company background image
SIGI

Selective Insurance GroupNasdaqGS:SIGI Stock Report

Market Cap

US$4.5b

7D

-8.0%

1Y

19.6%

Updated

30 Nov, 2021

Data

Company Financials +
SIGI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends5/6

SIGI Stock Overview

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States.

Selective Insurance Group Competitors

Progressive

NYSE:PGR

US$54.4b

Travelers Companies

NYSE:TRV

US$36.2b

Allstate

NYSE:ALL

US$31.2b

Cincinnati Financial

NasdaqGS:CINF

US$18.4b

Price History & Performance

Summary of all time highs, changes and price drops for Selective Insurance Group
Historical stock prices
Current Share PriceUS$75.54
52 Week HighUS$91.46
52 Week LowUS$62.25
Beta0.83
1 Month Change-3.61%
3 Month Change-10.11%
1 Year Change19.56%
3 Year Change17.57%
5 Year Change85.37%
Change since IPO1,479.92%

Recent News & Updates

Sep 16
Do Selective Insurance Group's (NASDAQ:SIGI) Earnings Warrant Your Attention?

Do Selective Insurance Group's (NASDAQ:SIGI) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

SIGIUS InsuranceUS Market
7D-8.0%-2.2%-0.9%
1Y19.6%25.9%23.3%

Return vs Industry: SIGI exceeded the US Insurance industry which returned 23.5% over the past year.

Return vs Market: SIGI exceeded the US Market which returned 21.3% over the past year.

Price Volatility

Is SIGI's price volatile compared to industry and market?
SIGI volatility
SIGI Average Weekly Movement3.4%
Insurance Industry Average Movement4.0%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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

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

About the Company

FoundedEmployeesCEOWebsite
19262,400John Marchionihttps://www.selective.com

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. It operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. The company offers property insurance products, which covers the financial consequences of accidental loss of an insured’s real and/or personal property, or earnings; and casualty insurance products that covers the financial consequences of employee injuries in the course of employment, and bodily injury and/or property damage to a third party as a result of an insured’s negligent acts, omissions, or legal liabilities, as well as flood insurance products.

Selective Insurance Group Fundamentals Summary

How do Selective Insurance Group's earnings and revenue compare to its market cap?
SIGI fundamental statistics
Market CapUS$4.54b
Earnings (TTM)US$424.87m
Revenue (TTM)US$3.31b

10.7x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SIGI income statement (TTM)
RevenueUS$3.31b
Cost of RevenueUS$2.33b
Gross ProfitUS$975.36m
ExpensesUS$550.49m
EarningsUS$424.87m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.07
Gross Margin29.49%
Net Profit Margin12.84%
Debt/Equity Ratio17.1%

How did SIGI perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

14%

Payout Ratio

Valuation

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

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIGI ($77.15) is trading below our estimate of fair value ($137.24)

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


Price To Earnings Ratio

PE vs Industry: SIGI is poor value based on its PE Ratio (10.9x) compared to the US Insurance industry average (10.6x).

PE vs Market: SIGI is good value based on its PE Ratio (10.9x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: SIGI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SIGI is overvalued based on its PB Ratio (1.7x) compared to the US Insurance industry average (1.2x).


Future Growth

How is Selective Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIGI's earnings are forecast to decline over the next 3 years (-3.5% per year).

Earnings vs Market: SIGI's earnings are forecast to decline over the next 3 years (-3.5% per year).

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

Revenue vs Market: SIGI's revenue (7.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: SIGI's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIGI's Return on Equity is forecast to be low in 3 years time (11.5%).


Past Performance

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

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIGI has high quality earnings.

Growing Profit Margin: SIGI's current net profit margins (12.8%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: SIGI's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: SIGI's earnings growth over the past year (111.2%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: SIGI earnings growth over the past year (111.2%) exceeded the Insurance industry 39.8%.


Return on Equity

High ROE: SIGI's Return on Equity (14.8%) is considered low.


Financial Health

How is Selective Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: SIGI's short term assets ($2.3B) do not cover its short term liabilities ($6.6B).

Long Term Liabilities: SIGI's short term assets ($2.3B) exceed its long term liabilities ($948.8M).


Debt to Equity History and Analysis

Debt Level: SIGI's net debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: SIGI's debt to equity ratio has reduced from 26.9% to 17.1% over the past 5 years.

Debt Coverage: SIGI's debt is well covered by operating cash flow (143.1%).

Interest Coverage: SIGI's interest payments on its debt are well covered by EBIT (19.3x coverage).


Balance Sheet


Dividend

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

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIGI's dividend (1.45%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: SIGI's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.58%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.1%), SIGI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIGI's dividends in 3 years are forecast to be well covered by earnings (19.5% payout ratio).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

John Marchioni (51 yo)

1.67yrs

Tenure

US$5,130,406

Compensation

Mr. John Joseph Marchioni, CPCU, has been the President of Selective Insurance Group Inc. since September 10, 2013 and serves as Chief Executive Officer since February 1, 2020. Mr. Marchioni served as Chie...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD5.13M) is about average for companies of similar size in the US market ($USD5.22M).

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


Leadership Team

Experienced Management: SIGI's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: SIGI's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SIGI insiders have only sold shares 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

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


Key Information

  • Name: Selective Insurance Group, Inc.
  • Ticker: SIGI
  • Exchange: NasdaqGS
  • Founded: 1926
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$4.542b
  • Shares outstanding: 60.12m
  • Website: https://www.selective.com

Number of Employees


Location

  • Selective Insurance Group, Inc.
  • 40 Wantage Avenue
  • Branchville
  • New Jersey
  • 07890-1000
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:56
End of Day Share Price2021/11/30 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.