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SIGI

Selective Insurance Group NasdaqGS:SIGI Stock Report

Last Price

US$76.35

Market Cap

US$4.6b

7D

-0.5%

1Y

-0.2%

Updated

19 May, 2022

Data

Company Financials +
SIGI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends4/6

SIGI Stock Overview

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

Selective Insurance Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Selective Insurance Group
Historical stock prices
Current Share PriceUS$76.35
52 Week HighUS$94.35
52 Week LowUS$73.90
Beta0.83
1 Month Change-11.59%
3 Month Change-2.85%
1 Year Change-0.24%
3 Year Change6.63%
5 Year Change52.40%
Change since IPO1,496.86%

Recent News & Updates

May 10
Analysts Just Shaved Their Selective Insurance Group, Inc. (NASDAQ:SIGI) Forecasts Dramatically

Analysts Just Shaved Their Selective Insurance Group, Inc. (NASDAQ:SIGI) Forecasts Dramatically

Market forces rained on the parade of Selective Insurance Group, Inc. ( NASDAQ:SIGI ) shareholders today, when the...

Apr 03
Here's Why I Think Selective Insurance Group (NASDAQ:SIGI) Is An Interesting Stock

Here's Why I Think Selective Insurance Group (NASDAQ:SIGI) Is An Interesting Stock

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

Shareholder Returns

SIGIUS InsuranceUS Market
7D-0.5%-0.3%0.1%
1Y-0.2%-0.1%-12.7%

Return vs Industry: SIGI underperformed the US Insurance industry which returned 1.6% over the past year.

Return vs Market: SIGI exceeded the US Market which returned -11.5% over the past year.

Price Volatility

Is SIGI's price volatile compared to industry and market?
SIGI volatility
SIGI Average Weekly Movement3.9%
Insurance Industry Average Movement5.2%
Market Average Movement8.0%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

Stable Share Price: SIGI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SIGI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19262,440John 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 property, personal property, and/or earnings due to the property's loss; 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 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$4.65b
Earnings (TTM)US$341.70m
Revenue (TTM)US$3.42b

13.5x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SIGI income statement (TTM)
RevenueUS$3.42b
Cost of RevenueUS$2.54b
Gross ProfitUS$879.27m
Other ExpensesUS$537.58m
EarningsUS$341.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.66
Gross Margin25.70%
Net Profit Margin9.99%
Debt/Equity Ratio18.0%

How did SIGI perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

19%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SIGI ($76.35) is trading below our estimate of fair value ($160.59)

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 (13.5x) compared to the US Insurance industry average (11.2x).

PE vs Market: SIGI is good value based on its PE Ratio (13.5x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: SIGI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SIGI is overvalued based on its PB Ratio (1.8x) compared to the US Insurance industry average (1x).


Future Growth

How is Selective Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIGI's forecast earnings growth (12.7% per year) is above the savings rate (1.9%).

Earnings vs Market: SIGI's earnings (12.7% per year) are forecast to grow faster than the US market (12.4% per year).

High Growth Earnings: SIGI's earnings are forecast to grow, but not significantly.

Revenue vs Market: SIGI's revenue (10.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: SIGI's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SIGI has high quality earnings.

Growing Profit Margin: SIGI's current net profit margins (10%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: SIGI's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: SIGI's earnings growth over the past year (1.1%) is below its 5-year average (20.1% per year).

Earnings vs Industry: SIGI earnings growth over the past year (1.1%) exceeded the Insurance industry -2.6%.


Return on Equity

High ROE: SIGI's Return on Equity (12.6%) is considered low.


Financial Health

How is Selective Insurance Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SIGI's short term assets ($2.1B) do not cover its short term liabilities ($6.6B).

Long Term Liabilities: SIGI's short term assets ($2.1B) exceed its long term liabilities ($903.3M).


Debt to Equity History and Analysis

Debt Level: SIGI's net debt to equity ratio (8.8%) is considered satisfactory.

Reducing Debt: SIGI's debt to equity ratio has reduced from 27.5% to 18% over the past 5 years.

Debt Coverage: SIGI's debt is well covered by operating cash flow (146.6%).

Interest Coverage: SIGI's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet


Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.47%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SIGI's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: SIGI's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (4.07%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.7%), SIGI's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.5%), SIGI's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

7.8yrs

Average management tenure


CEO

John Marchioni (51 yo)

8.67yrs

Tenure

US$5,435,625

Compensation

Mr. John Joseph Marchioni, CPCU, is Chairman of the Board of Selective Insurance Group Inc. since May 2022. He has been the President of Selective Insurance Group Inc. since September 10, 2013 and serves a...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD5.44M) is about average for companies of similar size in the US market ($USD6.81M).

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 (7.8 years average tenure).


Board Members

Experienced Board: SIGI's board of directors are considered experienced (7.8 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

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
  • Implied Market Cap: US$4.648b
  • Shares outstanding: 60.35m
  • Website: https://www.selective.com

Number of Employees


Location

  • Selective Insurance Group, Inc.
  • 40 Wantage Avenue
  • Branchville
  • New Jersey
  • 7890
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.