United Fire Group
Market Cap
US$1.2b
Last Updated
2020/01/20 23:49 UTC
Data Sources
Company Financials
Executive Summary
United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States.
Snowflake Analysis
Second-rate dividend payer with poor track record.
Similar Companies
Share Price & News
How has United Fire Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: UFCS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.8%
UFCS
1.7%
US Insurance
1.2%
US Market
1 Year Return
-12.5%
UFCS
20.1%
US Insurance
24.2%
US Market
Return vs Industry: UFCS underperformed the US Insurance industry which returned 20.4% over the past year.
Return vs Market: UFCS underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| UFCS | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | 1.7% | 1.2% |
| 30 Day | 4.7% | 1.6% | 3.5% |
| 90 Day | 0.9% | 5.8% | 11.7% |
| 1 Year | -10.0%-12.5% | 23.2%20.1% | 26.9%24.2% |
| 3 Year | 14.3%0.6% | 38.1%27.4% | 53.0%43.2% |
| 5 Year | 90.8%59.9% | 74.7%53.7% | 75.3%56.0% |
Price Volatility Vs. Market
How volatile is United Fire Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
How Much Of United Fire Group, Inc. (NASDAQ:UFCS) Do Insiders Own?1 month ago | Simply Wall St
It Might Not Be A Great Idea To Buy United Fire Group, Inc. (NASDAQ:UFCS) For Its Next Dividend2 months ago | Simply Wall St
Is United Fire Group, Inc.'s (NASDAQ:UFCS) 3.0% Dividend Sustainable?Valuation
Is United Fire Group undervalued compared to its fair value and its price relative to the market?
135.3x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: UFCS ($44.39) is trading above our estimate of fair value ($25.59)
Significantly Below Fair Value: UFCS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: UFCS is poor value based on its PE Ratio (129.1x) compared to the Insurance industry average (16.4x).
PE vs Market: UFCS is poor value based on its PE Ratio (129.1x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate UFCS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: UFCS is overvalued based on its PB Ratio (1.2x) compared to the US Insurance industry average (1.2x).
Next Steps
Future Growth
How is United Fire Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
6.5%
Forecasted Insurance industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as United Fire Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Take a look at our analysis of UFCS’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Explore growth companies in the Insurance industry.
Past Performance
How has United Fire Group performed over the past 5 years?
-22.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UFCS has high quality earnings.
Growing Profit Margin: UFCS's current net profit margins (0.7%) are lower than last year (7%).
Past Earnings Growth Analysis
Earnings Trend: UFCS's earnings have declined by -22.8% per year over the past 5 years.
Accelerating Growth: UFCS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: UFCS had negative earnings growth (-88.7%) over the past year, making it difficult to compare to the Insurance industry average (-11.3%).
Return on Equity
High ROE: UFCS's Return on Equity (0.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is United Fire Group's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: UFCS has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if UFCS's debt is covered by short term assets.
Financial Institutions Analysis
Asset Level: UFCS's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if UFCS has a sufficient allowance for bad loans.
Low Risk Liabilities: UFCS reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if UFCS has an acceptable proportion of non-loan assets held.
Low Risk Deposits: UFCS has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if UFCS has an appropriate level of bad loans.
Next Steps
Dividend
What is United Fire Group's current dividend yield, its reliability and sustainability?
2.84%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: UFCS's dividend (2.97%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: UFCS's dividend (2.97%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: UFCS's dividends per share have been stable in the past 10 years.
Growing Dividend: UFCS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (372.3%), UFCS's dividend payments are not 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
What is the CEO of United Fire Group's salary, the management and board of directors tenure and is there insider trading?
5.2yrs
Average management tenure
CEO
Randy Ramlo (58yo)
12.7yrs
Tenure
US$3,131,279
Compensation
Mr. Randy Allan Ramlo serves as President and Chief Executive Officer of United Fire & Casualty Company. Mr. Ramlo has served as President and Chief Executive Officer of United Fire Group, Inc. since May 2Â ...
CEO Compensation Analysis
Compensation vs Market: Randy's total compensation ($USD3.13M) is about average for companies of similar size in the US market ($USD2.53M).
Compensation vs Earnings: Randy's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.2yrs
Average Tenure
58yo
Average Age
Experienced Management: UFCS's management team is seasoned and experienced (5.2 years average tenure).
Board Age and Tenure
11.1yrs
Average Tenure
63yo
Average Age
Experienced Board: UFCS's board of directors are seasoned and experienced ( 11.1 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Mike Wilkins (56yo)
Executive VP & COO
- Tenure: 5.7yrs
- Compensation: US$1.59m
Neal Scharmer (63yo)
VP, General Counsel & Corporate Secretary
- Tenure: 18.7yrs
- Compensation: US$879.51k
Barrie Ernst (65yo)
VP & Chief Investment Officer
- Tenure: 18yrs
- Compensation: US$1.16m
Randy Ramlo (58yo)
President
- Tenure: 12.7yrs
- Compensation: US$3.13m
Dawn Jaffray (52yo)
EVP & CFO
- Tenure: 4.7yrs
- Compensation: US$1.25m
Mike Sheeley (58yo)
Vice President of Corporate Marketing
- Tenure: 1.7yrs
Jolene Grow
Assistant VP & Underwriting Manager
- Tenure: 8.7yrs
Brian Frese
CTO & VP
- Tenure: 4.2yrs
Randy Patten (45yo)
Assistant VP & Controller
- Tenure: 4.1yrs
Tracy Bastian
Vice President of Human Resources
- Tenure: 2.8yrs
Board Members
Jim Noyce (63yo)
Vice Chairman of the Board
- Tenure: 5yrs
- Compensation: US$186.23k
Christopher Drahozal (57yo)
Independent Director
- Tenure: 23yrs
- Compensation: US$148.48k
George Milligan (62yo)
Independent Director
- Tenure: 21yrs
- Compensation: US$140.48k
Mary Quass (69yo)
Independent Director
- Tenure: 22yrs
- Compensation: US$148.36k
Jack Evans (71yo)
Chairman
- Tenure: 10.3yrs
- Compensation: US$190.48k
Kyle Skogman (68yo)
Independent Director
- Tenure: 20yrs
- Compensation: US$152.48k
Randy Ramlo (58yo)
President
- Tenure: 12.7yrs
- Compensation: US$3.13m
JP Besong (66yo)
Independent Director
- Tenure: 6.9yrs
- Compensation: US$131.48k
Susan Voss (63yo)
Independent Director
- Tenure: 5.9yrs
- Compensation: US$134.48k
Scott Carlton (50yo)
Independent Director
- Tenure: 7.7yrs
- Compensation: US$140.48k
Company Information
United Fire Group, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: United Fire Group, Inc.
- Ticker: UFCS
- Exchange: NasdaqGS
- Founded: 1946
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$1.164b
- Shares outstanding: 25.03m
- Website: https://www.ufginsurance.com
Number of Employees
Location
- United Fire Group, Inc.
- 118 Second Avenue SE
- Cedar Rapids
- Iowa
- 52401
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| UFCS | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jan 1980 |
Biography
United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers’ compensation, and surety coverage; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners. The company sells its products through a network of independent agencies. United Fire Group, Inc. was founded in 1946 and is headquartered in Cedar Rapids, Iowa.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/20 23:49 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.