NasdaqGS:SAFT

Stock Analysis Report

Executive Summary

Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States.

Snowflake

Fundamentals

Excellent balance sheet with solid track record and pays a dividend.

Risks

  • Safety Insurance Group is not covered by any analysts.

Similar Companies

Share Price & News

How has Safety Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

NasdaqGS:SAFT

0.7%

US Insurance

1.3%

US Market


1 Year Return

4.7%

NasdaqGS:SAFT

9.3%

US Insurance

2.0%

US Market

SAFT underperformed the Insurance industry which returned 9.3% over the past year.

SAFT outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

SAFTIndustryMarket
7 Day2.5%0.7%1.3%
30 Day3.8%2.2%3.9%
90 Day5.8%1.9%3.4%
1 Year8.5%4.7%12.0%9.3%4.2%2.0%
3 Year71.6%52.9%47.8%36.5%47.2%37.6%
5 Year132.7%88.3%68.5%48.4%60.5%42.9%

Price Volatility Vs. Market

How volatile is Safety Insurance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Safety Insurance Group undervalued based on future cash flows and its price relative to the stock market?

14.89x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Safety Insurance Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Safety Insurance Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Safety Insurance Group is good value based on earnings compared to the US Insurance industry average.

Safety Insurance Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Safety Insurance Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Safety Insurance Group is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

-4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Safety Insurance Group is high growth as no revenue estimate data is available.

Safety Insurance Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Safety Insurance Group's revenue growth to the United States of America market average as no estimate data is available.

Safety Insurance Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Safety Insurance Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Safety Insurance Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Safety Insurance Group has delivered over 20% year on year earnings growth in the past 5 years.

Safety Insurance Group's 1-year earnings growth exceeds its 5-year average (58.2% vs 24.4%)

Safety Insurance Group's earnings growth has exceeded the US Insurance industry average in the past year (58.2% vs 3.1%).


Return on Equity

Safety Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Safety Insurance Group used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Safety Insurance Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Safety Insurance Group's financial position?


Financial Position Analysis

Safety Insurance Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Safety Insurance Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Safety Insurance Group has no debt.

Safety Insurance Group has not taken on any debt in the past 5 years.

Safety Insurance Group has no debt, it does not need to be covered by operating cash flow.

Safety Insurance Group has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Safety Insurance Group has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

3.57%

Current Dividend Yield


Dividend Yield and Payments Analysis

Safety Insurance Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Safety Insurance Group's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Safety Insurance Group's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

George Murphy (52yo)

3.4yrs

Tenure

US$3,093,689

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

George's remuneration is about average for companies of similar size in United States of America.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

55.5yo

Average Age

The tenure for the Safety Insurance Group management team is about average.


Board Age and Tenure

15.3yrs

Average Tenure

72.5yo

Average Age

The average tenure for the Safety Insurance Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$311,83426 Mar 19
David Krupa
EntityIndividual
Shares3,588
Max PriceUS$88.00
SellUS$87,81022 Mar 19
Peter Manning
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$87.81

Ownership Breakdown


Management Team

  • William Begley (64yo)

    VP, CFO

    • Tenure: 17.5yrs
    • Compensation: US$1.67m
  • George Murphy (52yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$3.09m
  • James Berry (59yo)

    Vice President of Underwriting

    • Tenure: 4.2yrs
    • Compensation: US$1.39m
  • John Drago (52yo)

    Vice President of Marketing

    • Tenure: 3.6yrs
  • Christopher Whitford

    Controller

    • Tenure: 4.7yrs

Board Members

  • Peter Manning (80yo)

    Director

    • Tenure: 16yrs
    • Compensation: US$160.05k
  • David McKown (81yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$155.05k
  • David Brussard (67yo)

    Chairman of the Board

    • Tenure: 15.5yrs
    • Compensation: US$210.05k
  • Frederic Lindeberg (78yo)

    Director

    • Tenure: 15.1yrs
    • Compensation: US$155.05k
  • George Murphy (52yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$3.09m
  • Thalia Meehan (58yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$150.05k

Company Information

Safety Insurance Group, Inc.'s company bio, 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
  • Market Cap: US$1.552b
  • Shares outstanding: 15.38m
  • Website: https://www.safetyinsurance.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAFTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2002
SFNDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2002

Biography

Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. The company’s private passenger automobile policie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:45
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.