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United Fire Group

Nasdaq:UFCS
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UFCS
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

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 48 days ago. More info.


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UFCS Share Price and Events
7 Day Returns
4.4%
NasdaqGS:UFCS
0.9%
US Insurance
1.4%
US Market
1 Year Returns
-11%
NasdaqGS:UFCS
14.9%
US Insurance
4.9%
US Market
UFCS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
United Fire Group (UFCS) 4.4% 3.6% 13.3% -11% 22.7% 63.8%
US Insurance 0.9% 3.2% 11.1% 14.9% 46.1% 47%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • UFCS underperformed the Insurance industry which returned 14.9% over the past year.
  • UFCS underperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
UFCS
Industry
5yr Volatility vs Market

Value

 Is United Fire Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of United Fire Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for United Fire Group.

NasdaqGS:UFCS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $37.90 * 4.9%
$1.84
Book Value of Equity per Share Median Book Value from the past 5 years. $37.90
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:UFCS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.69 (1 + (1- 21%) (1.62%))
0.798
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

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.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:UFCS Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (4.9% – 7.5%) * $37.90)
$-1.00
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-1.00 / (7.5% - 2.73%)
$-20.94
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $37.90 + $-20.94
$16.95
NasdaqGS:UFCS Discount to Share Price
Calculation Result
Value per share (USD) From above. $16.95
Current discount Discount to share price of $49.36
= -1 x ($49.36 - $16.95) / $16.95
-191.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of United Fire Group is above its future cash flow value.
Often investors are willing to pay a premium 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 earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are United Fire Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:UFCS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.05
NasdaqGS:UFCS Share Price ** NasdaqGS (2019-06-25) in USD $49.36
United States of America Insurance Industry PE Ratio Median Figure of 90 Publicly-Listed Insurance Companies 17.67x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of United Fire Group.

NasdaqGS:UFCS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:UFCS Share Price ÷ EPS (both in USD)

= 49.36 ÷ 1.05

46.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Fire Group is overvalued based on earnings compared to the US Insurance industry average.
  • United Fire Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does United Fire Group's expected growth come at a high price?
Raw Data
NasdaqGS:UFCS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
18.6%per year
United States of America Insurance Industry PEG Ratio Median Figure of 66 Publicly-Listed Insurance Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for United Fire Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on United Fire Group's assets?
Raw Data
NasdaqGS:UFCS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $37.95
NasdaqGS:UFCS Share Price * NasdaqGS (2019-06-25) in USD $49.36
United States of America Insurance Industry PB Ratio Median Figure of 119 Publicly-Listed Insurance Companies 1.23x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NasdaqGS:UFCS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:UFCS Share Price ÷ Book Value per Share (both in USD)

= 49.36 ÷ 37.95

1.3x

* Primary Listing of United Fire Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Fire Group is overvalued based on assets compared to the US Insurance industry average.
X
Value checks
We assess United Fire Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. United Fire Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is United Fire Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

  • No analysts cover United Fire Group, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is United Fire Group expected to grow at an attractive rate?
  • United Fire Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • United Fire Group's earnings growth is expected to exceed the United States of America market average.
  • United Fire Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:UFCS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:UFCS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 18.6%
NasdaqGS:UFCS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 3.7%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:UFCS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:UFCS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,202 1
2019-12-31 1,178 1
NasdaqGS:UFCS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,125 97 26
2018-12-31 1,070 110 2
2018-09-30 1,091 123 77
2018-06-30 1,069 124 47
2018-03-31 1,052 154 47
2017-12-31 1,053 170 45
2017-09-30 1,044 203 12
2017-06-30 1,030 245 42
2017-03-31 982 218 45
2016-12-31 996 214 49
2016-09-30 1,008 194 68
2016-06-30 1,017 180 76

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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.
Raw Data
NasdaqGS:UFCS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from United Fire Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:UFCS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31
NasdaqGS:UFCS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.05
2018-12-31 0.09
2018-09-30 3.08
2018-06-30 1.87
2018-03-31 1.87
2017-12-31 1.79
2017-09-30 0.46
2017-06-30 1.67
2017-03-31 1.78
2016-12-31 1.94
2016-09-30 2.69
2016-06-30 3.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if United Fire Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess United Fire Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
United Fire Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare United Fire Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • United Fire Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • United Fire Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • United Fire Group's 1-year earnings growth is negative, it can't be compared to the US Insurance industry average.
Earnings and Revenue History
United Fire Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from United Fire Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:UFCS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,124.91 26.41
2018-12-31 1,070.17 2.26
2018-09-30 1,091.46 76.85
2018-06-30 1,069.17 46.70
2018-03-31 1,052.25 46.65
2017-12-31 1,052.74 44.87
2017-09-30 1,043.92 11.65
2017-06-30 1,029.93 42.36
2017-03-31 981.96 45.28
2016-12-31 996.36 49.12
2016-09-30 1,007.78 67.98
2016-06-30 1,016.72 75.88
2016-03-31 1,062.12 87.87
2015-12-31 899.27 85.32
2015-09-30 1,009.41 93.03
2015-06-30 980.72 73.82
2015-03-31 957.47 69.49
2014-12-31 941.89 59.14
2014-09-30 920.44 50.87
2014-06-30 907.60 62.27
2014-03-31 894.64 67.08
2013-12-31 877.04 76.14
2013-09-30 861.37 47.20
2013-06-30 844.92 44.20
2013-03-31 824.85 43.42
2012-12-31 813.24 40.21
2012-09-30 791.48 59.52
2012-06-30 772.47 46.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • United Fire Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • United Fire Group used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
  • United Fire Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess United Fire Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is United Fire Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

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.
Net Worth
  • 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.
Balance sheet
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 checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • United Fire Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from United Fire Group Company Filings, last reported 2 months ago.

NasdaqGS:UFCS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 955.19 0.00 112.12
2018-12-31 888.38 0.00 77.87
2018-09-30 884.22 0.00 66.83
2018-06-30 964.60 0.00 115.72
2018-03-31 970.69 0.00 332.41
2017-12-31 973.37 0.00 112.58
2017-09-30 944.05 0.00 118.79
2017-06-30 962.59 0.00 153.04
2017-03-31 960.39 0.00 114.99
2016-12-31 941.88 0.00 109.40
2016-09-30 959.18 0.00 159.02
2016-06-30 961.03 0.00 137.44
2016-03-31 929.17 0.00 161.60
2015-12-31 878.90 0.00 123.60
2015-09-30 845.46 0.00 141.25
2015-06-30 831.94 0.00 113.54
2015-03-31 844.23 0.00 132.03
2014-12-31 817.42 0.00 111.68
2014-09-30 808.43 0.00 93.13
2014-06-30 826.27 0.00 112.26
2014-03-31 808.11 0.00 88.60
2013-12-31 782.83 0.00 105.42
2013-09-30 744.23 0.00 99.93
2013-06-30 734.38 0.00 96.12
2013-03-31 758.14 0.00 118.62
2012-12-31 729.18 0.00 123.64
2012-09-30 753.82 0.00 97.86
2012-06-30 735.36 45.00 117.33
  • United Fire Group has no debt.
  • United Fire Group had no debt 5 years ago.
  • United Fire Group has no debt, it does not need to be covered by operating cash flow.
  • United Fire Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess United Fire Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. United Fire Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.67%
Current annual income from United Fire Group dividends. Estimated to be 2.51% next year.
If you bought $2,000 of United Fire Group shares you are expected to receive $53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • United Fire Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • United Fire Group's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:UFCS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:UFCS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.24 1.00
2019-12-31 1.24 1.00
NasdaqGS:UFCS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-15 1.320 2.778
2019-02-15 1.240 2.749
2018-11-16 1.240 2.338
2018-11-07 1.240 2.483
2018-05-16 1.240 2.351
2018-02-23 1.120 2.316
2017-11-17 1.120 2.489
2017-08-18 1.120 2.507
2017-05-17 1.120 2.555
2017-02-17 1.000 2.337
2016-11-18 1.000 2.108
2016-08-19 1.000 2.386
2016-05-18 1.000 2.382
2016-02-19 0.880 2.065
2015-11-20 0.880 2.318
2015-08-21 0.880 2.462
2015-05-20 0.880 2.642
2015-02-20 0.800 2.621
2014-11-21 0.800 2.767
2014-08-15 0.800 2.731
2014-05-21 0.800 2.779
2014-02-21 0.720 2.491
2013-11-15 0.720 2.598
2013-08-16 0.720 2.380
2013-05-15 0.720 2.605
2013-02-15 0.600 2.257
2012-11-19 0.600 2.694
2012-08-20 0.600 2.582
2012-05-17 0.600 2.836
2012-02-24 0.600 3.276
2011-11-18 0.600 3.049
2011-08-19 0.600 3.400
2011-05-19 0.600 3.396
2011-02-18 0.600 3.031
2010-11-19 0.600 2.823
2010-08-20 0.600 2.870
2010-05-20 0.600 2.919
2010-02-19 0.600 3.120
2009-11-20 0.600 3.455
2009-11-09 0.600 3.478
2009-10-26 0.600 3.382

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of United Fire Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess United Fire Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can United Fire Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. United Fire Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of United Fire Group's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Randy Ramlo
COMPENSATION $3,131,279
AGE 57
TENURE AS CEO 12.1 years
CEO Bio

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 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.

CEO Compensation
  • Randy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • 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:

5.1
Average Tenure
57
Average Age
  • The average tenure for the United Fire Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Randy Ramlo

TITLE
President
COMPENSATION
$3M
AGE
57
TENURE
12.1 yrs

Dawn Jaffray

TITLE
EVP & CFO
COMPENSATION
$1M
AGE
51
TENURE
4.1 yrs

Mike Wilkins

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
55
TENURE
5.1 yrs

Barrie Ernst

TITLE
VP & Chief Investment Officer
COMPENSATION
$1M
AGE
64
TENURE
17.4 yrs

Neal Scharmer

TITLE
VP, General Counsel & Corporate Secretary
COMPENSATION
$880K
AGE
62
TENURE
18.1 yrs

Brian Frese

TITLE
CTO & VP
TENURE
3.6 yrs

Randy Patten

TITLE
Assistant Vice President of Finance & Investor Relations

Mike Sheeley

TITLE
Vice President of Corporate Marketing
AGE
57
TENURE
1.1 yrs

Tracy Bastian

TITLE
Vice President of Human Resources
TENURE
2.2 yrs

Jolene Grow

TITLE
Assistant VP & Underwriting Manager
TENURE
8.1 yrs
Board of Directors Tenure

Average tenure and age of the United Fire Group board of directors in years:

10.5
Average Tenure
62
Average Age
  • The average tenure for the United Fire Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jack Evans

TITLE
Chairman
COMPENSATION
$190K
AGE
70
TENURE
9.7 yrs

Randy Ramlo

TITLE
President
COMPENSATION
$3M
AGE
57
TENURE
11.4 yrs

Jim Noyce

TITLE
Vice Chairman of the Board
COMPENSATION
$186K
AGE
62
TENURE
4.4 yrs

Christopher Drahozal

TITLE
Director
COMPENSATION
$148K
AGE
56
TENURE
22.4 yrs

Mary Quass

TITLE
Director
COMPENSATION
$148K
AGE
68
TENURE
21.4 yrs

Kyle Skogman

TITLE
Director
COMPENSATION
$152K
AGE
67
TENURE
19.4 yrs

Scott Carlton

TITLE
Director
COMPENSATION
$140K
AGE
49
TENURE
7.1 yrs

George Milligan

TITLE
Director
COMPENSATION
$140K
AGE
61
TENURE
20.4 yrs

JP Besong

TITLE
Director
COMPENSATION
$131K
AGE
65
TENURE
6.3 yrs

Susan Voss

TITLE
Director
COMPENSATION
$134K
AGE
62
TENURE
5.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess United Fire Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. United Fire Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is United Fire Group, Inc.'s (NASDAQ:UFCS) 2.7% Dividend Sustainable?

While United Fire Group's 2.7% dividend yield is not the highest, we think its lengthy payment history is quite interesting. … Click the interactive chart for our full dividend analysis NasdaqGS:UFCS Historical Dividend Yield, June 25th 2019 Payout ratios Dividends are typically paid from company earnings. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It's not great to see that United Fire Group's have fallen at approximately 19% over the past five years. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Read This Before Judging United Fire Group, Inc.'s (NASDAQ:UFCS) ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for United Fire Group: 2.8% = US$26m ÷ US$955m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does United Fire Group Have A Good Return On Equity? … Combining United Fire Group's Debt And Its 2.8% Return On Equity While United Fire Group does have a tiny amount of debt, with debt to equity of just 0.021, we think the use of debt is very modest.

Simply Wall St -

Is United Fire Group, Inc.'s (NASDAQ:UFCS) CEO Paid Enough Relative To Peers?

Check out our latest analysis for United Fire Group How Does Randy Ramlo's Compensation Compare With Similar Sized Companies? … We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m. … The graphic below shows how CEO compensation at United Fire Group has changed from year to year.

Simply Wall St -

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

Simply Wall St -

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.

Simply Wall St -

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

Simply Wall St -

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.

Simply Wall St -

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

Simply Wall St -

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:?

Simply Wall St -

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

Simply Wall St -

Company Info

Description

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.

Details
Name: United Fire Group, Inc.
UFCS
Exchange: NasdaqGS
Founded: 1946
$1,244,006,900
25,202,733
Website: http://www.ufginsurance.com
Address: United Fire Group, Inc.
118 Second Avenue SE,
Cedar Rapids,
Iowa, 52401,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS UFCS Common Stock Nasdaq Global Select US USD 02. Jan 1980
Number of employees
Current staff
Staff numbers
1,172
United Fire Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 23:48
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/05/27
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.