United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States.
The last earnings update was 12 days ago.
Discounted Cash Flow Calculation for NasdaqGS:UFCS using Excess Returns Model Model
The calculations below outline how an intrinsic value for United Fire Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
United Fire Group
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
United Fire Group's
is considered below, and whether this is a fair price.
Price based on past earnings
United Fire Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
United Fire Group's earnings are expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).
United Fire Group's revenue is expected to grow by 3.7% 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.
United Fire Group'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.
United Fire Group
has a total score of
0/6, 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
United Fire Group's finances.
The net worth of a company is the difference between its assets and liabilities.
United Fire Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
United Fire Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
United Fire Group'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 28x 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. Randy Allen 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 2007 and also has been its Director since 2008. He served as Chief Operating Officer of United Fire Group, Inc. from May 2006 to May 2007 and also served as its Executive Vice President from May 2004 to May 2007 and Vice President of Fidelity and Surety from November 2001 to May 2004. He also worked as an Underwriting Manager in United Fire Group, Incorporation’s Great Lakes region. He joined United Fire Group in 1984. He holds numerous professional insurance designations including Chartered Property and Casualty Underwriter, Associate in Fidelity and Surety Bonding, Associate in Management, and Associate in Risk Management. Mr. Ramlo is a long-time community leader and supporter, with service to many diverse organizations. He serves as a Director of Cedar Rapids Metro Economic Alliance, an economic development organization, a Member of the Board of trustees of the Cedar Rapids Museum of Art; The University of Northern Iowa School of Business Executive Advisory Board; The Iowa College Foundation Board of Trustees; and Trustee of the Eastern Iowa Branch of the Juvenile Diabetes Research Foundation International.
Randy's compensation has been consistent with company performance over the past year.
Randy's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
United Fire Group
management team in years:
The average tenure for the United Fire Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Senior VP & CFO
Executive VP & COO
VP & Chief Investment Officer
VP, General Counsel & Corporate Secretary
CTO & VP
Assistant Vice President of Finance & Investor Relations
Vice President of Corporate Marketing
Vice President of Human Resources
Assistant Vice President and Underwriting Manager
Board of Directors Tenure
Average tenure and age of the
United Fire Group
board of directors in years:
The average tenure for the United Fire Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
How Much Of United Fire Group, Inc. (NASDAQ:UFCS) Do Insiders Own?
So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … With a market capitalization of US$1.1b, United Fire Group is a decent size, so it is probably on the radar of institutional investors. … We can zoom in on the different ownership groups, to learn more about UFCS
Did United Fire Group's (NASDAQ:UFCS) Share Price Deserve to Gain 53%?
While United Fire Group made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. … In the last 5 years United Fire Group saw its revenue grow at 3.8% per year. … While it's hard to say just how much value the company added over five years, the annualised share price gain of 8.9% seems about right.
A Note On United Fire Group, Inc.'s (NASDAQ:UFCS) ROE and Debt To Equity
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows United Fire Group has a return on equity of 8.7% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Why We Think United Fire Group, Inc. (NASDAQ:UFCS) Could Be Worth Looking At
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on United Fire Group, Inc. … (NASDAQ:UFCS) due to its excellent fundamentals in more than one area.
Could United Fire Group, Inc.'s (NASDAQ:UFCS) Investor Composition Influence The Stock Price?
So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … With a market capitalization of US$1.3b, United Fire Group is a decent size, so it is probably on the radar of institutional investors. … See our latest analysis for United Fire Group
4 Days Left Until United Fire Group Inc (NASDAQ:UFCS) Trades Ex-Dividend
Investors who want to cash in on United Fire Group Inc's (NASDAQ:UFCS) upcoming dividend of US$0.31 per share have only 4 days left to buy the shares before its ex-dividend date, 29 November 2018, in time for dividends payable on the 14 December 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine United Fire Group's latest financial data to analyse its dividend characteristics. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?
What Did United Fire Group Inc's (NASDAQ:UFCS) CEO Take Home Last Year?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Randy Ramlo's Compensation Compare With Similar Sized Companies. … Our data indicates that United Fire Group Inc is worth US$1.3b, and total annual CEO compensation is US$2.6m
Where United Fire Group Inc (NASDAQ:UFCS) Stands In Terms Of Earnings Growth Against Its Industry
Today I will assess UFCS's latest performance announced on 30 June 2018 and compare these figures to its longer term trend and industry movements. … Did UFCS's recent earnings growth beat the long-term trend and the industry. … UFCS's trailing twelve-month earnings (from 30 June 2018) of US$47m has.
These Factors Make United Fire Group Inc (NASDAQ:UFCS) An Interesting Investment
United Fire Group Inc (NASDAQ:UFCS) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … that has been able to sustain great financial health over the past
Does United Fire Group Inc's (NASDAQ:UFCS) PE Ratio Warrant A Sell?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While this makes UFCS appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio.
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.
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