NasdaqGS:STFC

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Executive Summary

State Auto Financial Corporation, through its subsidiaries, engages in writing personal and business insurance products in the United States. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has State Auto Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STFC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: STFC's weekly volatility has decreased from 11% to 5% over the past year.


Market Performance


7 Day Return

4.8%

STFC

3.2%

US Insurance

-1.4%

US Market


1 Year Return

-36.4%

STFC

5.8%

US Insurance

37.1%

US Market

Return vs Industry: STFC underperformed the US Insurance industry which returned 3.5% over the past year.

Return vs Market: STFC underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

STFCIndustryMarket
7 Day4.8%3.2%-1.4%
30 Day0.2%7.1%1.6%
90 Day14.5%10.1%7.3%
1 Year-35.0%-36.4%8.7%5.8%40.2%37.1%
3 Year-31.2%-34.3%26.0%16.6%62.5%52.1%
5 Year-10.5%-17.3%77.7%55.6%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is State Auto Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is State Auto Financial undervalued compared to its fair value and its price relative to the market?

60.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate STFC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate STFC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: STFC is poor value based on its PE Ratio (60.4x) compared to the US Insurance industry average (14.4x).

PE vs Market: STFC is poor value based on its PE Ratio (60.4x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: STFC is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: STFC is good value based on its PB Ratio (0.8x) compared to the US Insurance industry average (1x).


Next Steps

Future Growth

How is State Auto Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

60.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STFC's forecast earnings growth (60.6% per year) is above the savings rate (2%).

Earnings vs Market: STFC's earnings (60.6% per year) are forecast to grow faster than the US market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STFC's revenue (4.2% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: STFC's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STFC's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has State Auto Financial performed over the past 5 years?

-16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STFC has high quality earnings.

Growing Profit Margin: STFC's current net profit margins (0.9%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: STFC's earnings have declined by 16.5% per year over the past 5 years.

Accelerating Growth: STFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STFC had negative earnings growth (-84.7%) over the past year, making it difficult to compare to the Insurance industry average (-2.5%).


Return on Equity

High ROE: STFC's Return on Equity (1.3%) is considered low.


Next Steps

Financial Health

How is State Auto Financial's financial position?


Financial Position Analysis

Short Term Liabilities: STFC's short term assets ($168.7M) do not cover its short term liabilities ($1.8B).

Long Term Liabilities: STFC's short term assets ($168.7M) do not cover its long term liabilities ($318.7M).


Debt to Equity History and Analysis

Debt Level: STFC's debt to equity ratio (12.1%) is considered satisfactory.

Reducing Debt: STFC's debt to equity ratio has increased from 11.4% to 12.1% over the past 5 years.

Debt Coverage: STFC's debt is well covered by operating cash flow (40.1%).

Interest Coverage: STFC's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

What is State Auto Financial current dividend yield, its reliability and sustainability?

2.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STFC's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: STFC's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.75%).


Stability and Growth of Payments

Stable Dividend: STFC's dividend payments have been volatile in the past 10 years.

Growing Dividend: STFC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (133.4%), STFC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STFC's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Mike LaRocco (63 yo)

5.75yrs

Tenure

US$5,042,967

Compensation

Mr. Michael Edward LaRocco, also known as Mike, has been the President, Chief Executive Officer and Director of State Auto Financial Corporation since May 2015 and its Chairman since January 2016. He serve...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD5.04M) is above average for companies of similar size in the US market ($USD2.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael LaRocco
Chairman5.75yrsUS$5.04m0.26%
$ 2.1m
Steven English
Senior VP & CFO14.17yrsUS$2.05m0.094%
$ 743.9k
Gregory Tacchetti
Senior VP and Chief Information & Strategy Officer5.5yrsUS$1.48m0.045%
$ 357.4k
Kim Garland
Senior VP of Personal & Commercial Lines and MD of State Auto Labs5.5yrsUS$1.64m0.42%
$ 3.3m
Paul Stachura
Senior VP and Chief Claims & Risk Engineering Officer5.42yrsUS$1.26m0.084%
$ 669.9k
Scott Jones
VP & Chief Investment Officer8.92yrsno data0.023%
$ 179.1k
Matthew Pollak
VP, Chief Accounting Officer & Treasurer7.83yrsno data0.010%
$ 79.8k
Tara Shull
Vice President of Financialno datano datano data
Natalie Schoolcraft
Director of Investor Relationsno datano datano data
Melissa Centers
Senior VP5.25yrsno data0.044%
$ 350.6k
Cathy Miley
Vice President of Corporate Developmentno dataUS$212.06kno data
Kyle Anderson
Assistant Vice President of Marketing & Communication5yrsno datano data

5.5yrs

Average Tenure

56yo

Average Age

Experienced Management: STFC's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael LaRocco
Chairman5.75yrsUS$5.04m0.26%
$ 2.1m
Setareh Pouraghabagher
Independent Director3.67yrsUS$188.04k0%
$ 0
David Meuse
Independent Lead Director5.75yrsUS$203.04k0.15%
$ 1.2m
Dwight Smith
Directorno datano datano data
Sharon Roberts
Independent Director19.08yrsUS$183.04k0.0023%
$ 18.1k
Robert Baker
Independent Director13.75yrsUS$193.04k0.0064%
$ 50.7k
Michael Fiorile
Independent Director5.75yrsUS$193.04k0%
$ 0
James Kunk
Directorno datano datano data
Michelle Lantow
Directorno datano data0.0023%
$ 18.1k
Marsha Ryan
Directorno datano datano data
Kym Hubbard
Independent Director4.42yrsUS$183.04k0.00034%
$ 2.7k
Eileen Mallesch
Independent Director10.5yrsUS$198.04k0.0087%
$ 68.8k

5.8yrs

Average Tenure

65yo

Average Age

Experienced Board: STFC's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STFC 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

State Auto Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: State Auto Financial Corporation
  • Ticker: STFC
  • Exchange: NasdaqGS
  • Founded: 1950
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$795.029m
  • Shares outstanding: 43.90m
  • Website: https://www.stateauto.com

Number of Employees


Location

  • State Auto Financial Corporation
  • 518 East Broad Street
  • Columbus
  • Ohio
  • 43215-3976
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STFCNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 1991

Biography

State Auto Financial Corporation, through its subsidiaries, engages in writing personal and business insurance products in the United States. It operates through three segments: Personal Insurance, Commerc...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:29
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
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.