Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
State Auto Financial. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
State Auto Financial's
is considered below, and whether this is a fair price.
Price based on past earnings
State Auto Financial's earnings available for a low price, and how does
this compare to other companies in the same industry?
State Auto Financial's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).
State Auto Financial's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
State Auto Financial's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
State Auto Financial
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
State Auto Financial's finances.
The net worth of a company is the difference between its assets and liabilities.
State Auto Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
State Auto Financial's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
State Auto Financial's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Michael Edward LaRocco, also known as Mike, has been the President, Chief Executive Officer and Director of State Auto Financial Corporation (“Company”) since May 2015 and its Chairman since January 2016. He serves as President and Chief Executive Officer at Bloomington Compensation Insurance Company. Mr. LaRocco has also served as President and Chief Executive Officer of State Auto Property & Casualty Insurance Company (“State Auto P&C”), Milbank Insurance Company (“Milbank”) and State Auto Insurance Company of Ohio (“SAOH”), each a wholly owned subsidiary of the Company, since May 2015 and as Chairman of State Auto P&C, Milbank and SAOH since January 2016. Mr. LaRocco has served as President, Chief Executive Officer and a Director of State Auto Mutual since May 2015. Prior to joining the State Auto Group, Mr. LaRocco was with Business Insurance Direct, LLC (“BID”), from December 2011 until April 2015. He was chief executive officer of Business Insurance Direct LLC. From January 2013 to July 2014, he was Chief Executive Officer of AssureStart Insurance Agency LLC. Mr. LaRocco served as President and Chief Executive Officer of Fireman’s Fund Insurance Company, a property and casualty insurance company, from March 2008 to July 2011. Previously, he was an executive for Safeco Insurance Companies, which are property and casualty insurance companies, from July 2001 to July 2006.
Mike's compensation has increased in line with State Auto Financial recently becoming profitable.
Mike's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
State Auto Financial
management team in years:
The tenure for the State Auto Financial management team is about average.
Senior VP & CFO
Senior VP and Chief Information & Strategy Officer
Senior VP of Commercial Lines & MD of State Auto Labs
Senior VP & Chief CARE Officer
VP & Chief Investment Officer
VP, Chief Accounting Officer & Treasurer
Vice President of Financial
Director of Investor Relations
Board of Directors Tenure
Average tenure and age of the
State Auto Financial
board of directors in years:
The tenure for the State Auto Financial board of directors is about average.
Is State Auto Financial Corporation's (NASDAQ:STFC) Future Growth Already Accounted For In Today's Price?
Looking at State Auto Financial Corporation’s (NASDAQ:STFC) fundamentals some investors are wondering if its last closing price of $34.45 represents a good value for money for this high growth stock. … View our latest analysis for State Auto Financial? … Analysts are predicting good growth prospects for State Auto Financial over the next couple of years
Should You Be Concerned About State Auto Financial Corporation's (NASDAQ:STFC) ROE?
Our data shows State Auto Financial has a return on equity of 1.6% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.016 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
If You Had Bought State Auto Financial Shares Three Years Ago You'd Have Made 59%
For example, the State Auto Financial Corporation (NASDAQ:STFC) share price is up 59% in the last three years, clearly besting than the market return of around 41% (not including dividends). … During three years of share price growth, State Auto Financial moved from a loss to profitability. … This free interactive report on State Auto Financial's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
Is State Auto Financial Corporation's (NASDAQ:STFC) CEO Pay Justified?
Mike LaRocco has been the CEO of State Auto Financial Corporation (NASDAQ:STFC) since 2015. … View our latest analysis for State Auto Financial … How Does Mike LaRocco's Compensation Compare With Similar Sized Companies?
What Does State Auto Financial Corporation's (NASDAQ:STFC) P/E Ratio Tell You?
To keep it practical, we'll show how State Auto Financial Corporation's (NASDAQ:STFC) P/E ratio could help you assess the value on offer. … Based on the last twelve months, State Auto Financial's P/E ratio is 48.28. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Did State Auto Financial Corporation (NASDAQ:STFC) Insiders Buy Up More Shares?
So we'll take a look at whether insiders have been buying or selling shares in State Auto Financial Corporation (NASDAQ:STFC). … The Last 12 Months Of Insider Transactions At State Auto Financial. … In total, State Auto Financial insiders bought more than they sold over the last year
Consider This Before Buying State Auto Financial Corporation (NASDAQ:STFC) For The 1.2% Dividend
Historically, State Auto Financial Corporation (NASDAQ:STFC) has paid dividends to shareholders, and these days it yields 1.2%. … Does State Auto Financial tick all the boxes of a great dividend stock? … See our latest analysis for State Auto Financial
Does State Auto Financial Corporation's (NASDAQ:STFC) Recent Track Record Look Strong?
Below, I will assess State Auto Financial Corporation's (NASDAQ:STFC) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Did STFC beat its long-term earnings growth trend and its industry. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -38%, indicating the rate at which STFC is growing has accelerated
Is State Auto Financial Corporation's (NASDAQ:STFC) CEO Overpaid Relative To Its Peers?
In 2015 Mike LaRocco was appointed CEO of State Auto Financial Corporation (NASDAQ:STFC). … How Does Mike LaRocco's Compensation Compare With Similar Sized Companies. … A first glance this seems like a real positive for shareholders, since Mike LaRocco is paid less than the average compensation paid by similar sized companies.
Should You Buy State Auto Financial Corporation (NASDAQ:STFC)?
State Auto Financial Corporation (NASDAQ:STFC), a insurance company based in United States,. … As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Today I will analyse the most recent data on State Auto Financial’s outlook and valuation to see if the opportunity still exists
State Auto Financial Corporation, through its subsidiaries, engages in writing personal and business insurance products. It operates through four segments: Personal Insurance, Commercial Insurance, Specialty Insurance, and Investment Operations. The Personal Insurance segment primarily provides personal automobile, homeowners insurance, and other personal insurance products. The commercial insurance segment primarily provides commercial automobile, commercial multi-peril, fire and allied, general liability, and workers’ compensation insurance covering small-to-medium sized commercial insurance market, as well as farm and ranch insurance. The Specialty Insurance segment provides commercial coverages that require specialized product underwriting, claims handling, or risk management services. The Investment Operations segment provides investment management services to affiliated insurance companies. The company markets its products primarily through independent agencies, including retail agencies and wholesale brokers. The company was founded in 1950 and is headquartered in Columbus, Ohio. State Auto Financial Corporation is a subsidiary of State Automobile Mutual Insurance Company.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.