurance Group performed over the past 5 years?

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAFT has high quality earnings.

Growing Profit Margin: SAFT's current net profit margins (17%) are higher than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: SAFT's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: SAFT's earnings growth over the past year (34.9%) exceeds its 5-year average (21.7% per year).

Earnings vs Industry: SAFT earnings growth over the past year (34.9%) underperformed the Insurance industry 38.1%.


Return on Equity

High ROE: SAFT's Return on Equity (16.3%) is considered low.


Financial Health

How is Safety Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: SAFT's short term assets ($394.4M) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: SAFT's short term assets ($394.4M) exceed its long term liabilities ($88.8M).


Debt to Equity History and Analysis

Debt Level: SAFT has more cash than its total debt.

Reducing Debt: Insufficient data to determine if SAFT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SAFT's debt is well covered by operating cash flow (479.8%).

Interest Coverage: SAFT's interest payments on its debt are well covered by EBIT (368.3x coverage).


Balance Sheet


Dividend

What is Safety Insurance Group current dividend yield, its reliability and sustainability?

4.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAFT's dividend (4.46%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: SAFT's dividend (4.46%) is in the top 25% of dividend payers in the US market (3.61%)


Stability and Growth of Payments

Stable Dividend: SAFT's dividends per share have been stable in the past 10 years.

Growing Dividend: SAFT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), SAFT'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.


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

George Murphy (54 yo)

5.75yrs

Tenure

US$3,450,570

Compensation

Mr. George Michael Murphy, CPCU, has been Chief Executive Officer and President at Safety Insurance Group, Inc. since April 1, 2016. Mr. Murphy has been employed by Safety Insurance’s Insurance Subsidiarie...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD3.45M) is about average for companies of similar size in the US market ($USD3.74M).

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


Leadership Team

Experienced Management: SAFT's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: SAFT's board of directors are seasoned and experienced ( 11.7 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

Safety Insurance Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Safety Insurance Group, Inc.
  • Ticker: SAFT
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: US$1.209b
  • Shares outstanding: 14.98m
  • Website: https://www.safetyinsurance.com

Number of Employees


Location

  • Safety Insurance Group, Inc.
  • 20 Custom House Street
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:30
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.