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

Solid track record average dividend payer.


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

-1.5%

SAFT

-0.01%

US Insurance

1.0%

US Market


1 Year Return

19.6%

SAFT

15.1%

US Insurance

6.7%

US Market

Return vs Industry: SAFT exceeded the US Insurance industry which returned 15.1% over the past year.

Return vs Market: SAFT exceeded the US Market which returned 6.7% over the past year.


Share holder returns

SAFTIndustryMarket
7 Day-1.5%-0.01%1.0%
30 Day-2.6%-1.6%-1.8%
90 Day1.8%-3.5%-1.8%
1 Year23.9%19.6%17.9%15.1%9.1%6.7%
3 Year62.5%44.8%42.0%31.1%46.1%36.6%
5 Year104.4%65.4%74.5%53.7%66.9%48.6%

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?

14.51x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: SAFT ($98.32) is trading above our estimate of fair value ($61.66)

Significantly Undervalued: SAFT is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: SAFT is good value based on its PE Ratio (14.5x) compared to the Insurance industry average (15.6x).

PE vs Market: SAFT is good value based on its PE Ratio (14.5x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: SAFT is overvalued based on its PB Ratio (1.9x) compared to the US Insurance industry average (1.2x).


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

Earnings vs Savings Rate: SAFT's earnings are forecast to decline over the next 3 years (-4.8% per year).

Earnings vs Market: SAFT's earnings are forecast to decline over the next 3 years (-4.8% per year).

High Growth Earnings: SAFT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if SAFT's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if SAFT's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if SAFT's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: SAFT's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: SAFT's earnings growth over the past year (58.2%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: SAFT earnings growth over the past year (58.2%) exceeded the Insurance industry 3.1%.


Return on Equity

High ROE: SAFT's Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: SAFT has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: SAFT has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Safety Insurance 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: SAFT has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SAFT's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: SAFT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SAFT has a sufficient allowance for bad loans.

Low Risk Liabilities: SAFT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SAFT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SAFT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SAFT has an appropriate level of bad loans.


Next Steps

Dividend

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

3.66%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SAFT's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SAFT's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (47.2%), 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

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

4.3yrs

Average management tenure


CEO

George Murphy (52yo)

3.5yrs

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

Compensation vs. Market: George's total compensation ($USD3.09M) is about average for companies of similar size in the US market ($USD4.08M).

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


Management Age and Tenure

4.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: SAFT's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

15.4yrs

Average Tenure

72.5yo

Average Age

Experienced Board: SAFT's board of directors are seasoned and experienced ( 15.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 17.6yrs
    • Compensation: US$1.67m
  • George Murphy (52yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$3.09m
  • James Berry (59yo)

    Vice President of Underwriting

    • Tenure: 4.3yrs
    • Compensation: US$1.39m
  • John Drago (52yo)

    Vice President of Marketing

    • Tenure: 3.7yrs
  • Christopher Whitford

    Controller

    • Tenure: 4.8yrs

Board Members

  • Peter Manning (80yo)

    Director

    • Tenure: 16.1yrs
    • Compensation: US$160.05k
  • David McKown (81yo)

    Director

    • Tenure: 16.9yrs
    • Compensation: US$155.05k
  • David Brussard (67yo)

    Chairman of the Board

    • Tenure: 15.6yrs
    • Compensation: US$210.05k
  • Frederic Lindeberg (78yo)

    Director

    • Tenure: 15.2yrs
    • Compensation: US$155.05k
  • George Murphy (52yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$3.09m
  • Thalia Meehan (58yo)

    Director

    • Tenure: 2.3yrs
    • 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$1.513b
  • 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 Analysis2019/10/14 01:25
End of Day Share Price2019/10/11 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.

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