NasdaqGS:UFCS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: UFCS's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

UFCS

1.5%

US Insurance

2.8%

US Market


1 Year Return

-47.2%

UFCS

-5.8%

US Insurance

20.9%

US Market

Return vs Industry: UFCS underperformed the US Insurance industry which returned -5.8% over the past year.

Return vs Market: UFCS underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

UFCSIndustryMarket
7 Day-0.6%1.5%2.8%
30 Day5.2%14.2%11.1%
90 Day-10.6%9.5%6.5%
1 Year-45.5%-47.2%-3.2%-5.8%23.6%20.9%
3 Year-44.6%-51.6%9.5%1.5%47.3%37.6%
5 Year-29.6%-41.4%46.7%28.4%94.3%72.9%

Long-Term 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

Valuation

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

0.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate UFCS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate UFCS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: UFCS is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: UFCS is unprofitable, so we can't compare its PE Ratio to the US market.


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 good value based on its PB Ratio (0.7x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

146.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UFCS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: UFCS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: UFCS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: UFCS's revenue is expected to decline over the next 3 years (-0.09% per year).

High Growth Revenue: UFCS's revenue is forecast to decline over the next 3 years (-0.09% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UFCS's Return on Equity is forecast to be low in 3 years time (1.7%).


Next Steps

Past Performance

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

-58.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UFCS is currently unprofitable.

Growing Profit Margin: UFCS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UFCS is unprofitable, and losses have increased over the past 5 years at a rate of 58.8% per year.

Accelerating Growth: Unable to compare UFCS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UFCS is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (6%).


Return on Equity

High ROE: UFCS has a negative Return on Equity (-15.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is United Fire Group's financial position?


Financial Position Analysis

Short Term Liabilities: UFCS's short term assets ($751.4M) do not cover its short term liabilities ($2.2B).

Long Term Liabilities: UFCS's short term assets ($751.4M) exceed its long term liabilities ($16.5M).


Debt to Equity History and Analysis

Debt Level: UFCS is debt free.

Reducing Debt: UFCS has not had any debt for past 5 years.

Debt Coverage: UFCS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: UFCS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.92%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: UFCS's dividend (4.92%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: UFCS's dividend (4.92%) is in the top 25% of dividend payers in the US market (4.08%)


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: UFCS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: UFCS's dividends in 3 years are not forecast to be well covered by earnings (315.7% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Randy Ramlo (59 yo)

13.5yrs

Tenure

US$2,266,669

Compensation

Mr. Randy Allan Ramlo serves as President and Director 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 ha...


CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD2.27M) is about average for companies of similar size in the US market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Randy Ramlo
President13.5yrsUS$2.27m0.28%
$ 1.6m
Dawn Jaffray
EVP & CFO5.5yrsUS$1.00m0.021%
$ 124.7k
Michael Wilkins
Executive VP & COO6.5yrsUS$1.41m0.16%
$ 944.8k
Neal Scharmer
VP, General Counsel & Corporate Secretary19.5yrsUS$835.99k0.067%
$ 390.0k
Robert Cataldo
VP and Chief Investment & Strategy Officer0.42yrno data0.021%
$ 119.3k
Brian Frese
CTO & VP5yrsno datano data
Randy Patten
Assistant VP & Controller4.92yrsno datano data
Michael Sheeley
VP & Chief Marketing Officer2.5yrsno datano data
Tracy Bastian
Vice President of Human Resources3.58yrsno datano data
Jolene Grow
Assistant VP & Underwriting Manager9.5yrsno datano data
Patrick Kane
Asst. VP & Region Marketing Manager9.5yrsno datano data
Corey Ruehle
VP & Chief Claims Officer1.75yrsno data0.027%
$ 158.6k

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: UFCS's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randy Ramlo
President13.5yrsUS$2.27m0.28%
$ 1.6m
James Noyce
Independent Vice Chairman of the Board5.83yrsUS$191.00k0.067%
$ 387.2k
Christopher Drahozal
Independent Director23.83yrsUS$152.00k1.67%
$ 9.7m
George Milligan
Independent Director21.83yrsUS$136.00k0.17%
$ 959.3k
Mary Quass
Independent Director22.83yrsUS$151.50k0.081%
$ 471.3k
Jack Evans
Chairman11.08yrsUS$193.00k0.25%
$ 1.4m
Kyle Skogman
Independent Director20.83yrsUS$155.00k0.15%
$ 848.1k
John-Paul Besong
Independent Director7.75yrsUS$134.00k0.050%
$ 290.9k
Susan Voss
Independent Director6.75yrsUS$138.00k0.042%
$ 244.0k
Scott Carlton
Independent Director8.5yrsUS$150.25k0.52%
$ 3.0m
Brenda Clancy
Independent Director4yrsUS$142.00k0.025%
$ 145.6k
Lura McBride
Independent Director0.50yrno data0.0094%
$ 54.4k

9.8yrs

Average Tenure

64yo

Average Age

Experienced Board: UFCS's board of directors are considered experienced (9.8 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.


Top Shareholders

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$580.224m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UFCSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 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 pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:43
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.