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STFC

State Auto FinancialNasdaqGS:STFC Stock Report

Market Cap

US$2.3b

7D

0.4%

1Y

207.9%

Updated

03 Dec, 2021

Data

Company Financials +
STFC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends1/6

STFC Stock Overview

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

State Auto Financial Competitors

Chubb

NYSE:CB

US$78.2b

Progressive

NYSE:PGR

US$55.7b

Travelers Companies

NYSE:TRV

US$36.7b

Allstate

NYSE:ALL

US$31.1b

Price History & Performance

Summary of all time highs, changes and price drops for State Auto Financial
Historical stock prices
Current Share PriceUS$51.60
52 Week HighUS$51.87
52 Week LowUS$16.07
Beta0.37
1 Month Change0.019%
3 Month Change1.26%
1 Year Change207.88%
3 Year Change50.75%
5 Year Change98.31%
Change since IPO2,172.29%

Recent News & Updates

Shareholder Returns

STFCUS InsuranceUS Market
7D0.4%-1.7%-2.7%
1Y207.9%19.1%16.6%

Return vs Industry: STFC exceeded the US Insurance industry which returned 22.2% over the past year.

Return vs Market: STFC exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is STFC's price volatile compared to industry and market?
STFC volatility
STFC Average Weekly Movement0.5%
Insurance Industry Average Movement4.2%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: STFC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: STFC's weekly volatility has decreased from 27% to 0% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19502,025Mike LaRoccohttps://www.stateauto.com

State Auto Financial Corporation, through its subsidiaries, engages in writing personal and business insurance products in the United States. It operates through Personal Insurance, Commercial Insurance, and Investment Operations segments. The Personal Insurance segment primarily provides personal automobile, homeowners, and other personal insurance products.

State Auto Financial Fundamentals Summary

How do State Auto Financial's earnings and revenue compare to its market cap?
STFC fundamental statistics
Market CapUS$2.30b
Earnings (TTM)US$71.70m
Revenue (TTM)US$1.66b

32.0x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STFC income statement (TTM)
RevenueUS$1.66b
Cost of RevenueUS$1.55b
Gross ProfitUS$113.80m
ExpensesUS$42.10m
EarningsUS$71.70m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.61
Gross Margin6.86%
Net Profit Margin4.32%
Debt/Equity Ratio12.8%

How did STFC perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

25%

Payout Ratio

Does STFC pay a reliable dividends?

See STFC dividend history and benchmarks
When do you need to buy STFC by to receive an upcoming dividend?
State Auto Financial dividend dates
Ex Dividend DateDec 14 2021
Dividend Pay DateDec 28 2021
Days until Ex dividend9 days
Days until Dividend pay date23 days

Does STFC pay a reliable dividends?

See STFC dividend history and benchmarks

Valuation

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

32.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STFC ($51.6) is trading above our estimate of fair value ($6.38)

Significantly Below Fair Value: STFC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STFC is poor value based on its PE Ratio (32x) compared to the US Insurance industry average (10.6x).

PE vs Market: STFC is poor value based on its PE Ratio (32x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STFC is overvalued based on its PB Ratio (2.4x) compared to the US Insurance industry average (1.1x).


Future Growth

How is State Auto Financial forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-44.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STFC's earnings are forecast to decline over the next 3 years (-44.6% per year).

Earnings vs Market: STFC's earnings are forecast to decline over the next 3 years (-44.6% per year).

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

Revenue vs Market: STFC's revenue (1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: STFC's revenue (1% 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 STFC's Return on Equity is forecast to be high in 3 years time


Past Performance

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

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STFC has high quality earnings.

Growing Profit Margin: STFC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: STFC has become profitable over the past 5 years, growing earnings by 21.9% per year.

Accelerating Growth: STFC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: STFC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (39.8%).


Return on Equity

High ROE: STFC's Return on Equity (7.5%) is considered low.


Financial Health

How is State Auto Financial's financial position?


Financial Position Analysis

Short Term Liabilities: STFC's short term assets ($149.7M) do not cover its short term liabilities ($1.9B).

Long Term Liabilities: STFC's short term assets ($149.7M) do not cover its long term liabilities ($267.7M).


Debt to Equity History and Analysis

Debt Level: STFC's net debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: STFC's debt to equity ratio has reduced from 13.5% to 12.8% over the past 5 years.

Debt Coverage: STFC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: STFC's interest payments on its debt are well covered by EBIT (20.6x coverage).


Balance Sheet


Dividend

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

0.77%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 04 2021Ex Dividend DateDec 14 2021Dividend Pay DateDec 28 202114 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STFC's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: STFC's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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 low payout ratio (24.5%), STFC'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

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

6.3yrs

Average management tenure


CEO

Mike LaRocco (64 yo)

6.58yrs

Tenure

US$4,446,681

Compensation

Mr. Michael Edward LaRocco, also known as Mike, serves as the President, Chief Executive Officer and Director of State Auto Financial Corporation since May 8, 2015 and its Chairman since January 2016. He s...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.45M) is about average for companies of similar size in the US market ($USD3.72M).

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


Leadership Team

Experienced Management: STFC's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: STFC's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STFC 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

State Auto Financial Corporation's 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$2.297b
  • Shares outstanding: 44.51m
  • Website: https://www.stateauto.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:56
End of Day Share Price2021/12/03 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.