Safety Insurance Group, Inc. (NASDAQ:SAFT) Has Attractive Fundamentals

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Attractive stocks have exceptional fundamentals. In the case of Safety Insurance Group, Inc. (NASDAQ:SAFT), there’s is a financially-sound , dividend-paying company with a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Safety Insurance Group here.

Excellent balance sheet with solid track record and pays a dividend

SAFT delivered a bottom-line expansion of 75% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did SAFT outperformed its past performance, its growth also exceeded the Insurance industry expansion, which generated a 4.0% earnings growth. This paints a buoyant picture for the company. Investors should not worry about SAFT’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NasdaqGS:SAFT Income Statement, July 20th 2019
NasdaqGS:SAFT Income Statement, July 20th 2019

SAFT is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NasdaqGS:SAFT Historical Dividend Yield, July 20th 2019
NasdaqGS:SAFT Historical Dividend Yield, July 20th 2019

Next Steps:

For Safety Insurance Group, I’ve put together three key factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for SAFT’s future growth? Take a look at our free research report of analyst consensus for SAFT’s outlook.
  2. Valuation: What is SAFT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SAFT is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SAFT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.