United Fire Group (NasdaqGS:UFCS) - Share price, News & Analysis

UFCS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	2/6

UFCS Stock Overview

United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States.

Rewards

PE ratio (8.8x) is below the US market (16x)

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 21.8% per year for the next 3 years

Dividend of 1.91% is not well covered by earnings

United Fire Group Competitors

Chubb

NYSE:CB

US$90.0b

Cincinnati Financial

NasdaqGS:CINF

US$20.4b

Arch Capital Group

NasdaqGS:ACGL

US$17.5b

Fidelity National Financial

NYSE:FNF

US$11.5b

Price History & Performance

Summary of all time highs, changes and price drops for United Fire Group
Historical stock prices
Current Share Price	US$31.49
52 Week High	US$33.01
52 Week Low	US$19.85
Beta	0.093
1 Month Change	6.49%
3 Month Change	9.72%
1 Year Change	-2.87%
3 Year Change	-34.14%
5 Year Change	-26.51%
Change since IPO	525.17%

Shareholder Returns

	UFCS	US Insurance	US Market
7D	6.7%	0.7%	0.5%
1Y	-2.9%	1.6%	-11.5%

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

Return vs Market: UFCS exceeded the US Market which returned -8.1% over the past year.

Price Volatility

Is UFCS's price volatile compared to industry and market?
UFCS volatility
UFCS Average Weekly Movement	4.6%
Insurance Industry Average Movement	5.1%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: UFCS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UFCS's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	1,086	Randy Ramlo	https://www.ufginsurance.com

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; and commercial multiple peril and inland marine insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers’ compensation, and fidelity and surety coverage; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners.

United Fire Group Fundamentals Summary

How do United Fire Group's earnings and revenue compare to its market cap?
UFCS fundamental statistics
Market Cap	US$780.68m
Earnings (TTM)	US$90.24m
Revenue (TTM)	US$1.01b

8.8x

P/E Ratio

0.8x

P/S Ratio

Is UFCS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UFCS income statement (TTM)
Revenue	US$1.01b
Cost of Revenue	US$897.62m
Gross Profit	US$112.85m
Other Expenses	US$22.61m
Earnings	US$90.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.59
Gross Margin	11.17%
Net Profit Margin	8.93%
Debt/Equity Ratio	6.0%

How did UFCS perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

17%

Payout Ratio

Valuation

Is United Fire Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

8.77x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate UFCS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate UFCS's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: UFCS is good value based on its PE Ratio (8.8x) compared to the US Insurance industry average (11.5x).

PE vs Market: UFCS is good value based on its PE Ratio (8.8x) compared to the US market (16x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: UFCS is good value based on its PB Ratio (0.9x) compared to the US Insurance industry average (1.1x).

Future Growth

How is United Fire Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-21.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: UFCS's earnings are forecast to decline over the next 3 years (-21.8% per year).

Earnings vs Market: UFCS's earnings are forecast to decline over the next 3 years (-21.8% per year).

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

Revenue vs Market: UFCS's revenue (4.3% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: UFCS's revenue (4.3% 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 UFCS's Return on Equity is forecast to be high in 3 years time

Past Performance

How has United Fire Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UFCS has high quality earnings.

Growing Profit Margin: UFCS became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: UFCS's earnings have declined by 22.7% per year over the past 5 years.

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

Earnings vs Industry: UFCS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (-2.6%).

Return on Equity

High ROE: UFCS's Return on Equity (10.8%) is considered low.

Financial Health

How is United Fire Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: UFCS's short term assets ($617.1M) do not cover its short term liabilities ($2.0B).

Long Term Liabilities: UFCS's short term assets ($617.1M) exceed its long term liabilities ($57.3M).

Debt to Equity History and Analysis

Debt Level: UFCS has more cash than its total debt.

Reducing Debt: Insufficient data to determine if UFCS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: UFCS's debt is well covered by operating cash flow (24%).

Interest Coverage: UFCS's interest payments on its debt are well covered by EBIT (28.3x coverage).

Balance Sheet

Dividend

What is United Fire Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UFCS's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: UFCS's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (3.97%).

Stability and Growth of Payments

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

Growing Dividend: UFCS's dividend payments have not increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.7%), UFCS's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: UFCS is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

4.5yrs

Average management tenure

CEO

Randy Ramlo (60 yo)

15yrs

Tenure

US$2,387,206

Compensation

Mr. Randy Allan Ramlo serves as President and Director of United Fire & Casualty Company. Mr. Ramlo has been the President, Principal Executive Officer and Chief Executive Officer of United Fire Group, Inc...

CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD2.39M) is below average for companies of similar size in the US market ($USD3.93M).

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

Leadership Team

Experienced Management: UFCS's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: UFCS's board of directors are seasoned and experienced ( 13.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: UFCS 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31